The times., 1899-09-30
A FURRY IN COTTON.
Alleged Fraud I'm TeIegraphfe Re-
ports Causes Great Losses.

| ports Causes Great LOSSES
NEW YORK, Sept 2s.-what was pro-
nounced by cotton brokers in this city to
be the most barefaced swindIe ever perpe-
| trated in their trade was the subject of agi-
tated comment today in New York. New
Orleans, Boston, and Fall FLYER. Inten-
tional or not, it was disastrous TO the short
interests. The Liverpool market opened
164d lower, fell 4 1-2 points more. and
closed at net decline of points. These
quotations were correctly received in New
York and were distributed here The New
York exchange was closed. The dispatches
received in New Orleans. Providence. and
Boston from Liverpool. however, reported
. advances in rapid succession OF ? points or
more at time, until there was an alleged
| total rise OF 3S-64d to 40-64d. or about 120
points in American money that is. nearly
Ia cents pound or S6-25 bale
The common opinion among brokers was
that the wire had been tapped By persons
desirous Of squeezing the shorts in the
cities that received the false reports. Great
indignation was expressed here that the
cotton trade of the country should have
been disgraced by what seemed TO be so
fragrant an outrage. There were rumors
that January had sold here at as high as
Thursday night But this was denied.
January reached lis, a rise Of ifty-eight
points in New Orleans, but as is told in
the New Orleans dispatches. the shorts
did not lose by the fraud. It is believed
that committee of the New York Cotton
Exchange will make a rigid investigation
with view of placing the blame where it
belongs, and OF instituting measures for
the prompt and rigorous punishment of
anyone who may be found guilty
NEW ORLEANS, Sept 29--In eonse-
quence of some telegraphie frauds Derpe-
trated, it is believed, in New York, where
/ Dewey Day and the general suspension OF
business gave the eonspirators splendid
opportunity, wild panic prevailed in the
| New Orleans cotton exchange this morn
| ing, compelling the closure Of the ex-
| change for the first time in it's history,
and resulting in the decision of the board
of directors that all contracts made during
| the panic should be null and void. because
of the fraud. This decision prevented
many heavy losses here, but il means liti-
cation of colossal proportions. If as it is
| believed. similar frauds were perpetrated
| in the other Southern States the losses
will mount up into the millions. The
| panic was due to the terrific Jump in the
| price of cotton, based upon Liverpool ad-
vices, and ii is estimated that some SIZE. 900
was lost on local transactions, or would
| have been had not the board of directors
ultimately declared all contracts null ana
void.
At o'clock January cotton opened at
| 6.S1 and by 9:45 it had jumped amid a
whirlwind of excitement to 7.12. March
contracts opened at 6.s7, against 6-67, last
nights closing, and by 9:45 O'Clock had
| leaped to 7.21, an advance OF 54 points in
less than an hour. In this time it is esti-
mated that some 40. 900 TO so 600 bales of
cotton had changed hands. The most fren-
zied excitement prevailed.
| The most probable theory is that the
wires of the telegraph company had been
tapped. taking advantage OF New Yorks 5
Dewey holiday closing. and that 1t was q
| deep laid long-fostered and wei executed
plan to rob by the wholesale
The cotton quotations furnished I oy the
| Western Union Telegraph Company TO tae
various exchanges throughout the country
are prepared by the telegraph company
from the Associated Press. To save cable
| tolls the quotations are sent from Liver
| pool in complicated cipher form, which
necessitates much care in translation. The
! mere change Of letter in a code word
or mistake in glancing at the five figures
each word represents each figure repre-
senting a quotation will cause a very ma
terial change in the quotations as coded
| in Liverpool.
ATLANTA. Sept 29.-The faIsihed cable
| reports which caused such a furry in the
| cotton market today set the speculative
element in Atlanta wild The exchanges
| were continually crowded with excited men
and Murphy s. Co. one OF the biggest firms
in the South. had orders to sell as many
| as 10000 bales, but being somewhat sus-
| picious OF the rapid advance. these orders
| were declined. In all about 5000 bales
| were sold, but the sales viii not stand