The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-30
COTTON TRADE FOOLED.
FALSE QUOTATIONS MADE IN NEW
ORLEANS AND BOSTON

Made Out an Enormous Rise in Prices in
Liverpool, whereas There Was Really
Slight Decline-New York and Other
Points Get Right Figures - The Assoc
ciated Press supplied the Figures.
What was pronounced by cotton brokers In
this city to be the most barefaced swindle ever
perpetrated in their trade was the subject OF
agitated comment yesterday in New York. New
Orleans. Boston and Fall River. Intentional
or not IL was disastrous to short interests
The Liverpool market opened 1854 OF penny
lower. fell An points more, and closed at
net decline OF points. These quotations were
correctly received In New York and were dis
tributed here The New York market was
closed
The dispatches received In New Orleans.
Providence and Boston from Liverpool. how
ever, reported advances In rapid succession Of
two points or more at q time until there was an
alleged total rise OF 3S-64ths to 40-64ths OF
penny or about 100 points in American m oney.
that Is. nearly N cents pound. or 1928
bale The common opinion among brokers
was that the wires had bsen tapped by persons
DESTROYS 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 704. an
! advance Of 20 points over THURSDAY night
But this was denied. January reached us.
rise OF SO points in New Orleans; but "a Is told
| in the New Orleans dispatches. the shorts did
not lose BY the fraud. 1t Is believed that a
committee OF the New York Cotton Exchange
will make a rigid investigation with view OF
| placing the blame whore 1t belongs and OF In
| s,itu.ing measures for the prompt and rigor-
| GUS pun lshment OF any ono who may be found
| guilty.
At the Commercial News Bureau OF the
| Western Union Telegraph Company. which
| oirculates the foreign stock quotations in this
| country, 1t was said yesterday afternoon that
| the company was conducting an investigation
! into the origin Of the incorrect quotations in
New Orleans and elsewhere. and that salts
| factory explanation would be forthcoming
| within forty EIGHT hours. The notion OF the
cotton brokers that the wires had been tapped
and the real quotations suppressed while the
| false ones were sent ont. was secuted. The
man in charge OF the office at that timo had
not seen the following bulletin. which was
sent out over the name Of Gardner Irving OF
the Commercial News Bureau earlier In tt q
| day:
"The special Liverpool fluctuations to-day
The movement should probably have been
made against the closing prices OF yesterday
| each movemen to be made separately as they
| came and not to be added collectively. The
trouble was caused probably by misunder'
standinG as to the manner Of using the move
ment."
| When this was shown to the man in charge o.
the bureau in tine afternoon he said he did moi
know what it meant. He was asked what wal
the technical meaning OF the word move
ment" in the dispatch He said he didn'
| aal-a bot hart ha
quotations came to New York directly and were
distributed here. and again replied that he die
not know
The cotton quotations furnished nv the West
ernU MON TelegraphComrary TO the varouseN
changes throughout the United States are pro
cured by tile telegraph company from the Asso
ciated Prpss. To save cable tolls the quotation
are sent from Liverpool in complicated ctrhe
form. which necessitates much care in trans
lauOr. Tive mere change Of a letter In cod
word or a mistake in CHANGING at the five fig
ures each word represents. each figure repre-
senting a quotation. will caus. very matera
change in the quotations a co ei in Liverpool
The quotations come to New York and ar
distributed over different wires to variou
parts OF the United States. Boston ana ProN
dence are in what ia called the Eastern division
| New Orleans is in the Southern division. Tn
two divisions get their quotations over en-
| tirely separate wires. II wire tapping wa
done it must have been done by two sets c
men on the two sets OF wires simultaneously
All almost incredibly difficult operation.
man. toIrrahy familiar with the work OF tn
Commercial News Bureau thus explained MI
Irving's bulletin:
81 take II to meaa." he said. that some in \
perienced man or men who did not understan
the code in which the cables were received fror
Liverpool in this city. added each varyin
ing quotation to the one preceding 1t instead {
taking each one as separate and independer
quotation; in other worl Is thai an experience
operator entirely misunderstood the cable dis
patches and nnocently sent out misleading RI
ports If am right .nowever.in thus expIainin
Mr. Irving's ex plan alton. it is still i'm possible
understand how the quotations were correctl
!. distributed in New York. but were sent out ov'
different wires to New Orleans and Boston wit
identiealy the same fa!shcations."
, COTTON EICH4SGEs IN PANIC.