The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-09-30
A PANIC
ON COTTON
EXCHANGE
New Orleans, Ending In Its sus'
pension, Caused By False
Liverpool Cablegrams.
4 WILD DAY FOR OPERATORS.
All Contracts for Futures De.
elared Void. Conspiracy tobe
Thoroughly Investigated,

Thoroughly Investigated,
NEW ORLEANS, Sept 29.-The wild
est panic ever witnessed on the floor of
the New Orleans Cotton Exchange
occurred to-day shortly after business
opened, and caused In the midst of the
intense excitement, the complete sus-
pension Of future business, pending the
investigation OF what at the moment
was assumed to be gigantic consplr-
acy to swlndle the cotton exchanges OF
the country. The panic was due to an
apparent terrific jump in the price OF
cotton, based on alleged Liverpool sd-
vices, and 1t was roughly estimated
that $4,000 had been lost on local
transactions as q result. Later In the
day the exchange, after receiving legal
advice, declared null and void all future
transactions of the day. This action,
however, promises to be bitterly cou-
tested, and litigation is likely to be the
final outcome. Future business here
will not be resumed until Monday.
The market at Liverpool opened s-52d
lower on spots, and 4-64d down on de-
lIverles, as compared with yesterdays
values, and continued without material
change for some time. Then the wires
became hot with tales Of rapidly ad-
vancing prices. They started up one
half Of a slxty-fourth at a time. and
then jumped 1-64. 11k-64. 2-6492 1854 in
quick order, until the net advance up
to 9:45 local time showed 41-6i. In the
meantime New Orleans had opened un-
der the influence of Liverpool advance
2l to "a points higher than last even
ing's closing. and quickly climbed 30
points additional. Then the explosion
came.
Unnccountable Advance.
with an unaccountable advance of
"a points facing them. operators began
to receive cablegrnms from Liverpool
asking the reason for the heavy gain
In prices in this market, and stating
that values in the English market still
stood about at the opening figures.
These cable adyices in the faceot-from
10000 to $4,000 bales sold and purchased
threw the operators Into frenzy of ex-
oltement, and they surged, shouting,
yelling and gesticulatIng about the
ring as President Parker rushed to his
desk and summoned, without the usual
formallties, a meeting of the exchange.
Amid tumultuous scenes. a motion to
suspend business was gasped out by a
wildly excited broker, and with tre-
mendeus shout II was unanimously
carried. The news of the excitement on
the floor in the meantime had spread
like wildfIre through the business dis
tricts. and Carondolet street, in the
vicinity Of the exchanges and the
bucketshOps, were soon thronged with
excited men. Manager West, OF the
Western Union Company, as soon as he
got wind OF the sensational advance, set
his wires to work with messages OF in
quIry to New York. Replies came
promptly that all specials in reference
to Liverpool fluctuations be suspended
until they could be confirmed by the 4
p. m. report.
In the face Of these reports and the
udvIces from Liverpool, President
Parker convened the directors early in
the afternoon, and It was then con-
cIuded to close the future market until
Monday. in order to permit the brokers
to recover from their shock and enable
an Investigation to be concluded fixing
the blame for the remarkable blunder-
Ing or the responsibility for the con-
spIracy. At the same meeting the
board summoned Its counsel, E. D..
Saunders, and asked an opinion from
him us to the legality of the contracts
that had been made under the mIsap-
prehensIon of facts.
All Contracts on.
Having been Informed that all con-
tracts made this day." said Mr.. saun-
dsrS, 'werc based on false reports from
Liverpool, as to price, advise you that
the consent essential to a valid contract
was wanting, and the contracts are
therefore void"
Upon the basis of this opinion the
contracts were declared OF. The curb
stone brokers, or at least some OF them,
protested against the action OF the
board In declaring contracts void, and
claimed that they were not governed
by the exchange. other brokers were
likewise of the opinion that the ex-
change had exceeded Its authority, and
threats were freely made during the
afternoon OF resort to litigation to de-
termlne whether the contracts should
stand or fall.
To-day is tho first time in Its history
of thirty years that the New Orleans
Cotton Exchange has been compelled
to suspend business. During tho panic
OF 1898, n similar attempt to suspend
was made. but failed. The exchange
took the ground then that suspension
would lniuro II in the markets Of the
world. The directors feel that to-duy's
suspension was unavoidable and cxcus-
able,
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