The times. [volume] (Richmond, Va.) 1890-1903, 1899-09-30
COTTON EXCHANGE
PANIC STRICKEN
Fake Quotations Set the
Brokers Wild.
LIVERPOOL ADVICES.
OF an Advance Of Eighty Eight Points
the Cause.
OPERATIONS ARE SUSPENDED.
On the New Orleans Exchange TO Al
low Disentanglcmeut of Transac-
tions-AII Deals Declared on.
The Trouble Caused by
Misunderstanding the
Quotations.
OPERATIONS ARE SUSPENDED.

NEW ORLEANS. Sept. 29.-The widest
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 suspension OF
future business. pending the investiga-
ton OF what at the moment was as
sumed to be a gigantic conspiracy to
swlndle the Cotton Exchanges in this
country.
The panic was due TO an apparent ter
rifle jump in the price OF cotton, based
on alleged Liverpool advices and 1t was
roughly estimated that $4,000 had been
lost on local transactions as result.
Later I'm the day the Exchange. after re-
ceiving legal advices declared null and
void all future transactions OF the day.
| This act on. however, promises to bo
| bitterly contested and litigation IS ike
| ly TO be the final outcome.
Future business here Will not be re-
sumed until Monday.
The market at Liverpool opened 1882
lower on spot and 4-6i down on deliver
les, as comoared with yesterdays values.
and continued without material change
for some time.
THE TROUBLE BEGINS.
Then the wires became hot with the
tales Of rapidly advancing prices. They
started up one-half Of a sixty-fourth at
a time at first, and then jumped one
sixty-fourth. one half sixty-fourth. two
| sixty-fourths and two and one half sixty
I'll al
vance up to $40 showed forty-one sixty
fourths. In the meantime New Orleans
mad opened under the influence Of the
Liverpool advance q to "A points higher
than last evenings closing. and quickly
| climbed up 30 points additional Then the
explosion came. with an accountable
advance OF "a points facing them opera
| tors began 10 receive cablegrams from
| Liverpool asking the reason for the heavy
| gain I'm prices I'm this market and stating
that the values i'm the English market
still stood stll at about the opening fig
| ures These cable advices in the face OF
from 10000 to $1,000 bales sold and pur-
chased. threw the operators into a frenzy
Of excitement and they surged shouting.
| yelling and gestlculating about the ring
as President Parker rushed to his desk
and summoned without the usual formal
tiles a meeting of the Exchange.
Amid tumultous scenes a motion to sus-
| pend business was gasped out by a wildly
excited broker. and with a tremendous
shout it was Unanimously carried. The
news Of the excitement on the floor in the
meantime had spread like wildhra
| through the business districts and Ca
rondalet street. I'm the vicinity Of the Ex-
| change and the bucket shops was soon
| thronged with excited men. Manager
| West, Of the Western Union Company, as
| soon as he got wind of the sensational ad-
vance set his wires TO work with messages
| OF inquiry TO New York. replies came
promptly directing that all specials in re-
| ference to Liverpool fluctuations be sup
pressed until they could be confirmed.
MARKETS CLOSED.
In the face Of these reports and ad-
vices from Liverpool President Parker
convened the directors early in the after
! noon and it was decided 10 close the fu-
ture market until Monday IN order 10 per
nit the brokers TO recover from the shock
and investigate the matters. fixing the re-
sponsibility for the conspiracy. Al tho
same meeting the Board summoned it,
counsel. T.. ID. Saunders. and asked an
opinion from him as 20 the legality Of the
contracts that had been made under the
misapprehension Of facts.
HAVING lffu ilA'i iNNN ft'N u.s.
tracts made this day said Mr.. Saunders,
"were based on false reports from Liver
pool as 10 price / advise YOU that the con-
sent essential TO the valid contract was
wanting and the contracts are therefore
void"
Upon the basis Of this opinion the con-
tracts were declared OFF. The curbstone
brokers. or al least some Of them, pro-
tested against the action Of the Board in
declaring contracts void ana claimed tnat
they were not governed by the Exchange
Other brokers were likewise OF me opln-
ion that the Exchange had exceeded It's
authority and threats were freely made
during the afternoon OF resort TO lti-
cation TO determine whether the con-
tracts should stand or fall.
To. dav is The first time In the history of
thirty years that the New orleans Cot
ton Exchange has been compelled 10
srspend business During the panic Of
lSq3 a similar attempt TO suspend was
made hut failed The exchange took the
ground that suspension would injure II
i'm the markets OF the world The direc-
tors feel that to-days suspension was un-
avoidable and excusahle.
SAVANNAH GA, Sept. @.-The news
that the cotton market had gone up
points in Liverpool created great excite
mtnf fO-NlN on the DIV AliildH i@NAii'f'1~ 80
Nothing ike II has been known here
The whole foor was filed with local oper-
ators and foreign exporters. large
amount OF cotton was ordered by some
operators on the strength Of the news
Many farmers and merchants In the
country were notified by wire TO Duy
The New York market being closed ior
the Dewey Day holiday, complicated the
situation.
one man ordered 5000 bales. and esti-
mated his nroat at $50 900. 1t Is not
known how many Of his orders were ac-
copied. Brokers rushed to the telegraph
otfices to send messages to interior rep
resenta,ives to buy everything In sight
II is feared this has been done, and r.
A cu,ts a prominent broker announced
that he alone had bought 5000 bales at
cents or ihereabouts. The Cotton Ex-
cnanee officials have had the Board with
,na .srake" figures on Il photographed
ATLANTA CAUTIOUS.
ATLANTA. GA. Sept S.-When the