Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-09-30
PANIC IN COTTON,
Wild Scenes on Exchanges al
the South
FALSE LIVERPOOL hDVICES,
They Report Terrific Jumps and Cause
Heavy Buying.
NEW ORLEANS sUsPENDs BUSINESS
IL Declares Null and Void All Future
transactions of the Day-Efort
Now 10 Fix Responsibility for the
Misleading CnbIegrams.
NEW ORLEANS sUsPEyDs BUSINESS
II Declares Null and Void All Future

NEW ORLEANS, September 2o.-The
widest panic ever witnessed on the floor
Of the New Orleans Cotton Exchange oc-
CURED 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 a gigantic conspiracy to
swindle the cotton exchanges of tho
country.
The panic was due to an apparent ter
rife jump in the price of cotton, based on
alleged Liverpool advices, and it was
roughly estimated that $4,000 had been
lost on local transactions as a 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 10 be Bit
terly contested. and litigation is likely
to be the final outcome.
Future business here will not be re-
sume1 until Monday.
THE LIVERPOOL LEAPS.
The market at Liverpool opened 1892
lower on spot, and asa down on de-
| liveries, as compared with yesterdays
values, and continued without material
| change for some time. Then the wires
! became hot with the tales Of rapidly-ad-
vanclng prices. They started up - of
a 9th at a time at first. and then
jumped 1-6l, 1-2-G4, 2-6i, and 21-2-6l in
quick order, until the net advance up
TO $3.50 showed 41-6i. In the mean time,
New Orleans had opened, under the in
huence Of the Liverpool advance, p to q
points higher than last evenings closing,
and quickly climbed up 30 points addi-
| tional Then the explosion came.
With an unaccountable advance Of "A
| points facing them, operators began 10
| receive cablegrams from Liverpool ask
ing the reason for the heavy gain in
| prices in this market, and stating that
| values in the English market still stood
at about the opening figures. These cable
! advices. i'm the face or from 1000 20
/ 5000 bales sold and purchased, threw
/ the operators into a frenzy of excitement
and they surged shouting. yelling. and
! gesticuatng. about the ring. as Presi-
! dent Parker rushed to his desk and sum
moned without the usual formalities a
meeting Of the Exchange.
BUSINESS SUSPENDED.
Amid tumultuous scenes, a motion TO
| suspend business was gasped out by a
! wildly-excited broker, and with a tremen-
dous shout it was unanimously carried.
| The news Of the excitement on the floor
| I'm the mean time had spread like wild
| fire through the business districts. and
| Carondelet street in the vicinity Of the
| Exchange 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
| advance. set his wires TO work with mes
sages Of inquiry 10 New York, and re-
/ plies came promptly directing that all
| specials IN reference TO Liverpool fuctua-
| tions be suppressed until they could be
| confirmed.
In the face OF these reports and adj
vices from Liverpool, President Parker
| convened the directors early in the after
noOn and it was decided 10 close the fu-
| Wre market until Monday, in order TO
| permit the brokers 10 recover from the
| shock and investigate matters. fixing the
| responsibility for the conspiracy. At the
same meeting the board summoned its
| counsel, T.. d. Saunders, and asked an
| opinion from him as 10 the legality of the
contracts that had been made under the
| misapprehensiOn of facts.
CONTRACTS DECLARED OFF.
Having been informed that all con
| tracts made this day" said Mr.. Saunders
| were based on false reports from Liver
! pool as TO price, I advise you that the
! consent essential TO the valid contract
was wanting, and the contracts are there
! fore void"
| Upon the basis Of this opinion the con-
! tracts were declared off.
The curbstone brokers-or. at least
! some of them-prOtested against the ac-
| ton of the board in declaring contracts
void. and claimed that they were not gov
| erned 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 af-
| ternoon of a resort To litigation 10 deter
mine whether the contracts should stand
or fall.
| FIRST SUSPENSION IN YEARS.
TO day is the first time in the history
OF thirty years that the New Orleans Cot
| ton Exchange has been compelled. TO sus-
| pend business. During the panic of lS9.
J ~
| but it failed The Exchange took the
ground then that suspension would injure
| il in the markets Of the world. The d.
rectors feel that to-day's suspension was
unavoidable and excusable.
COTTON EXCHANGE STATEMENT
NEW ORLEANS. September 9Th,
! following statement was tonight giver
| out by the New orleans Cotton Exchange
| ON consequence of false cablegrams
| from Liverpool. giving enormous ad
yances I'm that market. large transactions
were made in New Orleans futures 10
| day. with points all over the country, al
/ heavy improvements In prices Discovery
/ nj the falsity Of the cablegrams created
| irextricable confusion, necessltatlng
| suspension Of business temporarily In or
| dor 10 enable brokers and commission
merchants to straiShteh tneH accounts
with correspondents.
''Between the hours Of $50 and $50 a
| NJ five cablegrams were received, show
ing between 1903 and 22i =. NJ QAVerpoo
| time), continuous declines OF l-z-oi Oh
ca, in all of 21-2-64. The Liverpool mar
Ii was then reported as advancing, ant
| iron, S.5i A. NJ TO 1910 a. NJ, New Or
! i.ars time dispatches We're received
| showing an aggregate advance OF S-oi
| or "a net advance between $40 A. NJ an(
and 1910 A. NJ. OF - l~Z-o4' e9uai 10 dOou
2l-2 cents per pound
WILD EXCITEMENT.
"surh an unheard-of advance created
| ,,,n giidest excitement. and before con
"sdictory advces could be obtained larg'
| fIocks Of cotton had changed hancs. Ina
~ Interests of all parties might be pro
tncted the Board OF Directors OF the New
orleans Cotton Exchange, under tne 'uies
o,dered "A suspension Of business am
o',h.eouently under proper legal advice
6eclared ali transactions in cotton, Do li
moi and futures. based on the false iu 10
| ,stions null and void. The justice Oh I'M
nositfon will be apparent. -. o,,,ta,
"All OF the Liverpool Dispatches I'm t6
came through the regular oii"i''''