Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-09-29
EXCHANGE IN PANIC
Fraudulent Quotations on Cotton Sent
to New Orleans.
ALL BUSINESS WAS SUSPENDED
Price Reported as Having Advanced
One Cent Pound.
NEW YORK EXPLANATION
NEW YORK EXPLANATION

NEW ORLEANS, September 2o-Tntense
excitement prevails on the cotton exchange
here, and the directors of the exchange
have met and suspended business. The
New York market Is closed today. and the
only quotations that were to come this
morning to guide the local investors We're
from Liverpool. The market had scarcely
opened when the operators became para
lyZed by the advices that clicked from over
the ocean.
1t showed futures advancing in leaps and
bounds. In half an hour the reports show
ed that the Liverpool market had jumped
nearly a cent. The whole exchange went
wild. the excitement spreading to the crowd
about the doors of the building. At 10
O'Clock a meeting of the directors was
called and prompt action was taken sus-
pending all business.
Operators unable to explain the ire
mendous jump, and the common belief on
the floor is that the wires have been tapped
and that gigantic swindling game is afoot
somewhere. Private cables are going to
liverpool by dozens, seeking Information
Conflicting Private Advices.
While the telegraph wires We're bringing
the news of the advances at Liverpool, prt-
vate cables to prominent local cotton firms
were bearing the news that there had been
little or no change from yesterday in the
Liverpool market This at once aroused
the suspicious of the operators and caused
the nasty meeting of the directors
me action CT the directors in ordering a
suspension of business checked panic but
only temporarily alayed the excitement,
ana there is suppressed anxiety to know
the solution of the puzzle
During the thirty years of it's existence
this Is the first time that the New Orleans
cotton exchange has been forced to order a
suspension of all business. In 1883. during
me panic. motion to suspend business
was offered. but was defeated because the
New orleans cotton exchange felt it would
be discredited before the world If it s1,s-
pended. The directors officially announce
that today's suspension is due to fraud
Quotations at Liverpool.
Liverpool spots opened 3-32d down. Liver
pool deliveries opened 1854 to 4-t4 down.
AT 2:o3 pm. the market stood 1854 lower
than the opening. Then the jumps started
until, when the action of the exchange
finally suspended business, the Liverpool
advance had reached 41-G4. The New Or
leans market opened twenty-four points
aEove yesterday, and under the Influence
OF the phenomenal Liverpool advance went
up thirty points additional, making a total
OF hfty-four points. On the basis of 81 a
point that represents a total Of $40 on
every contract of 1Go bales. Operators es-
innate on sales of 4o.WtD bales before BUSH
ness was suspended the total loss suffered
here is about S1US,WD.
Explanation From New York.
The commercial news bureau of the
Western Union Telegraph Company has
sent out the following explanation in con-
nection with the suspension of the New
Orleans cotton exchange:
The special Liverpool fluctuations today
the movement should probably have been
MADE against the closing of
terday, each movement to be made separ-
ately as they came and not to be added
collectively.
The trouble is probably caused by mis-
understanding to the manner of using the
movement. GARDNER IRVING
Commercial News Bureau"