The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-09-30
UPSET BY BOGUS QUOTATIONS.
COTTON MARKET DEMORALIZED BY
FAKE LIVERPOOL REPORTS.

Nearly 3 Cents Reported by Liv-
erpoOI Observation-Disclosures Of
Orders sent to Interior Points and
Many Buyers Believed to Have
Been Caught. Some of Them Heav-
iIy-EGOrts Made to Recall Orders
as soon as Fake Was Discovered.
Rigid Investigation to Deter
mine the Responsibility for the
Fraud.
The cotton market in Savannah was
~Teatly excited and demoralized yesterday
" dispatches from Liverpool indicating
that there had been an extraordinary and
Unprecedented advance in the price of cot
ton. From the first dispatch showing a
rise until the close of The Liverpool ex-
change, a period of an hour and half
the rise shown by the dispatches approx
mated cents.
Naturally there was the most intense ex-
element among cotton men. In fact the en-
tire Bay was excited 70 the highest pitch.
Dispatches were sent 10 the interior by
the hundreds, ordering agents TO purchase
cotton and making offers ranging many
points above the price prevailing here prior
10 the first dispatch indicating an upward
movement in Liverpool. One cotton buyer
stated that he had sent out as many as 118
dispatches. There are others who must,
from all accounts have sent out almost as
many. The prices offered ranged from sew
en- and a quarter to eight cents pound
1t is not known yet how much cotton
was purchased on these dispatches. Ii is
not believed. however, that the amount is
very large, for the reason that the cotton
people in the interior became excited, not
knowing the meaning of the extraordinary
demand at prices so much above those
which had been prevailing in the early
morning. Still il is said that considerable
cotton changed hands, but Savannah cot
ton men did not get much they might
have goI if there had not been a suspicion
in the minds of the interior people that
cotton was worth really more than was
being offered for IL, Ii Is reported here
that the Savannah men in some instances
received replies that the cotton they
sought had been purchased by parties else
where at prices above those offered in Sa-
vannah.
man received acceptances to the amount
of 1900 bales and another 5000. There
were reports of all sorts As a matter OF
fact 1t Is impossible 10 say exactly what
the situation is as far as Savannah buy
ing is concerned. 1t will be a day two
before the result of all of the dispatches
sent out will be known.
AS soon as il was discovered that the
Liverpool dispatches announcing the phe
nomenal rise were fakes there was a hur-
rying to recall the dispatches ordering the
purchase and offers of cotton. 1t is not
known, of course, how many of these faii-
ed to reach their destination in time. Many
did, because replies were received. 9th
ers are yet TO be heard from, or were last
hight.
The reports from Liverpool were so
timed that it was about impossible to find
out the fraud before the close of the Law
erpOOl market. The sending of the dis
patches began an hour and a half before
the close of the exchange. The Liverpool
Exchange closes at O'Clock, which Is
about noon here. There was not time to
send ana receive dispatch in the crowd
ed condition of the cable at that Part of
the day promptly, so thai the cotton men
here were practically at the mercy of the
party committing the fraud for about two
hours
There will be a rigid investigation and
perhaps litigation. Many contracts must
have been made on the bogus information
in all parts of the South and no doubt
many losses incurred, aggregatng a very
large sum. 1t will take a good while TO
FIX the responsibility. and adjust the
losses. There was only l75 bales sold i'm
this market yesterday, and practically no
business was done after the fake was dis
covered.
Rush for the Exchange.
When the erroneous specials began to
pour in, the first of which was at 2:45
O'clock Liverpool time, and was quickly
followed by further reports of advances
the news spread along the Bay, causing
rush for the exchange. The visitors not
only included those interested in cotton
buying, but outsiders who were attracted
by the unusual activity shown by those
cognizant of the condition of things At
tention was riveted on the board in the
northwest corner of the exchange, where
the Liverpool specials are posted
The first advance of y point was follow
ell by others quick and fast AS the ad-
vices came, each carrying the advance
higher and higher the interest was in
tensihed and brokers and buyers kept the
wires warm TO their CORES ondents in the
interior. 1t is stated that operations on the
strength of the fakes began about IL
O'Clock, local time, when The fifth advance
of ~ points was posted From this on
buying went on at rapid rate until spe-
cial was received from the Commercial
News depot, New York, through which
the advices had been received, directing
that the specials on all Liverpool huctua-
lions be suspended until they could he
confirmed 1t was this that led every body
TO believe there was something wrong. and
while many expressed the opinion quietly
that fraud had been perpetrated by some
one. Others could not see it thar wav as
there was apparently no motive for such a
fraud. They could not see where the profit
came in for the one who may have tapped
the wire, or bribed an operator TO send a
fake dispatch.
Photographed the Board.
The board on which the fakes were re-
corded has been photographed and orig.
inals will be kept by those interested in
locating the respons bility for the decep.
ton. In the left hand column are post.
ed the advances, and on the right the de.
clines. The column to the left under The
column headed advances" is the time tht
special was received, while the figures e
the right is the advance between the tim,
of filing This is how the board LOOKED
when the days advances had been posted
Advance. Decline
200 ..............1-6iC