The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-09-30
/ HAS THE Widest
Panic the New Orleans Cotton
Exchange Ever Knew.
CAUSED BY BOGUS CABLES
Taking an Enormous Jump in
Liverpool Prices.
CAUSED BY BOGUS CABLE

New Orleans cotton exchange occurred
today shortly after business opened, :.nd
caused, in the midst of the intense ex-
element, the complete suspension Of fu-
ture business, pending the investigation
OF what at the moment was assumed TO
be conspiracy to swindle the cotton ex-
changes of the country. rhe panic was
due to an apparent terrific jump in the
price of cotton. based on alleged Liver
pool advices, and it was roughly esti-
mated that $4,000 had been lost on local
transactions as 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 contest
ed, and litigation is likely to be the final
outcome. Future business here will not
be resumed until Monday.
The market at Liverpool opened 3-S2d
lower on spots and 4-64d lower on deliver
les, as compared with yesterdays values
and continued without material change
for some time. Then the wires became
hot with tales Of rapidly advancing
prices. They started UP one-half and a
siXty-fourth at time at first and then
jumped 1-64, IL, 2-64 and - GA in quick
order until the net advance UP to 9:45,
local time, showed lad.
In themeantime New Orleans had open
ed under the influence of the Liverpool
advance u to IA points higher than last
evenings closing and quickly climbed 80
points additional. Then the explosion
came. With an unaccountable advance of
"a points facing them, operators began to
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 lstood
at about the opening figures. These cable
advices, in the face of from 1000 to So
600 bales sold and purchased, threw the
operators into a frenzy of excitement
and they surged, shouting, yelling and
gesticulating about the ring as President
Parker rushed to his desk and summon
ed, without the usual formalities, IA meet
ing of the exchange. Amid tumultuous
scenes a motion TO suspend business was
gasped out by a wildly excited broker
and with tremendous shout it was
unanimously carried. The news Of the
excitement of the floor in the meantime
had spread like wildffre through the bIsi-
ness districts and Carondelet street. in
the vicinity of the exchange, and the
bucket shops, were soon thronged with
excited men.
Manager West, of the Western Union
company as soon as he got wind Of the
sensational advance, set the wires TO
work with messages of inquiry to New
York Replies came promptly directing
that all specials in reference to Liver
pool fluctuations be suspended untilthey
could be confirmed by the D. m. report.
In the face of these reports and the ad-
vices from Liverpool, President Parker
convened the directors early in the af-
ternoon and it was then concluded to
close the future market until Monday, in
order to permit the brokers to recover
from their shock and enable an invesu-
CATION to be concluded fixing the blame
for the remarkable laundering or the
responsibility for the conspiracy.
At the same meeting the board sum-
moned its counsel, f. D. Saunders, and
asked an opinion from him as to the
legality of the contracts that had been
made under misrepresentation of facts.
Having been informed that all contracts
made this day" said Mr. Saunders,
were based on false reports from Liver
pool as to price, advise you that the
consent essential to 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 at least some Of them. pro-
tested against the action Of the board in
declaring contracts void and claimed that
they were not governed by tho exchange.
Other brokers were likewise of the opin
i N that the exchange had exceeded lis
authority and threats were freely made
during the afternoon of a resort to iti
CATION to determine whether the con-
tracts should stand or fall.
Today is the first time in fits history
that the New Orleans cotton exchange
has been compelled to suspend business.
During the pants OF 1895, similar at
tempt TO suspend was made, but failed.
The exchange took the ground then that
the suspension would injure it in the
markets of the world. The directors feel
that today's suspension was unavoida
BILE and excusable
4 statement in relation 20 today's panic
was given out by officials of the cotton
exchange late this afternoon. Referring
10 the false quotations the statement
says: "Au Of the Liverpool dispatches
quoted came through the regular chan
mel. the commercial news bureau Of the
Western Union Telegraph company.
which has been the news conductor for
the various southern exchanges for more
than a quarter of century. The expla-
nation Of the company is that the
changes reported were % be construed as
against the closing price OF yesterday.
but as the invariable custom heretofore
has been 70 give ali changes in the Liv-
erpool market compared with the dis
patch Immediately preceding, the expla-
nation Is not only unsatisfactory but in
dicates negligence somewhere little short
Of criminal"
Galveston. Texas. Sept 2a.-The Liver
pool quotations caused an exciting hour
on the cotton exchange today. Later all
trades we're declared OF and the loss on
futures Will be small II * on country
purchases that the rub VIII come Be
cause Of the supposed advance in Liver
pool prices. dealers rushed kilograms 70
their buyers in interior GOWNS raising the
limit for spot cotton. 4 lot Of loo bales
az Houston az . points more than the
market price. Is reported The banks re
celved kilograms from their corresDon-
dents from many points In the interior
calling for currency. \ prominent bank
e- stated this evening that over q quar-
ter 81 a million dollars in bills were skip