The San Francisco call., 1899-09-30

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 excitement,
the complete suspension of future bust-
ness pending the investigation of what at
the moment was assumed to be a conspir-
aCy to swindle the Cotton Exchanges of
the country. The panic was due to an ap-
parent terrific jump in the price of cotton.
based on alleged Liverpool advances and
it was roughly estimated that $17O, 900 had
been lost on the local transactions as a re-
suit. Later in the day the exchange,
after receiving legal advice, declared null
and void all future transactions of tire
day. This action, however, promises to
be bitterly contested, and litigation s
likely to be the final outcome Business
here will not be resumed until Monday.
The market at Liverpool opened 3-32d
lower on spots and 4-64d lower on deliv-
cries 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 of a sixty-fourth
at a time at first, and then jumped until
the net advance up to 9:45 local time
showed 41-64d. In the meantime New Or
leans had opened under the influence of
the Liverpool market, advanced twelve to
fourteen points higher than last evening S
closing and quickly climbed thirty points
additional.
Then the explosion came. With an un-
accountable advance of fifty-four points
facing them, operators began to receive
cablegrams from Liverpool asking the
reason for the heavy gain in prices IN this
market and stating that prices in the
English market still stood at about the
opening figures. These cable adViceS. in
the face of from 10000 TO $4,000 bales sold
and purchased, threw the operators into a
frenzy of excitement, and they surged
shouting, yelling and gesticuating. about
the ring as President Parker rushed to
his desk and summoned, without The
usual formalities, meeting of the eX-
change. Amid tumultuous scenes mo-
ton to suspend business was gasped out
by a wildly excited broker, and with a
tremendous shout it was unanimously
carried. The news of the excitement of
the flop in the meantime had spread like
wildfire through the business districts,
and Carondelet street in the vicinity of
the exchange and the bucket shops were
soon thronged with excited men. Man
ager West of the Western Union Com
pany, as soon as he got wind of the sem
sational advance, set his wires to work
with messages of inquiry to New York,
Replies came promptly, directing that all
specials in reference to Liverpool f1uctua-
tons be held until they could be confirmed
by the p. m. report.
In the face of these reports and the
advices from Liverpool, President Parker
convened the directors early in the after
noon and it was then concluded to close
the futures market until Monday, in order
to permit brokers to recover from their
shock and enable an investigation to be
concluded fixing the blame for the re-
markable blundering or the responsibility
for the conspiracy. At the same meeting
the board summoned its counsel, E. D.
Saunders, and asked an opinion from him
had been made under the misapprehen-
sion.
Having been informed that all con-
tracts made this day" said Mr. Saunders.
were based on false reports from liver.
pool as to price, l advise you that the
consent essential to valid contract was
wanting, and the contracts therefore are
void.
Upon the basis of this opinion the con-