The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1899-10-04
i'd Day on
Cotton Exchanges.
FAKE KILOGRAMS DE.
CEIVE SPECTATORS
AND BUYERS.

AN - D ~ ! Is no
New Orleans, Sept 2s The wild.
est panic ever witnessed on the floor
3 of the New Orleans cotton exchange
occurred soon today after ousi
aess opened, and caused, in
the midst of the intense
excitement, the complete sus.
pension of future business, pending
the Investigation of what at the mo-
ment was assumed to be a gigantic
conspiracy to swindle the cotton ex.
changes of the country The panic
Wasdue to an apparent terrific jump
in the price Of Gotten. based on
alleged Liverpool advices. and it was
roughly estimated that $40. 600 had
beea lost on local transactions as
result
Other exchanges in the south were
hit almost as hard aud spot buyers
bought thousands of bales of cotton
at cent or more above the market
value
STATEMENT OF NEW ORLEANS
EXCHANGE
New Orleans, Sept 29.-Tbe fol-
lowing statement was tonight given
out By the New Orleans cotton ex-
change
ssIn consequence Of false cable
grams from Liverpool, giving enor
nous advances in that market. large
transactions were made in New Or
leans futures today with points all
over the country at Improvements in
prices Discovery of the falsity of
the cabiegrams created inextricabie
confusion, necessitating suspension
Of business temporarily in order to
eEabie brokers and commission mer-.
chants to straighten their accounts
with correspondents.
~ Between the hours of s 20 and
:s.35 q. m five kilograms were re-
ceived, showing that between 2 03
and 2 "a liverpool time) continuous
declines Of FIVE half sixty.fourtbs, or.
say 10 all q sixty four.hs The Liv
erpool market was then reported as
advancing, and Tcm 8 SIS a. m to
10 10 an New Orleans time) dis
patches were received showing an
aggregate advance of SO sixty foprths
ora net advance between 8 20 n
-and 10 10 a. m of Ssa sixty fourths.
equal TO about p cents per pound
Such an unheard of Advance Great
ed the widest excitement, and be-
fore contradictory adyices could be
obtained large blocks of cotton had
changed hands That tae interests
Of all parties might be protected, the
beard Of directors Of the New Orleans
cotsoz. exchange, under the rules,
ordered suspension of business and
subsequently, under proper legal ad
vice. declared all transaction in cot
ton, both spot and futures. based on
the false quotation, null and voic.
The justice of this position will be
apparent
..All of tne Liverpool dispatches
quoted came through the regular
channel, the commercial news bureau
of the Western Union Telegraph
company, which has been the news
conductor for the various southern
exchanges for more than quarter Of
century past The explanation of
the company is that the changes re-
ported we're TO be construed as
against the closing price Of yester-
day, but as the invariable custom
heretofore has been to give all
changes in the Liverpool market com
pared with the dispatch Immediately
preceding. the explanation is not
only unsatisfactory, but indicates
negligence somewhere little short of
criminal.
AS will be readily understood, as
before stated, the confusion created
By such an unheard of condition of
affairs wss without precedent and,
in view of the uncertainties created
thereby i. was deemed BY the board
OF directors ss proper and just to
declare suspension of the future
business in order to permit brokers
to remain in their Offices and attend
without delay to adjusting matters
with their correspondents.
This Is the sole reason for the
temporary suspension, which does
nos in the least involve the ability or
capacity of the members Of this ex
change TO care with ease and prompt.
ness sor any and all business entrust.
Cd TO them