The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-09-30


jured by False Figures on Cotton
Prices in LiverpOOoI-Circuln
Of the Bogus Information Was
Widespread-Myster as to How
1t Was Handled.
NEW ORLEANS, La, Sept. 29-The
widest panic ever witnessed on the floor
of the New Orleans Cotton exchange oc-
Cured today shortly after business open
ed and caused, in the midst of the intense
excitement, the complete suspension of
future business, pending the investigation
of what at the moment was assumed to
be gigantic conspiracy to swindle the
cotton exchanges of the country. The
panic was due to an apparent terrific
jump in the price of cotton, based on al
legged Liverpool advices, and it was rough
ly estimated that $4,000 had been lost Oh
local transactions as result. Later in
the day the exchange, after receiving le-
gal advice, declared null and void all
future transactions of the day. This ac-
ton, however, promises to be bitterly con-
tested, and litigation is likely to be the
final outcome. Future business here will
not be resumed until Monday
The market at Liverpool opened 3-32d
lower on spots and Aid down on deliv-
cries, as compared with yesterdays val
ues, and continued without material
change for some time. Then the wires
became hot with tales of rapidly advanc-
ing prices. They started up with one
half of a sixty-fourth at time, and then
. III
and 21a-64d in quick order, until the net
advance up to 9:45 local time showed
41-64d.
In the meantime New Orlean3 had open
ed under the influence of the Liverpool
advance, q to "a points higher than last
evenings closing, and quickly climbed
80 points additional. Then the explosion.
With an unaccountable advance of 81
points local operators began to receive
cablegrams from Liverpool asking the
reason for the heavy gain in prices in this
market, and stating values in the English
market still stood at about at the open
ing 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 gesticulating about
the ring as President Parker rushed to
his desk and summoned, without the
usual formalities, a meeting of the eX-
change. Amid the tumultuOuS scenes q
motion to suspend business was gasped
out by wildly excited brokers, and with a
tremendous shout it was unanimously
carried.
The news of the excitement on the floor
in the meantime had spread like Wildfire
throughout the business districts, and
Carondolet street, in the vicinity of the
exchanges, and the bucketshops were
soon thronged with excited men.
Manager West, of the Western Union
company, as soon as he got wind of the
sensational advance, set his wires to
work with messages of inquiry to New
York. Replies came promptly directing
that all specials in reference to LiVerpool
fiuctuat tions be suspended until they could
be confirmed by the p. m. report.
DIRECTORS ACT.
In the face of these reports and the ad-
vices from Liverpool, President Parker
convened the directors early in the after
noon 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 investigation
to be concluded, fixing the blame for the
remarkable blundering or responsibility
for the conspiracy. At the same meeting
the board summoned its counsel, e. D.
Saunders and asked an opinion from MIN
as to the legality of the contracts that
had been made under the misapprehens1on
of facts.
Having been Informed that all con-
tracts made this day." said Mr.. Saun-
ders, were based on false reports from
Liverpool as to price, [ advise you that
the consent essential to valid CONTRACT
was wanting, and the contracts therefore
void.
tracts were declared off. The curpstoHe
brokers. or at least some of them pro-
tested against the action of the board III
declaring contracts void, and claimed that
thev were not governed by the exchange
other brokers were likewise of the opln-
ion that the exchange had exceeded ltS
authority, and threats were freely made
during the afternoon of resort to lltlga-
tion to determine whether the contracts
should stand or fall.
OFFICIAL STATEMENT.
The following statement was given ou'
at the cotton exchange late this after
noon:
SIN consequence of false cablegranns
| from Liverpool, giving enormous ad-
vances in that market, large transaetio-
were made in New Orleans futures 70.
! dav. with points all over the country at
| heavy Improvement in prices. D1scoVery
of the faisity of the cab'egrams cr5a ed
! ineXtricable conSternatlCn. nece s u NJ
a suspension of business, temporary IL II
| order to enable brokers and commits
sion merchants to stra1ghten thelr a.
! counts with correspondents,
/ Between the hours OF $40 and H:50
five cablegrams were received showir g
: d,
| timel continuous declines of five and
/ half sixty-fourths. CT say IN IN all 10 " Q
and half sixty-fourths. The L4lVerpool
| market was then reported as ADVANCING,
| and from S:55 a. m. to 10:le a. m. (N aW
| Orleans time} dispatches were received
! showing an aggregate advance OF el3hty-
six sixtyofourths or 80 net aoSnGe va ni - -
| three and half sixty-fcurths, equal to
| about two and half cents per pound. !,
'tSuch an unheard Of advance created
! the widest excitement, and before con-
| Trajectory adVices could be obtained large
| blocks of cotton changed hands. That the
| interests of all parties might be protect
ed the board of directors of the New o.
| leans cotton exchange. under the rules,
! ordered a suspension of business, END.
subsequently. under proper legal advl e,
declared all transactions In both spot and
! futures, based on the false quotations,
/ null and void. The justice of this pos
| ton will be apparent.
"All of the liverpool dispatches quoted
! came through the regular channel, t e
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 a century past. The explana-
ton ton of the company is that the chang $
quoted were to be construed, as against
the closing price of yesterday, but as the
| invaria BILE custom heretofore has been to
give all changes in the Liverpool ma
ket compared with the diepatch immedi-
ately preceding, the explanation is rot
only unsatisfactory, but indicates neglt-
| eence somewhere little short of Grim ma
'iThis is the sole reason for the tern
porary suspension, which does not in
| the least involve the ability or oapability
| af Tho rnernhars of this exchange to care