Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-09-30

ALL L0DA4NLA1O lIAA-N6AOA IL 80
THE EXCHANGE YESTERDAY
HAS BEEN DECLARED VOID,
AND THINGS ARE TO START
OVER AS THOUGH A DAY HAD
BEEN DROPPED FROM THE
CALENDAR ERRORS IN THE
TRANSMISSION OF LIVERPOOL
EXCHANGE REPORTS CAUSED
THE OBSERVATION-DISCLOSURES
ADVANCES FOLLOWED EACH
OTHER IN RAPID SUCCESSION.
NEW ORLEANS, September 29.-The
widest panic ever witnessed on the
floor of the New Orleans Cotton Elk
change occurred to-day shortly after
business opened and caused, in the
midst of the intense excitement, a COM
plete suspension Of future business,
| pending the investigation of what at
the moment was assumed to be a gigan-
tic 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 alleged
Liverpool advices, and it was roughly
estimated that $4,000 had been lost
on local transactions as a result. Later
in the day the exchange, after receiving
legal advice, declared null and void all
fut1ra +ra co atiouc oF tba dow This
action, however, promises to be bitter
ly contested and litigation is likely to
be the final outcome. Future business
here will not be resumed until Mon
day.
The market at Liverpool opened
1-32d lower on spots and 4-64d down
on deliveries as compared with yes
terday's values, and continued without
change for some time. Then the wires
became hot with tales of rapidly adj
vaneing prices. They started up one
half Of a sixty-fourth at a time at first,
and then jumped 1-64, 1K-64, 2-64@
2 1-6i in quick order, until the net
advance up to 9:45, local time, showed
4 1-64. In the meantime New Orleans
had opened under the influence of Liv-
erpooI, advanced q to 25 points higher
than last evenings closing, and quickly
climbed thirty points additional. Then
the explosion came.
With an unaccountable advance of
81 points facing them, operators began
to receive c%ablegrams from Liverpool
asking the reason for the heavy gain
in prices in this market and stating
that values in the English market still
stood about at the opening figures.
These cable advices in the face of from
100000 to $4,000 bales sold and pur-
chased threw the operators into a
frenzy of excitement and they surged,
shouting, yelling and g~esticulating
about the ring as President Parker
rushed to his desk and summoned with
out the usual formalities, a meeting of
the exchange. Amid tumultuous Genes
a motion to suspend business was gasp
ed out by a wildly excited broker, ami
with a tremendous shout it was unani-
mously carried. The news of the ex-
cltement on the floor in the meantime
had spread like wild-fre through the
business districts, and Carondolet
street, in the vicinity of the exchanges
and the bucket shops was soon throng-
ed 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. Re
plies came promptly directing that all
specials in reference to Liverpool fuc-
tuations be suspended until they could
be confirmed by the 4 p. M. report.
In the face of these reports and the
advices from Liverpool, President
Parker convened the directors early in
the afternoon and it was then conclud-
Cd 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 blunder-
ing or the responsibility for the con-
spiracy. AT the same meeting the board
summoned its counsel, E. D. Saunders,
and asked an opinion from him as to
the legality of the contracts that had
been made under the misrepresentation
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. I advise you
that the consent essential to a valid
contract was wanting and the contracts
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 the exchange.
Other brokers were likewise of the opin-
ion that the exchange had exceeded its
authority and threats were freely made
during the afternoon Of a resort to Eti-
cation to determine whether the contracts
should stand or fall.