The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-30
FALSE FIGURES
FROM LIVERPOOL
Cotton Market Thrown into
Wild Confusion.
RISE OF TWO AND A HALF
LARGE BLOCKS OF COTTON
CHANGE HANDS.
THIS BEFORE CORRECTION OF FIGURES
The Explanation Of the Western Union TeIe-
graph Company of How The Mistake
Occurred Unsatisfactory. Panic
at New Orleans,
at New Orleans,

at New orleans,
New Orleans, La, Sept. 29.-The
widest panic ever witnessed on the floor
of the New Orleans Cotton Exchange
occurred today shortly after business
opened and caused, in the midst of the
intense excitement the complete suspen-
sion Of future business pending the in
yestigation of what, at the moment,
was assumed to be a gigantic conspiracy
to swindle the cotton exchanges of the
country. The panic was due to an APP
parent terrific jump in the price of cot
ton. based ON alleged Liverpool advices,
and it was roughly estimated that $780,
600 had been lost on local transactions
as a result. Later in the day the ex-
change after receiving legal advice de-
clared null and void all future .ransac-
tons of the day. This action, however,
promises to be bitterly contested and
litigation is likely to be the final out
come. Future business here will not be
resumed until Monday.
The market at Liverpool opened 3-32d
lower on spots and 4-64d down on de-
liveries as compared with yesterday s
values and continued without material
change for some time. The wires be-
came hot with the tales of rapidly adj
vaneing prices. They started up one
half of a sixty fourth at a time at first,
and then jumped one sixty-fourth, one
half sixty fourth, two sixty-fourths, and
two and one-half sixty-fourths in quick
order until the net advance up to 9:45,
local time, showed 41-64d. In the mean
n,.lxx 1.,1 ~
j influence of the Liverpool advance 81 to
24 points higher than last evening S
closing and quickly climbed up 30 points
additional. Then the explosion came.
With an understandable advance of 54
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 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 gesticulating about the ring
as President Parker rushed to his desk
and summoned without the usual for
malities a meeting of the exchange.
Amid tumultuous scenes motion to sus-
pend business was gasped out by a Wild
" excited broker, and with tremend-
GUS shout it was unanimously carried.
The news of the excitement on the floor
in the meantime had spread like fire
through the business districts, and Car
ondclet street, in the vicinity of the ex-
changes and the bucket shops was soon
thronged with excited men. Manager
West, Of the Western Union Telegraph
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 Liver
pool fluctuations be suspended until they
could be confirmed by the 4 p. IN. re-
port.
In the face Of these reports and the
advices from Liverpool, President Park
er convened the directors early in the
afternoon, 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 investi-
CATION to be concluded fixing the blame
for the remarkable laundering or the
responsibility for the conspiracy. At the
same meeting the board summoned its
counsel, K. ID. 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.. Saund-
efs, 'Swere based on false reports from
Liverpool as to price, advise you that
the consent essential to the valid con-
tract was wanting and the contracts
are therefore, void"
Upon the basis of this opinion the
contracts were declared off. The curb
stone brokers', or at least some of them,
protested against the action Of the
board in declaring contracts void and
claimed that they were not governed by
the exchange. Other brokers were like
wise of the opinion that the exchange
had exceeded his authority and threats
were freely made during the afternoon of
a resort to litigation to determine
whether the contracts should stand or
fall.
Today is the first time in the history
of 80 years that the New Orleans Cot
ton Exchange has been compelled to
suspend business. During the panic Of
1888 similar attempt to suspend was
made, but failed. The exchange took
the ground then that suspension would
injure it in the markets of the world.
The directors feel that today's suspen-
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