Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-30
THE PRICE OF COTTON.
Expected Effect of the Coming Govern
~ ment Report

There is small likelihood that the present
price Of cotton as bulled by the operators
on the New York market, under the influ-
ence of Col. w. P. Brown of New Orleans,
will be sustained after the September re-
port of the Department of Agriculture is
issued, October 3. From official sources it
is learned that the present values are large
ly fictitious and have no justification in the
prospective crop, which is about all gath
cred, and,the tremendous boom in the mar
ket is said to be the speculative work of
small clique of which Brown is the head
and directing free. Brokers on the short
tide of the September market found that
the only seuNe from. which they. could pur-
chase their deliverable supply was Brown.
who had bought all there was in sight, and
would hold them to their contracts.
1t is not because there is expected
shortage of the crop that these conditions
prevail but because Brown was shrewd
enough to catch the spectators and compel
them to come to his terms. The only alter
native is bankruptcy. They must deliver
or quit business. and the total profits said
to be due Brown amount to as high as
81, 100000
Secretary Wilson today declined to express
opinion on the legitimacy of, the Wall
street deal, but it is believed that the com
ing monthly report will show that the
tire business has been unjustifed by the
actual conditions. Yesterdays transactions
in New York, when cotton for September
delivery rose more than So a bale In
hour, We're the work of the master of the
market, who had made the most absolute
corner known in the history of that siren
uous speculative center Brown owned all
the cotton in sight, and the brokers were
indebteded to him in the sum of thousands
of bales, deliverable not later than today.
The day of settlement has arrived, and
they must deliver go to the wall.
1t is not believed that there will be many
failures as a result of the corner the bulls
generally being generous enough to prevent
that catastrophe but if the men now in
possession of the reins of power choose
there will be a crash that will reverberate
for many a day. European spectators are
said to have been the heaviest losers, but
1t is also known that several stock broking
houses were caught in the deal because of
their desire to cover up their losses in
stocks during the falling market by flyer
in cotton. They got all the aerial expert
ence they want for awhile, and are now at
the mercy of the Brown faction. 1t Is not
believed that they will be forced to the
wall, although this would be simple mat
ter since some of them are in to the ex-
tent of more than $40 above what they sold
for when they were short.
The Brown bulling movement began sew
eral months ago when a short interest was
expected for this month. sharp break
was looked for by his present victims and
they sold all they could get The day of
reckoning has come and there was many a
worried man In Wall street this afternoon.
Their only chance for redemption is to play
the market for October on the strength of
full or nearly normal crop, and 1t is firmly
believed that the realizations of the crop
will not fall so far short of the actual fig
ures when they are reached as to warrant
the tremendous boom the commodity has
received during the past month.