The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-27
THEWEEK in WALL STREET
sULLY FAILURE LIKELY TO BE FOL-
LOWED BY UGLY SCANDAL.
Great Banking Combinations Are Adj
justing Themselves to Laws rs De-
fined by the Merger Decision.
pscial to the indianapolis Journal.

NEW YORK, March 2b.-Ihe downfall OF Sully'
the cotton king. is likely to be followed by an
ugly scandal which will involve the names Of
number of men who have been conspicuous in
waII-street affairs during the last few years Mr..
sully was unfortunate in tying up with several
adventures whose standing has. for a good
while. been under suspicion They are now in
danger OF open exposure ''welchers."
The term ''welcher'' has the same meaning in
Wall street that II has on the race track and at
taches to those who LAY down or repudiate OBJ
legations OF honor. When man is branded
''welcher'' he is far down the scale Of manhood
sully fell an easy victim 70 the courters of the
financial district He knew the game tolerabIy
well before he came into Wall street and should
have been strong enough TO resist the batteries
and Establishments OF the Adventures who make
a business Of attaching themselves to newcom-
who may happen 10 achieve unusual sue
cess.
Sully kept his head until his good fortune had
him into the millions II at this stage
that he attracted the attention OF the big ad-
venturers of the street. and he has fallen by
the wayside. Men who would have turned him
away without explanation apology year be-
fore looked him up. invited him into their cir
Giles. made confdantes OF him, consulted him in
reference to large affairs. and gave fattering
evidence that they looked upon him man OF
a
ulatve and business marvel His cooperation
invited all hands and he taken into
big deals by arch manipulators OF finances and
the specialties thereof He was enthroned as
king of the cotton market and given pages
OF aduation in the newspapers.
All this appealed to his vanity, for II is
pretty good man who can receive that kind OF
attention, when. unknown proposition. he
can invade New York and get columns of news
paper notoriety Of a pleasing sort. He has
right to think well OF himself when he is being
paid such extravagant honor No wonder Mr..
Sully carried off his feet. No wonder his
head went into the clouds. There are few new
Corners. and. for that matter. few seasoned vet
Grams in Wall street, who would not feel fat
tered to be the recipients of marked personal
favors Of presidents of great banking institutions
and of those who had become famous the world
over in railroad and Industrial enterprise as
well in commerce.
One great banker who has world wide recogni-
ton as the financial representative of one OF the
most powerful interests in Wall street to-day
singled out Sully the object of his personal
attention. He frequent visitor at Sully's
offices and on many occasions invited him to his
club took him lunch. 1t was this man who
played very active part in bringing the Sully
career to inglorious end.
1t was he who discovered" OF pretended to
discover that Sully's co-partners in speculative
pools were playing him false who. while as
Stunning to act with him, were, in reality, oper-
atng against him and overwhelming the cotton
market with offerings of futures when they
should have been giving him support on the bull
side. II may be that this individual was and is
Sully's friend but Wall street will have to have
proof before subscribing unqualifiedly to the af-
irmative theory. He has been accused repeat
edly OF getting into the good graces OF ambi-
tious interests. and then loading them up with
money for the purpose OF eventually breaking
them and eliminating them from the field of
large action
| About year and half ago he induced a large
brokerage house to borrow to the uttermost limit
of it's credit. and then when the came he
got on the firms back and crowded II remorse-
haSSs durn tSe ew @s
preceding the elimination OF the last great bull
movement. eighteen months ago. Liquidation for
account of this firm was one OF the for
1t is an old Wall-street trick to break a man by
| inducing him to overextend himself
| TO do this 1t is unquestionaby a fact that Suly
| did overextend himself. and when the time came
mat ne needed help MS banking and speculative
/ which has been started into his affairs may fur
ters than one Il NAV put the brand Of GUAR
| on men whose names have not as yet been men
| ton Is one which has aroused the interest OF
Wall street and those who are alive to what
| The Supreme Court of the United States HAVING
defined the limits beyond which ambitious finan-
ciers may not go in their schemes OF merger the
great banking combinations or Wall street are
making haste TO adjust themselves to existing
conditions. Next to being given unlicensed free
| dom OF action it is important to know what
| cannot be done and just how far. within the law
| combinations may be effected. This Information
| was given clearly and unqualifiedly in the dec
ana the big people of Wall street are governins
| themselves accordingly. They not disposed L
| ther In seeming effort to evade or circumvent the
| law.
The grand and glorious principle of harmon,
OF interests Is TO be Reconstructed in the plac,
| OF unlawful merger. Transcontinentai Railroad
are ,.I hereafter to be conducted along lines o
construed offensive to public policy or STA tu
SS os ,b Tnls is long step in opel
| taught TO Wall street by the merger litigation
aid by the final rulings of the Supreme Cour
thereon has been salutary. 1t has cut the claw
OF s oSverweening ambition and has given ia
| selves as above the law and as constituting !;
! privileged class upon whom devolved the guard
| recognized as being superior to the few.
| = =
The advance in the market during the pas
week disclosed the existence OF a much large
short interest in stocks than had been estimated
For weeks and months the popular thing ha
| been to sell the market short, and the profes
sional and semi-professional interest did this 4
an undreamed of extent.
The short interest in Union Pacific PennsvI
vania. New York Central. St. Paul, Rock Island
Southern Pacific. and. in fact. ali the active is
sues. amounted In the aggregate TO a great man,
hundred thousand shares. The short selling wa
kept up right to the turning point. and the conf
dence OF the bears as 20 the correctness of thei
position was almost fatalstic. Nothing goo
could be seen in any quarter and plummets coul
not be found which would sound the depths Z
which values were going 10 descend
In incredibly short period of time sne.,,,
lative sentiment reversed. The merger deci
sion more than any other one agency Is give
credit for having wrought this transformation Il
opinion. IL has eliminated the hadowin
new lights. acted pail and handicap and h
the place thereof has substituted certainty ar
confidence IL Is now believed by men who ver
previously full OF fears lest an adverse decisio
might spell ruin 10 railroad stocks. that the pub
lie was IN greater fear OF capitalistc aggrandize
ment than OF a ruling defining bounds hevon
which combinations could not go.
With the opening OF spring reports are comm
into the street of improved business condition
everywhere. This is conspicuousy true Of III
iron and steel trade. although there are indic.
tions OF expansiveness in every quarter Bushes
conditions are brighter than they have bee
for eighteen months. In the stock market value
are admittedly at bedrock Securitis
have undergone tremendous shrnkage Ali aIon
the line The depreciation has been general Am
evenly distributed. Apparently there is littIe 70.
I he On lnxxar