The St. Louis Republic., 1904-03-27
"FAlLED NE AT LAST MINUTE"
Now Proposes TO Reorganize His
Firm and Re-enter the Mar
ket for the Purpose Of
Getting Control.

REPUBLIC SPECIAL.
New York. March Exchanges, sudden
and pregnant OF sensational import, were
made IN the Sally case to-day. Daniel J.
srllv. the dsthroned cotton king, has COM
pIetely reversed his attitude Of silence. as
sumed since his failure, toward his cred
Itors, and It is announced that he proposes
10 lay bare the whole story OF the col
lapse Of his firm and the exact condition
OF his finances.
Mr.. SuIly also proposes TO wage legal
war against those members of the cotton
pool whom he charges with treachery to
him, and battle in behalf Of his creditors
and himself.
The story OF the collapse OF the firm is
intensely Dramatic. Mr.. Sully stated to
night that he believed the time had come
when he should take his creditors into his
Now that my affairs have been placed
in the hands Of receivers" said he, lit Is
no longer a question OF trying TO guard
what / know about my business. / have
come TO the conclusion that all details OF
my business belong to my creditors. and
with thsir assistance l hope to begin bust
ness anew. knowing that they are fully
aware OF the exact condition OF my
finances. and that 1 am hiding nothing
from them in any way"
LAST POOL.
Friends Of Mr.. Sully said tonight that
It was true that Mr. Hawley and Mr. Ray
were associated with him in the last pool
This is the story which MIR sully will tell
his creditors, on which a legal fight will
be begun against the pool members, as Mr..
Sully told 1t to a friend yesterday:
Mr.. Hawley and Mr.. Ray were the only
members of the lasting pooling arrange
ment which / had made. A great many
other names have been mentioned. but it
was 10 these two gentlemen to whom ]
looked for their share Of the necessary
funds TO carry out the plan of campaign,
These gentlemen understood that 1 was
TO be the manager OF the market opera
sources until they were exhausted, then
others we're 30 be called upon.
On Thursday a week ago the market
had become week. and l found that TO
make deliveries the next day We would
need between $4,000 and 81 .0010o0. so that
our margins would be all right. Accord
tngly. ! arranged a meeting at the Wal
dorf with Mr. Hawley and Mr.. Ray. after
j had returned from a dinner party that
night.
pointed place. and / disclosed my opera
tions in full TO them.
Despite the weak nature Of the cotton
market L felt that when put no the cash
the next day the market would turn. It
had been heavily sold by shorts, who di,-
Darently got wind Of my position. knew
that IL the funds were put up the extern
sive short interest would turn the market
OF its own accord.
SLEPT OVER MATTER.
''Mr. Hawley and Mr.. Ray told me they
would sleep over the matter, and let me
know the next day at Il O'Clock. I was
not in any way suspicious that any treaeh-
cry was TO be played. but I was naturally
fearful that some slip would be made.
was IN weak position; and unless the
my fortune would be gone
Il called for Mr.. Hagiey the following
day in my cab on NV way downtown and
We picked Up Mr.. Ray This was Fri
day. the day that announced my suspen-
sion. On the way down the three of US
discussed the situation 1t was plain that
sleeping over II had not worked up any
enthusiasm on my behalf, for Mr. Ray
said that there was no use that the three
OF us be sacrificed. IF any one is to- said
sacrifice himself
"It was then that they made the promo
sition to me that should take over their
holdings Of cotton at the previous nights
price on the condition that they would ne
gotiate loan Of $4,000 for me
Il had not long to consider the proposi-
ton. and l decided to DO so in order to
get the cash protect my house and my
customers. There were about ZOO baIes
OF cotton involved, and I consented to axe
over THIS amount and pay them the differ |
ton was acquired and the price at which IL |
closed on Thursday. OF course, one rnret
understand that II was dreadful predica- |
ment and that one had to act quickly. II
Old not take over the cotton there was |
little doubt in my. mind but that they |
would sell it in the open market.
''Mr. Ray got of at the Waldorf to gee |
9 friend, and Mr.. Hawley and continued |
down to Wall street. After going to The |
once I made arrangements TO have my |
stocks and securittes taken over to Mr. |
Hawlev's office, so that my part of the /
loan could be negotiated. 1 then went on /
the floor Of the exchange.
TUMBLE TO THB FLOOR.
''It is not often that have been watched
20 on the floor OF the exchange, but this
day It seemed that every one was looking
at me. 1 made my way to the rtngside |
and watched the cotton being, thrown on
Going to Mr.. Hawley. I told him must
have $4,000 before 2 O'clock otherwise I |
should have to suspend. Mr. RAY has nor
60 come ne downtown and ! have been unable
But must have $61eOO I have Ss5o
OO1 or whereabouts. Of my own and I an, |
connoent that the market will turn II the
clearances 20 through for to-day i told !
him. ''1
81 am sorry.' replied Mr.. Hawlev. Il
have not enough money in the rank to let
you nave that amount ! can let vo1 have |
S100 co..
do you realize what this means IN
me! asked. ! am sorTy.' he replied. but
have been buying stocks TO-DAY and
have only si8 go in the banks
With this went away. called nv floor
broker. and. 10 the aulazement Of hin, and
my other partners. announced my susneT
sion did not know at this time +hat
the pool arranEsment which I had zx-i.h |
Alr. Ray constituted what many lawyers |
consider a partnership. and It was NOT mn
il had spoken to J. II. Hoadley that nv
attention was called TO the liability N |
these.
Since the netition In bankruptcy neither
VI. Ray nor Mr. Hawiey have approached |
ne with any offers of assistance. nor have
10 hen -'~' I