The Savannah morning news., 1904-03-19

the impossibility of meeting demands
for large sums of money due the Sully
firm from European sources, sums that
the quick slump in the market made
payable too quickly for them to be
able to meet.
Mr.. Sully left his office at A o'clock.
Said There Was Treachery.
All sorts of explanations were made
for the suspension. One of the rea-
sons given was that the New Orleans
bull party had sold the market. While
Sully was bulling it in the confidence
that they were supporting him. An
other was that Sully's following in the
market had sold their long cotton with
out advising with him. From two well
informed sources came a denial that
there was any treachery from New
Orleans. A cotton operator with New
Orleans connections said that the bull
party there was still bullish OH cot
ton.
Another account, that came from one
of the six or seven best known cotton
operators in this country, was that the
bear party had made deliberate and
we'll planned attack to overwheim sally
and had succeeded.
The bears, according to this author
ity, had figured out the weakness Of
Sullys position due to immense hold
ingS of spot and contract cotton, alld
to his operations on the Liverpool mar
ket and planned an attack on the mar
ket that would carry it down Just TAR
enough to make it impossible for Sully
to meet his margin calls, knowing that
his failure would send the market so
much lower that they could cover at
figures to recoup them.
How He Is Involved.
ments in the cotton market could be
got from the other houses. One esti-
mate was that he was long" of 3OO,-
900 bales of May cotton alone. A good
authority stated that he did not believe
that Sully was long" of more than
that in the whole market, and con-
sentative estimate made at another
source was 100000 bales.
The loss by Sullys failure in case
he cannot settle, was stated to-day,
was divided up among nearly all the
brokers on the Exchange. One estl-
mate was that Sully's owings after
settlement under the rule of the eX-
change would not exceed 100000. What
Sully has personally lost or what his
hackers have lost in market operations
is not included in this figure.
What Sully will owe will be found
by deducting the average quotations
which his accounts were margined
down to the last call. This will be
determined tomorrow, of course.
There were no other announcements
of failures, and leading men in the
cotton market declared that there need
be no fear of trouble.
In Stock Exchange circles the fall
ure of Sully was at first taken as a
sure sign of the collapse of the cot
ton boom. Later there was some APP
prehension lest the failure might bring
down a string of banking institutions
in the South.
Mr.. Sullys suspension was announced
on the Stock Exchange, but not until
shortly before the close of the mar
ket. 1t was announced on the Coffee
Exchange also. The cotton bulls re-
Gently went into that market and
caused an activity there that CORE
sponded to the activity in cotton. The
coffee market slumped and rose with
the cotton market last month, but it
was significant that the announcement
of Sully's suspension caused only
slight break in coffee.
His Cotton Career.
Daniel ]. Sully became a factor in
the cotton market in January OF 1913,
when he took up the bull movement.
He established a Gotten house OF MS
own last year, uiluSr the Aie'ii,e VI 80
tel ]. Sully e. Co., but when his opera
tions in cotton became so successful,
the cotton market having been pushed
up above II cents a pound early this
year, he widened the scope of his hrms
business, bought a seat on the New
York stock Exchange, went into the
coffee Exchange, got membership
on the Chicago Board of Trade, ana, IL
was said, made connections with other
nroninent exchanges throughout the
country.
lei I. Sully, Col. s. f. B. Morse OF
Houston, Tex, Walter S. Crandall and
Edwin Hadley. Jr. Recently William
r. Fagin, manager Of the firms New
Orleans office, was taken INTO the
firm.