The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-01-08

J SRTcd0 III every QHectlOH. ne CotbOI
centers in New York and New Oriean.
too fire too. Prices advanced by leaps
and bounds. Last years American cot.
ton crop of 1861, 759 bales was produced
on more tina ma million farms, employing
an average of about five persons each
There are about 2O.0oe.oeo inhabitants ir
the cotton-producing states of the coun-
try and it is believed that about one
fourth OF this population depends directly
or indirectly on cotton raising. This gives
some idea of the immense multitude to
whom Mr. Sully's speculative boom APP
pealed, not to speak of the cotton-gam-
bling public in New York. New Orleans,
and other large centers.
1t is said that milliRer in Augusta,
Ca. bought 100 bales of cotton. made a
profit; bought some more. made more
profit; then persuaded the ladies who
came to her Millinery shop to buy cotton,
| and gradually worked up such fever
| of gambling that her broker ran tele-
graph wire into her shop, and she became
| a sort of bucket-shop operator for her
friends. Similar cases are told OF the
efforts of Mr.. Suily's boom throughout
the south
The most extraordinary thing about Mr..
| Sully's boom is that it deals, not with
| a crop terminating in the ground, not
with crop yet to be sown, not with a
crop still exposed through the vicissitudes
of weather and pests. but with crop al
ready gathered and stored or on its way
to the market
There have been two important factors
in the situation which Mr. Sully and his
friends have used in forcing prices up
ward. One was the boil weevi conven-
ton held in Texas last November. This
convention declared that the boil weevil
pest had destroyed a large part of the
cotton crop. Secretary of Agriculture VIII
son and he afterward asked congress for
an appropriation of 100000 to fight the
! boil weevil. This was a magnificent coup.
| 1t was in line with Mr.. Sully's plan to
! frighten the cotton prices and make the
| prices soar. Mr.. Sully's enemies say that
/ his friends and associates were active in
| getting up the convention.
The other factor was the government
estimate of the present cotton crop. Men
who have watched this daring specula-
| tive movement in the market and have
studied its causes say that the govern
ments cotton reporters, animated by es-
prit de corps and a desire to help Secre-
tary Wilson get the $4,000 from congress.
made the cotton crop appear as small as
possible
The price of cotton went steadily up.
Mr.. Sully at the beginning. said that cot
ton would sell at "A cents a pound before
bric -IIfIIo6
AS the market rose tens of thousands be-
gan to speculate. 1t only cost 800 to
secure an option on a hundred bales.
At last few of the large conservative
brokerage houses decided TO check the
movement, and demanded margins of 81
or $ bale instead of 81 a bale. That
shut out the host of small spectators,
who had been increasing their holdings
by using paper profits to buy new op-
tons
The cotton mills refused to buy at the
high prices. Mr.. Sully sent out circular
asking for a fund of s250000 to be used
in Substituting newspapers and magazines
in a campaign of education. The mill
owners and the public were to he con-
verted to Mr.. Sully's idea of high-priced
tBtAOii LII ONSli lilAtt NitNS anu
10 be brought before the country BY
means of the $4,000 corruption fund. All
channels of information. all the agencies
of printed publicity, were to be won over
quietly by money.
Mr. Sully mad forced cotton to IL cents
a pound and was in control Of the worlds
cotton values when The World, three
days ago. secured and printed a copy of
his circular explaining his methods and
the use of which he intended to put the
$3.50, 0G) fund That striped him bare The
boom Immediately began TO collapse.
There are 1882 bales OF cotton stored
in the seaports of the United States. OF
this 10000 are in New York storehouses.
There are stored in the classified interior
towns AIS. $50 bales. and in the unclassified
towns about 10000 bales There have
been exported thus far about 3.5e0009
bales, as against about 3,500,co0 at the
same time last year.
To understand the nature of the cotton
market today. which is largely made up
of dealings in options for delivery in May
and July. it is sufficient to say that the
whole visible supply of American cotton
has been sold several times over in New
York and New Orleans in week.
The speculative rise in the price Of cot
ton to fourteen cents a pound. the high
est figure il has touched in twenty-five
years. has closed cotton mills all over
this country and Europe, and thrown
many thousands of men and women out
of employment
Meanwhile. the Cotton King has been
~ xtinI ri
Christmas gift to his wife was the fine
new house at East Sixty-second street
which cost him $4,000 There he and
Mrs Sully and their children will make
their home. instead of at the Waldorf
Astoria where they have been staying.
The connection Of Samuel F. y. Morse
with the firm OF Daniel J. Sully 4 Co is
interesting Mr.. Morse first attracted at
tention in the business world as general
passenger agent OF the Kentucky Central +
Then he became passenger agent /!
of the Southern Pacih railroad and while /.
in that position he developed talents as I 4
press agent that attracted the attention 4
of Mr.. SulIy. then a cotton buyer In Texas /
for New England spinners.
Mr.. Morse never went into a city along 4
his railroad that he did not have a story /
for the newspaper reporters by. means 1
Of which ne managed to advertise the |
Southern Pacific road. One day Mr.. SulIy l
said 10 Mr.. Morse:
IF ever go into business for myself. 1
Morse want you as my partner.
True 70 his word. when he closed cut 1
his great corner of last year. in which his 4
profits are said to have been sie.0oe9l. 4
Mr.. Sully sen; for MI Morse and offered 4
him partnership. and Morse accepted.
Mr.. Morse during his long service with /