Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1904-03-23
SULLY GOES
TO THE WALL
Man Who Has Been BuIling the Cot
ton Market for Fifteen Months is
Forced to Suspend.
PANDEMoNlUM oN EXCHANGE
Market Goes All to Pieces When An
nouncement of the Failure is
Made-Sully's Loss.

NEW 1OIh, MdICu TO- -bhhitl D.
Sully, who has for fifteen months been
the largest figure in the cotton mar
kets of the world and who has bull.
ed" cotton from cents a pound to
IL cents. today announced his inabil.
ity to make good his engagements on
The New York cotton exchange.
Within a few moments cotton fell
nearly sl3 bale from the highest
figures of the day. Many crashes
have been recorded but probably none
has been accompanied by such fren.
zy and confusion. While there has
been no premonition of the impend-
ing crash, no morning of the season
had witnessed a more demoralized
market. In less than three minutes
after the opening half a cent had
been taken off the price of cotton.
Prices went up and down, 10. 20 and
30 points within two and three min
utes. May opened at sl5.25 and sold
down to sl4.75 in less than Il min
utes. while July opening at $i5.22
went down to $14S6. Toward the end
of the first half hom early sellers
started to cover and there was a
rapid advance. There was nothing
in the news to account for the ex-
citement. 1t seemed merely renew
al of the bear operations and the
clinching of further stop orders.
Shortly after the afternoon session
there was a lull in the pit and at
about five minutes after 2 o'clock the
announcement OF the suspension was
made by Superintendent King. who
read from the rostrum this notice:
I'VE regret that we are unable to
meet our engagements and will there
fore have to suspend.
DANIEL j. SULLY & CO."
For a few seconds there was quiet
on the floor Then with one impulse
a mighty shout went up from the
bears. who lad been fighting Sully
and the bull clique for months. Hats
were thrown into the air to be tramp
led upon in the stampede for the pit.
Goats were torn by frantic brokers,
and chairs and camp stools were
dashed into the pit. Messengers soon
were rushing in and out of the build
ing with orders to sell or buy. Tele-
phone booths were besieged and tel
egraph offices were flooded with dis
patches.
Outside the cotton exchange ap-
pearances gave little indication OF
the pandemonium within until the
messengers began to rush between
the exchange and the brokers' OIL
ces. Soon the news reached the
stock, produce and coffee exchanges
and the traders on these markets
fastened to see the panic. But a
double guard was placed at the doors
and admittance was refused to all but
those accompanied by members.
II was estimated that something
like $4,000 bales of cotton were trad
ed in during the twenty minutes OF
panic that followed the announce
ment, and that of this upwards OF
500 900 bales represented forced IL
auidation" or the selling out of men
whose margins have been nearly or
quite wiped out. AS the market
slumped $50 points during the per-
iod the loss falling on this element
amounted to something more than
S1,000,000.
The market steadied after about
twenty minutes and then there was
a sudden upward shoot OF about 100
points. This sharp upward rise was
brought about by the buying of brok-
ers and spectators who saw that the
market had slumped too far and
would react.
A part of the excitement on the
floor of the exchange was caused by
the scramble OF brokers who wanted
Just such bargains and had to fight
to get into the ring to get them. The
announcement of Sully's suspension
was put on the tickers everywhere
within five minutes after II was made
and there was somewhat of a furry on
the floor of the New York stock ex-
change after the news reached there.
Mr.. Sully is a member Of that ex-
change, having purchased seat two
or three months ago. Stocks went on
from half a point to point and a
half on the fear that the failure
might bring a rush OF stock selling.
The weakness was only momentarily
apparent. The market was reassur.
ed and stocks went up again.
Mr. Sully shut himself in his Of
fee and refused to publish state
ment. Shortly after 5 o'clock Sully
went into conference with counsel
and later, Edwin Haley, Jr.. of Prov
idence, r. |. member OF the firm,
sent out this message:
mo statement of any kind or de-
scription, Mr.. Sully directs me to
say. will be given out from this Of
flee today. Possibly statement will
be ready early Saturday morning."
No definite idea of Sully's commit.
ments in the cotton market could be
obtained from other houses in the
cotton market. One estimate that he
was "long" 100000 bales OF May cot
ton alone. A good authority said that
he did not believe that Sully was
"long" more than that In the whole
market and the conservative estimate
made in another source was 100000
bales.
The losses by Sully's failure In
case he cannot settle, II was said
will be divided among nearly all the
brokers on the exchange. One esti
mate was that Sully's owings, after
settlement under the rule OF the
exchange would not exceed $500, 900