New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-28
NEW MOVE BY SULLY FIRM
CALL FOR 10000 BALES.
Demands DcIivery C''der Contracts
Closed on Dag of Failure

A uttie stir was caused the Cotton FIX
change yesterday afternoon by the announce
raent that Daniel }. Suly & Co. asked the re-
delivers Henry w Taft and .. II. Miller 10
demand OF she forty Cotton Exchange houses
which had contracted to sell cotton TO the Sully
nrrn for May delivery that they deliver 10000
bales os Spot cotton, representing the contracts
closed oat by the forty houses OF the announce
rnent of the SuHy failure en- March Is AS
faere are only about sixty Thousand bales
Of SPOT cotton in New-Yorh, and the deliveries
.xoala have 10 he made by Tuesday May 81
the enforcement OF the demand would mean
record breaking squeeze" IN spots"
Nj Su.ly WAS rot in the city yesterday but
w r Pagan. member OF the firm, confirmed
the report OF the request TO the receivers. I'm
der the rules OF the Exchange" said he. the
contracts OF a member who IS unable TO meet
them at maturity may be sold out without no
fice. but II q member simply can't meet his mar
gin al some time before the maturity Of the
contracts. he must have due notice before he
"a sold out.
I'VE were simply unable to make good our
margins the day informed the Exchange
We informed the Exchange simply that we
couldn't meet our engagements. No contracts
had naatu-ed. Our engagements consisted sim
ply IN the engagements OF the ,cay-to meet calls
for margins We did not get notice from any
body, and the sale Illegal. The receivers
have been asked TO demand delivery of the May
cotton. Tomorrow IS a holiday. So is Mon
day. Tuesday is the last day OF May. so those
owing US delivery OF May cotton viii have TO
gather il IN quickly. We told the receivers to-
DAY. so as give time 20 get cotton together.
There are only about sixty thousand bales of
cotton IN New-York, and some time will be
needed"
Mr. Pagan was asked II the hrn had just
learned that this cotton was due il.
mo" he answered. I'VE knew II all the time.
We have simply said nothing about # till now.
The receivers VIII be able TO pay for all the cot
ION that viii be delivered 10 them"
did you mention these contracts IN your
schedule OF assets?"
I'VE said in our schedule OF assets that we had
contracts open. We did not specify what they
were?"
It was learned later that William II. Black,
one OF the City Commissioners OF Accounts. as
attorney for twenty OF the unsecured creditors.
all OF them small customers OF Daniel J. Sully
& Co.. had also asked the receivers to demand
the Delivery Of the 10000 bales Of spot. IN the
schedules OF the firm, published two or three
days ago. mention was made of a Of
81, $4,000 on deposit in the Corn Exchange
Bank, which sum was on March 70, the firm
said, mistakenly paid out by us upon
the urgent solicitation Of r. p. McDougan
president Of the New-York Cotton Exchange
and William V. King. superintendent Of the
New-York Cotton Exchange. and without adj
vice or knowledge OF the law on our part TO
members Of the New-York Cotton Exchange"
Mr. Black has asked the receivers to demand
the repayment Of this 81, 042000, 10 be turned
into the common fund for the benefit of all the
creditors.
There was a meeting CT the creditors COM
nittee late in the afternoon at the Office OF the
receivers. 1t was said after the meeting that
Sully's demand had not been considered. Mr..
Taft, one of the receivers, said that he and Mr.
Miller, the other receiver. had not made the de-
mands requested by Daniel J. Sully & Co and
under consideration.
Prominent members Of the Cotton Exchange
included An the list Of those who had closed out
their Sully contracts on March IS were not wor-
Ned by the possibility of being obliged deliver
by Tuesday 10000 more bales Of cotton than
are now held at this point.
Written notice of inability 10 meet our en-
Eagements" was sent 20 Superintendent KIns Oh
March IS. and promptly read by him from the
rostrunl, The requirement OF the bylaw thus
being complied with.
AZ maturity say leading exchange mem
beers. cannot mean AT the termination Of the
period canned Ia the contract. for otherwise z.
failel fun might have a contract calling FOR
JanGGrg delivery, and we could not sell them
out uEJl -Lel. What happened was tnat SGily
YVES called on fer margins that day ana could
2oJ meet rhc calls. The Ill being that the con-
tracts .UGtGTe9 then au9 there"