The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-19
SULLY EALLSAND
COTTON CRASHES
The Exchange Stunned for Ole Moment by the
Announcement, the Next Bursts into
a Roar of Frenzy

Just such bargains and had to fight to get
in the ring to get them. The buying rush
was almost as exciting and Just as noisy,
If not more so. as the pane.
The announcement of Sullys SuSpen-
sion was put out on the tickers every
where within a few moments after 1T was
made, and there was somewhat of furry
on the floor of the New York Stock Ex-
change after the news reached there. Mr..
Sully is a member of that exchange. hav-
ing purchased seat two or three months
ago. Stocks went off from half point
to point and one half on the fear that
the failure might bring rush OF stock
selling there. The weakness was only
momentary, however. for the word was
passed around that Sully had not been
trading in stocks. and. in fact. that the
clearing house sheets had never shown
single transaction by him. The mar
ket was re-assured and stocks went up
again
Upon the announcement of the failure
| the representatives of the newspapers
/ hurried to see Mr.. Sully for the purpose
of getting some statement
| Mr. Sully. however, shut himself in his
private Office and would not be seen.
Shortly after O'Clock Sully went into
1
Hadley. Jr., of Providence. R. l.. one of
the members of the firm. sent out mes
sage by his secretary which read:
mo statement of any kind or descrip-
ton. Mr.. Sully directs me to say. will
be given out from this office today. Posi-
bly, a statement will be ready early Sat
urday morning
Mr.. Hadley later was quoted as stat
IL Al oh in
full. and the suspension was due to 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 o'clock
All sorts of explanations were made for
the suspension. ne of the reasons given
was that the New Orleans bull party had
sold cotton while Sully was bulling in
the confidence that they were supporting
him. Another was that Sully's following
in the market had sold their long cotton
without advising with him. From two
well informed sources came a denial that
there was any treachery from New Or
leans. A cotton operator with New Or
leans connections said that the bull party
there was still bullish on cotton.
Another account, that came from ono
Of the six or seven best known cotton
operators in this country. was that the
hear party had made deliberate and
we'll planned attack to overwhelm Sui!y
and had succeeded.
The bears, according to this authority,
had figured out the weakness of Sullys
position due to immense holdings of spot
ana contract cotton and to his operations
on the Liverpool market. and planned
an attack on the market that it would
carry it down just far enough to make 1t
| 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.
No definite idea of Sully's commitments
in the cotton market coulo be got from
the other houses in the cotton market.
One estimate was that he was long OF
200 600 bales of May cotton alone.
good authority stated that he did not
believe that Sully was long" of more
than that in the whole market, and
conservative estimate made IN another
source was 100000 bales.
The losses by Suly's failure in case
he cannot settle it was stated TODAY. was
divided up among nearly all tie brokers
o nthe exchange. One estlmat vas that
Sully's owings after settiem under
the rule OF the exchange Woul- OF ex-
ceed half million dollars. Nhat Suily
has personally lost, OF what his packers
have lost in market operations Is not IN
cluded in this figure.
What Sully will owe will be found by
deducting the average quotations OF cot
ton today from the figure to which his ac-
/ n the
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 failure OF
Sullv was at first taken ure ign OF
the collape of the cotton boom. Later
there wa ONE Apprehension let the failure
might bring down a string OF banking in
stitutions in the South.
Mr.. Sully's suspension was announced
on the Stock Exchange but not until
shortly before the close of the market. 1t
was announced on the Coffee Exchange
also. The cotton bulls recently went in
to the market and caused an activity
there that corresponded to the activity in
cotton. i ne cOHec HldIhel eiuihp0u on"
rose with the cotton market last month,
but it was significant that the 'announce-
men of Sully's suspension caused only a
slight break in coffee.
Daniel ]. Sully became a factor in the
cotton market in January of 1909, when he
took UP the bull movement. He establish
ed a cotton house of his own last year,
under the name of Daniel ]. Sully & Com
rany, but when his operations in cotton
! became SO successful, the Gotten market