Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-03-19
SULLY's DOWNFALL.
Continued from page IL

III luii tAdt the suspension WAS dine
70 the mpossibility of meeting demands
Iof large sums of money due the Sully
nrm from European sources, sums that
the quick slump in the market made
payaple TOO quickly for them to he able
TO meet. Mr.. Sully left his office at A
o'clock. a.
All sorts of explanations were made n.
'he suspension. One of the reasons piven
was that the New Orleans bull party had
sold cotton while Sully was bul,ing IL IN
.he confidence that they were supportinp
nm; Another was that Sully's foI,owin.
IN me market had sold their long cottnS
W WHINE fo aovlsing with him. From two
,iSia-iilIorHed sources came a denial tina +
te was any treachery from New Or
i 1ear,s' "A cotton operator with New Or
ions connections said that the bull party
| 'here was still bullish on cotton
Ahother account that came from ono of
me SIX or seven best-known cotton oper-
aeo.S IN TINS country was that the bea +
party mad made deliberate and we'll
planned attack to overwhelm Sullv and
had succeeded S anu
NO definite idea of Sullys commitments
Ia tne cotton market could be got from
inc me other houses of the cotton market.
3WVoO bales of May cotton alone. a good
autnorlty stated that he did not believe
u; ;iat SuIly was long" of more than that
"Aoit anu Il conservative
900 bales was IVY
Inc losses by Sullys failure in case he
cannot cannot settle, it was stated today. will be
uiNldeu up among nearly all the brokers
on the exchange. One estimate was that
SuiiS oWlngs after IA settlement under
the rules of the exchange. would not eX-
Geo nall million dollars. What Sully
personally lost, or what his hackers have
iost In market operations is not included
in this figure.
What Sully will owe will be found by
doducting the average quotations, Of cot
ton. today, from the figure to which his
accounts We're margined down to the last
call. This will be determined tomorrow.
of course.
There were no other announcements of
failures and the leading men in the cot
ton market declare that there need be no
fear of trouble.
In stock exchange circles the failure of
Sully was at first taken a sure sign
of the collapse of the cotton boom Later
there was some apprehension lest the fail
IRE might bring down string of banking
institutions in the South.
Mr.. Sullys suspension was announced
on the stock and coffee exchanges. of
winch he was member. but not until
shortly before the close of the market
The cotton bulls recently went into the
coffee market anG caused an activity
there that corresponded to the activity in
cotton. The coffee market slumped and
rose with the cotton market last night,
ment of SuliyS suspension caused only
slight break in coffee.
The members of the firm were Daniel
J. Sully, Col. S. +. 3. Morse of Houston.
Texas; Walter S. Crandell and Edwin
Hadley. Jr.. of Providence. r. L.: and
William r. Pagan. manager OF the firms
New Orleans office, recently taken into
the firm.
Sully is the, president and Hadiey the
treasurer of the F. w. E. Reynolds Cot
ton Co. of Providence. r. L.
Chicago. March 1S-The news that Dan
iel j. Sully. the cotton king" had sus-
pended payment in New York, caused con-
siderable excitement on the Chicago
not become generally known until few
minutes before the session closed, any
panic that might have followed the an
nouncement was everted. As 1t was, a
decided drop in prices particularly in
provisions in which Sully is said to have
direct interests.
Early in the session an uneasy feeling
developed among traders. The bear ten
dency was not slow to spread. although
the real drop did not come until the state
ment was made to the traders that Sully
had suspended. With the announcement
of the failure everybody appeared to
change to the selling side and the market
closed in an uproar with the majority of
traders trying to dispose OF their holdings.
Only one large firm in the Chicago mar
ket is believed to be affected by the east
ern failure. and it is not thought to have
been deeply involved.
Lawrence. Mass. March lS.-It is rather
early to judge what effect the Suliy iail-
ure will have on the local cotton mills.
Such is the opinion of the agents of the
local cotton mills.
Agent Milliken of the Everett mills,
said:
1T is rather early to say what effect
the Suily failure will be as regards the
local cotton situation. and the only way
it will effect the cotton mill trade will he
in the price of finished cloth. The re-
ducton of 80 a bale at New Orleans may
he only temporary and cotton may lie
scarce. | would not like to say at such an
early day what the result of Sully's fail
urc will he.
Agent Summelsby of the Atlantic mills.
said:
II have heard of the failure of the Sully
publication what the result would b. as
il is TOO carly. However. | do not think
that the conditions in the local cotton
market will he hettered much. but the sit
uation will undoubtedly be mad. clearer
and restored confidence Will result.
Agent Hartshorne of the Arlington
mills. did not care to say ANYTHING as to
| tho results of thn Sully failure. as they
| had not been felt as YET in this vicinity.
| ard it was too soon to judge as to the
ultimate results.
New BEDFORD. Mass. March lS-A prom
inent mill official said tonight. in regard
to the SUlly failure:
| an nv opinion the event will prove a
distinct benefit to the local mills. The
speculation in which Mr.. Sully has been
| a leader has contributed more than any
other source to the unsettled condition Of
| the cotton industry for some time.
| Il do not anticipate any great change
| in prices as the result of the announce
ment For some time the market has
Ibaen approa ching normal condition and
| the abolition of the speculative clement
will tend to keep ii in that condition.
| Boston. March ls.-New England. more
| than any other part Of the county. Will
be affected by the failure in New York.
today. of Daniel J. Sully. tn" cotton OPP
| orator and the consequent slump i'll the
cotton market
| Mill trcasurcrs ard agents We're. how
ever but little inclined. tonight. to ven
ture prediction as to the probable effect
| on the mill centcrS of New England of
the collapse of the market
| Arthur Lyman. who is regarded as a
leader among tho cotton mill men in
| MASSACHUSETTS,. when asked whether he
thought the situation would he benefited
by the failure, positively declined to eX-
press an opinion.
| The conCansIis of opinion. as nearly AZ
could he determined from guarded expires
Sious WAS that the trade situation would