The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-19
Failure of the Great Bull Operator
Is Announced on the New
York Exchange.
LIABILITIES ARE LARGE
He Drops About S5,ooo,ooo on a
Slump in Price of Nearly
SI3 a Bale.
WILD SCENES IN PITS
New York ard New Orleans
Brokers Tear Coats, Smash
Hats and Play Other Havoc.

NEW YORK, March 1S.-Daniel J. Sully.
the cotton operator, also called the cotton
king" who has for fifteen months been the
biggest figure in the cotton markets of the
world and who has pulled cotton from
cents a pound to over II. announced his in
ability to make good his engagements on
the New York Cotton Exchange to-day.
Within a few moments cotton fell nearly
$13 bale from the highest figures of the
day.
Scenes such as followed the announce
ment of the failure it has been the privilege
of few brokers to witness before. Traders
in the street have witnessed stock panics
in previous years; corners have been broken
and many crashes have been recorded but
none has been accompanied by such frenzy
and confusion.
While there had been premonition of
the impending crash no morning session has
witnessed more demoralzed market In
less than ten minutes after the opening
half a cent had been taken off the price OF
cotton Prices went up and down ten.
twenty and thirty points within two and
three minutes May opened at 15.25 and sold
down to 1915 in tess than fifteen minutes.
while July, opening at 1922, went down to
early sellers started to cover and there was
a rapid advance. There was nothing in the
news to account for the excitement. 1t
seemed merely a renewal of bear operations
and the catching of further stop orders.
THE ANNOUNCEMENT.
Shortly after the afternoon session. how
ever, there was a lull in the pit and at
about five minutes after o'clock the an
nouncement OF the suspension was made by
Superintendent King, who read from the
rostrum this notice:
1--WE regret that we are unable to meet
our engagements and will, therefore, have
DANIEL ]. SULLY & CO."
For a few seconds there was an ominious
quiet over the floor as though the news
had stunned all within hearing of the an
nouncement. When, with impulse, a
mighty shout went up from bears, they
who had been fighting Sully and his bull
clique for months. Hats were thrown into
the air to fall wherever they would. a mo-
ment later to be trampled upon by the
stampede for the pit. Coats were torn by
frantic brokers in their mad efforts to un-
load their holdings and chairs and camp
stools were dashed into the pit to empha-
size some wild brokers' offer to sell. Mes
sengers soon were rushing in and out of, the
building with orders to sell or buy; tele-
phone booths were besieged, and telegraph
offices were flooded with dispatches.
Outside the Cotton Exchange appearances
gave little indication of the pandemonium
within until the messengers began to rush
between the exchange and the brokers' Of
fees. Soon the news reached the Stock,
Produce and Coffee Exchanges and traders
on these markets hastened to the scene of
the panic: Crowds assailed the entrance
tbn ~f-it a
was placed at the doors and admittance
was refused to all but those accompanied
by members.
1t is estimated that something like three
quarters of a million bales of cotton were
traded in during the twenty minutes of the
panic that followed the announcement and
that of this upward of half million bales
represented forced liquidation. or the SELL
ing out of men whose margins have been
nearly or quite wiped out. AS the market
slumped 250 points during this period the
loss falling on this element amounted to
something over S1,OO0,000.
SHARP RISE.
The market steadied after about twenty
minutes and there was a sudden upward
shoot of about an even hundred points This
sharp upward rise brought about by
the buying of brokers and spectators who
saw that the market had slumped too far
and would react just as it did. 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 in the ring to get them. The buying
rush was almost as exciting and just as
noisy, If not more so. the panic.
The announcement of Sully's suspension
was put on the tickers everywhere within
few moments after it was made, and there
was somewhat of a furry on the floor of
the New York Stock Exchange after the
news reached there. Mr.. Sully is a member
(CONTINIrED ON PAGE COL