The Savannah morning news., 1904-03-19
.SULLY CAUGHT IN
COTTON'S TUMBLE.
FAMOUS BULL SUSPENDED.
STAPLE THEN WENT OFF NEARLY
$13 A BALE.

mark ct Was DemOralized Preceding
che Announcement of sulIy & Co.
campaign of the Bears Had the
puIIs ON the Run-BOttOm Dropped
ont when suIIy FaiIed-After "A
Time There Came a Strong Rally.
1tIs said SuIIy VIII Pay in Full.
New York, March 1S.-Daniel j.
s,,Ily. the cotton operator, who has
for fifteen months been the biggest fig
,,re in the cotton markets of the world,
and who has pulled" cotton from
cents a pound to over II, announced
his inability to make good his engage
uents on the New York Cotton FIX
change to-day.
Within a few moments cotton fell
nearly S13 a bale from the highest fig
ures of the day, amid scenes it had
been the privilege of few kers to
witness before. Traders in the street
have witnessed stock panics in previ-
GUS years; corners have been broken
and many crashes have been recorded,
but none has been accompanied oy
such frenzy and confusion.
ton of the impending crash, no morn
ing of the season had witnessed a more
demoralized market. In less than EN-
minutes after the opening half cent
had been taken off the price of cotton.
Prices went up and down 10, 20 and 30
points within two or three minutes.
May opened at 15.2Oc and sold down
to IA. 75c in less than fifteen minutes,
while July, opening at 15.22c, vent
down to IA sec. Toward the end of
the first half hour early sellers started
to cover. and there was a rapid al
vance.
There was nothing in the news to
account for the excitement. 1t seem
ed merely a renewal of bear operations
and the catching of further stop Or
ders.
Shortly after the afternoon session,
however, there was a lull in the pit,
and at about 2:05 o'clock the announce
ment of the suspension was made by
supt. King, who read from the ros-
trum this notice:
1--WE regret that we are unable 10
meet oUr engagements, and therefore
will have to suspend.
''Daniel ]. Sully & Co..
PandemOnium Followed.
For a few seconds there was an
uminous quiet over the floor, as though
the news had stunned all within hear
ing of the announcement. Then with
one impulse a mighty shout went up
from the bears, they who had been
fighting Sully and the bull clique for
months. Hats were thrown into the
air to fall where they would, mo-
ment later to be trampled upon by the
stampede for the pit. Coats were torn
by frantic brokers in their mad efforts
to unload their holdings, and chairs
and camp stools were dashed into the
pit to emphasize some wild brokers'
offer to sell. Messengers soon were
rushing in and out of the building with
orders to sell or buy; telephone booths
were besieged, and telegraph offices
were flooded with dispatches.
Outside the Cotton Exchange ap-
pearance gave little indication of the
pandemonium within, until the mes
sengers began to rush between the ex-
change and the brokers' offices. Soon
the news reached the Stock, Produce
and Coffee exchanges and traders on
these markets FASTENED to the scene OF
the panic. Crowds assailed the en-
trance to the visitors gallery, but
double guard was placed at the doors,
and admittance was refused TO all Out
those accompanied by members.
1t was estimated that something IKE
100000 bales of cotton were traded IN
during the twenty minutes OF the panic
that followed the announcement, ana
that of this, upwards of 100000 Dales
represented forced liquidation, or the
selling out of men whose margins nave
been nearly or quite wiped out.
As the market slumped 200 polnts
during this period the loss raining on
this element amounted to something
over $1,000, 900.
Then 1t Steadied.
The market steadied after ABOUT
twenty minutes, and then there was
sudden inward shoot of about an even
100 points. This sharp upward rise was
brought about by the buying OF brokers
and speculators who saw that tne
market had slumped too far and would
react Just as it did. part Oh tne
excitement on the floor or the S1-
change was caused by the scramble
of brokers who wanted just such bar
gains 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 panic.
The announcement of Sully's sus-
pension was put out on the tickers
everywhere within a few moments az
ter it was made, and there was some
what of a furry on the floor OF me
New York Stock Exchange, after the
news reached there. Mr.. Sully is
member of that exchange, having pur-
chased a seat two or three months
ago. Stocks went off from half a
point to a point and one half on the
fear that the failure might bring
rush of stock selling there. The weak
hess was only momentary, however,
Tor the word was passed around that
Sully had not been trading in stocks,
and in fact, that the clearing house
sheets had never shown a single trans
action by him. The market was re-
assured and stocks went up again.
Upon the announcement of the fail
ure, the representatives Of the news
lapers hurried TO see Mr.. Sully for the
purpose of getting some statement.
suIIy wouldn't BE Seen.
Mr.. sully. however. shut himself in
his private Office and would not be
seen. Shortly after o'clock Sully