The San Francisco call., 1904-03-19
SUDDEN AS WAS HIS RISE is FALL
OF DANIEL J. SULLY, COTTON KING
Daring Spectator Who Controlled Markets of the World
for Fifteen Months Forced to Announce That He Cannot
Meet Obligations He Incurred During His Short Reign

NEW YORK. March I7.-DanieI
J. Sully. who has for fifteen months
been the largest figure in the cotton
-'bulled" cotton from cents a pound
70 Il cents. to-day announced his
inability 10 make good his engage
ments on the New York Cotton Ex-
change. Within a few moments cot
ton fell nearly s13 a bale from the
highest figures Of the day. Many
crashes have been recorded, but prob
ably none has been accompanied by
such frenzy and confusion. While
there had been no prenonition Of the
impending crash, no morning OF the
season had Witnessed a more demor-
allied market In less than three
minutes after the opening half a cent
had been taken of the price OF cot
ton. The prices went I'D and down
10. % and 30 points within two and
tl.-e minutes. Nay opened at 1890
and SOLD down 70 14.75c in less than
fifteen minutes. while July, opening
al 1920. went down 70 14.S6c.
Toward the end OF the first half hour
early sellers started TO cover and
there was a rapid advance There
was nothing in the news to account
for the excitement Il seemed merely
G renewal OF bear operations and the
cunching Of further stop orders.
shortly after the afternoon session
there was a luu in the pit and AZ
about 2-O5 o'clock the announcement
OF the suspension was made by Su-
perintendent King. who read from the
rostrum this notice:
we regret that We are unable 70
meet our engagements and viii there
fore have 70 suspend.
DANIEL J. SCLLY & CO."
BROKERS ARE FRANTIC.
For a few seconds there was quiet
over the floor Then with one impulse
a mighty shout went up from the bears
who had been fighting SuIly and the
bull clique for months. Hats were
thrown into the air 10 be trampled
upon in the stampede for the pit. Coats
were torn by frantic brokers and chairs
and camp stools were dashed into the
pix Messengers soon were rushing N
and out OF the building with orders u
sell or buy. Telephone booths were
besieged and telegraph Offices were
flooded with dispatches
Outside the Cotton Exchange ap-
pearances gave little indication Of the
pandemouium within until the mes
sengers began 70 rush between the ex-
change and the brokers Offices. Soon
the news reached the Stock and Pro
duce and Coffee exchanges and The
traders on these markets hastened 10
see the panic But double guard was
placed az the doors and admittancs
was refused 70 any but those accom-
panied by members
L was estimated that something like
10000 bales Of cotton were traded IN
during the twenty minutes OF panic
that followed the announcement and
that of this upward Of 100000 bales
represented forced Liquidation" or the
selling out Of men whose margins have
been nearly or quite wiped out. As
the market slumped 80 points during
this period the loss falling on this ele-
menr amounted 10 something more
than sI.000.o .ooo.
The market steadied after about
twenty minutes and then there was a
sudden upward shoot OF about 100
points. This sharp upward rise was
brought about by the buying Of brokers
and spectators, who saw that the mar
ket had slumped too far and would
react A part Of the. excitement on the
floor oL the exchange was caused by
the scramble Of brokers who wanted
just such bargains and had 10 fight TO
get in the ring 10 get them The buy
ing rush was almost as exciting and
just as noisy as the selling panic.
STOCKS TAKE DROP.
The announcement Of SuIly's suspen-
sion was put on the tickers everywhere
within a few moments after IL was
made. and there was somewhat Of q
furry on the floor Of the New York
Stock Exchange after the news reached
there. Sully is a member OF that ex-
change having purchased a seat two
or three months ago. Stocks went OF
from half a point 70 a point and a
half on the fear that the failure might
bring a rush Of stock selling. The
weakness was only mOmentary. for
word vas passed around that Sully
had not been trading in stocks and that
the clearinghouse sheets had never
shown single transaction by him.
The market was reassured and stocks
went up again.
Sully shut himself up in his Office
and refused 70 publish a statement
Shortly after 3 o'clock he went into
confere1<e with counsel, and later Ed
win Hadley Jr. OF Providence, r. l., a
member Of the firm. sent out this state
ment.
NO statement Of any kind or de-
scription, Mr. Sully directs me to say.
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