Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-03-19
CREATED PANIC.
Cotton Kings Failure Caused Excite.
ment at New Orleans.

-
| ment of the failure of Daniel j. SuIiy
the Cotton King of New York. created
the greatest panic ever seen on the floor
or the New orleans cotton exchange
pIlces melted away until they We're 50 and
$40 bale lower than Yesterdays close
and every moment fears were entertained
that local firms would go 10 the wall.
When the panic was over and the COM
merclal integrity OF the local cotton ira de
was found intact, a great sigh of relief
went Up from the room. although scores
OF small operators We're wiped out and
heavy longs had lost fortunes.
Soon after l o clock. private kilograms
from New York had said:
''Sully suspended" and for the next
three-quarters of an hour an immense
crowd of people at the windows and doors
OF the cotton exchange saw scores of the
most solid and influential business men
OF the. city engaged in a rough and tum-
BILE fight in their efforts to get nearer the
ring ana dump their cotton on an over
loaded market. Prices tumbled downward
~ and 20 points, at a time and still the
selling continued. Some of the brokers,
mad their coats almost torn from their
backs Hats were smashed shirts were
ripped and the chairs and stools about
the ring became useless articles of furni-
ture. So great was the roar from the
ring that it could be heard for blocks
above the noise OF traffic around the busy
corner of Grdvier and Carondalet streets.
The announcement of the failure of
Suliy came in an extremely theatrical
manner. F. b. Hayne a weli-known bull
operator was bidding ll.50 for a block of
thrust a telegram into the hands of an
other broker. The latter's face went
white and he yelled at the top of his
voice across the ring. For Gods sake.
In an instant the ring was in a wild
uproar. While the yel!s were confusing
even the people standing in the street
could easily perceive that the brokers
MO nf Il IN call TOW
no matter at what price. Soon after 130.
the officers of the cotton exchange posted
this announcement from w. F. Pagan,
the New Orleans partner of Daniel j.
Sully & Co..
I'VE regret to have TO announce the
suspension of our firm.
This added to the confusion. and it was
not until the brokers found their books
and allowed the tumut to subside. After
81 minutes of uproar the panicky feeling
ceased to some extent and brokers We're
able to find out just what the situation
was. They found prices SO to $40 bale
lower than yesterdays close. May being
ISL points down at 1890, and July 49, points
down at 1870.
From the time that brokers were able
to leave the ring and look around, a quiet
tone pre>a allied. prices steadied and when
it was found that no local firm was en-
barIassed by the failure. prices showed
wonderful recovery. considering the
the tone was steady and May showed a
recovery of IL points. while July had re-
covered % points On the curb the re-
covery was even more marked. May re-
gained 81 points more at 1914. and July
regained % points at 14.0S.
For several hours after the close of the
market the cotton exchange was filled
with excited cotton men. After every
thing was known. Il more optimistic tone
prevailed. Constant communication was
had with Liverpool and New York and
the cables and kilograms were encourag-
ing So far as could be learned. Sully
has no engagements in the English mar
ket. 1t is believed no New Orleans firm
will be seriously affected
Sullys interests in the local market. 1t
is said. will probably not exceed 1000
bales This is considered unimportant.
Some time after the close of the curb.
Secle tary Hester of the cotton exchange,
made the following announcement:
Under resolution of the board of di-
rectcrs of the cotton exchange adopted
this day the failure of Daniel j. Suiiy
& Co. having been posted within one hour
of tOday's closing. settlements under the
rules must be made on the average of to-
morrow'S Saturdays quotations.
This was regarded as another favorable
turn in the situation and the opinion was
freely expressed that prices would snow
strong recoveries. tomorrow. and ina
Sullv would be able to pay dollar for dol
lar on his obligations.