Arizona republican., 1904-03-19
COTTON CRASH
SulIy, the Great Bull Oper-
 dtOr, Went to the Wall
PANDEMONIUM REIGNED
When It Became Known That the Head of the Bull Movement Had Fallen - Too Early Yet to Estimate Extent of the Disaster.

New York, March 1S-Daniel J. Sul- ly, who for fifteen months has been the largest figure in the cotton mark cts Of the world and who has pulled" cotton from seven cents a pound to seventeen cents, today, announced his inability to make good his engage ments on the New York cotton ex- change. Within a few moments cotton fell to nearly S13 a bale from the highest figures of the day Many crashes have been recorded but prob ably none have been accompanied by such frenzy and confusion. While there had been no premOnition of the impending crash, no morning of the season had witnessed a more demoral- ized market. In less than three min utes after the opening half a cent had been taken off the price of cotton.
 Prices went up and down 1O 20 and 90 points within two and three min utes. May opened at S15.25 and sold down to $14.75 in less than fifteen min uteG, while July, opening at $15.22, went down to $14.S6. Toward the end of the first half hour early sellers started to cover, and there was a rap
 
 news to account for the excitement. It seemed merely a renewal of bear operations and the catching of further stop orders.
 Shortly after the afternoon session there was a lull in the pit and about five minutes after the announcement of the suspension was made by Super intendent King, who read from the rostrum this notice:
 We regret that We are unable to meet our engagements and will there fore have to suspend.
 DANIEL J. SULLY & CO"
 FoE a few seconds there was quiet over the floor. Then with one impulse a mighty shout went up from the bears, they who had been fighting Sul- ly and the bull clique for months. Hats were thrown into the air to be tramp led upon in the stampede for the pit Coats were torn by frantic brokers and chairs and camp stools were dash ed into the pit. Messengers soon were rushing in and out of the building with orders to sell or to buy. Telephone booths were besieged and telegraph offices flooded with dispatches. Outside the exchange appearances gave little indication of the pandemon- ium within until messengers began to rush between the exchange and the brokers offices. Soon the news reach ed the stock, produce and coffee eX- changes, and traders of these markets hastened to see the panic. But a dou- ble guard was placed at the doors and admittanee refused all but those ac- companied b$ members. It was esti- mated that something like 750,0C bales of cotton were traded in during the twenty minutes of panic that followed the announcement and that of this upward of 500,0G0 bales represented forced liquidation" or the selling out of the 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 more than $1,000, 900.
 Sully shut himself in his office and refused to publish a statement of any kind.
 All sorts of explanations were made 1 for the suspension.
 One of the reasons given was that the New Orleans bull party had sold cotton while Sully was pulling with the confidence that they were supporting him.
 Another was the Sully following in the market had sold their long cotton without advising with them. From two well informed sources came a de- nial that there was any treachery from New Orleans.
 A cotton operator with New Orlears connection said the bull party there was still bullish in cotton.
 Another account that came from one of the six or seven best known cotton operators in this country was that the bear party had made a de- liberate and well planned stack to overwhelm Sully and had succeeded.
 The losses by Sully's failure in case he cannot settle, will be divided among nearly all the brokers on the exchange. One estimate was that Sully'S owings, after a settlement under the rule of the exchange would not exceed $500, 900. What Sully has personally lost or what his packers have lost, in market operations is not included in this fig ure.
 What Sully will owe will be determ- ined tomorrow.