Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1904-02-05
IN THE HANDS OF A CLIQUE.
Thought That Millionaire Finaneiers
Control the Cotton Market.


Banking interests. mill owners and
speculative people have been caught by
the ears in the matter of cotton, says
a New York letter Of Monday. Never
have they been so far wrong in regard
to the staple. A foreign banker who.
a week ago, was advising his friends
to sell cotton and buy grain meekly
admitted that he was all wrong on cot
ton, but as a dethroned prophet his
words ceased to carry weight. One Of
his explanations was that Europe
would unquestionably take more cotton
than was originally supposed, as shown
by the fact that it was still being ex-
ported in large quantities.
The theory now generally entertain
ed in the financial districts is that
powerful syndicate Is taking advantage
Of strong statistical position in cot
ton to force it up and that there Is no
telling how high 1t will go. A dozen
we'll known individuals, with hundreds
Of millions at their command, are mem
toned as being in combination. 1t
Is alleged that the leading ones reside
here and have been identified with var
ious underwriting syndicates, so that
they are familiar with the raising of
vast sums Of money. Different estimates
are mentioned for the supposed cotton
pool, ranging from s5O,O0O,OOO to $780,
900 900. Some Of the same people are
operating in coffee and in the stock
market. One authority told me that 1t
looked as II one gigantic pool were
manipulating all three markets.
The great profits in cotton alone may
be judged from the fact that every rise
Of one cent pound means s5 bale,
or s5,O0O000 on a million bales. Its
profits on a rise Of say five cents are
enormous, assuming that it can liqui-
date to advantage. Vast profits have
also been made in coffee, but not much
has been realized in stocks, for the
public has not come in. 1t is easy to
see why the staple markets are prefer
red as a basis of operations. A large
speculative following has been created.
The Rockefellers and other members
of the Standard Oil clique are gener-
ally assumed to be the head and front
of the syndicate, though how far right
or wrong this assumption is people diff
fer. In spite of denials that the Ma
tional City Bank has made extensive
loans on cotton Wall street Is uncon-
vinced as to the exact facts. Much
talk has been heard this week In re-
gard to D. ]. Sully's relations with
John w. Gates. The latter Is credited
here with heavy operations in both
cotton and coffee. Mr.. Gates is admit
ted to be the head and front of the
stock market manipulation. From the
way in which Gates is handling var
ious recognized Standard Oil stocks, 1t
is generally assumed that he is acting
for the latter people. At the same time
the Rockefellers have various other
agents and spokesmen and there Is no
telling when they shift from one to an
other, 80 we'll is their hand concealed.
The power of s50.0OO,00O. Gin the cot
ton market is hardly conceivable and
does away with the theory Of a possi-
BILE collapse, even If the crop should
prove a million bales larger than Is
generally supposed. The syndicate can
take up and pay TO: all the cotton
which would be likely to be offered for
sale, if the above theory Of its re-
sources is correct. It would then be
merely a question Of disposing OF 1t.
It might do so to good advantage and
come out with an enormous profit, as
some assert or the operation might havo
to be extended over long period and
a loss might be incurred. There Is
growing belief that-the syndicate feels
sure. OF a large profit and that 1t care
fully sized up the statistical position
of cotton months ago before beginning
operations.