Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-02
BIG BREAK IN COTTON
Brief Panic on New York
York Exchange.
DROP OF l25 POINTS
STARTED ON REPORT REGARDING
DANIEL SULLY.
Bulls Took Hold After First Scare
and Shorts Had to
Cover.
DROP OF l25 POINTS

NEW YORK, February 2.-What was be-
lieved to be the long-predicted elimination
Of the recent bull speculation In cotton
came in today's market, when, after OPEN
ing lower, a remarkably sudden and vio-
lent drop in prices came in the early after
noon. The scenes on the floor Of the ex-
change were the widest seen in years. If.
indeed, their like was ever seen there be-
fore, and as values melted away the bro
kers seemed frantic to sell.
For the time all were sellers and there
were no buyers, and as the news spread
throughout the cotton district that Daniel
sully had decided to take vacation. ev-
cry man who owned a contract for del'v-
cry Of cotton seemed DESTROYS to sell 1t al
most without regard to the price it would
bring In less than an hour the May OPP
ton fell a cent and a quarter pound, or
as much as would have been considered q
good sized movement for a fortnights trad
ing only a few years ago. Along with the
liouidation of bull spectators there was
some selling for short account.
Bear Raid Checked.
The fall was checked about an hour AFTER
it began by renewed bull support. said 10
be for the account of New Orleans interest,"
and those who had sold short hurriedly
started to buy back again. These pur-
chases caused a quick rally Of from 20 to
IS points, and there the market steadied,
after probably the most exciting hour
trading the New York cotton exchange has
ever known.
lust before the decline began a report
was circulated that Daniel j. Sully had
cabled his Liverpool correspondents that
he had sold out his holdings and was going
away on vacation.
This report was received with credence.
on account of large settlements said to
have been made with his firm last evening
by several bear houses.
Mr. sully said today: 1T is true I am
going away on vacation for two weeks.
think have earned rest
Wild Excitement on Change.
The decline was attended by the widest
excitement witnessed this season At no
period during the late rise had such sensa-
tional conditions prevailed.
The room traders had been looking for
collapse of the bull interest for some time,
and sold freely on this afternoons decline.
only to cover later. On the active positions
the extreme decline was 1O6 to 1876 points.
Parties who had accepted the great break
at the beginning of the long prophested col
lapse put out large lines of short cotton.
but upon the first signs Of a rally 1t was ap-
parent that the bull interests were large
buyers, and the shorts covered eagerly.
NEW ORLEANS. February 2.-The cot
ton market showed a nervous tone today.
although 1t was evident that the bulls were
in control. Liverpool cables caused break
of from Is to 20 points. Scalpers bought
freely absorbing heavy offerings and prices
showed quick recovery to within about
10 points of yesterdays close Small breaks
and bulges followed each other rapidly.
March at the lowest sold 80 points lower
than the close of yesterday; May was ~
lower at 17.44. and July 81 points lower.