The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-03-19
SulIy Locks Himself Up.

Shortly after o'clock Suly went into
| conference with counsel, and later Ed
| win Hadley Jr., Of Providence, r. l.,
one Of the members Of the firm, sent
out a message by his secretary, which
| read:
mo statement of any kind or de-
| scription, Mr.. Sully directs me to say,
| will be given out from this office to-
day. Possibly a statement will be
ready early Saturday morning.
Mr.. Hadley later was quoted as
stating that the firm would pay it's
debts in full, and that the suspension
was due to the impossibility of meet
Ing demands for large sums of money
] due the Sully firm from European
sources, sums that the quick slump in
the market made payable too quickly
for them to be able to meet. Mr.. Sully
left his office at o'clock.
| All sorts of explanations were made
| for the suspension. One of the rea-
sons given was that the New Orleans
1 bull party had sold cotton while Sully
was bulling 1t in the confidence that it
| Sully's following In the market had
sold their long cotton without advis-
| ing with him. From two well informed
sources came denial that there was
any treachery from New Orleans. A
cotton operator with New Orleans con-
nections said that the bull party there
was still bullish on cotton.
Bears Wrecked Him.
| Another account, that came from
one of the six or seven best known cot
ton operators in this country, was that
the bear party had made a deliberate
and well planned attack to overWhelm
| Sully and had succeeded. The bears,
according to this authority, had figured
ont tTn Sc I111x ion
due to immense holdings of spot and
| contract cotton and to his operations
on the Liverpool market and planned
/ an attack on the market that would
carry 1t down just far enough to make
| 1t impossible for Sully to meet his
margin calls, knowing that his failure
would send the market SO much lower
that they could cover at figures to re-
coup them.
| No definite idea of Sully's commit
ments in the cotton market could be
/ got from the other houses In the cot
| ton market. One estimate was that the
was "long" Of 100000 bales of May
! cotton alone. A good authority stated
that he did not believe that Sully was
long of more than that in the whole
market, and a conservative estimate
made in another source was 100000
bales.
| The losses by Sully's failure, in case
i he cannot settle, 1t was stated today,
| will be divided up among. nearly all the
/ brokers on the exchange. One esti-
| mate was that Sully's owings after a
! settlement under the rule of the ex-
/ change would not exceed half a million
dollars. What Sully has personally lost
| or what his hackers have lost in mar
ket operations is no included In this
/ figure.
What Sully will owe will be found
| by deducting the average quotations
/ of cotton today from the figure to
1 which his accounts were margined
1 down to the last call. This will be de-
| termined tomorrow, of course.
| There were no other announcements
| of failures and leading men in the cot
| ton market declared that there need be
| no fear Of trouble.
| In stock exchange circles the failure
| Of Sully was at first taken as sure
| sign of the collapse of the cotton boom.
Later there was some apprehension
| lest the failure might bring down
| string Of banking institutions in the
| South. Mr.. Sully's suspension was
announced on the stock exchange, but
not until shortly before the close of the
| market.
| Tt was announced on the Coffee Elk
change also. The cotton bulls recently
went into that market and caused an
| activity there that correspondent to the
activity in cotton. The coffee market
| slumped and rose with the cotton mar
| ket last month, but 1t was significant
| that the announcement of Sully's sus-
pension caused only slight break in
coffee.
SuIIy's Operations Reviewed.
Daniel j. Sully became a factor in
| the cotton market in January, 1908.
when he took up the bull movement
that Theodore H. Price had let go of.
He was thought to have done a great
thing when he bulled May cotton of
1903 to 10 cents. Sully had been a
cotton buyer for New England firms.
He had made study of crop condi-
TONS and foresaw the short crop of
that year as well as the short crop of
this season. 1t was said that a clique
of New England mill owners backed
him in his first venture.
His May campaign was a success.
and 1t was estimated that he personally
cleared over $1,O00,0O0 by 1t. He es-
tablished cotton house Of his own
last year, under the name of Daniel
J. Sully & Co., but when his opera
lions in cotton became so successful,
the cotton market having been pushed
up above II cents a pounds early this
year. he Widened the scope Of his firms
business, bought seat on the New
York Stock Exchange, went into the
Coffee Exchange, got a membership on
the Chicago Board of Trade, and, 1t
was said, made connections with other
prominent exchanges throughout the
country.
In an announcement made Feb.
last, Daniel j. Sully & Co. stated that
| its purpose was to conduct a general
banking business, dealing in securities
on the New York Stock Exchange and
purchasing and selling contracts on
commission on the New York, New Or
leans and Liverpool Cotton Exchanges
and the New York Coffee Exchange.
The members of the firm were Daniel
J.. Sully, Col. S. F. B. Morse, of Hous-
ton, Tex; Walter S. Crandell and Ed
win Hadley Jr. Recently William R.
Pagan, manager Of the firms New Or
| leans office, was taken into the firm.
Sully is the president and Hadley the