The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-20
Theatrical Scenes at New Orleans.
(By the Associated Press.)

New Orleans. March 1S.-The announce
ment of the failure of Daniel ]. Sully the
cotton king of New York. created the
greatest panic ever seen on the floor of
the New Orleans Cotton Exchange. Prices
melted away until they were 50 and $40
bale lower than yesterdays close, and
every moment the fear was that local
firms would go to the wall When the
panic was over and the commercial in
tegrity of the local cotton trade was
found intact a great sigh of relief went
up from the room, although scores of
small operators were wiped out and heavy
longs had lost fortunes.
Soon after / o'clock private kilograms
from New York had said 'Suly suspend
ed'' and for the next three quarters of
an hour the brokers engaged in a rough
and tumble fight in their efforts to get
nearer the ring and dump their cotton
on an overloaded market. Prices tum
bled down 10 and 80 points at a time and
still the selling continued. Some of the
brokers had 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
furniture.
The announcement of Sullys failure was
made in an extremely theatrical manner.
Frank B. Hayne. one of the best known
bull operators in the cotton world. was
bidding for block of 5000 bales of July
at 1850. A messenger boy who had ar
rived, thrust a telegram into the hands
of c. P. Ellis. another well known broker.
Mr. Ellis face went white and he yelled
at the top of his voice across the ring:
''Fod Gods sake, Hayne, stop bidding;
Sully has failed!"
In an instant the ring was in a wild
uproar.
Soon after the officers of the Cotton
Exchange posted this announcement from
w. f. Pagan, the New Orleans partner
of Daniel ]. Sully and Company.
1--WE regret to have to announce the sus-
pension of our firm"
This added to the tumut and brokers
fought the harder to dispose OF their cot
ton. l. was not until the brokers found
their books we'll clear of long cotton
that they paused and allowed the tumult
to subside. Prices were 50 to $40 a bale
lower than yesterdays closing, May be-
ing 1S1 points at 1880 and July 1877 points
down az 1850. When it was found that
no local firm was embarrassed by the
failure, prices showed a wonderful re-
covery, considering the shock the mar
ket received. AT the close the tone was
steady and May showed a recovery of 10
points, while July had recovered 80 points.
On the curb the recovery was even more
marked. May rcgained 81 points more
at 1874 and July regained 80 points at
1A.0S
1t is believed no New Orleans firm
will be seriously affected. 1t was at first
estimated that Sully's interest in the
local market amounted to about 10000
bales, but later in the day this was said
to be too high and that the interest would
probably not exceed 1000 bales. This
was considered trifling.
Some time after the close of the curb,
Secretary Hester of the Cotton Exchange,
made the following announcement:
Under resolution of the Board of Di-
rectors of the Cotton Exchange adopted
this day, the failure of Daniel J. Sully
and Company, having been posted within
one hour of todays closing. settlements
under the rules must be made on the
average of tomorrow's Saturdays quota
ton"