The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-19
The Detail OF the Failure.
(By the Associated Press.)

(By the Associated Press.)
New York March 1S.-Daniel J. Sully,
the cotton operator, who has for fifteen
months been the biggest figure in the cot
ton markets OF the world and who mas
"buller'' cotton from seven cents a pound
10 over seventeen, announced his inability
10 make good his engagements on the
New York Cotton Exchange today. Within
a few moments cotton fell nearly thir-
teen dollars a bale from the highest fig
ures OF the day.
scenes such as followed the announce
ment of the failure it has been the privi-
lsge of few brokers to witness before.
Traders in the State have witnessed stock
panics in previous years; corners have
been broken, and many crashes have been
recorded, but none had been accompanied
by such frenzy and confusion.
While there had been no premonitlon
of the impending crash no morning OF
the season had witnessed more demoral'
lied market. In less than ten minutes. at
ter the opening half cent had been
taken off the price of cotton. Prices went
up and down, 10, 20 and 60 points within
two and three min .es. May opened at
1925 and sold down to 1415 IN less tnan
fifteen minutes, while July, opening at
end of the first half hour early sellers
started to cover and there was a rapid
advance. There was nothing in the news
to account fcr he excitement. 1t seemed
merely a renew II of bear operations and
the catching of further stop orders.
Shortly aker the afternoon session,
however there. was a bull in the pit and
at about five minutes after o'clock
the announcement of the suspension was
made by Superintendent King, VINO read
from the rostrum this notice:
I'VE regret that we arc unable to meet
our engagements and therefore will have
to suspend.
DANIEL ]. SULLY G. COMPANY"
For a few seconds there was an ominous
quiet over the floor as though the news
had stunned all within hearing CT the
announcement Then with one impulse a
mighty shout went up from the bears,
those who had been fighting Sully and
the bull clique for monhs. Hats were
thrown into the air to fall where they
would a moment later TO be trampled
uron by the stampede, for coats were torn
by frantic brokers in their mad efforts to
unload their holdings. and chairs and
camp stools were dashed into the PIT, to
emphasize some wild brokers' offer to
SELL Messengers soon were rushing IN and
out of the building with orders 10 sell
or buy; telephone booths were besieged,
and telegraph offices were flooded with
dispatches.
Outside the Cotton Exchange appear
ances gave little indication OF the pan
Gcmonium within unil the messengers be-
gan to rush between the exchange and
the brokers' offices. Soon the news
reached the Stock, Produce and Coffee
Exchanges and traders on these markets
FASTENED TO the scene of the panic.
Crowds assailed the entrance to the visi-
tors gallery but double guard was
placed at the doors, and admittance was
refused 10 all but those accompanied by
members.
1t was estimated that something like
three quarters of million bales of cot
ton were traded in during the twenty
minutes of the panic that followed the
announcement, and that of this, upward
of half a million bales represent zen
forced liquidation or the selling out OF
men whose margins have been nearly or
quite wiped out.
AS the market slumped ESQ points dur
ing this period the loss falling on this
element amounted to something over a
million dollars.
The market steadied after about TWEEN
ty minutes. and then there was sudden
upward shoot of about an even hundred
points. This sharp upward rise was
brought about by the buying of brokers
and speculators who saw that the market
had slumped too far and would reac
lust as II did. A part of the excitement
on the floor of the exchange was caused
by the scramble of brokers who wanted