The Montgomery advertiser., 1904-02-06
PRICES FALLn VERTICtILY The Sully-BrOy FactiOn Sques sA.  THEYSTICKT0 THEIR GAINS New Orleans Bull Makes Ap-
 peal to the Brokers. New York Leader Says the Staple
 will Go to 20 Gents, and Ie Will Not Go to
 .. Florida.

New York, Feb. '.-(Special.)-As com plete a panic as ever existed in the cot ton market occurred to-day when, on top of tremendous losses during three pre- yioils sessions of the exchange, prices tumbled precipitately. and the attempted corner of the Southern staple by the Sul- ly- Brown clique collapsed as completely as did the Letter wheat deal of live years ago.
 The drop in values was unprecedented here Sully tried for a short time at the opening to sustain what looked like a hopelessly shattered market. and was momentarily successful.
 Then from New Orleans and every point in the South into which the cotton speculative craze had penetrated. from Liverpool and from local trailers after the bull pool, came liquidating orders, and under the pressure of them the mar ket sagged from 15O to 175 points, and the bull leader fled from the pit.
 Mass of Selling Orders.
 The tremendous activity here was due to great mass of selling orders accum- ulating from all of the cotton markets of the world. It was the only one where they could be executed and not cause a greater disturbance than really occur red.
 The same condition in other months would have caused wholesale disaster. As it was. there were many rumors cur rent of financial troubles, but none of them was substantiated.
 Speculation has gone to such extremes that commission houses have taken pre- cautions against losses and have de- manded margins from 6 to $10 a bale, and those who could not answer to these calls were sold out without much hesi- tancy. This was feature that helped along the decline. Although cotton has declined 31s cents pound from the high price of Mon day, Sully says that he is still bullIsh. Sully displayed slight nerybusness to- day for the first time slnce the sensa- tionai break began. WheH sspn at his ofiice sitter lsia night nom the ipIs he
 Believes in Higher Prices. T am still believer in higher prices for cotton This slump is but temporary. and my prediction of 2O-cent cotton will come true before long,
 Mir. Suliy was asked if his interest in the market was as heavy as 1t had been, out he refused to discuss that side of the matter.
 There is a good deal of speculation in Wall street as to just how far he was able to unload his pool stock on the public, and the belief Is generally held that although the clique holdings were pretty we'll liquldated by Tuesday, sully has had to take very heavy losses on personal holdings of cotton since that time.
 John W. Gates, who was backing Sully in his attempt to corner the market, is also understood to be a heavy loser since the break began. However, the clique is we'll able to withstand the temporary losses, as it cleared up enormous sums during the past few weeks.
 To-day's checkmating of Sully and Brown is regarded as another victory for the Wall street interests who have combined with the bears to overthrow Sully.
 Sully Will Stay inMarket.
 MT. Sully, who announces he now has no intention of leaving New York for Florida, sent the following telegram to Manager Pagan, of his New Orleans of- flee, late this afternoon.
 "The enormous liquidation in ths (New Yorb market, although to some extent the result of the war scare, was induced largely as a matter of protection. The selling orders were for weak long cus- toners. whose margins had grown dan gerouSly small as result Of recent de. cline.
 There was some operation for spot account. but the interest thus created is local and consequently weak. Wall street interests were conspicuous later in the day by their operations on the long side. and spinners were heavy buyers.
 Tt k our opinion that this reaction will bring out all the cotton that did not respond to the strong prices that have ruled until the last three days. and we also believe the market is in shape for a greater advance than 1t has been this season. As soon as the sentimental effect of this war scare has passed away cot ton will be judged on It's merits, as 1t will have to be, and prices are certain