The daily morning journal and courier., 1904-03-19


 Possibly a statement will be ready ear ly Saturday morning"
 MT. Hadley was later quoted as stat ing that the firm would pay it's debts in full, that the suspension was due to the impossibility of meeting demands for large sums of money due the Sully firm from European sources-sums that the quick slump in the market made pay able too quickly for them to be able to meet. Mir. SuIly left his office at four o'clock. New York, March 1S-The following shows the high, low and closing prices of the principal cotton options to-day, as compared with yesterday, the low prices having been made in the last hour this afternoon, showing the extent of the break;
 May-High. 15.26; low. 12.65; close, 13.37; yesterdays closing, 15.2o
 July-High. 15.S6; low, l2.SO; close 1851; yesterdays closing, l5.S6.
 August-High, 14.7S; low, 12.sO; close, 1900; yesterdays closing, l4.SO
 The market rallied about three-quar- ters of cent pound from the lowest j before the close. which was quite steady At the low price there was loss of about Sl25O bale from yester- day.
 All sorts of explanations were made for the suspension. One of the reasons given was that the New Orleans bull party had sold cotton. while Sully was 4 pulling it in the confidence that they 2 were supporting him. Another was q that Sully's following in the market had sold their long cotton without ad- vising with him.
 From two well-informed sources came a denial that there was any treachery from New Orleans. A cotton operator with New Orleans connections said that the bull party there was still bullish on cotton.
 Another account, that came from one q of the six or seven best known cotton * operators in this country, was that the E bear party had made a deliberate and well-planned attack to overwhelm Sully and had succeeded.
 The bears, according to this author ity, had figured out the weakness of Sully's position, due to immense hold ings of spot and contract cotton, and to his operations on the Liverpool market, and planned an attack on the market | that would carryi it down far enough to make it 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 themselves.
 No definite idea of Sully's commit ments in the cotton market could be got from the other houses in the cotton market. One estimate was that he was Hong of 30000O bales of May cotton alone.
 A good authority stated that he did not believe that Sully was Tong" of more than that in the whole market, and a conservative estimate made in another source was 100000 bales
 The losses by Suilys failure, in case he cannot settle. 1t was stated to-day, will be divided up among nearly all the brokers on the excange. One estimate was that Sully's ownings after a. settlement under the rules of the exchange would not exceed half a million dollars, What Sully personally lost, or what his back CTS lost in market operations is not in- cluded in this figure
 What Sully will owe will be found by dedueting the average quotations Of cotton from the figure to which his ac- counts were margined down to the last call This will be determined to-mor- row, of course.
 There were no other announcements of failures, and leading men in the cot ton market declared that there need be 'e no fear of trouble.
 x In stock exchange circles the failure of Sully was at first taken as sure -se 1r h, K Later there was some apprehension lest the failure might bring down a string of banking institutions in the south. MT. Sullys suspension was announced on the stock and coffee exchanges, of which he was a member, but not until shortly before the close of the market.
 The cotton bulls recently went into the coffee exchange and caused an &C., tivity there that corresponded to- the activity in cotton. The coffee market slumped and rose with the cotton mar ket last month. but is was significant that the announcement of Sullys sus- pension caused only a slight break in coffee.
 Sully & Co.,, have, or had, deposits with several banks and trust compan- ties in this city. One of their most active accounts was the Corn Exchange bank. The account was opened about year ago and the firms balance were often large.
 President Nash said:
 All we know at this time is that Sully & Co. have suspended and that their account with us is all right Their relations with us were exactly the same as those of any other cotton brok- craze firms"