The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-03-19
Frantic Scenes Follow Announce
ment Of The Failure on The
New Orleans Exchange
EVERYBODY ATTEMPTS TO
SELL FOR ANY OLD PRICE
Clothing Is Torn, Hats Are TrampIed
Under Feet and Furniture Is
Smashed During the Fe-
verlsh Excitement.

verlsh Excitement.
New Orleans, March 1s.-The announce
ment of the failure of 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 a bale
lower than yesterdays close, and every
moment the fear was apparent that local
firms would go to the wall When the
ranic was over and the commercial integ-
rity of the local cotton trade was found
intact, a great sigh of relief went up
from the cotton ring. although scores of
small operators were wiped out, and
heavy longs had lost fortunes.
Soon after II o'clock private kilograms
from New York said "Sully suspended" +"
and for the next three-quarters of an hour
an immense crowd of people at the win
dows and doors of the cotton exchange
saw scores of the most solid and influen-
tial business men of the clsy engage in
a rough and tumble fight in their efforts
to get nearer the ring and dump their
cotton on an overloaded market. Prices
tumbled downward 10 and 20 points at a
time, and still the selling continued.
Some of the brokers' had their coats al
most torn from their backs hats were
smashed; shirts were ripped and the
chairs and stools about the ring became
useless articles OF furniture. So great was
the roar from the ring that 1t could be
heard for blocks above the noise of traf-
fic around the busy corner of Grayier and
Carondolet streets.
Announcement Was Theatrical.
The announcement of the failure of
Sully was done in an extremely theatri-
cal manner Frank B. Hayne, one of
the best known operators In the cotton
world, was bidding for a block of 5000
bales of July at 1850 scurrying mes
senger boy hurriedly thrust a telegram
into the hond of C. p. Ellis. another
well-known broker Fir. Ellis face went
white and he yelled at the top of his voice
across the ring
For Gods sake, Hayne, stop bidding;
Sully has failed!
In an instant the ring was in a wild
uproar. From about 1;10 until 1880 o'clock
1t was hard to recognize the cotton ex-
change as a commercial center. The ring
had the appearance of being the object
of attack of about 200 men who plunged
over one another to get nearer the small
pit that is the center of 1t. While the
yells were confusing, even the uninitiated
standing in the street, could easily see
that the brokers were possessed of but
one idea, and that was to sell cotton, no
matter what the price was.
Coo,, oftar .20 tho officers of the cotton
exchange posted the following announce
ment from w. F. Fagan, the New Orleans
partner of Daniel ]. Sully Co.:
1--WE regret to have to announce the
suspension of our firm.
Added to the Tumult.
This added to the tumult and brokers
fought the harder to dispose of their
cotton, Many supposed that the frenzied
brokers on either side Of them were deep
ly involved in the failure and tha! add
ed to the anxiety to get rid of long cot
ton 1t was not until the brokers found
their books well clear of long cotton, that
they paused and allowed the tumult to
subside. At las the PAM nv tesihg had
ceased to some extent, and brokers Terc
able to extricate themselves from the
ring and find out just what the situation
was. They found prices 50 and SO =.
bale lower than yesterdays clos,. May
being 1S1 points down At ID 30 and July
1877 points down at 1880.
From the time that brokers were able
to leave the ring and look around,
uuieter tone prevailed, and prices steadied
themselves When 1t was found that no
local firm was embarrassed by the fail
ure, prices showed wonderful recovery.
considering the shock the market had re-
ceived. At the close. the tone was called
ehnr al n r,f
13 points, while July had recovered -
points On the curb, the recovery was even
more marked. May regained 81 points
more at 1874 and July regained % points
at 14.08.
Filled With Excited Men.
For several hours after the close of the
market, the cotton exchange was filled
with excited cotton men. After every
thing was known, more optimistic tone
prevailed. Constant communication was
had with Liverpool and New York and
both cables and kilograms were encourag-
ing Hood, Fernie & Co. of Liverpool
a we'll known firm, cabled to c. j. Ellis
e. Co. that so far as could be learned.
Sully had no engagements In the English
market. This was taken as an extremely
favorable development.
SO far as could be learned, and the
matter was freely discussed, there Is no
New Orleans firm that will be seriously
affected by the failure. 1t was at first
estimated that Sully's interests In the
local market amounted to about 10000
bales, but late in the day this was said
to be too high, and that the interest
would probably not exceed 1000 bales. This
was considered trffing.
w. r. Pagan, the local partner of the
firm, would not discuss the suspension in
any particular. He declined to state how
great an interest the firm had In the local
market
Some time after the close of the curb
Secretary Hester of the cotton exchange
made the following statement:
Hester Issues Statement.
Under resolution of the boa
tors of the cotton exchange. &C
day. the failure of Daniel j.
Co. having been posted within
of today's closing, settlements L
rules must be made on the averae
morrow's (Saturdays) quotations.
This was regarded as another Il
turn in the situation. and the opini
freely expressed that prices wouls
strong recoveries tomorrow, an
Sully would be able to pay dol
dollar on his obligations.
Locally traders say that an Unjust