The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-03-19

ION markets Of the world, and who
has "bulled" cotton from cents q
pound to II cents. today announced his
inability 10 make good his engagements
ON the New York cotton exchange
Within few moments cotton fell near
" $l3 a bale from the highest figures
Of the day. Many crashes have been
recorded. but probably none has been
accompanied by such frenzy and con-
fusion.
While there had been no premonition
Of the ----oending crash. no morning OF
tho season had Witnessed a more de-
moralized market In less than three
minutes after the opening half a cent
had been taken off the price of cotton.
Prices went up and down 10. 20 and 30
points within two and three minutes.
May opened at 1925 and sold down to
1415 IN less than fifteen minutes. while
july opening at 1922. went down to
1856.
When the End Came.
Toward the end Of the first half hour
early sellers started 20 cover. and there
was a rapid advance. There was moth
ing in the news to account for the ex-
citement. II seemed merely a renewal
z OF bear operations and the clinching
Of further stop orders
Shortly after the afternoon session
there was a Iull in the pit, and at about
i've minutes after . o'clock the an
nouncement of the suspension was
made by superintendent King. who read
from the rostrum this notice:
we regret that we are unable to
meet our engagements, and viii there
fore have TO suspend.
Csigned DANIEL J. SULLY & CO."
Pandemonium Reigned.
For few seconds there was quiet
over the floor. Then, with one impulse
a mighty shout went up from the bears.
they who had been fighting Sully and
the bull clique for months. Hats were
thrown into the air to be trampled
upon i'm the stampede for the pit Coats
were torn by frantic brokers. and
chairs and camp stools were dashed
into the pit. Messengers soon were
rushing in and out of the building with
orders TO sell or to buy. Telephone
booths were besieged and telegraph Of
fees were flooded with dispatches.
Outside the cotton exchange appear
ances gave little indication of the pan
demonium within until the messengers
began 10 rush between the exchange
and the brokers' Offices. Soon the news
reached the stock, produce and coffee
exchanges, and the traders on these
markets FASTENED To see the panic. But
double guard was placed at the doors
and admittance was refused TO all but
those accompanied by members.
Ii was estimated that something like
100000 bales of cotton We're traded in
during the twenty minutes of panic that
followed the announcement and that of
this upwards of 100000 bales represent
cd forced liquidation" or the selling
out of men whose margins have been
nearly or quite wiped out. AS the mar
kct slumped $50 points during this pc
liod. the loss falling on this element
amounted TO something more than
81. coo. OO0
The market steadied after about
twenty minutes and then there was a
sudden upward shoot of about 100
points. This sharp upward rise was
brought about by the buying Of brokers
and spectators who saw that the mar
ket had slumped too far and would re-
act. part of the excitement on the
floor Of the exchange was caused by
the scramble OF brokers who wanted
just such bargains and had TO fight TO
get in the ring to get them. The buy
ing rush was almost as exciting and
just as noisy as the selling panic
Furry on Change.
The excitement OF SuIIy's suspension
was put on the tickers everywhere
within a few moments after IL was
made, and there was somewhat OF
furry on the hoor Of the New York
stock exchange after the news reached
there. Mir. Sully lis a member Of that
exchange. having purchased seat two
or three months ago. Stocks went Off
from half "a point TO a point and one
half ON the fear that the failure might
h"ing "a rUs1 Of stocks selling. TIE
weakness was only momentary. for
word was passed around that Sully had
not been trading in stocks. and that the
clearing house sheets had never shown /
single transaction by him. The mar
bet was reasSured and stocks went up
again.
NJ Sully shut HIMSELF in his Office 2
and refused 10 publish statement 7
Shortly after 3 O'Clock Sully went into I
conference with counsel. and later Ed +
win Hadley. jr. Of Providence. r. L. /
a member Of The firm, sent out this T.
message:
NO statement of any kind or de- [
scription. Mr. Sully directs me 10 say. /
will be given out from this office today. /
Possibly a statement viii be ready (
early Saturday morning"
Promise to Paw in Full.
Mr.. Hadley later was quoted as say /
ing that the firm would pay its debts in /
fun and the suspension WIS due 10 the \
imp0ssibility Of meeting demands for
firm from European sources. sums that /
Tire quick slump I'm the market made 4
payable too quick for them 10 be able 4
10 meet. Mr.. Sully left his Office at Z
o'clock
All sorts Of explanations were made F..
FOR the suspension. one OF the reasons /
given was that the New Orleans bull
party had sold cotton while Sully was
bulling IL i'm the confidence that they
were supporting him. Another was
that Sully's following in the market
had sold their long cotton without ad-
vising with him. From two well in
formed sources came a denial that there
was any treachery from New Orleans
\ cotton operator with New Orleans
connections said that the bull party
there was still bullish in cotton.
Planned by the Bears.
Ahother account that came from one
OF the six or seven best known cotton
operators in this country was that the
bear party had made a deliberate and
well planned attack to oeerwhelm Sui
". and had succeeded.
The bears, according to this authority.
had figured ont the weakness Of Sullvis
position due 10 immense holdings of !
spot and contract cotton and to his
enerations on the Liverpool market,