The Indianapolis journal., 1904-03-19

The market rallied about sc pound
from the lowest before the close, Whlcn
was quite steady. At the low price there
was loss of about $3.50 a bale from yes
terday.
All sorts of explanations were made for
the suspension. One of ths reasons given
sold cotton while Sully was bulling ii in the
confidence that they were supporting him.
Another was that Sully's following in the
market had sold their long cotton without
advising with him. From two well-informed
sources came 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 Of
the six or seven best-known cotton opera
tors In this country was that the bear party
had made deliberate and well-planned at
tack to overwhelm Sully and had succeeded
The bears, according TO this authority.
had figured out the weakness of Sully's
position due to immense holdings of spot
and contract cotton and to his operations
on the Liverpool market and planned an
attack on the market that would carry 1t
down just far enough to make IL impos-
sible for Sully to meet his margin calls,
knowing that his failure would send the
market much lower that they could
cover at figures to recoup them.
LONG ON 100000 BALES.
No definite idea of Sullys commitments
in the cotton market could be got from
the other houses in the cotton market. One
estimate was that he was long of 100000
bales of May cotton alone. A good author
ity stated that he did not believe that Sully
was long" of more than that in the whole
market, and a conservative estimate made
in another quarter was 100000 bales.
The losses by Sully's failure. in case he
cannot settle, 1T was stated to-day, will be
divided up among nearly all the brokers
on the exchange. One estimate was that
Sully's owings after a settlement under the
rule or the exchange, would not exceed
half a million dollars. What Sully has per-
sonally lost, or what his hackers have lost
In market operations, Is not included In TINS
figure. One broker estimated the total at
about five millions.
What Sully will owe will be found by de-
Quoting the average quotations of cotton
to-day from the figure to which his ac-
counts were margined down to the last call.
This will be determined tomorrow. of
course.
There were no other announcements of
failures and leading men in the cotton mar
ket declared that there need be no fear of
trouble.
In Stock Exchange circles the failure of
Sully was at first taken as sure sign of
the collapse of the cotton boom. Later
there was some apprehension that the fail
ure might bring down a string of banking
institutions in the South.
Mr.. Sullys suspension was announced on
the Stock Exchange, but not until shortly
DeiOre the close OF the market. III was
announced on the Coffee Exchange also. The
cotton bulls recently went into that market
and caused an activity there that corre-
sponded to the activity in cotton. The cof-
fee market slumped and rose with the cot
ton market last month, but ii was signif-
cant that the announcement of Sully's sus-
pension caused only slight break in coffee
Sully e. Co. have or had deposits with
several banks and trust companies in this
city. One of their most active accounts
was with the Corn Exchange Bank. The
account was opened about "A year ago, and
the firms balances were often large.
President Nash said "Al we know al
this time is that Sully q Co. have suspend
ed, and that their account with us is all
right. I have been told that their liabilities
may be large, but / have no personal
knowledge. Their relations with us were
eaxctly the same as those of many other
cotton brokerage firms