The Savannah morning news., 1904-02-03
SULLY SENT THE
MARKET DOWN
KNOCKED A CENT OFF PRICE
WHEN HE ANNOUNCED HE WOULD
TAKE A VACATION.


tures-It Was said He Had Sold His
HOIdinGs-Market Could Not with
@stand This-BrOkers Were in a
Frenzy to SeII-NOne Were Buying.
Bulls Rallied and Checked Fall.
New York. Feb. 2.-Heavy selling
and a violent break in prices marked
to-day's business on the Cotton EX-
change, the slump being even more
sensational than the recent advances
which have steadily sent cotton quo
tations upward, until yesterday they
reached the highest level since 1875.
Under the influence of a number of
causes, chief of which was the confirm
ed report that Daniel ]. Sully, the sup
posed leader of the upward movement
was about to take. a vacation en-
HANGED by the belief of many opera
tors that it's elimination had been
reached, quotations for all months col
lapsed to the extent of from Sc to IS
per bale, and utter decentralization rul-
ed in the pit.
No failures were reported, but the
violent fluctuations represent losses of
millions. distributed throughout the
market.
Transactions during the day were
enormous in the aggregate, the days
sales being estimated at 100000 bales.
The break was checked finally by re-
newed bull support, and a rally follow
ed The close was about steady.
Opened with a Break.
The day opened with a sharp break
in prices under the influence of gen.
orally circulated rumor of settlements
by short interests effected since yes
terday. This sent quotations down
u cent per pound, but denial of the
rumor brought about substantial re-
covery.
Barely had the market steadied aft
er this movement when the report of
Mr.. Sully's intention to take a vaca-
| ton became current and prices again
started downward. 1t was inferred
that this meant the successful disposal
of his interests and the abandonment
of his campaign. and when he was
quoted to the effect that he was about
to take a two-weeks' vacation the
| downward movement became a panic
selling orders poured in upon the brok-
ers, and the market went to pieces,
| quotations melting away ) and 10
| points at a time.
In ten minutes of this panic, with
every broker a seller and none buy
er, prices fell vertically almost a cent
a pound and the May option in less
] than an hour registered a decline of
a cent and a quarter a pound, a varia-
ton greater than would have been eff
fected in a week under normal con-
ditions. Along with the liquidation of
bull spectators there was some SELL
| ing for short account.
The sensational decline continued
apparently until it had spent itself.
| After it had been going on for about
an hour, and fortunes had been wiped
out, few buying orders appeared and
I served to allay the storm of liquidation
and short selling.
Then shorts" began to cover and
there was a quick rally of from 20 to
| rs points. But it had been a terrible
hour.
The close was reasonably steady on
the active options from 20 to So points
above the low points of the day. Only
once before in the history of the Cot
ton Exchange have transactions for
one day exceeded those of to-day when
the 100000 figure was reached.
The SuIIy Rumor.
Just before the decline began a re-
port was circulated that Dan J. Sully
had cabled his Liverpool correspond
ents that he had sold out his holdings
and was going away on a vacation
This report was received with cred
ence on account of large settlements
said to have been made with his firm
last evening by several bear houses.
Mr.. Sully said to-day:
1T is true l am going asyay on a
vacation for two weeks. l think / have
earned rest"