The Montgomery advertiser., 1904-03-19

melted away until they were ~ to S&v a bale lower than yesterdays close. and every moment the fear was that local firms would go to the wall. When the panic was over and the commercial in- tegrity 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 1 o'clock private telegrans from New York said "Sully suspended, " and for the next three-quarters Of an hour an immense crowd of people at the windows and doors of the Cotton Ex- change saw scores of the most solid and influential business men of the city en- gage in a rough and tumble fight in their efforts to get nearer the ring. Prices tumbled downward 10 and 20 points at time and still the selling continued. Announcement Thentric. The announcement of the failure of Sully & Company was done in an ex- tremely theatrical manner. Frank B. Hayne, one of the best known bull op- orators in the cotton world, was bidding for a block of 5000 bales of July at i460. | A scurrying messenger boy hurriedly thrust a telegram into the hands of C.. P. Ellis, another well known broker. Mfr. Ellis's 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 q wild uproar. From about 1:10 until 1:30 o'clock it was hard to recognize the Cotton Ex- | change as commercial center. The ring had the appearance of being the 1 object of attack of about 200 men who plunged over one another to get nearer | the small pit that is the center of 1t. | Ah AAn | uninitiated standing in the street could easily see that the brokers were posses sed of but one idea and that was to sell cotton no matter what the price was, Soon after 1:30 the officers of the Cotton Exchange posted the following an nouncement from W. F. Pagan, the New Orleans partner of Daniel ]. Sully 6 Company.
 we regret to have to announce the suspension of our firm"
 Added to Tumult.
 This added to the tumuit. and brokers fought the harder to dispose of their cotton. Many supposed that the fren- zied brokers on either side of them wers deeply involved in the failure and thai added to the anxiety to get rid of lons cotton.
 It was not until the brokers found their books we'll clear of long cotton that they paused and allowed the tumult tc subside. At 1:45 the panicky feeling had ceased to some extent and brokers were able to extricate themselves from tht ring and find out just what the situation was. They found prices 30 and $l0 balt lower than yesterdays close. May being 1s1 points down at 1S.SO, and July isi points down at 13.5.
 From the time that brokers were able to leave the ring and look around, 2 quieter tone prevailed, and prices stead fed. When 1t was found that no loca firm was embarrassed by the failure prices showed a wonderful recovery, con sidering the shock the market had re ceived. At the close the tone was callet steady. and May showed a recovery o 13 points, while July had recovered 2 points. On the curb the recovery wal even more marked. May registered 3 points more at 1874, and July regainet 20 points at 14.0s.
 More Optimistic Tone.
 For several hours after the close of tn, market the Cotton Exchange was file, with excited cotton men. After every thing was known, a more optimistic ton prevailed. Constant communication wa had with Liverpool and New York ant both cables and telegrams were encour aging. Hood. Fornie & company of Ldv erpool. a well known firm. cabled to c P. Ellis & Company that so far as couli be learned, Sully had no engagements ii the English market. So far as could learned. and the matter was freely dis cussed, there is no New Orleans firm tha will be seriously affected by the failure It was first estimated that Sully's inter ests in the local market amounted about 10000 bales. but later in the da this was said to be too high, and that tn interest would probably not exceed zoo bales. This was considered trifling.
 W. R. Pagan, the local partner of tn firm. would not o.ecuss the suspension fl any way. He declined to state how grea an interest the firm had in the loca market. @ Some time after the close of the, curt Secretary Hester of'the Cotton Exchang, made the following statement: f. Ruling of Exchange. Under resolutions ol the Board of DI rectors of the Cotton Exchange. adopte this day. the failure of Daniel J. Sull
 s Company having been posted witht one hour of to-day's closing, settlement under the rules must be made on tn average of to-morrow's (saturday'e) quo tations."
 This was regarded as another favora be turn in the situation and the opin ion was freely expressed that price would show strong recoveries tomorrow and that Sully would be able to pay dol , lar for dollar on his obligations.
 Local traders say that an injustice ha
 been done them in the reports emanatinI , from New York to the effect that cer tain interests had been unloading ol Sully. It is now firmly believed that n i great long interest existed that did un load on Sully, and that local longs wer not bound under any sort of an agree ment to support jully or the long side. On the other hand 1t is now generall
 believed that the heavy selling that ha , been lately in the market, the source o which puzzled nearly every one, cam from Sully himself, who was trying t
 rid himself of his load of cotton withou disaster.