The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-03-19
COTTON KING FAILS FOR
MILLIONS OF DOLLARS
Bottom Fell Out of the Market After Long
Decline
Daniel SuIy Co., Leaders Of the Bull Clique Broke Beyond
Redemption

and planned an attack on the market
that would carry il down just far
enough TO make il impossible for Sully
10 meet his margin calls. knowing that
his failure would send the market 80
much lower that they could cover at
] figures 10 recOup them.
Liabilities Unknown.
No definite idea Of SuIIy's commit
ments i'm the cotton market could be
obtained from other houses in the cot
/ ton market. One estimate was that he
was long" 100000 bales of May cotton
alone. a good authority said that he
! did not believe that Sully was long
more than that in the whole market.
and conservative estimate made in
another source was 100000 bales. The
losses by SuIly's failure, in case he can
not settle, il was said. viii be divided
among nearly all the brokers on the
exchange. One estimate was that sui
lys owings after a settlement under
the rule OF the exchange would not eX-
coed 100000. What Sully has per-
sonally lost or what his hackers have
lost in market operations is not includ-
ed in this figure.
What Sully will owe VIII be found
| by deducting the average quotations OF
| cotton today from the figure to which
D
the last call. This viii be determined
! tomorrow.
There were no other announcements
of failures and leading men in the cot
ton market declared that there need
be no fear of trouble.
Some Apprehension.
In stock exchange circles the failure
o. Sully was at first taken as sure
sign of the collapse Of the cotton boom.
Later there was some apprehension
lest the failure might bring down a
string of banking institutions in the
south
Sully & Co. have. or had. deposits
with several banks. One of their most
active accounts was with the Corn Ex-
change bank. The account was opened
about a year ago, and the firms bal
arces were often large. President Nash
said:
IAN we know at this time is that
SUlly & Co. have suspended 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 exactly the same as those Of many
other cotton brokerage firms"
Sully Rose Rapidly.
Daniel j. Sully became a factor in
the cotton market in January. 1903.
when he took up the bull movement
that Theodore II. Price had dropped
He was thought TO have done great
thing when he bUled May cotton OF
1903 TO 20 cents.
Sully had been a cotton buyer for
New England firms. He had made a
study of crop conditions and foresaw
the short crop of that year as well as
the short crop of this season. 1t was
said that a CLIQUE Of New England
mill owners backed him i'm his first
venture.
His May campaign was a success.
and it was estimated that he person
ally cleared more than S1000.O0O.
Established a BUSINESS.
He established a cotton house Of his
own last year, under the name OF Dan
iel J. Sully & Co, but when his op-
erations in cotton became so successful.
the cotton market having been pushed
up above 11c a pound early this year.
he widened the scope of his firms bust
ness. bought a seat on the New York
stock exchange. went into the coffee eX-
change. got a membership on the Chi
cago board of trade. and it was said.
made connections with other prominent
exchanges throughout the COUNTRY
The members of the firm were Daniel
j. Sully. Colonel 5. +. r. Morse Of
Houston. Tex, Walter s. CTandcil and
Edwin Hadley. jr. Recently William
r. Pagan. manager of the firms New
Orleans Office. was taken into he firm