The daily palladium. [volume] (Richmond, Ind.) 1904-1905, 1904-03-19
Daniel J. sulIy, the Cotton
King" Couldn't Carry
His Heavy Load.
FORCED TO SUSPEND
Inability of Sully & Co. to Meet En-
gagements Causes Unprecedented
Scenes on &c ton Exchange.
In Twenty Minutes Market Slumped
$50 Points and Shorts Fell
in Heap.

New York, March 19-Daniel J..
Sully, the cotton operator, who has
for fifteen months been the biggest
figure in the cotton markets of the
world and who has pulled" cotton
from cents pound to over II cents,
announced his inability to make good
engagements on the New York cotton
exchange yesterday. Within a few
moments cotton fell nearly $13 bale
from the highest figure of the day.
Scenes such as followed the an
nouncement of the failure it has been
the privilege of few brokers to wit
ness before. Traders in the street
have witnessed stock panics in pre-
viols years; corners have been .brok-
en-, and many crashes have been re-
corded but none has been accompa-
MED by such frenzy and confusion
The announcement of the suspension
was made by Superintendent King,
who read from the rostrum this no
tice: I'VE regret that we are unable
therefore have to suspend.-Daniel j.
Sully & CO.
For few seconds there was an
ominious quiet over the floor as
though the news had stunned all with
in hearing of the announcement. Then
with one impulse mighty shout went
up from bears, they who had been
fighting Sully and the bull clique for
months. Hats were thrown into the
air to fall wherever they would, a mo-
ment later to be trampled upon by
the stampede for the pit Coats were
torn by frantic brokers in their mad
efforts to unload their holdings and
chairs and camp stools were dashed
into the pit to emphasize some wild
brokers' offer to sell. Messengers
soon were rushing in and out of the
building with orders to sell or buy;
telephone booths were besieged, and
telegraph Offices were flooded with
dispatches. Soon the news reached
the stock, produce and coffee ~ ex-
changes, and traders on these mark
cts fastened to the scene of the panic
Crowds assailed the entrance to the
visitors gallery but a double guard
was placed at the doors and admit
lance was refused to all but those ac-
companied by members.
1t was estimated that something
like 100, 900 bales of cotton were trad
ed in during the twenty minutes of
the panic that followed the announce
ment, and that of this upwards of
100000 bales represented forced liq-
uidation," or the selling out of men
whose margins have been nearly or
quite wiped out. AS the market
slumped $50 points during this period
the loss falling on this element
amounted to something over a million
dollars.
The market steadied after about
twenty minutes and there was a sud
den upward shoot of about an even
hundred points. This sharp upward
rise was brought about by the buying
of brokers and spectators who saw
that the market had slumped too far
and would react just as it did. A
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 buying
rush was almost as exciting and just
as noisy, if not more SO, as the panic.
!. Upon the encouragement of the fail
ure Mr. SulIy shut himself in his pri-
vate office and woGfd not be seen.
Shortly after, however, Edwin Hadley,
jr., one Of the members of the firm,
was quoted as saying that the firm
would pay it's debts in full and the
suspension was due to the impossible
fly of meeting demands for large
sums of money due the Sully firm
from European sources, sums that
the quick slump in the market made
payable too quickly for them to be
able to meet.