The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1908-05-19
COTTON DOOMED.
SENSATIONAL RISE IN.THE PRICE
OF THE STAPLE.
New Cotton King Has Caused the
Great Southern Money Crop to AS
sumo Much Greater Value.

A dispatch from New York under
date of last Friday says in the sen
sational rise in July cotton in the last
few days, amounting to 100 points
or $3.50 a bale, it has become known
that new Cotton King has risen
in the fnantis.l world, one whose
operations have played havoc with
the bears in the cotton pit and have
I assisted in cornering the July option
&. j. L. Livermore's name was on the
\ lips Of every one in the cotton mar
ket Thursday as the price of July,
which has been steadily soaring, shot
up from ss.40 to $3.50. gain OF
$3.50 a bale.
AS the price Of the staple continued
to mount, the fear-stricken men who
had sold July short contracts began
to say that the market for July cot
ton was cornered and that new Ma
poleon of the cotton market had a-i :
en- and was already beginning to dc
tate terms.
Since April %, when July cotton
sold at $40 cents a pound, the low
est in five years, Mr.. Livermore has
steadily accumulated contracts deliv-
cradle next July. 1t is now estimat-
ed that he has made a profit of 500 :
600 in the last two weeks. He stands
to make millions more if his plans
don't miscarry, but he says there is
no pre-arranged deal, so far as he
knows, to corner July cotton.
Nevertheless, the cotton trade was
as excited as it was in the days Of
Sully and the New Orleans crowd
headed by w. P. Brown, when similar
coups were attempted and carried
through successfully.
"Who is Livermore?" was one of
the questions generally asked. "Who
are his backers?' was another, which
was coupled with the report that
Theodore H. Price had poined forces
and was lending his aid to Mr.. Liv-
ermore in a plan of campaign.
Mr.. Livermore make his headquar-
ters with E. F. Hutton & Co., at New
street and Exchange place. There
he has private Office.
He is almost boyish in appearance,
looking younger than his 80 years,
which he says he will reach on his
next birthday. His youthful appear
anec is accentuated by his almost
faxen ha.c. One forgets his youth
however, when he discusses in a
clear-cut and direct manner the
strength of his position in the cotton
market.
ST am not creating corner in the
July cotton market he said. THE
market has simply cornered Itself.
The enormous advance in the last
few days has been the result Of buy
ing by persons who had sold cotton
that they did not own.
''I discovered the unreasonableness
of the cotton situation two or three
weeks ago, when l saw that spot cot
ton in the South was selling about
$40 bale higher than in the option
market in New York. then began
to accumulate July cotton. Others did
the same. The old situation could
not continue very long and now there
is scramble from all sorts Of in
terests, spot dealers, mills, spinners
and shorts, to get July cotton. /
never saw market corner ITSELF as
prettily as this July market has
done.
81 want to go on record as saying
I am not running a corner. l will
never attempt it. In the first place
l have not got enough money. in
tend to leave the financing of corners
to spot dealers if they desire. They
can get the money from the banks
to finance heavy accumulations, but
Spectators cannot.
"Whatever, l am doing in the July
deal I am doing alone. 1t makes me
peevish to hear the current reports
that ] have created this situation in
the July options. The remind me of
the story of the fly on the cartwheel
which was raising great dust while
the fly believed itself to be the
cause of the clouds that followed the
cart"
care you not afraid the big cotton
merchants will bring cotton up from
the South and deliver it to you in
July, swamping the market?
LET them do it." was Mr.. Liver
more's reply. lingering the ticker
tape, he continued: Il see that 4,5OO
bales of spot cotton were sold in
Memphis at 1OB cents pound. 1t
costs something to bring it North in
addition. and yet cotton deliverable
in July sold in this market today at
only $50 cents pound.
"There are only $4,000 bales Of va
riable grades of cotton in New York,
let US say, and the short interest may
be 100000 bales. Mills and spinners
have not been in the market for
months and their supplies are ex-
hausted. Exen if one considers the
trade stagnation, the world needs
certain amount o f cotton, and these
manufacturing interests have been
buying the cotton where 1t was the
cheapest-rignt here in New York.
They found that in the South they
would have to pay $40 bale more
than in NewYork, consequently spin
ners bought here. From whom did
tbe huy it? From SPECTATORS, as a