The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-01-15
Cotton Goes Into Slump
of Most Sensational
Sort.
NEARLY a PANIC
AMONG TRADERS
p. G. Scales, Leader, Whose Pa
per Profits Have Been Esti-
mated at $1o.ooo,ooo, Is
Badly Nipped, and Forced
to Close Out His
Holdings.

New York. January 14.-The big bull
campaign in cotton definitely collapse.
to- day with the most spectacular per
tpendicular decline seen in week O
etTatic recessioris. Reports had 1t tina
the position CT the leading Southern
bills had been completely undermined
by the continued liquidation which hat
pcens In progress since early In the
year. AT the low point to-day New
York contracts showed decline o
from $500 to $500 bale from ths
closing prices OF the night previous
which was a break OF from sS.10 t.
$3.50 bale from the high hgures Of
the day and of 1886 to s1425 bale
Many contracts touched $13.7o late
In the afternoon.
AT the height of the bull campaign
IT was estimated that e. G.. Scales, OF
Texas, tho leader, had accumulated pa.
per profits of $4,000. 900 for the sea-
son. Ills heaviest holdings were in
May cotton, and lie and his friends were
generally believed at one time to con-
troll contracts calling for the delivery
of fully 100000 bales during that
month.
The situation had developed before
the beginning Of the decline into a
threat OF the greatest squeeze OF
shorts recorded in the history OF the
trade, but other bulls who had fol-
lowed Mr. Scales's lead without enlist.
ing in his party decided that The time
was ripe for a bear raid. One after
another the big accounts began to
come into the market. The Scales
party was said to have its cotton mar
gined down TO 10 cents pound. and
II was confidently asserted that Its
members would never abandon their
position.
The facts have proved however,
that the continued pressure was too
heavy. To-day 1t was announced that
Mr.. Scales had transferred his hold
inss to the leading bear interest 1t
is not thought ihar she "a IL seriously
crippfed although the price he was
offered probably cut heavily into his
paper profits. Smaller operators were
hard nipped, but it is believed tho
larger bulls ltquidated above their
average buying price for the season.
AS soon as the news spread that an
agreement had been reached between
the conflicting interests. the market
received aggressive support, closing a,
from 90 to 80 points from the low
marks to-day. ~
A much better feeling prevails in
the trade tonight. and it is thought
qnieter market may be expected
for the coming week.
After the official close many con-
tracts changed hands at 141o COM
pared with 14.7o. the low point OF the
day.
Drcak Is Sensational.
New Orleans. La. January 1+.-one
OF the cotton future trading was re-
corded to-day Prices of the old crop
deliveries broke soon after the lunch
hour In a most sensational manner
and within very short time were
levels of the day, loss OF about $3.50
a bale.
Within less than half an hours trad :
Ing there was break of 60 points
ed on the sales board from to IL
points at time. Almost cents
pound, or SIS a bale. lower than the
highest of the season. We're the prices
established. l.5 n
The cause Of the break was gem
nent Southern bulls who recently
Went to New York, have been talking
very bullishly. It is known. however.
that a powerful bear clique has train.
ed its guns on this bull faction.
The decline started in New York,
and followed period OF quiet trad
Ing, in which the market had taken
on a steady tone, a fact which led
the bulls to believe that liquidation
from their side was about over. sud !
denly the selling started. and in 4
few minutes time the market was in.
q state Of semi panic. with long cot
thousands Of bales In the last half.
hour Of trading the decline was check. !.
ed {. by profit-taking by the bears. Thev
bought heavily, and the result was a,
I heaetlon 3 1clo OF about 80 points, or $3.50 a