New-York tribune., 1911-02-15
COTTON HITS Low LEVEL
Heavy Liquidation Carries up
tions Down 28 to 81 Points.
BEAR RAID. PELL & co. SAY
Firm Issues Statement Denying
Rumors of Heavy Selling
Shorts Run to Cover.

Heavy Nouidation in the cotton market
Yesterday carried prices Of the leadins op-
,ions down 2S to 81 points or 81 40 To 81 90
:, hale touching new low level for the
year The downward movement has been
Going on for several weeks, and in that
time prices have dropped a total of l5o
POINTS. or 81 50 a bale, but yesterday
break was sharper than usual
Il was reported that a number Of the big
traders who have been operating on the bull
side we're among the heaviest sellers. and
the firm Of s. II. ]. Poll & Co, which has
been favoring higher prices. was mentioned
as taking part in the liquidation. 1his
brought forth p denial from the firm when
issued a statement intended TO show that
tho bears we're making raid and were CIR
culating these rumors to aid them In de-
rrossing prices. The statement was as Iol-
lows
1T has been brought 70 our attention
that false run1ors have been freely circu-
lated during the last week on the floor OF
the New York Cotton Exchange 10 the et-
feet that Pell & Co.'S cotton was being
uouidated. ordinarily we would pay no at
tention 70 such rumors. but we learn that
IT is being used by the bears for the pur-
nose Of frightening small holders out OF
,heir cotton. We therefore feel II our duty
30 state that Pell & co. do not trade in cot
ton or any other commodities, but simply
sct as brokers. and on behalf Of one of our
large clients we are authorized TO state that
- 8
cation. In other words. our client will pur-
sue his usual policy Of taking delivery OF
,pot cotton against any contracts which ne
nav hold We believe the decline to be
absolutely unwarranted and that II is pure
y bear raid"
The fact that one OF the leading firms
favorfng higher prices saw u to issue
such n statement was regarded in some
Quarters. however. as evidence that the
situation was a threatening one for the
bulls
II was learned that the client referred
20 in the Pell & Co. statement was no other
than Colonel Robert NJ Thompson. special
partner Of the firm. and one OF the largest
operators on the bull side of the cotton
market during the last year. He was IN
di~ted last summer along with James A.
patten. William p. Brown, Frank B'
Hayne. Eugene G. Scales and other leading
cotton bulls. as p result OF the federal
,nci-irv into the alleged corner in cotton
which he and the other bull leaders were
charged with having negotiated in the
spring Of 1910 The case has not yet come
10 trial.
Colonel Thompson IS said 10 be long more
than 5000 bales Of cotton at present, and
one Of the runors going round yesterday
was that he had become apprehensive OF an
even greater decline in prices and was
selling out his contracts Another Of the
bull leaders. who was reported 10 have
Nquidatod some OF bis Ions cotton yester-
dav was Eugene G. Scales. He was re-
pcrted TO have thrown over to,OU bales. ana
altogether. II was said. the bull leaders
who. In addition to those mentioned, IN
ciude William =. Brown and Frank 4.
IIayne. threw al least 100000 bales on the
market. 1t was said that they had got
tired OF trying TO support the market n
tie face Of the Unexpectedly large croI
and other bear influences. such as the an
rornced Willingness Of interior holders &c
seu actual cotton and the Scott bill to
vrohiMt speculation in cotton futures,
which iS now before Congress.
I'm many quarters the downward move
r0ent in cotton that has been going on fol
several weeks IS regarded as a natural re-
action from the high prices that have pre-
vailed for SO many months. but the bears
saw that fl is chiefly due 20 the fact that
with prices high up, spinners who bought
tho raw material had to 20 out Of the mar
ket being unable 10 run their business
rroNtably with the raw staple At the higf
levels prevailing last year. They predic
that before the present movement ends tn
price Of cotton will 20 70 IL cents. Ih'
closing prices Of the leading options yes
,erday we're: March, 1885 cents. May. H0
cents. and July. 14o3 cents Covering o'
,hcrts caused a rally AT the close. which
was at a net decline Of II to 20 points. o
20 cents 10 81 a bale, IN the various options