New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-01

open several hours, had sent over QUO
tations radically lower than those at
the clo-e of the preceding day and
Thousands of bales of cotton were
Ovcrhanging the market.
It was crowd that could not be
divided into bulls and bears. In the
sense that the terms are ordinarily
used there were few bears present.
Men without commitments on either
side OF the market who came down
town intending to take chance on the
short side with a few hundred or
few thousand bales stood aside.
The -ery air Of the room spelled de-
moralization. Self-preservaton, if moth
ing else warned against selling cotton
10 some one who at any moment might
declare his inability TO carry out his
contracts. Apparently no one wanted
70 take the risk of selling and cover
ing only TO find that there was none TO
whom to deliver the staple and TO dis
cover ones self long on falling mar
ket. >.
Also. il was realized that the condi-
ton was bad enough as 1t was. In
the language of one broker, MANY poor
devils we're there fighting for their
very lives" The would-be sellers re-
Trained.
First Failure Announced.
Without them. however, there was
for sale enough long cotton thinly mar
gined, aad on the sounding OF the gong
values melted like butter IN an August
sun in Georgia. Cotton poured IN from
all sides until the bell rang for an an.
nouncement. 1t was or the 1aliuIe VI
Fredcrickson.
"Poor fellow" said the crowd. and
resumed trading at more FURIOUS
pace than ever.
few moments later the gong rang
again. This time it was for the sus-
pension of Homer. Howe & Co., whose
principal Offices are N Philadelphia;
This showed clearly the way the WIND
was blowing. The downpour Of staple
continued, and about the ring ne
shouting. sweating, swearing brokers
fought TO fill their orders.
Such scenes had not been witnessed
since the Sully days, when prices
dropped three cents III almost an hour.
Apparently Sully was to be outdone,
and the only question was where tie
slaughter would stop. In the Suily
days John II. McFadden, head OF the
big Philadelphia spot house, stopped
the smashing decline by jumping i1to
the pit ring and bidding for 2OO,OVo
bales. The McFadden purse was long
and fat and that stopped the decline.
But there was no McFadden to Jump
into the breach yesterday, and wnile
members who had kept out OIL the
crush wondered why the board OF man
ayers did not act to prevent further
slaughter the gong sounded again.
Decide TO Take Action.
This time il was the announcement
that S. II. p. Pell & Co., the great bull
house. had gone. There was hardly
man about the ring who did not nave
Pell contracts. The managers DECIDED
il was time TO act. There was iittle
formality 10 the meeting, just gath
ering of a majority, and the exchange
was closed until Tuesday at the soon
est. The market had rallied somewhat
from the extremely low prices, at one
time around 9i2 cents, the lowest III
wears. but still dollars bale below
the opening prices of the week
The floor was still active when the
government cotton crop report came
out. Then the tragedy OF 1t an ap-
peared Pell & Co. had been rlght IN
their position. Cotton, as the repor'
showed. would in normal times have
a
ket would have saved the house. Had
the report come few minutes earlier
than it did it might have had the same
result. But it was no time for rs
Pell e. Co. were bankrupt.
While the members we're discussing
the fate of Pell 4: Co. with regret-eVen
those who stood to make money by tneir
failure-the magnificent Offices OF the
Pells in the old Bank Of North America
building were as house OF death. Big,
good natured Rowland Pell sat with
his head on desk and wept. In an
inner Office Colonel Bob" Thompson,
vachtsman, lover of all around sports,
was like a man stricken.
Other partners sought to console
Rowland, who, worn by the strain OF
the week that had passed, had bro ken
for the moment. The knowledge that
his position in the cotton market had
been right, that failure had been due to
no fault OF the firm or of himself, OF
no fault in calculation but to world
wide force, was of little consolation to
him.
And Pell was not ashamed TO weep.
His were not the tears of beaten
man. but Of one who, now that the
blow had fallen and the fight been lost,
ndu ltlhAtu llN NNhoANh
him on his feet thirty-six hours.
The bankers and the governing COM
mittee of the Stock Exchange were still
i'm session, the former considering the
optimistic statement which Mr.. Morgan
later issued and which The Tribune
prints in another column this morning.
The governors were frankly waiting TO
hear of more failures. OF the men,
bers who had confined their efforts to
stocks there was no doubt, for every
balance had been met and the banks,
W the exception of few uptown in
stitutions, were showing no inclination
to press for money or call loans.
On the floor of the exchange brokers
representing the First National Bank
were loaning money to all corners. At
first the rate was per cent, From that
il rose to 10 per cent, million being
put out at each point up.
The National City made all loans
over its counters. Those OF its custom.
ers who wished accommodation had
their wants attended to at the uniform