The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-11-24
THE COTTON EXCHANGE.
Editor New Orleans Bulletin j:

FOR the nrSC ume since the establishment OF
our Cotton Exchange, controversy has arisen
which seriously threatens to mar the harmony
which has 80 far characterized it's workings, and
which may impair, if it does not destroy, its use
fuiness. Believing that careful and dispassion-
ate examination OF the subject may allay the
present excitement and bring about an adjust
ment satisfactory to all parties, the writer ven-
lures to trespass upon your valuable space, for
the purpose Of submitting history Of the ques-
ton up to the present tiule, and to make some
suggestions that NAV lead to 6n amicable adjust
ment.
Prior to the establishment of the Co ton Ex-
change, there existed no fixed rules for the gov
eminent Of the cotton trade Of this city. Upon
establishment of the Exchange, rules and regu-
lations we're adopted, based upon the customs
that had previously prevailed. AS might be eX-
pected, many abuses had sprung up in the alb
sence Of well defined rules and no we'll concerted
action TO check them having been made, finally
attained such proportions as to threaten serious
injury to thu, the most important branch OF our
trade AT this juncture, the Directors of the
Cotton Exchange prepared with great care, a
complete set OF rules and regulations. The
power TO adopt such rules and regulations, is, by
the constitution and bylaws of the Exchange,
vested solely in the Board of Directors ; but in
view of the importance of the subject, and Of the
radical change proposed in many Of the pre-exist-
ing customs, the directors submitted them, as a
,ritole, to ballot by the members of the TX
change. The result of the ballot was favorable,
and the directors thereupOn adopted them. 1t is
important to bear in mind the fact that the bal
lot simply an expression of opinion by the
memb ers OF the Exchange, and that the 6 rules
and regulations were established, solely upon
their subsequent adoption by the Board of Di-
rectors.
As might reasonably have been expected, but
few it any OF the new rules We're acceptable to al
OF the members. but to none was great an OPP
position manifested, as to the one establishing an
allowance for side pieces. So great was the OPP
position to this rule, that many voted against the
whole, rather than accept it. and the affirmative
ma iority was so small, that it may well be ques-
toned, if upon separate ballot upon this rule,
it would not have been rejected. The new rules
were to take effect the LIST OF September, 1874.
and when that time arrived, large number of
influential factors petitioned the Board OF Direc-
tors to amend rule 8.
The directors, in the absence of several of their
number, declined to amend the rule, and as a
compromise, adopted resolution, making the
allo vance for side pieces matter OF agreement
between buyer and seller, until such time as the
vote of full board conld be obtained.
At the regular monthly meeting vi the board,
on the 4th OF November, the subject was fully
discussed, and resolution adopted to submit
an amendment Of the original rule to ballot
by the members Of the Exchange, on Tuesday,
10th inst. The balloting was postponed, first at
the request of the buyers, and a second time at
the request Of the factors, and is fixed for
Tuesday, Oath inst The original rule prov. ded,
that i'll weighing cotton, an allowance should be
made to the buyers for ''al side pieces The
proposed amendment provides. that an allowance
shall be- made for sail unnecessary bagging,"
but that the usu.l eide pieces shall not be con-
sidered unnecessary bagglng.
Now il is important to carefully examine the
real practical difference between the rule az
adopted, and the amendment proposed.
A law of Congress requires that all cotton in
bales, carried upon steamers, shall be completely
covered with bagsing To COMO. m to this law,
1t Is necessary, III most cases, to put upon the
1ofr ~.,x, nsv,lv,
not more than one half the width OF ordinary
bagging, or say twenty-five inches.
AS Dagging costs rath. r less than seven cents
Ger pound, and cotton is worth twice that sum,
of the bale, or double the quantity required by
law. They also lap 1t over the heads Of the
bales, being evidently intent upon making profit
upon that article. The actual difference in dol
lars and cents between the rule and the amend
ment, is therefore not very great, but this ques-
ton should be viewed from higher standpoint.
The question which every buyer and every
seller should put to himself is, which is just
ana equitable? 1t is far better to be in a SEEM
ingly hopeless minority, with the right upon our
side, than in a triumphant majority with the
right against us, for in the end right and equity
must prevail.
Unfortunatelyit is necessary, in the discussion
of tins subject, to refer to buyers and sellers
versy. 1t is unfortunate, for il buyers and sellers
are to be arrayed the one against the other, and
the rules of the Exchange made to conform to
the views and interests of the class that happens
to be in a majorlty, we might as well close the
doors OF the Exchange at once and forever. All
rules and regulations governing trade must be
founded upon just and equitable principles else
they cannot be maintained. Buyers and sellers
may seemingly have some antagonism of inter-
est, but in reality their community Of interest ex
ceeds their antagonsm, and it is only by meeting
upon this middle ground, and by sacrificing a
modicum Of their antagonistic interests, that the
general good of all parties can be really pro-
noted. Buyers should not overlook the fact that
they are allowed six ounces for samples, and two
pounds per bale scaleage. These allowances are
proper, as they correspond with the custom in
other markets; but if Rule should be re-estab.
lshed might not factors very properly demand
that these allowances be discontinued?
The principal if not the only substantial objec-
ton of the buyers to the proposed amendment
is, that III response to the many complaints OF
excessive loss in weight upon shipments from
our port they have cited the new rules and regu-
lations as Offering guarantee against the re-
currence OF such complaints This objection is
seemingly well founded, and if the loss IN weight
complained Of was due mainly to the side pieces,
it would be unanswerable. Carefully examined,
it loses much OF its Importance.
Side pieces are used to greater or less extent
in all sections, and no allowance is made for them
at any port. This simple fact shows that we
must look elsewhere for the damaging discrep-
ancy in the loss Of weight in shipments from this
port, as compared with others. 1t is humiliat-
ing, but well established fact, that the discrep-
ancy was due mainly, if not entirely, to abuses
that have been eradicated by the new rules and
regulations established by the Exchange and as
far as side pieces are concerned our buyers will,
by the proposed amendment, be placed upon
better footing than the buyers in any other mar
ket.
Factors claim, and with good show of reason,
that if side pieces are allowed for, cotton will be
diverted from our market to others, where no
such allowance is made. 1t is true that the
price buyers would be enabled to pay, for, after
all, it is delusion to suppose that any one pays
for bagging at the price per pound of cotton
But u any planters do not view this subject in its
proper light; the deduction for the weight of
the side pieces is palpable fact that impresses
itself upon them, and no amount Of reasoning
would convince them that they are not thereby
made the losers. Buyers understand this ques-
ton better, as in their recent address they say