Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-03-17
A TAX ON FUTURES.
The Gotten Men OF Memphis Protest
Against the Passage Of the Bill
Now Before
The Legislature, aud Give to Them Good
Reasons for N0n.interference by
the State

The adjourned meeting of the Cotton E1-
| barge was we'll attended yesterday, and the
committee appointed at Thursday meeting
to consider the law recently enacted by the
State l. gslstHre taxing dealers in futures
$1,000, presented the following memorial as
| their report:
To the Honorable Senate and House of Represent
atives, of the state Of Tennessee, At Nashville
assembled:
A committee appointed by the Memphis Cotton
and Merchants Exchanges to report upon an act
passed by the state Legis AZURE taxing all dealers
and agents for futures $1,000 for such dealings, We
ind that the said Tax would operate most iDjun,
place our business men In most disadvantsgeous
Eontion As CON paTed WIZ other eomPenng mar
places: where no similar tar Is imposed, for the
following reasons:
First-It frequently happens that planters doing
business with this market desire to sell future
deliveries of cotton in New York in order TO
sion merchant in Memphis could afford to pay
tax of $1,000 to enable him to comply with his
TONER'S wishes 1t would have the effect OF forcing
market, where the commission merchant would
sell sucn future contracts for them, thus injuring
Secondly-It frequently might and does happen
that farmers needing mess pork, -four, and other
hence for the purpose OF raising their crops, and
believing the price TO be cheap instruct their mer
at such time as may be eeied' Under the present
| law such . transaction, though coming under the
str1ctest Interpretation OF legitimate trade could
| not be consummated without laying the commits
| sion merchant liable for tax of $1,000. In fact,
| future transactions have entered SO largely into
the very existence of legitimate trade, that to de-
stroy the one must necessarily impair and injure
/ the other.
| Thirdly-Itis customary for our mills and man
featuring enterprises 10 sell their products ahead
in order to secure what they consider fair price
| and outlet for their goods when manufactured
| For example, the oil mills at the commencement
of the season frequently sell all or part of their
| seasons run of oil and cake ahead; 10 impose
| tax of $1,000 upon them for doing this would place
them At q disa vantage as compared with the
| mills in other States.
| Fourthly-Tbe cotton shippers in Memphis fire.
quently make shipments of cotton to such markets
| as Liverpool and New York, and, in order 10 pro
tect them selves against decline in price during
the time the cotton is in transit, sell future deiy
| cries against such shipments. II they were una
BILE to do II would compel them TO take the risk
| of the market for some weeks-that is, until the
| cotton arrived at its destination II they paid
the tax of $1,000 for license TO sell futures TO pro-
| teet themselves sgainst decline In prices, it
would place the buyers of Memphis in disad-
vantsseous position as compared with buyers In
| other markets.
We would also state that as large proportion Of
the cotton in this market is sold to buyers who
| only enabled to buy by selling future contracts
rally decrease the sales of cotton in this market
buyers were unable to make such sales except by
paying the said tax.
We think upon reflection and a reconsiderat, on
OF your bill that will agree with that car
ried out it will clog add impede the wheels of
commerce and rebound vitality against the inter
ests of Memphis as compared with other rival
cities. As we believe it is your desire to benefit
rather than to impure us, we, the committee ap-
pointed blythe Memphis Cotton a7d Merchants
Exchanges, respectfully reqTest that you will alb
rogate annul and repeal section No. 81 of senate
bill No. o. and your petitioners will ever pray, etc.
LOUIS HANAUER.
ROBERT W0LFENDEN,
W. B. GALBREATH,
NAPOLEON HILL,