The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-07-06
WRONG CHASING OF COTTON.
A Denial of the Charge from New
York Cotton Men.

The differences in the quotations Of spot
cotton and contracts for future delivery in
New York, and the complaint that the cot
ton delivered there on contract is Of such
undesirable quality that parties receiving
It can sell only at & cent below the New
HOrk quotations, as claimed by New Or
leans cotton men, is creating some talk.
Mr. II. II. Reese, southern representative
OF Hubbard, Price q Co., has received ad-
vices from his firIn that the claim is IN
founded. Hubbard a. Co. write:
According to the By laws Of the cotton ex-
change now IN force, and which We do not
| believe will BE- changed before Sept. IS, no
change in the relative differences Of grades can
b. made before that date. The reason given by
the Committee for not making any change on
the last revision day was that the prices Of con
tracts below spots made the difference wide
enough II any man who buys cotton, or
receives IL on contract thinks he is
getting anything else than that for
which he pays; or. in other words, that he cot
ton is over-classed, he can have the fullest and
most open investigation, and-this is a fact
which does not seem 10 be generally known
there is a large fund for the purpose of defray-
ing reclamations on certifcated cotton. II a
receiver can show that the cotton delivered him
Is Of IN grade. he Will have no difficulty in col
Letting an amount sufficient 20 reimburse hun
me i ne grades are guaranteed by the New York
Cotton Exchange.
The working types, Hubbard e. Co. say,
have been sharply overhauledand new ones
made, fully up 70 the standard of 1886 and
these viii hereafter be strictly maintained.
ANY change In the present method of de-
llyering cotton will only be possible after
the system now being amended is proven
10 be unreliable. The present method was
adopted because of the universal complaint
from outside traders, particularly of the
southern people, that the cost of receiving
cotton on contract was so great that they
could not, If they wished, receive their
cotton on contract purchases. 1t costs
| nothing to receive CONTRACT cotton. 1t is
weighed, classed and in store at the expense
| OF the dellverer, and the buyer simply has
TO pay the storage, insurance and interest
TO carry the cotton. If the classification Is
Incorrect, this exchange INSPECTION fund,
! some 500 000, is available to pay all claims
of grade. So far these claims have been 30
small that they do not bear out the current
Impression of our stock being oVerclassed.
Hubbard IL Co. bought, aud they say
| that others bought, the undesirable cotton
that accumulated in the early part of the
season and delivered it in New York on
contract. As yet no one, they say, is will
ing TO take the chances on even terms Of
receiving the cotton, and it is the fear of
being rendered this character, not grade Of
cotton that keeps contracts" so much be-
low spots" A similar condition of affairs
has always existed until this year in Liver
| pool, and even now with their contract Of
nothing below low middlingn spots are
quoted at Lied, while May-June tenders
are 5 6l-64 or 1915, difference of sd, or
% points.
Very good and very poor cotton, Hub
bard d Co. say, is not in demand this year,
the inquiry running entirely for middlings,
which is very scarce. All talk about dis
honest CHASING, they say, is nonsense. If
there are any errors in classification the in
spection fund will pay any and all claims
which may be made upon it.