The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-10-01
TRYING TO FIX THE BLAME.
COTTON EXCHANGE DIRECTORS
WAITING FOR LEGAL ADVICE.


attracts Made ON the Strength of
she bogus Liverpool Reports win
Re AnnuIIed. If 1t Can Be Done.
A. the same Time buyers Say
Tbcv win Protect Their Patrons.
Dr,fts on Brokers on Account OF
cotton Bought on the Fake Quota
tions Coming In-severaI Already
Refused-Buyers Going slow Until
cotton Exchange Acts.
The darkness that surrounded Fridays
mysterious Liverpool quotations on cot
+op futures was none the less impenetra-
ble Yesterday. While there was consider
able surmising, there were no plausible
theories. There are so many ways the
deception could have been practiced that
all who discuss it give their opinions with
ont any effort to explain the why's and
wherefores. Searchlights from nearly
every exchange in the South have been
thrown on the offices of the Commercial
News Bureau and other offices alleged to
be equally responsible, and 1t is safe to
say there will. be no let-up until the pros
poets of a solution have vanished or the
matter has been solved.
The local cotton men are reconched to
conditions They have settled down to
business, and while they intend 20 con-
rinue their efforts TO have all contracts
annued where possible, there will probably
not be any efforts to squirm out. AL of
them said yesterday that their customers
in the interior will be protected. and they
intend 10 bear the brunt of the burden
themselves.
Early in the day President Williams call
ed a meeting of the directors OF the Cotton
Exchange, for the purpose of taking such
action as might be deemed propr in furth-
er investigating the fabrication and fixing
the responsibility for the fraud.
The directors met in Supt Mer-
rihew's Office, and talked over. the
situation for some time. Desiring
TO take steps looking to the pro-
lection of the members, it was decided 10
refer the matter to counsel and Charlton,
Mackal Il Anderson, who will be asked TO
give an opinion as TO who is responsible
for the blunder, and who should bear the
burden Of the loss 1t is the desire of the
losers to know just where they stand, so
they may know what to expect
After the meeting President Will
Jams was seen by Morning
News reporter, and was asked
for a statement concerning the bogus quo
tations, but he declined to have any hing
TO say, further than that he called the
meeting to officially place the matter in the
hands of counsel. In case the attorneys
are prepared by tomorrow TO give an opin-
ion, a meeting of the directors will be
called for the purpose of hearing it.
In connection with the discussion as to
the liability for losses, some thought the
Cotton Exchange responsible to its mem
berS for posting erroneous quotations. and
that the exchange would in turn have its
recourse with the Western Union Telegraph
Company the telegraph company with
the cable company, and SO on back to the
boards of the Liverpool Exchange. The
general opinion is that the local exchange
is not in any way liable. 1t is simply an
association, its officers say, for
the purpose of publishing reports
for mutual benefit; there is no con-
tract requiring that they be correct be-
You'd the use Of proper care. 1t is claimed
that the Western Union Telegraph Com
pany, or rather the Commercial News Blu
reau, which is claimed to be the same
thing, agrees to furnish the correct quo
tations, and that proof that it has failed
to do so renders 1t liable in damages as a
result of the errors.
There is a good deal of speculation as TO
the result of the investigation now in
progress, and the outcome will be eagerly
awaited. The determined stand the
trade has taken that there shall be no
prevarication means that positive infor-
nation is forthcoming. If employees of
any of the companies concerned have been
fixed" the cotton men intend 20 know it,
A well known broker said that it is
nothing but natural that heavy buying
should follow such jumps as we're credit
ed to the Liverpool market, bur he thinks
there VIII be more care hereafter at least
Tor some time to come. Another advance
I such as fridays, would not find many
\ sympathizers in Savannah, and it is safe
to assume that little buying would be
done on the strength of the rise until
i there had been full confirmation Of each
q quotation as it came Many claim the
n exercise Of good judgment plays no part
4 IN trading if no reliability attaches to the
reports.
The Savannah brokers who bought cot
ton in The interior were called upon by the
banks yesterday for drafts in payment
Tor the cotton bought, It is known that
several drafts Were turned down, and will
II not be honored until some adjustment Of
the present trouble is made II is ex-
& pected that drafts will pour in al a rapid
Il rate the early part of the week, but it
Is not likely they will be paid. While
brokers' say they do not intend to let their
pa irons suffer they intend to go slow I'M
III more Light is thrown on the situation