Omaha daily bee., 1905-08-13
PLAN TO BAR AMERICANS
some British Cotton BROKERS Think
that Yankees Have an Unfair
Advantage.

MANCHESTER, Aug. 12.-(special Ca
blegram to The BeeD-The Manchester
Guardian, one of the leading newspapers
in the British empire prints the following
regarding the proposition to practically
eliminate all the minor American cotton
brokerage concerns by raising the amount
Of the subscription of associate members
residing in America from SlOO to $500.
OF course were the proposed legislation
begotten of desire to limit the specula-
tion of the American gambler, no word
could be raised against itbut that is not
the intention and 1t could not be the re-
suit. The American associate members are
firms, some il5 in number. all actively
trade and the Cotton association does not
pretend that 1t does not desire the busi-
ness coming from these firms. 1t does,
however, see a chance of increasing its
revenues from such a promising source,
probably arguing that with new cotton
exchange in course of erection such addi-
argument is of course, not admitted, but
the reasons given are: l. That the
associates is much less in proportion than
the amount paid by full members, taking
shares. 2. There does not seem to have
been any possibility Of coming to an ar
rangement with the American cotton eX-
ciate membership with the association
1t is true that full member of the
Liverpool Cotton association must contem-
plate yearly loss of interest on his
share-say about $125 per annum, but this
personal asset is becoming increasingly
valuable, and he possesses innumeTable
| facilities Of voting and exchange rights,
not to speak of the earning capacity of
his membership and share, an earning
| business. As to the retaliation argument
and an increase of the subscription be-
cause the American exchanges will not
grant the Liverpool members associate
member rights, 1t should be said: !. That
any English firms may become non
/ 1haTg nf hn A D1A q Y
\ changes and secure that their commits
| sion be al the rate of $3.50 per 100 bales
! 2. That the net value of a given commits
| sion In America is nothing like as large
as would be the equivalent rate in Eng
land, because exchange and all other trade
lea 8. That il the American exchanges
care to inlict high commissions upon
Liverpool's gain. Business gravitates to
| the cheapest markets as surely water
runs down hill, and the American knows It.
Make the terms easy and Liverpool Will
| get and keep an increasingly large share of
| the American traders business. Irritate
| creases of subscriptions and they will
| speedily contine their operations TO
their own -, exchanges notwithstand,,
ing their liking for our wide and
unmanipulated market. There are about
! ll5 American members whose subscriptions
now yield, say, $4,000 annually. Raise
the subscription and the income would
| total S575O0, an increase of over $4,000 To
make 1t worth while paying $500 per annum
/ must amount to 1900 bales per annum at
! least. Many Of these lis firms do an im-
mense business In our market and some
| of these would probably continue despite
| the increase. But many of these and all
| of the smaller firms would resign their
membership and send their orders to New
| York or New Orleans. Very much bust
ness would certanl be lost to the Liver
pool exchange. Not improbably the re.
sentiment which some American firms would
| feel at the increase of their Subscription
! will result in further American firms estab-
fishing themselves in business in the
| Liverpool market, in order to share in the
/ increasing wealth and privileges of its
! associat ton. II Is to be hoped that Liver.
pool will not kill any golden egg pro.
ducer, but rather II II does not desire
TO amend its commission rules, to do sc
In the interest of an increase and not g
decrease In trade and so make and keeT
! Liverpool a broad market. which Is what
spinners, merchants and brokers most de-
sire.