The sun., 1906-12-28
ArrACKN.Y. COTTONEXCHANGE
SOUTHERN GROWERS ASK FOR
ISSUANCE OF FRAUD ORDER.



WASHINGTON, Dec. a7.-Aocording to in
formation here, representatives OF the
cotton growing interests OF the South are
preparing data on which to base a request
that the Post Office Department issue
fraud order against the New York Cotton
Exchange. The matter was tentatively
presented to the department late to-day.
Ihe ground on which the postal authorities
will be asked to deny the exchange the use
OF the mails is that it conducts a business
which is not legitimate
The principal complaint il that the cotton
delivered on contracts sold on the floor
OF the Exchange is not Of the middling
grad or its equivalent, but rotten"
commodity which cannot be spun. which
is only tt for making horse collars, mat
tresses, &c., and on which the buyer. IL
he does not dispose of his contracts before
notice day, must in some cases lose more
than $40 bale, regardless of price fiuctua-
tons. In New Orleans, il is asserted. cotton
delivered on contracts purchased in the
usual course OF future trading is always
the grade called for in the contracts.
Persons who are engaged in the fight
against the exchange point TO the wide
New Orleans and New York in support Of
their contention that the New York ex-
change does not do business on straight
forward, above board basis. This differ
ence now il not far from a cent pound,
while the difference between January and
March on the New York exchange, they
assert, liz from 30 TO 81 points, ar nearly
third of a cent a pound.
Tomorrow is notice day, and dispatches
from New York are to the effect that many
firms are willing to receive cotton on con-
tracts IL rendered inasmuch as the diff
ference is considerably in excess of carry
ing charges and that a profit would there
fore result from such action. Southerners
connected with the movement against the
New York Exchange assert that nothing
of the sort * possible since any cotton
delivered would he of the rotten variety
already referred to and that anybody re-
ceiving il would certainly lose. despite the
difference in prices on January and March
contracts. There are only a very few bales
Of middling cotton in New York, il is said
in the same quarter.
Representative Livingstone of Georgia,
who keeps closely in touch with all matters
affecting cotton, to-day disclaimed positive
knowledge of the movement 20 bring about
the issuance of fraud order He told OF
having received a letter from a well in
formed Southerner, who asserted that
cotton growers in the Southern States
lost s3l 100000 the last year as the result
of the practices of the New York Exchange
Mr.. Livingstone turned this letter over
10 the Secretary of Agriculture. who re-
piled through the chief of one OF his bureaus
that the Department could do nothing in |
the premises.
The Georgia Congressman says that |
efforts TO secure the enactment of regula- |
tory legislation failed and that in his opinion |
the only way to get at the root of the trouble
was through the issuance of a fraud order.
The understanding in Washington is that
he Cooperative Farmers Union is taking
a lively interest in the matter, and some
who are in touch with the situation here
hink that that organization will submit
he request for fraud order 10 Postmaster
General Cortelyou.