The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-28
TO MAKE TEST IN
BROKERAGE MATTER
C. H. coTHRAN, MANAGER FOR
WARE G LELAND's OFFICE, DE-
MES THE clTYs RIGHT TO RE-
WOKE LICENSE.


Since the step taken by the City coun-
ell looking to the revocation of the city's
license in the matter of bucket shops" as
brokerage places are Unfortunately
called number of these concerns for
merly operating in Birmingham have al
ready Withdrawn from business here. Only
I three remain. and it is understood that
it is the purpose of the city to cancel
these licenses after October 1.
c. II. Cothran, local manager for Ware
& Leland, whose branch here is still open,
will contest the right of the city to re-
yoke brokerage licenses. When asked yes
terday if he was going to close his office
on October l, Mr.. Cothran said, Ger
tainly not Why should we? Our business
is as legitimate as any business in the
city. All orders which we take are actual
~ executed on the New York, New Or
leans and Chicago exchanges of which We
are members. That we are recognized and
protected by the state laws even to the
extent that if a customer should make a
loss through our dealings for him and
then refuse to pay We can sue and get
judgment against him, furnishes ample
proof of the truth of this statement.
IF the contract were gambling one
we certainly could not have recourse in
the courts of Alabama for the collection
of the debt.
I'VE have state, county and city licenses
paid up to January l and there has been
not one thing in the conduct of our Of
flee that can be criticised. Such being the
case there is nothing in the city char
.er which would give it the right to inter-
fere with our business.
aside from this we have for the past
seven years furnished Birmingham with
market quotations and have given to her
citizens the facilities for immediate in
tercourse with the markets of the world.
As a matter of fact if the ordinance in
question were enforced there would be
no market quotations in Birmingham at
all This predicament does not seem to
have struck many people. 1t would, how
ever strike investors from eastern and
western financial centers as most extro-
ordinary for the first thing that such in
Yestors do Is to ask where they can see
the market quotations on the stocks or
the condition OF the money market. Not
only would they be seriously hampered
) by being unable to keep in touch with
the markets of the world but what would
our local cotton buyers do? They are alb
solutely dependent upon continuous quo
tations of the cotton market Without
them they would be utterly helpless; the
spot cotton business of Birmingham
which has grown to enormous proper
tons could not be carried on with any
degree of safety either to the buyer, the
merchant or the farmer.
"IIow else can the merchant, the cot
ton buyer or the farmer know what an
active cotton market Is doing except by
means of continuous quotations over a
private wire working directly with the ex-
changes of the country? Or for that mat
ter, how else can holders of stocks be
kept appraised of sudden changes, caused
by the frequent happening Of the unex-
pected. Suppose, for example, something
would occur of great Significance to the
cotton market. In a few minutes values
might be changed a cent. Absolutely the
only safeguard for all concerned is the
private wire. which give continuous quo
tations and instantly conveys informa-
ton concerning the changed conditions
II know there has been considerable
discussion of the subject of speculation
recently 1t is to be borne in mind, how
ever that it is speculation that has kept
up the prices of cotton during the last
Ac ha chn in fba
past time and time again, the constant
effort of the spinners is to keep the price
of cotton as cheap as possible and they
are kept from realizing their wish only
by the fact that when they succeed in
hammering prices to a point below the
level warranted by economic conditions,
the speculator comes into the market
and bids It up
1.-The very first movement to stop spec
ulation was started by the Federation of
Master Splnners during the Sully year,
the spinners claiming that speculation
kept the prices SO high that they would
be put out of business. if it We're allowed
to go on.
Right now with the numerous damage
reports to the growing crop that have
peen FeceiFeu 50 Sehealy uurlnS tne
past three weeks we would see cotton
selling u to | cent higher but for this
dearth of speculative power which has
been fostered by the astute, unscrupuous
mill man, who has apparently even en-
ioyed the assistance of the cotton grower
he is trying to dupe. The more closely
it is studied the more clearly it will be
seen that speculation is the balance wheel
of the market"