Los Angeles herald., 1907-01-03
SAYS COTTON
EXC HAN &C Is
GAMBLERS TOY
Sensational Charges
Are Filed
Representative Livingston and Presi.
dent Jordan of Southern Growers
Association Ask corteiyou
for Fraud Order
By Associated Press.

WASHINGTON, Jan. 2.-Charges of
fraud were filed late this afternoon
with Postmaster General Cortelyou
against the officers and members of the
New York Cotton Exchange by Repre-
sentative Livingstone of Georgia and
Harvey Jordan, president of the South
ern Cotton association of Atlanta.
On the charges filed they base re-
quest that the postof1ice department
issue a fraud order against the officials
and members of the New York cotton
exchange in order to bar them from the
use of the United States mails in con-
Quoting what the charges term fraudu
lent practices.
The postmaster general referred his
callers to Judge Goodwin, assistant at
torney general for the postoffice de-
partment. 1t is probable that a hear
ing on the charges will be held by
Judge Goodwin before determination
of the question is reached.
Summary of Charges
Following is a summary of the
charges presented to Mr.. Cortelyou:
"First-we charge that New York
has ceased to be commercial spot
cotton market and that the New York
cotton exchange operating under it's
present debased and fraudulent con-
tracts has developed into a purely
speculative or gambling exchange and
that the grades of cotton shipped to
New York and tenderable on the con-
tro otc ha r111ac of thn New York
cotton exchange cannot be used for
commercial spinning purposes and that
such grades of cotton are used solely to
depress the price of spinnable grades in
the south, to further the speculative
features of the New York cotton eX-
change to the heavy detriment of the
| legitimate cotton trade of the United
! States.
"Second-We further charge that the
said New York cotton exchange
through its officers and members is
daily using the United States mails for
| the purpose of transmitting and ad-
vertising their business to the legit-
innate cotton trade in the United States
and we charge that said business is
fraudulent and said officials and MEM
bers of the New York cotton exchange
| should be denied the use of the United
! States mails.
quotations sent out daily on the de-
based contracts of the New York cot
ton exchange exercise predominating
influence over the legitimate cotton
trade, to it's great detriment and injury.
"Fourth-We further charge that
New York city has ceased to be a spot
cotton market for commercial spinnable
grades of cotton, due to the present de-
based contracts of the New York cot
ton exchange.
Affirm Exchange Is Fraudulent
"Fifth-We further charge that under
the present debased and fraudulent
rules of the New York cotton exchange
large number of unspinnable low
grades of cotton are rendered on the
contracts of said exchange which are
not permitted under the rules of any
other cotton exchange in the world,
and we affirm that such rules are frau
dulent.
"Sixth-We charge further that the
official daily quotations sent out
through the United States mails by Of
ficers and others of the New York cot
ton exchange to their customers, both
as to future and spot prices are fraudu-
lent.
"Seventh-We further charge that out
of the advertised stock of cotton at
New York city, amounting to $4,000
bales, fully 10000 bales of said cotton
are of such inferior grades as to render
the staple unfit for spinning or manu-
featuring purposes.
I'VE therefore ask that you, as post
master general of the United States,
send representatives of your depart
ment to the warehouses of New York
city and have the cotton stored there
inspected and graded in order to Of
ficially determine the character of the
unspinnable and unmarketable grades
of cotton stored in that market to ten
der under the fraudulent contracts of
the New York cotton exchange under
the present practices of that exchange"
In addition to the formal charges,
many letters and affidaVits i'm support
of them were submitted to Postmaster
General Cortelyou.
Representative Livingston urged
rompt and decisive action in the mat
ter and Mr.. Cortelyou said the charges
would be given attention by the de-
partment.