The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-03
FRAUD CHARGED TO
COTTON EXCHANGE
Order Sought to Stop it From
Using Mails
MISREPRESENT THE PRICES
Representative Livingston and Harvle
Jordan File Charges With cortel-
you, Who Promises Attention.
Exchange President Mad.

Washington Januarv 2-Charpes of
fraud were filed late This afternoon with
Postmaster General Cortelyou against the
officials and members of the New York
Cotton exchange by Representative Liv-
ingston of Georgia. and Haryie Jordan.
president of the southern Cotton associa-
ticn, of Atlanta. They request that the
department issue fraud order against
OFFICIALS and n,a,,hsrs of tho Naw yorl.
- -. =. -
oo'toh ext nahse 70 par 'helh iroiii Tue
use of the United States mails in conduct
ing what are termed fraudulent prac-
tices
- a, ,,,.o,.. ~. ,.., ...u, /. ~,
~ 10 nheis 'iia. d ieaiii's WIN oo iieiN
by Judge Goodwin.
Following are the charges presented to
Mr.. Cortelyou.
Charges presented.
"1. We charge that New York City has
ceased to he a commercial snot cotton
market, and that the New York Cotton
exchange has developed into purely
speculative or gambling exchange and
49, ~ .,das 80 ootton sbinnad N New
a.. .......,.-
I ork anu tehuerapie on ehe eoau ae's u"
der the rules of the New York Cotton ex-
change, cannot be used for commercial
s,,n,in .rd that sncb GRADES are used
spi'niie' a'' '''' So ,.,s,o
soieiy 10 oepress lne prize VI spi'''aD'S
grades in the south, to turther the specu-
lative features of the New York Cotton
exchange to the heavy detriment of the
s.,..o ,,-;.,.,.t., a,tto, +rado Of tho Irni-
- =
tea States
''2. We further charge that the New
1,I- oasfa4 anA
United States malls to transmit and ad-
vertise its business to the legitimate cot
ton trade of the United States, and we
charge hat this business is fraudulent
ana mar .ne on aau insap sta,5i5 he de-
MED the use of thc United States mails.
We refer you to letters hereto attached
''3. We further charge that the quota
tions sent out daily on the debased con-
tracts of the New York Cotton exchange
exercise a predomnating influence over
the legitimate cotton trade to its great
detriment and injury.
o.
Depaseo Non'do'e'
"a. We further charge that New York
City has ceased to be a spot cotton mar
ket for commercial spinnable grades or
cotton due to the present debased con-
tracts of the New York Cotton exchange,
and as proof of the charge we cite to you
the fact that from September l, 1906, to
December 81, 1906. there were delivered
from that market only 1o,o4s bales Of
spot cotton to shippers out of a total of
practically 100000 bales of American cot.
ton placed upon the markets of this coun-
try at other points.
''5. We further charge that under the
present debased and fraudulent rules
of the New York Cotton Exchange
large numper OIL 1nsp,h,laoiu % th lom noatraats
Of said exchange which are not permit
ted under the rules of any other cotton
exchange In the world. and we affirm
that such rules are fraudulent
rrduouient Vuotduohe'
&C. We charge further that the official
daily quotations sent out through the
United States mails by the officers and
members of the New York Cotton Ex-
change both as to futures and spot
prices are fraudulent. in that neither
represents the true and actual value of
spot cotton. but that the same are from
So to $3.50 per bale less than the market
price at which spnnable grades of cot
ton could be purchased in the south and
shipped to New York for tender on said
fraudulent contracts. In an exhibit at
tached hereto. we specifically call your
attention to the wide difference between
quotations of futures market, and spot
markets on December S as existing
IN tne new 10 orn o,ut to''on 81 SNeranse *
said difference clearly showing a fraud
Your attention Is also specifcallv called
to the official quotations In said exhibit
of tho futures markets. and snot mar
hot of tho Now orleans Cotton Exchange
noting The close proximity between ftl-
trres and snots Of that market
LoW-Grade STOCK.
az We further charge that out of the
advertised stock of cotton Mt present
stored in the warehouses of New York
c,tv amounting to $4,000 bales. fully TO-
o0o hales of said cotton is of such in
ferior grades as TO render the staple
un1t for spinning or manufacturing
nurnoses and that a consideration por-
lion of said cotton has been held in
said warehouses; for years. and is totally
unft for any purpose whatever, except
tracts of the New York Cotton Exchange
to the serious de.rlment ana lhJqry OF
the legitimate COTTON traoe Oh lne lhlteo
states we there'ore' ASK tnat you as
postmaster seherhi VI INC oiiteo STATES