The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-05-06
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New York, May 5.-As a result of a
conference between counsel, I have con-
scented to withdraw my application for an
injunction against the classification COM
mittee and the New York Cotton Elk
change, on condition that the defendants
consent to go to immediate trial of all
- issues before a referee, to be ap-
pointed by the supreme court and pro-
coed from day to day in taking testi-
mony in proof of the facts. This will
result in a thorough inquiry into present
and past conditions governing the cotton
business of New York city, and will, in
my opinion effectively stop the delivery
of cotton on contract here that is not
properly tenderable, and check any dis
position to violate the rules of the New
York Cotton Exchange.
From now on | believe we shall have
a contract that really represents mer-
charitable cotton and bears some just re-
1ation to the value of the article.
The trial before the referee will be
conducted with all possible expedition,
and I invite any who may have evidence
to give ON the subject to place the same
at my disposal to the end that the New
York Cotton Exchange may be rehabil
tated in the eyes of the world, and may
properly perform it's important function
toward the trade and cease to be the
object of antagonistic legislation through
out the south.
[ believe that under the improved con-
ditions which will result from my action,
the New York Cotton Exchange has
brighter future before it, Gnd that it will
not be long before the contract here will
be Legitimate exponent of the real
value of spinnable cotton, and as such,
again available to producers and con-
sumers a means of properly protect
Ing themselves against the risk of a
decline advance in the market
1t has been widely charged by my enc
mics and some of my former friends
that my action was taken with a view
of springng a surprise upon the market
and forcing a Corner by injunction.
Such is not the case. and the best pos
sible proof of 1t is my willingness to
abandon the Injunction pending a trial,
If the trial proceed forthwith. / am UNI
alterably opposed to corners. ! believe
them to be monumental and as a rule
Improbable. never participated in but
one. when at the invitation of Messrs.
s. Gruner 6 Co.. of this city I joined
with them in corner of August cot
ton. This convinced me of the utter fu-
Utility of attempting to advance the price
Of great commodity like cotton by
manipulative methods.
My injunction was simply a demand
that the bylaws of the Cotton Exchange
itself be observed. II had not seemed to
me that such Cemaud would effect
corner. Mr. Henry w Taft counsel for
the Row York Cotton Exchange, in the
New York Sun of May a. is quoted as
follows; Although Mr.. Prices injunc-
tion will do little except enioin the classi-
f1cation committee from doing things that
are already technical violations of the
bylaws of the exchange, the terms are
so general that the committee could not
continue its work. and without the CLASH
lcation of the cotton trading cannot go
on
I submit that If it be necessary that
the bylaws of the New York Cotton
Exchange be violated to enable IL to con-
tinue its present methods. then is it not
time that those who are invited to trade
upon the New York Cotton Exchange be
put upon notice of such condition, and
am I to blame, if, having bought cot
ton under the rules of the New York
Cotton Exchange insist upon the en-
forcement of those rules to protect my
rights Hereunder in the contamination
of my contracts?
By every means available to me
have endeavored to bring the abuses of
which I complain to the attention of the
exchange administration. I publicly an
nounced nearly month ago that should
avail myself of legal remedy, if such
a legal remedy existed. and there is no
Justification whatever for the widely dis
seminated statements that I have en-
deavored to spring a surprise upon the
exchange.
I believe cotton is destined to sell much
higher. I believe this because the stocks
OF tenderable cotton, even the cotton ten
derable under the bylaws of the New
York Cotton Exchange are practically
exhausted in America; and, because. while
the world needs an American cotton crop
of at least 13,5O0,O0O bales next year the
prospect Is that the yield will be much
less than this.
l believe that as a result of the reforms
now almost certain to be established II.
New York, the New York Cotton Elk
change will enjoy very large and 1egit-
innate business, and that those who are
likely to require cotton in the future
can with confidence protect themselves
against such requirements through the
purchase of a contract on the New York
cotton Exchange. the integrity of which,
in the face of considerable opprobrium.
I have done my best to rehabilitate and
shall do my best to maintain.
THEODORE H. PRICE.