The Washington herald., 1907-01-03

| fraudulent contracts of the New York
| Cotton Exchange under its present prac-
| tees"
Purpose of ComDIninants.
| The two compliments assert that they
have no desire to jeopardize any legiti-
1 mate transactions made through any OF
the cotton exchanges Of the country
This is no fight against the New York
Cotton Exchange, as an exchange TO be
fused for the purpose Of safeguarding, pro-
/ tecting. and fuTthering the legitimate cot
ton business Of the whole country" they
declare. but the charges here preferred.
and efforts made, are directed solely
Iagainst any and all debased and fraudu-
lIent contracts and transactions which at
present are practiced by those In authori-
Ity in making effective the present rules
and methods Of that exchange to the
detriment and injury of the legitimate
cotton trade Of the United States"
Among the exhibits filed with the COM
Iplant In addition 10 the bulletins Of the
| New York and New Orleans exchanges al
ready referred 10. is a secret circular sent
| to members Of the New York exchange
under date of December q, by Atwood
/ Violet, a prominent member. This circu-
| lar is in the nature Of a protest against
! 1.-The present methods Of the New York ex-
/ change and is held by Messrs Livingston
and Jordan 10 support their contentious
/ Accompanying the circular is a letter
/ from a FAN River manufacturer TO Mr.
/ Violet, in which the writer points out the
unsatisfactory and unfair character Of the
system now in use
Another exhibit Is a letter from n
/ former member Of the New York ex-
change 10 Mr.. Livingston. in which are
made charges similar to those contained
/ liz the complaint fled with the Postmaster
/ General The name of the writer Of this
I letter IS withheld
Mr.. FTeeman's Admissions.
Still another exhibit is a letter written
/ 20 Mr. Jordan by Charles D. Freeman.
chairman Of the committee on informa-
/ ton and statistics of the New York ex-
/ change, under date Of August 6. 1906. with
/ an answer thereto written by Norman
I Eustis, acting president Of the New Or
/ leans exchange. Messrs. Livingston and
/ Jordan assert that Mr.. Freeman admits
the truth Of their allegations regarding
the grade OF cotton furnished on contracts
/ I'm New York
A letter from James ". Harle. Of New
York, 10 Mr. Livingston Is also fled as
an exhibit This is the letter referred 20
1 in The Washington Herald last week as
containing the assertion that cotton
growers lost 600 OF legitimate profits
/ last year through the alleged manipula-
| tions OF the New York exchange Mr.
/ Livingston submitted II to Secretary VII
son, by whom IL was turned over 10 Chief
I Inns raF Of
/ who replied 20 H. and whose letter is in
eluded in the exhibits. together with
note o. trausmiltal from the Secretary.
/ Mr. Wilson approved an Of Mr. Ohm
stet comments in the premises. with
+ Tho exception Of a suggestion that the
proposed legislation recommended bv Mr.
Harle toe Investigated by the Department
/ Of Commerce and Labor rather than by
The Department Of Agriculture. &c being
/ a commercial rather than an agricultural
matter
Profitable Deal Overlooked"
Messrs. Livingston and Jordan point
out although they make no direct ref
erence 20 this feature IN their complaint.
I that II the cotton kept in New York for
/ delivery on contracts were Of mIddling
+ grade as il should be-. any man or COM
biuauon Of men. by taking advantage OF
/ the difference in the price between
( futures" and spots" on notice day
I last Friday. could have made an immedi-
ate profit OF Ss2elpo This is calculated
on the basis 81 ll4.05J bales Of cotton
being ready for delivery in New York
on notice day, and on "a difference In
/ price of SSi5 per bale They also point
out that. although 10 costs 90 points per
pound 90 ship cotton from the South u
+ New York. and that. therefore prices in
New York should be at least 40 points
| higher than in New Orleans. as a matter
/ of fact. New Orleans Is nearly l"0 points.
OF nearly I cent per pound higher than
1 New York.
Intense interest in the movement
against the New York exchange is mani
/ Tested not only iu the cottou-growing
/ section Of the South bat in the mill dis
/ triCt of New England. and I'm an centers
+ in which the staple Is bought and sold.
4 II the postal authorities decline To grant
/ the request for a fraud order, efforts will
again be made to bring about the enact
mcnt OF law intended To correct the
/ abuses which are alleged 20 exist at pres
ent.
states Taking Action.
/ Mr. Jordan said yesterday that the
/ Georgia state law prohibiting dealing in
/ futures became effective the FIRST Of the
/ year Il similar statute is now I'm force
/ In North Carolina" he said, and the
legislatures Of Texas and other States.
which meet this month. doubtless will
enact legislation along the same lines My
information is that in some of the States
/ Legislators almost will fall over each other
getting antI-futures' bills In on the first