The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-01-04

cotton exchange, operating under its
present debased and fraudulent con-
! tracts, has developed into purely
speculative and gambling exchange
and that the grades of cotton shipped
to New York and tenderable on the
contracts under the rules Of the New
York cotton exchange can not 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 exchange to the
heavy detriment of the entire legiti-
mate cotton trade OF the United
States.
"2. We further charge that the said
New York cotton exchange through
its officers and members, is daily using
the United States mails for the pur-
pose Of transmitting and advertising
! their business to the legitimate cot
ton trade of the United States, and
we charge that said business is fraud
ulent and said officials and members
of the New York cotton exchange
should be denied the use of the United
States mails. We refer you to copies
Of letter hereto attached.
"3. We further charge that the
quotations sent out daily on the de-
based contract Of the New York cot
ton exchange exercises predominant
ing Influence over the legitimate cot
ton trade to it's great detriment and
injury.
cd. We further charge that New
York city has ceased to be spot cot
ton market for commercial spinnable
grades Of cotton due to the present
debased contracts Of the New York
cotton exchange, and as proof Of the
charge we cite to you the fact that
from the first day Of September, 1906,
to Dee. 81, 1906, there was only dellv-
cred from that market 1O,046 bales of
SPOT cotton to shippers out Of total
of practically 100000 bales of
American cotton placed upon the mar
kcts of this country at other points.
\ "5. We further charge that under
the present debased and fraudulent
,'hrules of the New. York cotton en-
= change large number Of unspinnable
, low grades of cotton are rendered on
-. the contracts Of said exchange which
=, ire not permitted under the rules of
ny other cotton exchange in the
'orld, and We affirm that such rules
se fraudulent.
H6. We charge further that the
o oi6ial daily quotations sent through
- tn United States mails by the officers
4 an members Of the New York cot
q q ton Exchange to their customers and
- othEs, both as to 'futures,' and
y 'spt' prices, are fraudulent in that
!" neihe er represents the true and actual
10 vale} Of spot cotton, but that the
- =. sam are from IS to $3.50 per bale
y less han the market price at which
=. spinnble grades of cotton could be
~ purch sed in the South and shipped
-" for e4der OH said frauduIant con-
! ), tracts In an exhibit attached hereto
~ ", we SPECIALLY call your attention to the
~ ~ wide Inference existing between the
- quotatons Of futures market and spot
: marltej pn December 2S, as existing
y in the New York cotton exchange-a
~ differcee of 1853 points, or 1915 pei
- - bale, sid difference clearly showing
- - a fraud {Your attention is also speci-
10 fcally clled to the official quotations
in said 'Shibit of the ftures market
T. and spot market Of the New Orleans
'r cotton echange, noting the close prox'
n unity beWeen futures and spots of
that maret.
"7. w further charge that out OF
s. the advertised stock Of cotton at pres'
ent stored in the warehouses Of New
v York city amounting to 114,000 bales
le fully 10000 bales of said cotton is
II of such Inferior grade as to render
g. the staple unfit for spinning or man
80 ufacturing purposes, and that con
NJ siderable prtion Of said cotton has
es been held N said warehouses fo'
u years and il Totally unfit for any pur
!" pose whateer, except to be rendered
III on the fraudulent contracts of thu
T. New York cotton exchange, to the
a