The Kemper herald. (Scooba, Miss.) 1875-1908, 1907-01-10
FRAUD ORDERS
HAVE BEEN ISSUED
AGAINST NEW YORK COTTON
EXCHANGE.
ONLY GAMBLING EXCHANGE


Held In New York is Not Marketa-
BILE and Ask That Mails Be Closed
Against the Exchange-Libel Suit
May Be Outcome.
Washington.-Pr Hubbard of the
N. Y. Cotton Exchange, announced
that Henry w. Taft had been retain
ed by the exchange to represent it In
any proceedings which may grow out
of the application for fraud order
filed with the postmaster general at
Washington by Representative Liv-
ingston of Georgia and Harvie Jordan
president of the Southern Cotton
Growers Association.
"We do not fear the result Of any
step which might be taken by the
postoffice department against the ex-
changes, )" said Mr.. Hubbard, "be-
cause we are confident that any such
investigation will demonstrate the
high character of our institution. We
do not intend to try this case in the
newspapers. Whea the proper time
comes our attorney, Henry w. Taft,
will represent the exchange in what
ever proceedings may be instituted. 1
have as yet received no official IN
formation from Washington of any
steps having been taken"
The following resolution was adopt
ed by the board of managers of the
exchange:
Resolved, That the counsel of the
exchange, Henry W. Taft, be consult
ed as to the advisability Of bringing
suit against Leonidas Livingston, con
gressman from Georgia, and Harvie
Jordan, president of the Southern
Cotton Growers Association, for IL
bel, and if possible, for criminal libel
in the affidavits which they have ad-
dressed to the postoffice department,
lat Washington, requesting the IS
suanee Of a fraud order against tns
New York Cotton Exchange.
Following are the charges presented
Ito Mr.. Cortelyou:
'.1. We charge that New York city
has ceased to be a commercial spot
cotton market, and that the New York
Cotton Exchange has developed into a
purely speculative or gambling ex-
change, and that the grades of cotton
Shipped to New York and tenderabfe
pn the contracts under the rules OF
the New York Cotton Exchange can
not be used for commercial spinning,
md that such grades are used solely
10 depress the price of spinnable
grades in the South, to further the
speculative features of the New York
Cotton Exchange to the heavy detrl-
ment Of the entire legitimate cotton
trade of the United States.
"2. We further charge that New
fork Cotton Exchange is daily using
the United States mails to transmit
md advertise it's business to the legltl-
mate cotton trade of the United
States, and we charge that this busl-
gess is fraudulent, and that the Of
ficials and members of the New York
Cotton Exchange should he denied the
use Of the United States mails. We
refer you to letters hereto attached.
"3. We further charge that the
quotations sent out daily on the de
based contracts of The New York Cot
ION Exchange exercise predominating
Influence over the legitimate cotton
trade, to its great detriment and IN
jury.
"a. We further charge that Nsw
York city has ceased to be a spot cot
ton market for commercial, spinnable
grades of cotton, due to the present
debased contracts Of the Nav York
Cotton Exchange, and as proof of this
charge we cite to you the fact that
from September /, 1905, to December
81. 1905, there was delivered from the
market only 1O,O46 bales Of spot cot
ton to shippers out of a total of prac-
tically 100000 bales Of American
sotton placed upon the markets Of this
country at other points.
H5. We further charge that under
Che present debased and fraudulent
rules of the. New York Cotton Ex-
change a large number of unspinnable
Iow grades Of cotton are rendered on
Ihe contracts of said exchange, which
are not permitted under the rules OF
any other cotton exchange IN ths
warld, and we affirm that such rules
are fraudulent.
= "6. We charge further that the Of
ficial daily quotations sent out
Through the United States mails by