New-York tribune., 1907-01-03
FILE COTTON CHARGES.
\. Y. EXCHANGE
Livingston and Jordan -4sk Post
office for FRAUD Order.

TiRgStOn and JOrddn -iSh POST
oFce for Fraud Odgr.
Washington. Jan 2-Charges of fraud were
filed late this afternoon with Postmaster Gen
eraI Cortelyou against the officials and the
members Of the New York Cotton EXchang"
by Representative Livingston, OF Georgia and
Harye Jordan. president of the Southern Cot
ton Association, OF Atlanta. On the charges
they filed they base request that the Post
Office Department issue a fraud order against
the officials and members of the New York
Cotton Exchange. TO bar them from the use
OF The United States mails in conducting what
the charges term fraudulent practices.
The Postmaster General after going over The
papers submitted TO him, referred his callers
TO Judge Goodwin, Assistant Attorney General
for the PostofIice Department. IL is likely THAI
a hearing on the charges viii be held by Judge
Goodwin before a determination Of the ques-
tion is reached
Representative Livingston ana Mr.. Jordan
submitted TO the Postmaster General the fol
lowing letter accompanying the charges
Washington u G. Jan. >. 1907.
Hon George B. Cortelyou Postmaster General.
Washington. Il. c.
Dear Sir: We the Hon J.. +. Livingston.
NJ. c, Of Georgia. and Haryie Jordan. president
of the Southern Cotton Association. OF Atlanta,
Ga, hereby respectfully request the issuance
of a fraud OrCeT by your department against
the use of the United States mails by tn. OFF,
Gals and members Of the New York Cotton Ex-
change. and present our reason FOR the same
in the following charges below outlined. aud
TO which we most respectfully invite your care
ful attention. Yours truly
J.. F. LIVINGSTON.
HARVIE JORDAN
Following are the charges presented to Mr..
Cortelyou:
First-We charge that New York City has
ceased TO be a commercial spot cotton market.
and that the New York Cotton Exchange. Oper-
ating under its present debased and fraudulent
contracts. has developed into a purely speculative
gambling exchange and that the grades of
cotton shipped New York and tenderable on
the contracts under the rules of the New York
Cotton Exchange cannot be used for commercial
spinning purposes. and that such grades Of
ton are used solely to depress the price of spin
able grades in the South, to further the 81, GU
lative features of the New York Cotton EX-
change, to the heavy Getriment of the entire
legitimate cotton trade of the United States
Second-We further charge that the said New
York Cotton Exchange. through its officers and
members. is daily using the United States mails
for the purpose of transmitting and advertising
their business, 10 the injury OF the legitimate
cotton trade Of the United States and we charge
that said business Is fraudulent and said officials
and members Of the New York Cotton Exchange
should be denied the of the United States
mails We refer you 10 copies of letters hereto
attached.
Third-we further charge that the quotations
sent out daily on the debased contracts Of the
mating influence the legitimate cotton
trade. TO its great detrment ana injury.
Fourth-We further charge that New York
City has ceased to be a spot cotton 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 December 81. 1906. there
was only delivered from that market 10 O46 bales
Of spot cotton 10 shippers of a total OF prac-
tically eight million bales OF American cotton
placed upon the markets OF this country at other
points
Fifth-We further charge that under the pres
ent debased and fraudulent rules of the New
York Cotton Exchange large number Of un-
spinnabie low grades OF cotton are rendered
on the contracts of said exchange which
not permitted under the rules Of any other
cotton exchange in the world, and affirm that
such rules fraudulent.
Sixth-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 Exchange to their customers
and others. both as to futures and spot"
prices fraudulent, in that neither represents
the true and actual value of spot cotton. but
than the market price at which spinnable grades
OF cotton could be purchased in the South and
shipped to New York for tender said fraudu-
lent contracts In exhibit attached hereto,
specifically call your attention the wide
difference existing between quotations OF futures
market and spot market on December 2S, *
listing in the New York Cotton Exchange diff
ference OF 163 points, SS 10 bale said differ
also specifically called 70 the official quotations
in said exhibit of the futures market and spot
market Of the New Orleans Cotton Exchange.
noting the close proximity between futures and
spots of that market.
Seventh-We further charge that out Of the
advertised stock of cotton at present stored in
the warehouses of New York City-amounting
to 114,oD0 bales-fuly 10000 bales of said cot
ton is OF such inferior grades TO render the
staple unfit for spinning manufacturing pur-
poses, and that q considerable portion of said
cotton has been held in said warehouses for
years and is totally unfit for any purpose what
ever except to be rendered the fraudulent
contracts of the New York Cotton Exchange, to
the serious detrIment and injury OF the legiu-
mate cotton trade OF the United States. We
therefore ask that you. as Postmaster General
OF the United States. send a representative OF
volr department to the warehouses OF New
York CITY and have all the cotton stored there
mine the character of the unspinnable and
marketable grades OF cotton stored In that mar
ket to tender under the fraudulent contracts OF
the New York Cotton Exchange under the pes
emf practices Of that exchange.
Your petitioners further state that they have
no desire to jeopardiZe any legitimate transac-
tions that are made through any OF the cotton
exchanges of this country. This is no fight
against the New York Cotton Exchange
exchange to be used for the purpose of safe
guarding protecting and furthering the legitt-
uate cotton business of the whole country. but
the charges here preferred and efforts made are
directed solely against any and all debased ana