The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-01-03
UGLY CHARGES
OF FRAUD MADE
Southern Planters Ask for Or
der Against the New York
Cotton Exchange.
SCANDAL WILL BE AIRED
ACCUSED CLAIM THEY ARE up
RIGHT MEN.

Washington. Jan. Charges of
fraud were filed lata this afternoon
with Postmaster General Corteiyou
against the officials and members of
the New York cotton exchange by Rep
resentative Livingston, of Georgia. and
HarVie Jordan, president of the South
ern Cotton association of Atlanta on
the charges they filed they base a re-
quest that the pOstofflce department
issue trau1 Clder against the officials
and members of the New York cotton
exchange in order to bar them from
the use Of the United States mails i'm
conducting what the charges term
fraudulent practices.
The postmaster general referred his
callers to JUICE Goodwin. assistant at
torney general for the postoffice de-
psftment 1t is likely q hearing on the
charges will be hell by Judge Goodwin
before determination OF the questions
IS reached.
Gist of Charges.
Following is summary of the
charges presented to Mr. Cortelyou:
i. We charge that New York has
ceased to ne a cOmmercial spot cotton
market and that the New York cotton
exchange, operating urder It's present
debased and fraudulent contracts has
developed into a purely speculative or
gambling exchange. and that the grades
of cotton shipped 70 New York and
tenderable on the contracts under the
rules of the New York cotton exchange
cannot be used for commercial spin
ring purposes. and that such grades
Of cotton are used solely to depress the
price of spinnable grades in the SOUTH
"a further the speculative features OF
the New York cotton exchange 20 The
heavy detTlnent of the legitimate cot
ton trade OF the United States
Use the Mails for Fraud.
80. 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 20 the legitimate cotton trade
o. 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 use Of the United States mails
3. We further charge that the quo
tatiCns sent out daily on the debased
contracts Of the New York cotton ex-
change exercise u predcminating influ-
oDce over the legitimate cotton trade.
to its great detriment and injury
wv a OROl NOIIOn MARKET.
- 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 ex-
change. and rs proof of the charge v,e
cite to You the fact that from Sent. |
1906. to Dec. 81 1906, there was only
delivered from that market 10.146 bales
Of spot cotton to shippers out of a to-
tai of practically 100000 bales of
American cotton placed on the mar
kets of this country It other points.
% We further charge that under
the present debase1 and fraudulent
rules of the New York cotton exchange
large number Of unspinrable. low
grades OF cotton are rendered on the
contracts of said exchange. which are
not permitted under the rules of any
other cotton exchange in the world. ana
We affirm that such rules are fraudu-
lent
Fraudulent Figures.
Sc We charge furthe5 that the off
cial daily quotations sent out through
the United States mails by the officers
! and other members Of the New York
! cotton exchange to their customers
both as to futures ana spot prices. are
fraudulent. in that neither represents
the true SnG actual value OF spot cot
! ton. but that the same are from s. to
$3.50 per bale less than the market price
at which spinnable grades of cotton
could be purchased i'm the south and
shipped 10 New York for tender or said
! fraudulent contracts.
Old Cotton Stored.
-. We further charge that ou1 81
the advertised stock OF cotton ut pres
eat stored in the warehouses of New
York City amounting to 1f4000 bales
4 fully 10000 bales of said cotton is ot
such inferior grades as TO render the
staple unfit for spinning or manufac-
turing purposes. and that 4 considera-
/ bic portion of said Gotten has been held
in said warehouses FOR years and is to-
tally unfit for any purpose whatever
4 except to be rendered on the fraudulent
/ contracts of the New York cotton ex-
| change to the serious dctriment and IN
/ ]ury of the legitimate cotton trade O!
the United States. We therefore ask
| That you as postmaster general OF The
| United States send a representative OF
your department. to the warehouses oi
New York City and have all the cotton
Cntinued on Page 2.