New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-04
COTTON GRADING FIGHT
Injunction Causes Explanation Of
Sytem in Vogue on Change.

The injunction suit brought by Theodore H. Price
against the New York Cotton Exchange and its
classification committee TO restrain them from con-
tinung their present system of grading, was said
yesterday TO be unprecedented in the history of
any exchange. The action of the judge in modify
ling the temporary injunction he had granted thus
relieving the exchange of compliance with its terms
until the hearing on Monday. and the announcement
made just before the opening that it the
opinion of Henry ". Taft, counsel for the
change, that the injunction would be made
permanent 1t was said prevented any furry in the
market
The market irregular throughout the day
however, and trading fell off considerably a
suit II was supposed of the uncertainty over the
final outcome of the proceedings instituted by Mr.
Price The operators appeared p be more con-
cerned over the outcome of the suit than the
of the weather any OF the other conditions that
affect the market
Some of the traders felt bitter toward Price. and
there was some talk Of boycottng him. F. NJ
Weld. one OF the foremost operators on the ex-
change generally regarded as being identified with
the bull party. offered sell eoO bales of May
at about fifteen points the market, which ap-
peared to Indicate that split had occurred among
! the bull crowd
Mr. Price issued statement yesterday morn
/ ing in which he said that inasrnuch as the njunc-
! ton simply ordered the exchange TO conform with
/ It's own rules, regulations and charter and with
| the laws of the state and the United States the
!
! injunction was admission that the exchange
had not heretofore conformed 10 them. Later he
! denied statement, issued from the Office of the
| president Of the exchange. that the New York
Cotton Exchange was the only exchange in the
world which guaranteed the grade of cotton de-
| livered under It's rules Mr. Price said that as
matter OF fact, the exchange did guarantee
the grade of cotton delivered its rules, and
! that section OF the bylaws specifically provided
! against the exchange being held liable for any
II Oyvfrg ant Of oF
When the statement was shown to William V.
King, superintendent of the Cotton Exchange. he
said that the grade guaranteed for a year
from the time Of purchase and that If at the time
OF delivery it was found not be up TO the grade
specified by the classification committee. the pur-
chaser would be reimbursed out of the inspection
fund maintained for that purpose He added tpat
600. and that If Mr.. Price or any one else had
bought cotton that not up TO grade. all they
change and If II was proved that the cotton was
not specified they would be paid out Of the fund.
Mr.. King gave figures which showed that in
twenty years the total claims paid out on cotton not
coming up 10 grade amounted To only one-twentieth
OF per cent In that time 3.:3S022 bales OF the
value of S!s,Ho9sD. had been graded In case the
inspection fund inadequate 10 pay the claims
against it. Mr. King said the bylaws provided that
the claims should be filed and paid for in the or
for that purpose had been received and paid into
the fund. The inspection fund is maintained out
Of the inspection bureau Mr. King said that
inasmuch as the fund now amounts to $4,000 and
been only ssa,5s6 %. il would seem TO be ample to
meet any claims that might be made against IL in
Henry W Taft counsel for the exchange. said
yesterday that he was preparing aff1davts contra
that his clients denied all the allegations made in
the complaint. He stated also that If the injunction
business on the Cotton Exchange because il would
be impossible to guarantee contracts for delivery