Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-01-04
NEW YORK COTTON EXCHANGE
Cotton Growers' Association Charges
IL With Fraud.

NEW rShN WI WV
Cotton Growers' Association Charges
II With Fraud.
The Southern Cotton Growers asso-
citation, through its president, HarVie
Jordan and Congressman Livingston
of Georgia, has asked Postmaster Gen
eral Cortelyou to issue fraud order
against the New York Cotton Ex-
change. The request was made by
Messrs. Livingston and Jordan IN per-
son last Wednesday. They filed
charges against the exchange and Mr..
Cortelyou referred them to Judge
Goodwin of the postofflce department,
who II is understood, will give the
matter a thorough investigation be-
fore reaching q conclusion. The erect
Of the fraud order asked for, II grant
ed. will bar the members Of the New
York Cotton Exchange from the use
of the mails in the conduct OF their
business. The charges submitted by
the Southern Cotton association are
as follows:
1--WE charge that New York has
ceased to be a commercial spot cot
ton market and that the New York
Cotton Exchange, operating under lts
present debased and fraudulent con-
tracts, has developed into a purely
speculative or gambling exchange and
that the grades of cotton shipped to
New York and tenderable on the con-
tracts under the rules of the New York
Cotton Exchange cannot be used for
commercial spinning purposes, and
that such grades Of cotton are USED
solely to depress the price Of spinna-
BILE grades in the south; to further the
speculative features Of the New YORK
Cotton Exchange to the heavy detrt-
ment of the entire legitimate cotton
grade of the United States.
2. I'VE further charge that the SAID
New York Cotton Exchange, through
its officers and members, is daily US
ing the United States mails for the
purpose Of transmitting and advertis-
ing their business to the legitimate
cotton trade Of the United States, and
we charge that said busines is fraud
ulent and said ojcials and members
Of the New York Cotton Exchange
should be denied the use Of the Unit
ed States mails. We refer you to CO.
pies of letters hereto attached.
8. 1--WE further charge that the quo
tations sent out daily on the debased
contract Of the New York Cotton Ex-
change exercise a predominating in
fiuence over the legitimate cotton trade
10 ltS great uctTlIlSuL hilu iHJuiy'
4. 1--WE further charge that New
York city has ceased to be spot cot
ton market for commercial, spinaole
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 10,046 bales
of spot cotton to shippers out OF a to-
tai of practically eight million bales
of American cotton placed upon the
markets Of this country at other
points.
S. I'VE further charge that under
the present debased and fraudulent
rules Of the New York Cotton Ex-
change a large number Of unspinable
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, and we affirm that such rules
are fraudulent
6. I'VE charge further that the Of
fetal daily quotations sent through
the United States mails by the ofn-
GERS and members Of the New York
Cotton Exchange to their customers
and others, both as to futures" and
"spot" prices are fraudulent, in that
neither represents the true and actual
value of spot cotton, but that the same
are from $5 to $3.50 per bale less than
the market price at which sptnable
grades of cotton could be purchaser In
the south, and shipped for tender on
said fraudulent contracts. In an ex-
hibit attached hereto we specifically
call your attention to the wide diner.
ence existing between quotations OF
futures market and spot market on
December %, as existing In the New
York Cotton Exchange difference
Of 1853 points, or $S.1b per bale, said
difference clearly showing a fraud.
Your attention Is also specifically call
ed to the official quotations In said ex-
hibit Of the futures market and spot
market Of the New Orleans Cotton
Exchange, noting the close proximity
between futures and spots OF that
market.
Z. 1--WE further charge that out OF
the advertised stock Of cotton at pres
ent stored in the warehouses Of New
York city-amounting to 114,00O bales
fully 10000 bales of said cotton is
of such inferior grade as to render the
staple unfit for spinning or manufac-
turing purposes, and that considerable
portion of said cotton has been held IN
said warehouse for years and Is total
ly unfit for any purpose whatever, ex-
cept to be rendered on the fraudulent
contracts Of the New York Cotton EX-
change to the serious detriment and
injury Of the legitimate cotton trade OF
the United States We therefore ask
that you, as postmaster general or the
United States, send a representative
of your department to the warehouses
of New York city and have all the cot
ton stored there inspected and graded
in order to officially determine the
character Of the unspinnable and un-
marketable grades Of cotton stored In
that market to tender under the fraud
ulent contracts of the New York
Cotton Exchange.
Your petitioners further state that
they have no desire to jeopardiZe any
legitimate transactions that are made
through any Of the cotton exchanges
against the New York Cotton Ex-
change as an exchange to be used for
the purpose Of safeguarding, protect
ing and furthering the legitimate cot
ton business Of the whole country, but
the charges here preferred and EFFORTS
made are directed solely against any
and all debased and fraudulent con-
tracts and transactions which are at
present practiced by those who are IN
authority in making effective and
present rules and methods Of that ex-
change the detriment and injury OF
the legitimate cotton trade OF the
United States.
In addition to the formal charges,
many letters and affidavits in support
of them were submitted to Postmaster
General Cortelyou. Representative
Livingston urged prompt and decisive
action in the matter and Mr.. Cortel-
you said the charges would be given
attention by the department.
SENATORS WANT MORE PAY.-The
subcommittee Of the senate committee
on concentrations which for the last