The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-02-08
COTTON INQUIRY ORDERED.
House Calls for Investigation Of Cot
ton Exchanges--Squqare Deal
for Cotton Producers Asked.

today passed resolution calling on
the secretary Of commerce and labor
through the bureau Of corporations to
investigate the causes Of the fluctua-
tions III the price Of cotton and the
dlfterence in the market price Of the
Z various classes of cotton. The inves-
( tigation is to be conducted with the
particular object of ascertaining
whether or not the fluctuations in
the prices have resulted in whole or
IN part from the character Of con-
tracts and deliveries thereon made on
the cotton exchanges dealing in fu-
lures, or is the result Of any combin-
alton or conspiracy which interferes
with or hinders commerce among
the several states aud territories or
with foreign countries.
Mr.. Burleson, Of Texas, in explain
ing the purpose of their resolution,
said it was to ascertain whether the
contract sold on the New York and
New Orleans cotton exchanges brings
about violent fluttuation in the
price of cotton and whether or not
the contract sold enables the ,mcm-
bers of the exchanges by combina-
tion among themselves to bring about
a depression by reason Of the fact
that under the terms Of the contract
they would be authorized to deliver
any one of thirty grades of cotton.
1t is claimed that the difference be-
tween the price Of spots and futures
at New York at this time is more
than $3.50 per bale, and that this diff
ference exerts an injurious influence
on the price paid for cotton.
Mr.. Lowering, of Massachusetts, ex-
planned that the resolution was one Of
simple inquiry. He said that it had
been broadly drawn and was not in
tended to be specific in any way.
''The cotton producers for thirty
years have been struggling for a
square deal in the marketing Of cot
handicapped in their efforts by the
obstruction, interference and manipu-
lation of the cotton exchanges" said
Mr.. Livingston, Of Georgia. "We
have begged for relief, but our ap-
peals were treated with silent con-
tempt. We have been threatened and
laughted at recently when we appeal
ed to one of the great departments
for relief. We were threatened with
suit for libel and Imprisonment. A
I'll =,
intended by this investigation. It is
in the interest of every cotton pro-
ducer and spinner, and relates to the
marketing of the most valuable crop
produced in this country"
He said it cost three times as much
to raise bale of cotton to-day as it
did twelve years, ago, and he wanted
prices in proportion.
Mr.. Fitzgerald, of New York,
thought the resolution was not broad
enough and urged that it should be
directed to those cotton producers
who contemplated destruction Of part
of their crop that prices might be ad-
vanced.
"I want those who desire to in
crease prices to be the subject of
investigation. I would treat alike all
engaged in an improper effort to en-
hance prices.
Mr.. Meyer, Of Louisiana, speaking
in favor of the resolution, explained
that while he did not altogether I'M
derstand the reasons which prompted
the investigation he felt that as far
as the Interests Of the New Orleans,
COTTON exchanges were concerned,
there was no objection to the resoiu-
ton. He read telegram from Will
liam Macon Smith, president of the
New Orleans cotton exchange, as fol-
lows:
= "Exchange has nothing to fear
from any investigation, in fact fur
ther welcomes such investigation.
. Mr.. Meyer urged that the growers
of cotton had benefited to the extent
of millions Of dollars by maintaining
their interests in the operations OF
the exchange, whose business meth
DDS were governed by the highest
principles Of integrity.
- Fault