The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1907-01-10
ASK FRAUD ORDER
Cotton Growers Move Against
New York Exchange.
APPEAL TO C0RTELY0U
Congressman Livingston, Harvie Jor.
dan and Charles Barrett Call on
Postmaster General and
Present Evidence.

A Washington special says: Con-
gressman Livingston Of Georgia ap-
peared before Postmaster Cortelyou
Wednesday afternoon, and urged the
department to investigate the specific
charges of fraud against the New
York cotton exchange, which he pre-
scented. Colonel Livingston was &C.
companied by President Haryie Jor-
dan of the Southern Cotton Associ-
alton, he having invited. President Jor'
dan and President C. S. Barrett of
the Farmers Educational and Coop
crate Union, to come to Washington
and help push the case against the
New York cotton exchange.
The charges recite that the ex-
change operates under fraudulent con-
tracts; that it's business is largely
speculative, and has become mere
gambling game, and that the officials
and members should be forbidden the
use of the mails in advertising their
business.
The action of Colonel Livingston in
moving against the New York cotton
exchange was provoked by what plan
ters consider proof of fraud being
practiced by the exchange to the
harm and detriment of the legitimate
cotton trade of the south. This proof
appeared in the official market re,
port of the New York cotton exchange
issued on December 2S, which was
notice day. On that date the price OF
cotton futures on contracts calling
for December delivery was 9.02 and
9.O4, while the price Of spot cotton
was 1855. The disparity between the
actual value of the staple, and its
value on future contracts made on
the floor of the exchange was thus
1853 points, which would make dif'
ference of $S.15 per bale.
ON the same day, New 'Orleaps
was nearly 100 points above New
York, it's quotations being S.9S on
futures and 10 3-16 on spots. In dis
cussing the matter Colonel Livingston
laid particular stress upon this sit
uation as proving the claims of fraud
in connection with the New York
exchange transactions. He said:
"[f McFadden OF any other cotton
operator had bought cotton on that
date at e.02 and could have secured
the actual cotton, he could have sold
it in the spot market and made
profit on the 114,000 bales traded IN
on that exchange that day OF $11,-
411,O0O. He did not buy, because he
knew. and all knew that there was
no cotton to be had. If the New York
cotton exchange operates on the same
plan as the stock exchange, or the
corn exchange, and am informed
that such is their charter, they must
keen on hand for actual delivery the
cotton traded in, just as does the bro
ker who sells railroad or other stocks.
I do not know that sucl, is their
charter, and I have been unable to
find out, but, if it is true. they must
keep commercial salable cotton on
hand to meet their contracts"
Harvie Jordan was of the opinion
that if he had at his disposal FIND
of fifty thousand dollars to employ
the legal talent to push the case, be
could put the New York Stock Ex-'
change cctnpletely out of business
on this ground, provided this provfs.
ion is found to be part of its char
ter. It is declared, however, that
there is no purpose to prevent the
legitimate transactions of the ex-
change, but simply to break up the
alleged fraudulent contracts.
The postmaster general referred his
callers to Judge Goodwin, assistant
general FOR the postofice department.
It is likely that a hearing will be held
by Judge Goodwin. ....