The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-03

Leonidas F. Livingston, Representative
IN Congress from the Fifth Georgia dis
trict, and Harvie Jordan, OF Atlanta.
| president Of the Southern Cotton
Growers Protective Association. sub
mitted to the Post-ofice Department.
late yesterday afternoon, a formal re-
quest for fraud order against
| the New York Cotton Exchange. \
statement setting forth the alleged
/ fraudulent practices of the concern. and
d number OF exhibits tending to support
the claims made therein. were filed with
! Postmaster General CortelyOu, who took
the case under advisement
Mr.. Livingston acted in behalf Of the
| cotton growers Of the South generally,
and Nh Jordan as q representative Uf
the organization of which ne IS the head.
An invitation TO participate IN the move
ment was sent last week to {. s Bar
rett. president OF the Farmers Co
operative and Educational Union. but il
was not accepted. The union. which is
largely composed Of cotton producers,
/ has headquarters at BanesviIle. Ga.
! Eight different counts are made against
I the New York exchange in the complaint.
/ the principal features OF which have al
ready been outlined in The Washington
Herald. The Postmaster General is asked
/ 10 assign an agent 70 inspect the cotton
stored in warehouses in New YORK iu
order to ascertain the truth or falsity OF
the allegations regarding its grade.
we charge. say the two siguers Of the
document submitted to the Postmaster
General that New York city has ceased
to be a commercial spot cotton market.
anC that the New York Cotton Exchange,
operating under its present debased and
fraudulent contracts. has developed into
a purely speculative or gambling ex-
change that the grades Of cotton ship
ped to New York and tenderable on con
tracts. under the rules of the New Yorls
Cotton Exchange cannot be used Tor
commercial spinning purposes, and that
such grades OF cotton ara used solely 10
depress the price of spinnsble grades in
the souta and to further the speculative
features OF the New York Cotton Ex-
change, TO the heavy detriment of the
entire legitimate cotton trade of the
United States.
Business Alleged 10 Be Fraudulent.
we further charge that the New York
Cotton Exchange. through its officers and
members is daily using the United States
mails for the purpose Of transmitting and
advertising its business to the legitimate
cotton trade of the United States, and We
charge that that business is fraudulent
and that the officials and members Of the
exchange should be denied the use Of the
United States mails.
we further charge that the quotations
sent out daily on the debased contract Of
the New York Cotton Exchange exercise
a predominaung influence over the Iegiti-
mate cotton trade 10 its great detriment
and injury.
we further charge that New York
City has ceased to be a spot-COtton mar
ket for commercial spinnable grades OF
cotton. due to the present debased con
tracts of the New York Cotton Exchange.
and as proof II the charge We cite 20
YOU the fact that from the lst day OF
September. 1896. 10 December 81. 1914.
there was only delivered from that mar
ket 1905 bales OF spot cotton TO shippers
cut of total of practically S00o.0J bales
of American cotton placed upon the mar
kets OF this country at other points
we further charge that under the
present debaSed and fraudulent rules Of
the New York Cotton Exchange large
number Of Unspinnable low grades Of cot
ton are rendered on the contracts of that
concern which are not permitted under
the rules Of any other cotton exchange
in the world and we affirm that such
rules are fraudulent
Figures Are Misleading.
we charge. further. that the official
daily quotations sent out through the
United states mails BY the officers ana
members Of the New York Cotton Ex-
change to their customers and others.
both as to futures and spot prices. are
fraudulent. in that neither represent the
true and actual value Of spot cotton. but
that they are from 8 to $50 per bale
less than the market price at which spin
nable grades of cotton could be purchased
in the South and shipped TO New York
for tender on these fraudulent contracts
copy of the official bulletin is at
tached to the complaint as an exhibit
and Messrs. Livingston and Jordan in
vite the especial attention of the Post
master General TO the figures contained
in it, as showing the wide difference on
the New York exchange between quo
tations for futures and spots on
December q This difference was 163
points, or SS-l0 per Dale. ana clearly proves
fraud in the opinion Of the two COM
plainants Attention is also directed TO the
bulletin OF the New Orleans Cotton Ex-
change. also filed as an exhibit. In New
Orleans. it is pointed out, the prices for
futures and spots" are very nearly
the same
AIeSsrS. Livingston and Jordan charge
Jnat out OF the advertised stock of cotton
ut present stored in the warehouses Of
New York City-amOunting TO 114.eO
bales-fulIy 70,0O0 bales are of such inferior
grades as 10 render the staple unfit for
spinning or manufacturing purposes. and
that a considerable portion Of il has been
held in warehouses for years. and lis
totally unfit for any purpose whatever.
except To be rendered on the fraudulent
contracts Of the New York Cotton Ex-
change. TO the serious detriment and IN
jury of the legitimate cotton trade of the
United States"
They therefore. ask the Postmaster
General To send a representative Of his
department 10 the warehouses of New
York City and have all the cotton stored
there inspected and graded in order 70
officially determine the character ~Of the
unspinnable and unmarketable grades
stored in that market TO tender under the
CONTINUED ON SEVENTH PAGE.