The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-02-13
COTTON INQUIRY ORDERED.
HOUSE CALLS FOR AN NyES-
TIGAION.

a Resolution Has Been Adopted by
the House Which Calls Upon the
Bureau Of Corporations to Inquire
Into the Cause of Fluctuations.
Washington, February A.-The
House today passed a resolution call
ing on the Secretary Of Commerce
and Labor through the bureau Of cor
porations to investigate the causes of
the fluctuations in the price Of cot
ton and the difference in the price of
the various classes Of cotton. The in
vestigation 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 contracts
and deliveries thereon made on the
cotton exchanges dealing in futures,
or IS the result Of any combination or
conspiracy which interferes with or
hinders commerce among the several
States and Territories or with for
eign countries.
Mr.. Burleson, of Texas. in explain
ing the purpose of the resolution,
said it was to ascertain whether the
contract sold on the New York and
New Orleans cotton exchanges brings
about a violent ductuation in the
price OF. cotton and whether or net the
contract sold enables the members
of the exchanges by combination
araong themselves 20 bring about
depression ks 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 between
the price Of spets and futures at New
York at this time is more than $3.50
per bale and that this difference ex-
erts an injurious influence on the.
price paid for cotton.
Mr.. Lowering, Of Massachusetts,, ex-
plalned 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.
saThe cotton producers for thirty
years have been struggling for
square deal in the marketing Of cot
ton and cotton fabrics and have been
Handicapped in their efforts by the
Obstruction, interference and manip-
nlation of the cotton exchanges said
Mr.. Livingston, of Georgia. eve have
begged for relief, but our appeals
were treated with silent contempt
We have been threatened and laugh
ed at recently when we appealed to
one of the great departments for cer
lief We We're threatened with suit
sfecr l5bel and ipaprisoaaensnt. = square
deal IS al that is sought or intended
ay this investigation. It AS II the in
terest of every cotton producer and
spinner, and relates to the market
ing of the most valuable crop produc-
ed in this country"
He said it cost three times as much
50 raise a bale Of cotton today as it
did twelve years ago, and he wanted
prices in proportion.
Mr.. Fitzgerald, Of New York.
thought the resolution was not broad
enough anu urged that it should be
directed to those cotton producers
who contemplated destruction Of part
of their crop that prices might be ad-
vanced.
81 want those who desire to in
crease prices to be the subject Of in
vestigatson. I would treat alike all
engaged in an improper effort 70 en-
hance prices"
Mr.. Meyer, of Louisiana, speaking
IN favor Of the resolution, explained
that while he did not altogether un-
derstand the reasons which prompted
the investigation he felt that as far as
the interests Of the New Orleans cot
ton exchange were concerned, there
was no objection to the resolution.
He read a telegram from William
Mecon Smith, president Of the New
orleans cotton exchange. as follows:
Exchange has nothing to fear
from any investigation, in fact furth-
er 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: ose business methods
were govel ID by the highest princi-
pies of integrity.
A Valuable Lesson.