The Montgomery advertiser., 1908-05-29
tconsinuea from rase Ten1

'
 
 complaints were numerous, most of them were vague and indefinite; few One of the most frequently cited of such instances occurred in the summer of 1906, when firm of cotton mer- chants, members of the New York Cotton Exchange, shipped approxim- ately a thousand bales of cotton to New Orleans for delivery on contract. At this time there was rather severe corner in the New Orleans market Out of the thousand bales shipped. on lysa little over i've hundred were ac- cepted; several hundred were With drawn by the deliyerers after having ben ztentatively tendesea; ns,.tons ns ,n nc this case was sharply denounced py mem bers of the New York Cotton Exchsnge as showing bias in favor of the New
 Careful investi gation of this partic- ular case showed that the New rork shippers had sent yunbroken certncateo lots many of which incincea n Isovs. cSlSn Rnsw ance in New Orleans was doubtful: Eurthermore, the shippers admittea tb,a cotton which failed to pass the New Or leans arbitrators could not be sold oyer factors tables in New Orleans; m ctn- CT words, that 1t could not be sold in one of the largest spot markets in the world.
 Since there was sharp corner m New Orleans at that time, 1t would ob- viousiy have been to the interest of the receivers to prevent the delivry of this cotton. since they could thus punish possible, therefore. that arbitrations in New Orleans at this time were too se- were Tn view of the admissions of the tirsiy fair to state that complaints against these arbttrations were not conclusively sustained. and this was Brought to the attention of the bureau
 It Is not contended, however, that ar bitrations in New Orleans have invaria- b1y been fair. In fact, in view of local jeaiousies, and particularly in view of the fact that in times of squeezes and corners there Is great temptation Tor receivers to attempt to influence arbi- themselves might be unconsciously in: ffuenced by local sentiment, 1t would not be surprising, if abuses of this sort had occurred. Furthermore, as already stated. Southern merchants themselves very generally assert that New Orleans arbitrations are unduly severe. The cotton in New Orleans Is left to men drawn by lot. and that both buyers and sellers. have the right of appeal to oth- sonablo protection against any. general abuse of power: Ii should be borne in mind that the tendency of shipper which Is hardly up to the mark, and that complaints of shippers may thus naturally be owerdrswn: EIa: x,.-,
 Orleans Contracts.
 Moreover, 1t seems probable that dis satisfaction over the classification of cotton. in either New York or New Or leans is partly chargeable to the inner ent tmpossibility of securing absolute accuracy in grading. even with the best Of intentions on the Rart or those per. probable that many complaints by New York interests regarding New Orleans classiflcationg have been due to fail- ure to appreciate the material diner ence between the rules of the two ex- changes In particular, the provision of the New Orleans contract that no cotton below the value of good ordl- nary. fair color, shall be deliverable is exceedingly important, since 1t tends to exclude a great deal of cotton which under the rules of the New York Cot ton Exchange Is deliverable or at least has been deliverable until very recent ly. Moreover, since the value of good ordinary& & cotton Ion @ or t aslr sn.. Color a1sy msy results In a variable limit for the cIas- sification of irreguiar cotton such as result of this provision, cotton which may properly be tenderable at one time p NsT Orleans isg may as se fsct has probably been overlooked in many disputes over classification in the New Orleans market In the same way some sifcation may have been due to a mis- understanding of the rules of that ex- suwEested ImprOvements in CIasaiHea-
 tiOn-Pr0pOSed Establishment of
 Uniform Grade Standards.
 Numerous suggestions looking to Improvement in methods of classifiea- tion in both the New York and New Or leans markets are discussed in the body of the report. One of these ls s q of uniform standards of the leading grades in all markets. This is an ex- ceedtngly important matter. and, while there are some practical difficulties in the way of its accomplishment, these do not appear to be insurmountable. The establishment of such uniform stand ards. even If applied only to cotton ten dered on future contracts, should so far to reduce the friction which has been an almost constant feature of classif- cation up to this time; An especial g,Sa lad ad their tendency to reduce controyersies over grading, is that they would tend to haZnonize quotations of the various grades in different markets. It was suggested in Part of this report that the New York Cotton Exchange use the differences of several Southern markets as a basis for determining its contract differences. One objection advanced against this plan is based on the ad- mitted discrepancies between the stand ards of different markets, which dis crepancies. of course, tend to affect the quotations, although this difficulty could be largely overcome. The adop- fion of uniform standards, by tending to promote uniformity In the basis of quotation, should go far to eliminate this objection.
 Years ago an attempt was made to secure the establishment of uniform standards by joint action on the part of the leading cotton exchanges, put the movement fell flat, and similar of forts made from time to time by the New York Cotton Exchange have fall ed to meet with much response from Soutbern markets or from Liverpool. There Is no good reason, however, why such efforts should be abandoned. In- stead an earnest attempt should be made at once to secure the establish ment of uniform standards. A sprovis- ion for the establishment of such stand ards by experts to be selected by the Secretary of Agriculture was included in the agricultural appropriation bill for the fiscal year 190s-9. It is not proposed to make the introduction of these standards compulsory.
 Need of Pr0viaion for Rejection of
 Weak-StaRle Cotton.
 Another important suggestion Is that specific provisions be adopted by both the, New York and New Orleans ex- changes for the rejection of cotton of extremely weak staple. One of the principal complaints against the Now York classification Is that cotton of ex- trernely weak staple, or so-called per ished" staple, has been admitted to the certifcated stock, principally in the low-erade crop year 1906-7. There can be no doubt that this charge tB true. Members of the classification committee