The Semi-weekly leader. (Brookhaven, Miss.) 1905-1941, 1909-03-03
COTTON FUTURE CONTRACTS.
New Orleans Gotten Exchange to Re.
form Its Methods.

two years of most thorough re-
search, Investigation and consider
ation of cotton market conditions
and trade requirements by the
United States government, acting
on the request of the farmers, and
many months Of earnest endeayor
by a special committee of seventeen
experts, together with the CO..
operation of planters, spinnerss
buyers and sellers of the staple, the
members Of the New Orleans Cot
ton Exchange have adopted a reso-
luton providing for changes and
Improvements in their future cons
tract and future rules, all of which
are fully endorsed by the United
States government and by the legiti-
mate interests in the cotton trade.
The government recommendations
as a whole were adopted, as we're
all the recommendations made by
the special committee which re-
ceived the approval of the federal
government.
Among the more important
changes effected are:
The adoption of system of GER
tification of trades, carrying with
it the official guarantee of the New
Orleans Cotton Exchange and the
permanent Identification of each
and every able.
Classification by a salaried board
of experienced classers having no
other interest in the cotton busi-
ness; such board to grade cotton
only.
The creation of an improved
board of appeals.
Improved arbitration of irregu.
lar and staple cotton.
The compulsory use of the official
standards of the exchange (which
ultimately are to be the govern
ment standards) by the board of
classers.
The Identification of individual
bales by grade, on the face OF the
grade certificate.
| The adoption of a strict good
Iordinary clause, or its equivalent.
| Perpetuation of the commercial
or market grade difference system.
as always enforced at New Orleans.
| The exclusion of all low grade
tinged and stained cotton from the
Igrades tenderable on contract.
In no sense does the adoption OF
the grade certification system con-
stitute or imply fixed differences. =
| In lengthy letter addressed to
President w. B. Thompson, u. s.
commissioner of corporations Her
bert Knox Smith, who had had
charge of the exhaustive investiga-
t1on made by the government, ap.
proved the program of the New Or
leans Cotton Exchange, made some
additional suggestions, and closed
his letter with this sentence:
Il would further express my
pleasure at the manifestly sincere
and earnest effort on the part of
the various members of your CON-
mittee, despite some differences OF
opinion as to the matter of policy,
i to bring about improvement in the
conduct Of the future system on the
New Orleans Cotton Exchange"
There has never been any
difference of opinion among the
members of our exchange as to the
broad policy of perpetuating only
such rules and contract conditions
as will always give both the buyer
and the seller absolute fairness,
together with maximum trading
facilities" said President Thomp.
son. ''The only differences that
have ever existed have related te
the methods by which we were tc
reach the desired end. We invited
Mr.. Hebert Knox Smith, who as
the official of the governmnt, actec
on instructions of congress in the
interest of the producer, the con.
sumer, and the trade in general, tt
confer with us in order that we
might harmonic our views to meei
the views of the government. This
he did. We have also conferred
with many representative farmers
and spinners. Both buyers anc
sellers have repeatedly been before
the committee, and the changes We
have made bear the unqualified
, approval of all classes.
"Justsso soon as it is practica
BILE, the changes and improvement
will go into effect In a littl.
while we will have created moderl
warehouses and handling facilitie
which will protect all the cottol
J sent to New Orleans from darnag'
and very materially reduce the cost
of handling. storage, shipping, in
surance, etc. With such facilities
! together with modernized futur,
contract available for hedging pur
: poses and meeting the needs ant
: requirements of both buyer ant
seller, cotton will gravitate to New
Orleans naturally and easily be
J cause it will be to the advantag,
! of the farmer to send his produci
here.
Thirteen members of the Tennes
see State Senate, IL Democrats an,