The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-05-03


that the Tennessee Legislature has
passed genuine anti-bucket shop law
by an overwhelming majority Thus,
for the first time In the history of the
South. Southern State has made
practical provision for the prohibition
OF gambling in it's relation to agricul-
tural products. Further advices from
Nashville are to the effect that Gov
ernor Patterson will sign the bill, and
that IT viii gojnto effect Immediately
thereafterf $780,
This bill prohibits, under severe
penalties, all so-called future trading
in agricultural products where q bona
hde intention to receive and deliver
the commodity traded in does not ex-
list at the time the transaction Ii en-
tered into, but 1t does not interfere
with the right Of any man to buy or
sell such commodities for future de-
livery where bona fide intention to
deliver and receive does exist.
The Tennessee bill fully meets the
Views of the Federal Government, the
legitimate cotton trade, and market
experts the world over OF 1t, Presi-
dent w. b. Thompson of the New
orleans Cotton Exchange says:
1T is the sort of legislation all the
Southern States should have adopted
long ago. Had they done so, the Inn
mense losses to the producing class
occasioned by the harmful phases Of
such laws as the Boykin of Georgia.
the Mayfield of Texas and the Boddie
of Mississippi would not have occurred.
During many years past, the New
Orleans Cotton Exchange. in the In
terest OF the producer as well as Of
the cotton trade generally, has urged
the passage OF anti-bucket shop laws
similar to the Tennessee measure.
lire with ffa hrnaAs Y.aliNv Of I'm
provement, and more particularly to
meet the conditions imposed by the
growth OF the cotton market and the
altered environment that has come in
recent years. the New Orleans Cotton
Exchange, after many months OF ar
dnous labor, has just promulgated its,
new rules. it's new future contract and
its regulations to place in operation
several Important fundamental im-
provements, all of which are designed
to make the producers cotton market
at New Orleans the fairest, cleanest,
broadcast and most helpful market in
the world. We are also preparing 10
create modern cotton warehouses and
handling devices which will give the
owner OF American cotton the greatest
practical facilities and widest possible
benefits"
The manipulation by q certain class
OF SPECTATORS OF the price OF contracts
for the future delivery OF cotton and
the effect OF such manipulation upon
the price Of the product and upon the
trade. has In recent years caused an
antagonism to arise against the sys-
tenn of future trading and resulted In
legislation against such trading.
Future Trading Evils.
The United States Congress some
time ago adopted resolution calling
for an inquiry into the alleged evils
of future trading. and Mr.. Herbert
Knox Smith. Commissioner Of Corpora
ton of the Department of Commerce
and Labor, undertook and prosecuted
under such resolution q thorough and
searching investigation OF the methods
Of the cotton exchanges of this coun-
try. E
tain Inequalities In the future con-
tracts and certain Inequalities in the
rules under which the same were ad-
ministered. did exist to the detriment
of the legitimate trade interests. In
this respect the New Orleans Cotton
Exchange came in for commentator
in the main and only ia few particu-
lars were its contract and rules criti-
cised.
The New Orleans Cotton Exchange.
realizing its obligation to the trade
an investigation upon Its own account
for the purpose OF correcting any draw
backs that existed and of improving
the entire system of future trading.
A representative committee discussed
the matter fully and after suggestions
from planters, merchants, nfanufae-
turers and all concerned, ana after con-
sulting with Commissioner Herbert
Know Smith and accepting and adopt
A. hfa racAfs1T Y3 s5d a 4fafu ana
tions, adopted a report which the mem
bers of the Exchange subsequently en-
dorssd and which has been sffectuated
In a set of rules which will in the
near future be put into operation.
The salient changes and improve
ments made by the Exchange are as
follows:
The contract: The new contract elm
mates from delivery all cotton of per-
and tinges and makes strict good or
binary on the present type--being the
equivalent of good ordinary on the
proposed new type--the lowest grade
tenderable on contract
This improvement will do away en-
tirely with the objection that the con-
tract was deprecated In value because
of the fear Of buyers that they might
be required to receive unsplnnable and |
understandable cotton or cotton the |
value OF which they could not readily |
ascertain. The buyer OF the new con-
tract Is assured that he will not be |
required to take any cotton thnt will |
be undesirable and q drug on the mar
ket. He will. therefore. not fear to |
take delivery and the value OF the |
contract will be thereby enhanced.
Permanent Standards: The Exchange |
proposes to adopt a standard of classi. |
flcation which shall remain permanent |
and not changed from year to year,
This rule will obviate a good deal Of |
the uneasiness of prospective buyers |
and sellers. by assuring them that the |
standard In force at the time they |
make the contract will be the same |
unon which the contract is settled.
Certification: The Exchange will in |
auRurate q system of inspection and |
Of cotton by experts who |
win be employed by the Exchange for |
that purpose and who shall have no |
Interest whatever in any cotton bust
ness, hence entirely disinterested. Cot
taa 70 be delivered on contract must