New-York tribune., 1909-02-09
THE COTTON CONTRACT
S,,scial Form for Failure DeEUery
49ffsed by Exchange Committee.

-hs special committee Of the New York Cotton
-obsnse appointed last July 10 ascertain the opin-
- ~ members of the exchange and others inter
20 N the cotton trade regarding changes In the
,,-s and rules governing the contract for the
-. delivery Of cotton fled yesterday its pre-
.-s,srv report with the board of managers Of the
+s-,,-ion. It recommends the advisabity OF es-
.-,1,ehips for the particular benefit OF cotton
nnfscturers. special contract for the future
-, of cotton in addition to the general con-
- now in use. and also points out the necessity
= -7aking deliveries Of cotton contracts for fut-
=. delivery correspond. in far the method
= ssserrnining the class of the cotton is concerned
y .be general practice of the cotton trade in the
s,,s-v of cotton by cotton merchants to spinners.
The special contract recommended by the COM
...se IS along the lines suggested by the American
cotton Manufacturers Association which appointed
,,n,rqittee confer with the Cotton Exchange
,,iffee on the subject It is not proposed that
.+is contract shall do away with the present form
= contract bIgt that il shall be used III addition
!. The committee recommends that # be known
- +,.e name Of the 'spinners' contract 1t is
+3culariv suited 10 the direct Of the average
f-nsr The contract is TO be traded in by the
--.,ers Of the exchange. for themselves their
s.orners if they desire. The following IS the
60 Of additional contract recommended by the
committee;
The contract should be entirely distinct from
snd additional TO the general or basis middling
contract Sn %9n al 6,GId sTaGes % 9t ne lie
st distinct Tg q % pGS' ana t any 1re9ihg n II
+f7e req
There should be two calls" for this contract
esh ho1oistons Of this contract should be posted
On re cotton deliverable on this contract should
r-s5es from strict low niodling 10 good middling.
r s5a5 tnddling may be delivered At the price Of
80 -iddng- No cotton below strict low nniddirs;
ssso.ld be deliverable this contract
The grades deliverable on this contract should
cassI I,i5dIine or NAV represent an average that
you'd fall between middhng and strict niddng-
s, line Of he rent
GRADES Sdeverabie this contract should be deter
mined @ y tbs he ades diveTabe on the general OF
hass middliEg contract ,.,z :, -. -
sz for the generaI OF basis middling contract
The same rules defining what is merchantable
ot.on should apply TO this contract as TO the gen
ersl contract -, s. -,
The sane s 6sec,8 5g5es 8o@9 of ooto to &c devered
nvered on the general contract
In regard 10 determining the class Of cotton TO be
delivered on spot contracts the committee says
that the action OF the exchange authorities
Ts-uary / 1875 IN abolishing the so-called quarter
r-adss ss been highly detrimental to the best In
terests OF the exchange, it interferes with the
see how Of cotton to the city for delivery con-
sc.s an5 also gives rise irritation and criticism
oF the institution the part Of cotton merchants
rho ship cotton here for delivery. 1t strongly
sccarnends that the exchange restore these grades
5fh;p more restricted range. For this purpose it
recommends the following amendments 70 the by
laws:
Re-establjstfnE the Intermediary grades, known
IS fnlfv low rnidding. barely mddEEg. fully mid
fling barely good uaiddlng and fully good mid
Fn1 and the fixing Of these Intermediary OF quar-
ts- grades a. one-haf the difference con and
,Ces'1 +hat HIS been may be established above
s16 below added the value of the half grade or
grade below
a meeting OF the members Of the exchange TO
consider t,ese and other amendments TO the bylaws
~ accordance with the recommendations of the
committee as outlined above has been called for
February Il