The Paducah evening sun., 1910-02-10
OF FARMERS Ma
TIONAL UNION, SPEAKS.
Competition, Among Local Buyers in
South Has Been Throttled by
Cotton Future Dealing.
HOUSE COMMITTEE HEARING

dollars and the welfare of millions of
people" declared T. ]. Brooks, of At
wood, Tenn, president of the Farm
ers' National union, in opening the
hearing of the anti-option bills be-
fore the house committee on agricul-
ture. The proposed legislation is de-
signed to prohibit dealings in futures
on boards of trade and exchanges.
The committee room was crowded
with congressman from the states IN
terested.
Mr.. Brooks declared that dealings
in futures of cotton were no more
necessary than in wheat and wool
and farm implements. Hedging oper-
ations ION change" he characterized
as no different from gambling on the
rise and fail of prices.
"On what moral principle" he
asked, ''is ooe class of citizens Obliged
to make up for the losses of another
class. for where one gains another
must lose. The original intention of
the cotton exchange to bring the
buyer and seller together has been
eliminated in the development Of the
present xchange practices.
Would Abide by Result.
eve are willing TO abide by the
results of abolishing futures" he
said. depicting the temptations held
out to the prospective victims who
later come into the game" and "get
frozen out"
He declared that the exchanges
aggravated the natural fluctuations
and denied that they tended to steady
prices. He believed that suckers
are not all dead" and by way OF cor
roboration he read newspaper reviews
of scalping markets. sudden declines
and things done in the dark" to
affect prices.
Under the shadow of the exchanges
competition among local buyers had
been eliminated ia the south, he said,
and he charged the existence of a
taclt understanding in the cotton and
tobacco belts for a division of terri
tory.
The Farmers union, which Mr..
Brooks represents, has a membership
Extending over 20 states.
Characterized BY Mr.. Lever, of
South Carolina, as the largest con-
sumer of cotton in the south, Lewis
W. Parker, of Greenvile, S. c., man
ufacturer, contended that abnormal
conditions ought to be prevented in
spot cotton and contract cotton at the
same time. He said that az a rule
futures control spot cotton. He de-
clared that the exchanges are not OF
advantage, either to the consumer or
to the producer, and that Il seemed
Impossible to make the exchanges
realize the fairness Of the complaints
against them.
He said the fight OF his interests Is
to have the farmers properly ware
house their cotton and TO market It
gradually during the season.
He described Englishmen as chary
of speculation in futures; that the
Liverpool cotton exchange Is not used
by the English for speculation, and
that the Americans speculate in Liver
pool to affect prices.
Gafker wants fteguintiOn.
Mr.. Parker declared that in the
position the American splnners occu-
pied toward the exchanges, the Eng
lish spinners stood with the Ameri-
can spinners.
Don't you think we would have a
picnic in buying cotton if exchanges
we're abohshed?" Mr.. Parker was
asked.
I'VE would abide by the results,
he answered. "The absence of ex-
changes would reyolutionize the char
acter of the present business. We
would readjust our business. There
would be no difficulty in effecting re
adjustment recommend regulation
of the exchanges. would make the
exchanges responsible to spot condi-
tions."
HAS the cotton producer this year
realized through speculation more
than he would have without specula-
,tion?"
YES" replied Mr.. Parker; "but
this Is an exceptional year-nothing
like II in the memory of the spinners.
II is the first time we have had 15-
oeut cotton since have been in busi-
ness"
George w. Neville, an important
factor in the New York cotton ex-
change. arraigned the report of Com
missioner of Corporations Herbert
Knox Smith as a masterpiece of
theory" but lacking in practicability
in the working out OF his theories.
Declaring he has been selling spot
cotton TO the mills for 20 years, and
that he had found 80 per cent OF the
spinmers we're bears. Charles s. Webb.
a broker, contended for the necessity
Of hedging" against future deliv-
cries, and predicted that abolishment
of the cotton exchanges would put
the price of cotton in the hands of
the spinners.
/ Mr.. Webb argued that abolition OF
future dealings would depress the
price of cotton.