Omaha daily bee., 1910-02-12
Deals in Which Delivery is Not Made
Are Iniquitous,
DECLINES TO GIVE DETAILS
Insists that all New York Contracts
Amount to Delivery.
COTTON CROP is SHORT
Production this Season, He Says, is
over Three Million Bales Less
Than Consumption Last
Year.

WASHINGTON, Feb III regard that
question as an insult to me and to every
member of the Cotton exchange" declared
Vice President Arthur r. Marsh of the
New York Cotton exchange at today's hear
ing before the house committee on agri-
culture on the antl-option bill.
Representative Sims of Tennessee had
asked Mr.. Marsh II there was any way of
eliminating transactions which did not con-
template actual delivery, causing, in effect,
business In contraventlon in the regular
rules Of the exchange.
Mr.. Marsh. with livid face, emphatically
resented any imputatlon that members of
the exchange countenanced fraud and
cheating.
Mr.. Sims explained that what he meant
was whether the business could not be so
conducted as to eliminate gambling, mot
that Mr.. Marsh or other members are con-
sciously guilty of such practices"
! Against All Iniquity.
II am against all iniquity," declared Mr.
Marsh. II pronounce all undertakings en-
tered into by any human being with the
intent of not fulfilling that which he un-
dertakes to do as UBIQUITOUS. The presump-
tion in business circles is that an honorable
man, holding an honorable position in the
business community. is neither fraud
nor a cheat"
Mr.. Marsh described the members and
functions OF the exchange and admitted
that there were some speculative transac-
tions. He insisted that the present system
Of transactions amounted to actual deliv-
/ cry, but declined to furnish any details OF
his own business to show just how much
| actual delivery was performed under his
contracts.
All Contracts EnfOrcible.
1.-THE world is not producing enough cot.
ton for its use" he declared. This year II
is producing 100000 to 100000 bales less
than 1t consumed last year. There has
never been a time in the history of cotton
| when there has been more anxiety regard
ing the price of cotton than there is now
This Will continue until the world normally
produces enough for its needs. or the needs
are brought down to the production"
Chairman Scott asked If there was much
speculation in cotton on change or by its
members by entering into contracts fol
purchase or sale fcotton with the hope
of profit
There is no member of the exchange,
was Mr.. Marsh's reply, "whose entir,
fortune is not responsible for his contract.
with fellow members
Cotton Crop Short.
Mr. Scott read letter from H. L. Scale,
OF New York firm, characterizlng thu
. cotton exchange contract as a menace. Mr.
Marsh agreed that spinners could not af
ford to buy future contracts on the New
York Cotton exchange unless they exercise
mercantile functions.
Then how can the New York merchant
furnish the spinners with cotton?" asked
Mr.. Scott.
, THE spinner" replied Mr.. Marsh, get
, his from the merchant, who has the tru
New York stock scattered from one par
OF the world to another The New YorI
stock is all the cotton in the world agains
! which contracts have been sold to buyer
r In New York. Every contract on the New
York exchange" he insisted, sis enforcabl
and legal"
: Mr.. Marsh characterized the Scott bill T.
regulate cotton exchange transactions a
, futile and unconstitutional.