Pine Bluff daily graphic., 1910-03-24
COTTON EXCHANGE LEGISLATION ARGUED
|etvsouthsfn~ Men Appear Before Con- fk. Yt gresSional Committee Inyestigat-
 ah ing the Anti-Future
 Trading Bill.

A'AAAs
 New Orleans, March 23.-President v. B. Thompson and committee epresenting the New Orleans Cotton V W. ssxchange, and Atwood Violette and 'Mommittee representing the "insur- ent'' element of the New York Cot @pn Exchange, this week appeared be- 0ppre the agricultural committee of the [ouse in opposition to the Scott an- D,t future trading bill and in behalf of uch Remedial measures as are neces- arySto remove from the New York >lture contract the evils charged gainst it,s1 Until "their appearance lany insgSe facts, essential to a lear Understanding of the question, ad not been brought out. Both MT. hompson's committee and MT. Vio- stte's committee approved United tates Commissioner Herbert Knox mith's report of the governments lvestigation of cotton exchanges and the conclusions reached by MT. mith. apd both pointed out that fu- Ire trading carried on under the onditions named by MT. Smith is 3 eneficial to farmer, merchant and oinner alike.
 Tn the course of MT. Thompson's s enarks he said:
 . sThe evils that have become asso- 2 ated with future trading are three IVY number, the bucket shop, excessive )eculation and the uncommercial ,n ontract. These three abuses have hrought the system into disrepute @d have provoked the attack which =. threatening the life of the system ll@elf. The system is attacked not cause thH evils are inherent, not be use the evils cannot be eliminated ithout destroying the system, but
 cause the aggravating character of
 eabuseE has aroused feeling of !. sentiment so furious that for the H .ne8 being discriminating justice has
 len blinded and silenced. .. MM bucket shop is a place where lH a&ers, not contracts, are made lSpttdng is ever bought or sold in a &NcEet shop and no legal or enforce Mtrades are made there. It is a hmbling proposition simple and Ht1lput qualification. The keeper sale game against his victims and : Int they lose he wins.
 EK' Excessive speculation in cotton is or seconds evil attributed to future iading. Before we condemn specu- lti0n in entirety it would be will for a9 to consider the question as to eehether or not there is distinction ktWeen the kinds of speculation, be- )lf feen illegitimate and legitimate beculation, between speculation Hat is wholly bad and speculation Flat may {be and is beneficial. We be-
 ve that there is such a distinction Id our conclusion is this: When a IT an in no wise incapacitated by 'ason of ignorance, weakness or N Ek of means. or disqualified by req ss b of a position or relation of trust. 'r ys or sells a commodity or thing I its representative which is an en- F ceable contract therefore because
 thinks, it is cheaper, and because he
 Aks that he can subsequently, dis
 De of his holding at profit, the I. culation is legitimate, not neces- My harmful to the individual and
 lost necessarily beneficial to the
 rket for the commodity in which
 trades. But when man not so
 lifted and capacitated as specified
 ertakes to speculate, or when any
 b merely wagers that certain Int or tendency may or may not
 pr, if having bought and sold
 omn fty or thing or contract
 refore, he enters into conspiracy
 h others, or uses some accidental
 yer of his own, to depress or ad-
 Ice the price of the commodity or
 hg beyond its legitimate value, to
 hurt of the bona fide holders of
 traders in such commodity, the
 culation is illegitimate, hurtful to
 individual and to the market in ch he trades. Legitimate specula- II as here defined is benefit to
 cotton market.
 6 The third evil to be considered is
 nd in the terms of the future con- ct itself and in the rub of deliv- and settlement hereunder, re-
 ting in an injurious effect upon
 market and upon the price of cot
 by the delivery of cotton or ' der If delivery, on such contract
 under such rules.
 The New forleal Cotton Exchange
 bnds no evil. Our laws and rules
 force at this time represent the thought of our members, aided r1,,-l ~a .Mfw