Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-02-22
COTTON EXCHANGES TO Be
HIT HARD BY COMMITTEE
Whole City Walks Following
WaIk-0ut of Association OF
Railway Employees


posed legislation to abolish transactions
in futures in the exchanges and boards
OF trade has rallied some Of the fore
emost grain interests in the country TO
the hearing on the anti-option bills now
I'm progress before the house committee
on agriculture. including President
White end Vice President Merrill, OF the
Chicago board OF trade, and Leading OF
ficials OF other western exchanges.
The ethics of corners and OF market
letters sent broadcast by members or
exchanges were discussed today by Mr..
White. He disapproved corners as
wrong. detrimental TO the exchange
and disturbing to business.
While the amount OF business done
where there was a corner was very small
compared to the total amount of busi-
ness on the board, the corners he said.
attracted more attention than the regu-
lar operations.
Men who have been successful in
corners" he said, "can be counted on
the fingers OF two hands. Letter lost
s10ooo,Oo0''
ssHe was a bright and shining exam
ple." INTERCEPTED Chairman Scott, smil-
ingly.
Mr.. White said the board Of which he
was president lately considered ruling
ing anyone defaulting in the fulfillment
OF his obligations to deliver. The change
was voted down on the contention that IL
might work so as to impair the sanctity
OF contracts.
IL think" he added, that sentiment is
getting around TO the point where some
thing along that line will soon be
adopted
would you regard IL as an evil to
seek to induce outsiders to speculate on
the board?' asked Chairman Scott.
BY way of explanation. Mr.. Scott read
a market letter from a member Of the
Chicago board Of trade which, according
to the chairman. was ''palpable bid for
speculative business by which the lambs
out in the country are induced TO come
into the fold and be sheared."
ssThe market letter question" replied
Mr.. White, has never been formally dis
cussed. but has been talked over In
formally
Vice President Merrill, of the Chicago
board. interrupted to say that there was
a very general sentiment among the
members of the board that the exchanges
to maintain their high reputation Tor in
tegrfty, should exercise some censor
ship over letters going out from our
members"
Ndr. White commended that there was
no future trading in beef because beef.
being the more perishable, did not lend
itself readily TO such transactions; that
the prices OF hogs. pork and lard were
largely based on the future quotations.
that buying OF futures by spectators
forced the p-ices up and that the pack
ers were holding the bag" in the mat
ter Of the high price OF hogs.
The farmers, he insisted. were getting
- - srrfa rrrfg nj
hogs and the consumer. he admitted, was
getting his full share OF the burden OF
the high prices.
While the committee on agriculture has
not yet formally canvassed its views. the
indications tonight are that IL VIII report
the Scott bin with some amendments,
aimed more particularly at the cotton ex-
change methods
.- The committee has been impressed with
Questionable features in all the ex-
changes. The fact that the producers OF
cotton seem to be unanimous In the de-
nland for legislation and that consid-
cradle number Of cotton spinners favor Il,
whereas in the field OF the grain ex-
changes the producers have been prac-
ticaIly indifferent TO the subject, will
probably have considerable weight with
the committee.
The hearings, so far, have indicated to
members OF the committee that on the
whole there are very serious conditions.
II not grievous wrongs. in the methods
of all these commercial bodies. They
seem to be more pronounced and indefen-
sible in the cotton exchanges than in the
other forums, according TO the views of
some Of the committee
The Scott bill prohibits the distribution
from one state TO another of Information.
by wire OF mail. on cotton futures. While
IL does not prohibit exchanges, its effect
would be to greatly cripple them
The grain and provision dealers have
convinced members OF the committee that
they are much less black than the cotton
sharks. Mr. Burleson frankly admitted
that this afternoon. The Texas congress
man seems 10 think the difference was
more one OF men than OF the real morals
behind wheat and cotton exchanges. how
ever. Chicago being less given to skin
ming everyone and less dominated by the
gambling spirit than New York.
What has rather surprised the members
OF the committee Is that wheat and pro-
vision traders. as well as cotton traders
have absolutely refused to separate the
sheep from the goats