The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-02-10
FARMERS AS5A.|.L
COTTON EXCHANGE
They Ask That Dealing
in Futures Be Made
Illegal.
(WILLINGTOABIDE
BY THE RESULTS
Means Revolution in Business
Methods, but Growers Hold
That Change Has Lost
Original Intention and
Has Demoralized Busi-
ness in South.

Washington. February o."This
question involves hundreds OF millions
of dolles-s and the welfare OF millions
Of people," declared II. J.. Brooks. OF
Atwood, Tenn. president of the
Farmers National Union. in opening
the hearing on the anti-option bills
before the House Committee OF Agri-
culture to-day. The proposed legisla-
tlon is designed to prohibit dealings In
futures on boards OF trade and ex-
changes. The committee room was
crowded with Congressman from the
States interested.
Mr.. Brooks declared that dealings in
futures of cotton were no more neces-
sary than in wheat and wool and farm
implements. Hedging operations ION
change" he characterized as no
different from gambling on the rise
and fall OF price.
"on what moral principle" he asked.
is one 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 ex-
change practices.
I'VE are willing to abide by the re-
suits Of abolishing futures he said.
depicting the temptations held out to
the prospective victims who later
come into the. game and "get frozen
out
AEErnvate Situation.
He declared that the exchanges ag-
gravated the natural situation and de-
MED that they tended to steady prices,
tFIeMbAIt that suckers arc not all
dead Y shy way OF fcorroboration, he
Tread newspaper reviews OF scalpinE
Emarkets, sudden declines and things
done in the dark" to affect prices.
Under the shadow OF the exchanges.
| competition among local buyers had
been eliminated In the South. he said.
and he charged the existence OF tacit
understanding in the cotton and to-
bacco belts for division OF territory.
The Farmers Union, which Mr.. Brooks
represents, has a membership extend
Ing over twenty-nlne States.
Characterized by Mr.. Lever. OF South
Carolina, as the largest consumer OF
cotton In the South. Lewis w. Parker.
Greenville. S. c., manufacturer, cons
tended that abnormal conditions ought
to be represented In spot cotton and
contract cotton at the same time.
He said that as rule, futures con-
troll spot cotton. He declared that the
exchanges are notsof advantage. either
to the consumer or the producer. and
that 1t seemed impossible to make the
exchange realize the fairness of the
complaints against them.
He said that the right OF his inter
ests is to have the farmers properly
warehouse their cotton and to market
1t gradually during the season. He
described Englishmen as { chary OF
speculation In futures, saying that the
Liverpool cotton exchange is not used
by the English for speculation. and
that the Americans speculate on Liver
pool to affect prices. y
Mr.. Parker declared that in the po-
s1tion the American spinners occupied
toward the exchanges. the English
splnncrs stood with the American
spinners.
Don't you think that IL we would
have a picnic in buying cotton It ex-
changes were abolshed?H Mr.. Parker
was asked. s8s sg s,sFF
.we would abide by the results he
lanswered.
Rcyolutlonize Buslpcss.
''The absence OF exchanges would
revolutlonize tho character OF the pres
ent business We would read1ust our
business. There would be no ditfculty
i In effectins readjustment. recon-
mend regulation OF tho exchanges.
would make tho exchanges responsive
1 to spot conditions" ts
"Has the cotton producer this year
realized through speculation mora than
he would have without speculation?''
Yes" replied Mr.. Parker. but this
i Is an exceptional year nothing like 1t
in the memory OF tho spinners, 1T Is
1 the first time we have had 15-cent cot
ton since l have been in business.
George w. Neville. an important
factor in the New York cotton sex-
change. arraigned the report OF COM
mlssioner of Corporations Herbert
Knox Smith as a .'masterpiece Of
Theory" but lacking In practicahility
! in the working out OF his theories. III
S Declaring that he lad been selling SPOT
cotton to the mills for twenty Years. 4!
and that he had found 90 per cent. OF
the spinners were bears, Charles S.
| Webb. broker, commended for the ne
cessity OF hedging against future
deliveries, and predicted that abolish
ment 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 dspress the
price OF cotton. !,
| Ask for Hearing.
A delegation OF members OF tho New
York Cotton. Exchange. accompanied
by Representative Hsnne IT, Of New
York, called the N President this
morning and told him their mission In
this city, was TO secure a hearing be-
| fore he proper committee of Congress
before any. law was enacted on the
subject OF dealing In failures. The
PRESIDENT assured his callers that d
hearing would be granted them before
| any action deleter!ous toS their inter- IN