The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-19
Parker's Bitter Denun-.
citation Wildly Cheered
by Spinpers.
MAY SEEK RELIEF
BYLEGISLATION
President Marsh, of New York
Exchange, Gamely Defends
System Which Manufacturers
Condemn-Co Convention De-
bate Takes Wide Range
on Vital Topic.

Relations between the American
Cotton manufacturers Association and
the New York Cotton Exchange. which
came to an open rupture yesterday at
ternoon, wien q heated debate OF sew
eral hours duration took place on the
floor OF the convention between Ar
thur II. Marsh. president OF the New
York Cotton Exchange, and Lewis W.
Parker OF Greenville, s. c., chairman
OF the committee on relations with
cotton exchanges. s3s
Mr. Parker's assertion that the New
York Cotton Exchange caters to specu-
lators rather than to the needs OF legi-
innate business. and that prices OF cot
TON had been manipulated BY members
OF the exchange to the great detri-8
ment. both Of producers and spinners,
was cheered and appnuded
President Marsh as warmly defended
the exchange, pointing out that it was
all association OF merchants, trading
In cotton. with rules in the interests
OF the merchants. rather than for I
the producer or manufacturer The i
convention sided with Mr.. Parker. hc-&
cepting the report of the committee
unanimously, and continuing 1t Tor
further conference with the repre-
sentatives of the exchanges. and with
instructions, II relief is not given, TO
seek n remedy through legislative
channels. 8Ei
Mnrsh Defends Exchange
Because OF the immense Importance
OF the subject involved President
Cooper set aside all other business on
the afternoon program, allowing the
widest latitude 10 the debate. in which
Vice President Ellison y. Smyth, or
Greenviile, an associate of Mir. Parker
on the committee, occasionally joined
President Marsh took the ground
that cotton exchange was first an
assoc!a ton OF cotton merchants. whose
economic function was The distri bu-
ton OF raw cotton from prod ucer Is
user-to4 give an instant market for
the entire crop and TO supply the use,
ms demanded. at any time ana many
place. with the particular kind of cot
TON ne required. The exchange, he as
serted was designed to meet tha com
,nerclal needs OF cotton merchants
and OF no other class Several other
interests. he said, had demanded that
the rules OF the New York Exchange
be amended to suit their views, ON the
ground that the present by-laws were
unjust and iniquitous Spinners had
claimed that their rights were para
mount Spectators whose sole OBJ
lect was to make money through the
advance and decline OF prices. and
who would avoid all Responsibilities as
merchants, had denounced the present
regime. and demanded that the rules
pc freed OF all clogs to speculation ,
Trying to llccp Price High. lsi
inc cotton planter had taken ,hei
ileld and as the original producer had
demanded rules that would Keen at tbs
highest possible notch the price of cot
ton All of these interests in the cot
ton business, MIR. Marsh said. were
immediate and vital. but they were NOT
me interests OF The merchants VINO
compose the membership or th, az
change He took up in detail the
spihihefs grounds for complaint: that
me contracts for future delivery,
were not SO drawn that Ii he demands
actual delivery, he can get that sort
OF cotton he wants at his particular
mill; that the price OF contract or fu-
lure cotton varies from the price III
ordinary middling cotton-the spot ~
market price OF cotton as Ia com
modlty: and that unrestralned specu-
.ation is allowed, making it impossi-
t''c LOT lhe spinner 10 forecast with
certainty the cost OF his raw material! Il
was economically Impossible. Ia
contended. for the merchant to trade
Win the producer. taking his whole
product or none. and then with thu
spinner, who would buy but one class
giving him advantages lie does not
himself enjoy when he buys 5
Aot Hurt by Fluctuations.
fluctuations by SPECTATORS he con
tended. could work no real Injustice
as real Changes in price were founded
on sound underlying conditions. 4
speculation based on wrong interpre.
tation OF these conditions fails. and
produces no permanent effect on the
market. Mr. Marsh admitted that
there had heen obnoxious forms OF
speculation the taking violent adyant-
age OF technical procedure and the
forcing of violent settlements OF hedge
contracts at prices which could only
be called eNtortionate
No rght-thinking man. he asserted i
could apply 10 such practices other
terms than uncommercial and immoral.
They were probably against statutes
and We're regarded with adherence hy
every reputable merchant on the ex-
change New laws IN. the state OF New
York. he believed would put An end
TO corners and similar illeEitima to
operations. "A.
isnp for Gamblers.
Mr.. Parker offered the thanks of the
convention to President Marsh. and
then read the report OF his committee
on cotton exchanges, which set forth
the negotiations between the commit
tee and the officers Of the New York
exchange. concluding that the commit
tee had reached the opinion that many
members of the New York exchange
We're more interested In catering to
specula tors than in conducting a lcgtt.-}.
mate exchange. reflective of the true
value Of the commodity In which they
deal. An exchange, properly mana seq, q,
Mr. Parker considered a decided adj
vantage. but IL the prices quoted re-
Elected only speculation. the exchange
became q disadvantage alika to manu-.