The Sentinel=record., 1911-05-19
ROW AMONG
 COTTON MEN
AN OPEN RUPTURE BETWEEN THE MANUFACTURERS AND
 THE EXCHANGES
Charged That New York Cotton Ex- change Is Run in Interest of Spec ulators Rather Than Legltl-
 mate Needs

Richmond, Va, May IS. The fea ture of the first days session of the American Cotton Manufacturers As sociation was a heated discussion this afternoon between Arthur Marsh, president of the New York Cotton Ex- change and Lewis w. Parker of |Greeneyille, s. C., chairman of the committee on relations with cotton exchanges.
 The occasion was the report of this committee and the result was practi- cally an open rupture of the strained relations which have existed for some time between the association and the exchanges.
 Mr. Parker's assertion that the New York Cotton Exchange caters to spectators rather than to the needs Iof legitimate business and that the prices of cotton has been manipulat ed by members of the exchange to the great detriment of both spinners and producers was cheered to the echo by the convention. President Marsh warmly defended the exchange, pointing that it is an association Of merchants trading in cotton with rules in the interest of the merchants rather than in that of the manufac- turer or the producer.
 The conyenton decided in favor of MT Parker adopting the report of the committee unanimously and continu- ing the committee for further confer ence with representatives of the ex changes and with instructions that if relief iG not given 1t shall seek a rem edy through legislative channels.
 The gist of the committees report is as follows:
 Manufacturers Associations should have no fight against cotton exchanes Eff those exchanges truly reflect con ditions of spot cotton. On the con trary an exchange, if legitimately managed and regulated and if the prices ruling thereon are truly rep |regenting of the spot values, is and should be of decided advantage to cotton manufacturers as also to pro- ducers; but if. on the contrary. the prices reflected on the exchanges are merely the result of speculation for or against the value of the commod- fly. or if these prices are only reflec. tive of the speculative actions of one disadvantage to the manufacturers and to producers and ceases to be a legitimate body.
 The two principal exchanges in the United States are the New Or leans and New York Cotton Exchang- es. Under the rules of the New Or leans exchange the prices ruling thereon are in much closer relation to the prices of spot cotton than as rule are the prices of contracts on the New York Cotton Exchange. Your committee is forced to conclude that majority of the members of the New York Cotton Exchange are more impressed with the view that it is ttheir interest to cater to speculators than to make of their body legitimate exchange, reflective of the true value of the commodity in which they deal
 Your committee recommends thai this association once more express it's earnest hope that the cotton ex- changes will rectify their rules so as to make true and proper relation l between contract prices and spot cot | ton: that if these rules De not SC properly regulated as to market re lations- that your committee be au- thorized in name of the association to present such memorials to the legislative bodies as may lead to 8 proper regulation by them of the cot ton exchanges.