The Birmingham age-herald., 1911-05-19
COTTON MEN HAVE
 A HEATED DEBATE Manufacturers in Open Rupture With Exchanges MIR. PARKER REPORTS Claims That New York Exchange Does Not Reflect True Condi-
 tions by It's Prices But
 Favors Spectators
MIR. PARKER REPORTS

Richmond, Va, May 1s.-The feature of the first days session of the Ameri- can Cotton Manufacturers association was heated discussion this afternoon between Arthur Marsh. president of the New York Cotton Exchange, and Lewis Parker of Greenville s. C.. chairman of the committee on relations with cotton exchanges. The occasion was the report of this committee, and the result was practically an open rupture of the strained relations which have existed for some time between the association and the ex- changes.
 MT. Parker's assertion that the New York Cotton Exchange caters to specu- lators rather than to the needs of legiti- mate business and that the prices of cot ton have been manipulated 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 out that it is an as- sociation of merchants trading in cotton, with rules In the interest of the mer chants rather than in that of the manu- facturer or the producer.
 The convention decided in favor of MT. Parker, adopting the report of the com mittee unanimously and continuing the committee for further conference with representatives of the exchanges and with instructions that if relief is not given it shall seek remedy through legisla tive channels.
 The gist of the committees report is as follows:
 Manufacturers associations should have no fight against cotton exchanges if those exchanges truly reflect condi- tions of spot cotton On the contrary, an exchange, if legitimately managed and regulated, and if the prices ruling there- on be truly representative of 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 commodity or if those prices are only reflective of the speculative &C., tions of one element as against another element, then the exchange becomes a serious disadvantage to the manufacturers and producers and ceases to be a legiti- mate body.
 'The two principal exchanges In the United States are the New Orleans and New York Cotton Exchanges Under
 
 the prices ruling thereon are in much closer relation to the prices of spot cot ton than as a rule are the prices of con tracts on the New York Cotton Ex- change.
 By reason of the rules of the New York Cotton Exchange, it Is seldom that the prices of contracts on that exchange are on parity ith spot cotton, or truly represent the prices of spot cotton in the. community of production plus the carry ing charge to market
 "Your committee is forced to conclude that a majority of the members of the New York Cotton Exchange are more impressed with the view that it is to their interest to cater to spectators than to make of their body legitimate exchange, reflective of the true value of the com modity in which they deal.
 Your committee recommends that this association once more express its earn est hope that the cotton exchanges and particularly the New York Cotton Ex- change, will rectify their rules so as to make true and proper relation between contract prices and spot cotton; that if these rules be not so properly regulated as to make this relation. that your com mittee be authorized in the name of the association to present such memorials to the legislative bodies as may lead to proper regulation by them of the cotton exchanges"