Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-01
.TAXCOTTONDEAlS
BY SEPARATE BILL
Project Likely to Go Over Un-
til the Regular Session
of Congress.
NARROW HOUSE MARGIN
STRENGTHENS OPPONENTS
Senate Expected to Reject Compro-
mise, Throwing It Out Of the
Tariff Conference.

The indications today are that there
will be no legislation at the present ses-
sion taxing dealings In cotton futures.
and that the Clarke amendment to the
tariff will be eliminated, and the whole
matter will be taken up for action at the
next session of Congress.
The fact that the House yesterday
adopted the Smith-Lever compromise
plan as a substitute for the Clarke
amendment by only slender majority
leads to this belief. Had the House voted
overwhelmingly in favor Of the compro-
mise it is more than likely the Senate
would have accepted it. OF course, the
Senate may yet agree to this compromise.
Senator Smith of South Carolina, the
|originator Of the compromise plan; Sem
t64of Smith Of Georgia, Senator Bank
head of Alabama and Senator Ransdell
of Louisiana are among those democratic
senator's who would like to see the COM
promise go through. But failing the
adoption of the compromise, these sena-
tors would prefer the rejection of the
Clarke amendment and the postponement
Of legislation until next session.
Thinks Legislation Certain.
Senator Smith of South Carolina is
convinced that there is going to be legis-
lation which will put out of business the
gambling in cotton futures now INDUCED
In to such an extent on cotton exchanges,
either at the present session or at the
next session. The cotton producers OF
the south he says, demand such action
But he himself is In favor Of hitting the
gamblers without injuring the cotton pro-
ducers or prohibiting legitimate deal
ING i'm cotton futures.
s.The Clark amendment would strike a
severe blow at the legitimate dealings In
cotton futures" said Senator Smith to-
day. ..as we'll as at the gamblers. Also
I am much afraid that the burden of the
tax on cotton futures transactions, pro-
yided I'm the Clarke amendment, will be
shifted to the cotton producer. and the
gambling will continue just the same.
The price Of cotton is fixed largely in
Liverpool and in fixing the price daily, 1t
is the custom to deduct the cost of the
raw cotton, the insurance on the cotton
and the freight charges for shipping. In
all probability the tax OF 90 cents per
bale provided by the Clarke amendment
simply will be transferred to the cost
of the cotton and deducted from the price
of cotton as announced daily. II this is
the case, the cotton producers Will nave
| to suffer the loss.
1.-The plan which l have suggested ana
which Is contained in@ the compromise
adopted by the House, calls for the sub
stitution on the New York Cotton Ex-
change of the nine government STANDARDS
| of cotton for the thirty grades now
used on the exchange. 1t calls for con-
tracts which will provide for the de-
livery of cotton Of one of these govern
ment grades If delivery is demanded.
| The difference In the prices of the grade
| c ntracted for and the grade delivered
| iii be adjusted according to the actual
commercial value Of spot cotton at the
time the delivery Is made.
Option as to Delivery.
Under the present New York contract
| ii is possible to deliver any one OF the
fixed thirty grades. If delivery be de-
| manded and the price is fixed by the
man who does the delivering. since the
/ New York Cotton Exchange fixes prices
for these grades, no matter what the
| actual price of spot cotton may be at
/ the time This system makes possible
all kinds of manipulations of prices and
i works great injustice.
/ Suppose a real estate dealer in Wash
! ington offered you a good lot In fash
| ionable section of the city, and you took
an option on that lot for two months
| When the two months expired you de-
| manded the lot and offered to pay the
rest of the money. But the dealer got out
the contract and showed you that he Was
privileged to deliver you any other lot in
the city he desired, even if II was or
| swampy land and of no use to you, and
that ne could allow you the difference in
| price though he was to fix the value OF
the lot on swamp land How long would
| you be willing to continue such dealings
Yet that is the method of transactins
business under the New York Cotton Ex.
| change contracts. Is there any wonder
that the cotton men are anxious to have
this done away WITH?