The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-21
COMPLIANCE WITH
LEVER COTTON LAW
Exchange Adopts New Bylaws
Conforming to the Terms
of the Statute.
WORK on CLEARING HOUSE

| Aside from the syndicate plan. which
! has been somewhat slow in development.
considerable progress was made yester-
day in threshing out tho big problems
that have been confronting the New York
Cotton Exchange. Tho new by laws were
carried by almost a unanimous vote. and
the clearing house proposal received it's
first consideration at the hands OF the
board Of managers. Taking into con
sideration the difficulties under which all
this work has been accomplished the eN-
change has good reason for congratulate
ing Itself
The bylaws were lalloted on during
the afternoon and were carried by a vote
Of l6S to 2. The increase in commissions
from $40 20 $50 for the round turn OF
buying and selling was approved by u
vote of i65 to 8. BY yesterdays ballot
the New York Cotton Exchange com
pletcs ts compliance with the provisions
Of the new Lever cotton law. The OK
change has given an ungrudging assent
TO the letter and spirit of the statute,
In spite Of the fact that many expe-
rienced members doubted the wisdom OF
unqualified acceptance. IN view of the
obscure and at times contradictory char
actcr OF this piece Of legislation. VI the
law is failure II will be because Il was
faulty and not because OF disregard Of It's
terms.
The hoard OF managers considered
rough draft OF the clearing house plan
which the special committee wished to
submit. at the same time asking that u he
given expert assistance in order To- frame
the provisions into workable form. This
authority was granted and the new draft
will be- submitted Co the board at "A later
meeting. No legal opinion on the general
scheme has vet been given, hut the com
mittee is going ahead on the assumption
that no statutory obstacle exists. W. =.
jerks Of the firm Of jerks Gwynne 4 Co.
was elected a member OF the hoard OF
managers To NIL the uncxpired term OF the
late l.uitpold Nand-baum
Offers OF spots received here Yesterday
showed slightly steadier conditions IN thu
Eastern belt. although Texas quotations
were steady and generally unchanged New
England mills are buying more freely but
IL Is not believed that they will depart
from their policy 10 operate merely To Ill
current requirements. As a matter Of
fact any other course would be hazard
without the use OF the contract market as
"A hedge
The Texas Legislature is considering
bills Co enforce reduction OF cotton acreage
next season. These bills generally call
FOR so per cent. reduction. and IA" hi
which meets with the most general ac-
ceptarce makes wilfu! violation of the
terms 81 thu measure disdemcanur.
There are some reports from Texas TO
the effect that farmers are inclined To re-
sent TINS Legislative Interference with their
agricultural activities.
NJ II Wolfe Of Dallas. Tex. spoke ~
about tho most serious feature OF the
cotton situation IN that State in an adj
dress the other day when he called at
tention TO the manner IN which the farm
era were failing TO warehouse their cot
ton. Mr.. Wolfe said that although TeNa.
had p7nppd than a million h1lps Of
cotton since Secretary McAdoo had an
uounced that cotton warehouse receipts
would he acceptable for emergency cur
rency only forty bales had been offered
10 the National Currency Association nj
Dallas with warehouse receipts as col
lateral Mr. Wolfe said further
ION September 10 cotton was 81.
To-day IL Is 6i,c And for this slump
the farmer il largely TO blame. Instead
OF placing their cotton in warehouses
and obtaining emergency currency OF such
security the farmers are dumping II un
the market or dumping II In nudholcs IN
their farmyards. The country bankers
are authority FOR the statement that the
farmers won't PLACE their cotton IN ware
houses. but instead are dumping !; In their
yards
III the farmers of Texas continue 20
pursue this policy cotton viii drop 20 less
than cents pound as certain a. fate
Cotton buyers of Dallas have purCh7 sed
more than 225. 900 bales of this years
cotton. and that Is only 27,00O bales less
than was purchased az this date last
year Cotton shippers have worked night
and day trying TO find some outlet for
cotton And hey have done this with
no hope OF reward
And what IN the meantime has the
farmer done? Dumped his cotton on the
market or dumped Il in n pasture lot. And
he has done this despite the fact that all
he needed TO do In order 10 secure money
on it 20 p9y his debts was to place It in
a warehouse.