New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-29
WOULD REGULATE
COTTON EXCHANGE
Sneaker at Manufacturers
Convention Condemns
Manipulation.
TAXATION PREFERRED
AS MODE OF REFORM
Spinners Urged to Get Aid OF
Congress in Opening Vast
Tract of Land.

Lewis ". Parker. chairman OF the COM
r,,ttee on exchanges Of the American
Cotton Manufacturers Association an
o,sanizstion ~ Southern spinners. yester-
dav reported 10 that body in convention
az the Waldorf that the New York Cotton
Exchange should b. abolished. unless II
so reforms its practices that its quota
tions will truly reflect the actual selling
n-ices Of raw cotton and refuses the use
OF its machinery to manipulators.
Regulation Of the exchanges 81 the
country. il was pointed out. Is now as
s1red bv action Of Congress. though 1t
was declared that voluntary regulation on
the part Of the New York body would be
preferable.
AN exchange" said Mr.. Parker
whose quotations are merely the result
Of the manipulative effect Of large opera
tors upon n is curse 70 both spinner
and producer. Such an exchange should
be 30 regulated as TO compel the quota
tons 10 state correctly the price OF the
commodity. or be abolished. II Is in THIS
light that we view the New York Cotton
Exchange and unless It's rules can be so
regulated by action OF Congress as 10
connp.l the performance Of its proper
functions Il should. in our Judgment be
abolished We believe Congress VIII pass
such legislation as Will be corrective, In
= measure at least. Of the evils In the
New York Cotton Exchange complained
Of by US
Mr.. Parker said the committee preferred
regulation to prohibition OF the exchange.
The committee had favored the Smith
bill now pending IN the Senate, which
would take from the exchange the use Of
the mails Regulation 10y taxation. how
ever, is considered the best plan.
We deplore conditions on the ex-
change" Mr.. Parker went on 10 say.
under which large operators can.
through manipulation and improper use
Of the exchange. deprcss prices at one
time and advance them at another, when
the actual price OF raw material IS little
changed in the interval. In this connec-
ton we cite the action OF operators in
practically making p corner in March
contracts. thereby causing an advance OF
81 points "a a bale) over May contracts,
when the natural law would Justify a
price OF % points higher for May than
March. These conditions could have been
regulated ny the exchange itself.
We. therefore. earnestly recommend
the efforts 10 regulate the unfair prac-
tees Of the exchanges particularly
In New York We believe the New Or
leans Cotton Exchange can be relied on
20 remodel It's contracts in any way 10
establish parity between the quotations
on the exchange and the spot price OF
cotton"
Arthur r Marsh. OF the New York
Cotton Exchange. had previously defend
cd the conduct OF thai body predicting
that. at the rate regulation was proposed.
II will become a crime for a manufactures
TO offer grower less for his cotton than
the price fixed by the Department OF
Agriculture. and eventually regulate the
spinner IN his purchases Of raw material.
The great difficulty. he explained. was In
finding out what the South really wants
and in securing some agreement between
various sections.
John A. FOX, secretary or the MISSISSIPPI
Jevee Association told the members thai
with proper aid from Congress IN provid
ing levees in the Mississippi Valley 1900, 90
acres OF fine cotton land could be opened
UP. thereby increasing the crop by 100000
The largest crop ever raised in the United
States was 100000, and 100000 is abov
the average. He urged the spinners 4
e,l'st the AID of Congress- in making tn
levee question q national issue.
T I Hickman. Of Atlanta, IS the n~0
president Of the association, and Scot
Maxwell, OF CordOva, Ala, the vice
president