The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-08
COTTON SYNDICATE
PLAN MEETS FAVOR
Gratifying Response to Proposal
From Members Of
Exchange.
POINTS TO EARLY OPENING

There Is a general conviction among
the members of the Cotton Exchange that
the syndicate proposal for the untangl!ng
OF the knot in contracts Is the best plan
that could he offered for the solution OF
all the vexed problems now confronting
the trade. No open objections were made
and IL appeared 10 be the universal opln-
ion that II The syndicate plan would cause
an early resumption OF business Il should
be adopted.
Members Of various Cotton Exchange
firms appeared before the committee yes
terday and stated their attitude toward the
plan and the proportion OF the burden
tney were ready TO shoulder. The response
was extremely gratifying. and showed not
only stronger position than many had
believed existed. but also furnished evi
dence OF a broad minded spirit Of coopera-
ton. Even number OF floor brokers
who were not financially involved IN the
contract tangle offered substantial suar-
antees for the syndicate.
The tax OF $3.50 per contract which n
proposed on transactions after the open-
ing OF the exchange was the subject OF
I considerable comment This ie to Law The
basis for n fund to make reimbursement
Tor tho corporation which protects the
long Deccmbers from Q cents down 10 ~
big fund must be created. and the tax
may be In force for year and avon
more than two years. No Arm OF oonse-
| quence opposes the tax proposal however
as II is admitted that II is better to have
tax on contracts creating fund making
IL possible to tide over the present diryi
Guilty than not TO open at all or to open
with n list OF financial embarrassments that
would Cripple the efficiency of the ex-
change "a trade organization.
The chief hardship will saiI IN ,h. eoo-
broker who trades for scalping operations
during the day. seldom with the intention
or carrying over any net commitments nj
night These brokers frequently trads in
thousands Of bales daily in an active
market. and are able to do so because
they merely pay clearance charges on
trades closed out during the day. They
form most essential part OF the meohan-
ism OF modern exchange and serve the
purpose OF providing n broad market az
any hour OF the day as we'll as stabiiizing
prices
II Is felt, therefore that Il is something
OF hardship for floor brokers TO pay
the full tax on contracts For tho presen,
II Is not believed that any exception
should be made for fear that II might
jecpardze the success OF the plan as n
whole. II Is possible later on that the
way may he clear to make an exception
or at least provide for modification OF the
rigors OF the tax in certain cases.
II seems reasonable to hope for an
early opening OF the exchange II the plan
is adopted. Certainly It's unanimous ac-
ceptance insures the solution OF the con
tract problem. There remains the trouble.
some question OF new rules and bylaws
necessitated by the passage OF the Lever
cotton law. The special committee sub
mitted Its report on this question to the
board Of managers yesterday afternoon.
hut several DAYS will be taken for the
cons Iteration OF the changes. The rules
cover such questions as the adoption Of
Government standards OF grading, aboli-
ton OF proforma bills time OF giving
notice and similar technical features.
Cotton was weaker in the South yes
terday. with declines OF one-sixteenth TO
one eighth reported at Augusta and Hous-
ton Tho prices were easier on the curb
and December sold at $50 In the unoffi-
cnl trading.
Cotton Exchange firms yesterday
marked their contracts down 20 tho basis
OF cents under the agreement with the
conference committee. No attempt was
made 10 meet the requirements OF the new
Liverpool price OF I'd.