The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-03
COTTON PROTEST
PROVOKES RETORT
Local Exchange Reiterates It's
Charge Of Bad Faith
Against Liverpool.
SPOT MARKETS ADVANCING

Diplomatic exchanges wrdcn were sur
charged with moro than the usual amount
OF voltage passed between tho New York
Cotton Exchange and tho Liverpool Cot
ton Association yesterday. and while there
IL no disposition TO mako a serious incl
dent out OF the controversy tho officials
Of tho local exchenss saw NJ TO make their
position quito clear A cable was cent
to II. L. Roxburgh president OF the Liver
pool Cotton Association. protesting against
charges OF bad faith in regard to carry
Ing out the conference agreement. Tho
cable also stated that there had been
misunderstanding and that the accusations
OF bad faith by tho New York conference
committee were unfair 10 Liverpool and
also unworthy OF tho New York Cotton
Exchange.
In the reply sent BY President T. X.
Cone II was stated that the board OF
managers OF the exchange after going
over all tho cable correspondence s.nco
August 81 was unanimously Of tho opinion
that tho position taken by the conference
committee OF tho New York Cotton Ex-
change was justified
There is strong feeling in local cot
ton c,rces that Liverpool has been in
clined 70 consider Its own interests with
out regard TO tho burden that might bo
imposed on New York. Only a short
tine ago the request WA made that
there be no further reduction In price.
Liverpool oaSre back tho next day with a
drop OF 8 points IN the price OF January
February. Yesterday the price was cut
70 points further TO tho basis OF 425 for
January February.
This reduction on the basis OF diner
eDce OF $50 points would be equivalent
70 December price hero OF cents
Yesterday. however, December sold freely
AZ $50 and AZ the CLOSE tho price was
I.56. In other words Liverpool has arhi-
trRrily cut the price moro than half cent
below tho existing parity. This would
be all very we'll II Liverpool could sell
out American longs IN Liverp oil and make
a basis for covering. Some OF the big
firms. however are Withdrawing thcir cot
ton from tho ballot 20 prevent this Sicrl-
fec bong made. In other words they
d nj propose 20 lot Liverpool mark down
the price md then come In and scoop IN
short commitments on any basis which Il
chooses to suggest. As long a. Liver
pool prices were above the level og con-
tract quotations on the curb" there was
a measure T justification for reduction
At present however. Il looks as = the
operators IN the English market wore act
.ng without regard to the merits OF the
situation and also IN violation OF the
letter and sUirit OF their agreemen, as
lng
The board OF managers Of me Cotton
Exchange Yesterday held prolonged SEES
sion n colsidcr!ng the clearing house
proposal No details were given out, al
though IL appears 10 be thought that tho
guaranty fund OF the clearing house will
he based on Subscriptions OF 100000 each
from about eighty firms. There are some
members who believe that tho shares
should he SO 600 each, thus giving a fund
OF 100000. and that protection against
meuaclng commitments would DO fur
n!shed by the right 10 call heavy margins,
The final announcement OF tho synd!-
cate plan IS dependent on a court order
authorizing the sale Of tho unllqu dated
Pei contracts at cents. II e thought
that this order will be obt a!ucd by TO
morrow nj the latest,
Southern sDot markets were quite strong
yesterday. with advances OF iSc 20 ic.
Several OF the leading markets are now
above : cents Exports were The hcav-
lest Of the season and reached 'ota!
OF 474o9 bales, which looked liko q 70
turn Of old times.