The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-09

Members Of the Cotton Exchange we're
thrown into a state OF more or less con-
fusion yesterday by the announcement
of the conference committee that there
probably would be another ballot In the
course OF the next few days and that
the ballot would be conducted on the
basis OF $50 for December. 1t was
further stated that the committee would
consider present orders TO sell at cents
In the ballot to be in force at $50 unless
advised to tho contrary.
The price OF $50 for December would
be merely marking the New York price
down TO the January February price Of
sd. recently established In Liverpool In
other words. II would be maintaining the
agreed difference Of $50 points between
the two markets.
The point that confused most mem
bers arose from a msconceptlon OF the
relation between the ballot plan and the
syndicate proposal. AS the syndicate
proposed TO take over speculative long
cotton on the basis of Q cents there was
naturally n question as TO the wisdom OF
accepting ballot price of $50. II was
argued that there would be little balloting
at $50 when the syndicate proposal
called for a price half a cent higher
IA matter OF fact a great deal OF
cotton probably will be disposed of by
ballot which could not come within the
purview OF the syndicate arrangement.
Tho latter plan merely calls for taking
over Speculative long cotton" There Is .
good deal OF long cotton In the market that
cannot be considered speculative. II is In
the form OF hedges against forward con-
tracts or trade commitments. II may be
involved In straddle transactions with an
other market These contracts would not
be accepted by tho committee as coming
under the provisions of the syndicate plan.
The firms holding long contracts will
/ sNVVNNN ton
contracts which they propose to turn In
are really Speculative long contracts.
This does not necessarily mean that a
customer was taking a flyer In the market
and thus became involved beyond his
means There are certain Instances where
mills have bought contracts and detaulted
on them. thus putting the broker long OF
the market against his will. This would
he regar ded az speculative long cotton.
on the other hand, where mills merely
demur to paying up their margin calls
the cotton will be delivered to them on
December contracts. a bill VIII he rem
dered and then suit will he brought In the
Federal courts. III case of inability u
discharge the Judgment some provision
probably will he made 10 mako good the
! loss Of the broker IN accordance with the
| terms OF tho syndicate plan. While no
| assurance Is forthcoming from any mem
! her OF tho committee to the above erect
|
| IN line with the broad spirit OF the plan.
The examination OF the members OF the
various Cotton Exchange firms proceeded
| rapidly yesterday, with approximately ten
| minutes allotted to each Arm, the partners
Of which appeared before the committee IN
| alphabetical order. SO far az Is known
the syndicate plan was accepted In its en-
tlrety by all hut one Arm, whose attitude
| is still IN doubt.
The board of managers held another
meeting in the afternoon 10 consider The
changes made In the bylaws and rules
by the epeciai committee which was ap
pointed 10 meet the new requirements OF
| the Lever cotton law
Spot cotton in the South Il turninf
easier. Houston was II lower at 7lsc.
and Texas was reported to be offerng
middl!ng at slac. on the basis OF {. o. b
at interior points, Sptnners are not buy
ing freely. as most manufacturers are no
making sales recently Buyers OF goods
want TO have prices guaranteed, and thi'
OF course Is impossible.