The Birmingham age-herald., 1915-12-21
Says Exchanges Are Par ties to Alleged Scheme
 to Rob Farmer
RINGING STATEMENT MADE BY HEFLIN
Department of Justice to Begin ln-
 vestigation After First of Year.
 Exchanges Should Be Pro- hibited," Declares Heflin
By HUGH w. ROBERTS

By HUGH W. ROBERTS
 ] Washington. b. C.. December 20.--tSpe- 1 cial.)-ln respect to the complaint before the department of justice to the effect that a conspiracy is afoot to keep de- l pressed the price of cotton. Congressman l Heflin of Alabama tonight issued a ring 1 ing statement, that not only is the com plaint based on fact, but that the New
 the alleged conspiracy, is one of the sen sational charges of the Alabaman. Fol- l lowing the reconvention of Congress, Jan | uary {, Mir. Hetiin promises to turn over ! to the department of justice certain doc umentary evidence in the form of letter | which he states will bear out his expres- sion that New Orleans has joined hands with New York as against the planter of ] the south in a scheme to maintain cotton
 at a low price, 'I will urge that these | exchanges be wiped off the face of the | earth" exclaimed MT. Hefin, and he added, flor they were bred for the pur- | pose of keeping the southern farmer poor l and enrching those who already have too much"
 l It is anticipated that the department of justice by the beginning of the new year will become active regarding the charges l against the exchanges. The situation is pregnant with interest tonight, and there l is prevalent more or less excitement
 among the southern contingency, The 1 statement of Mir. Hef1in follows:
 SINNERS INVOLVED
 ] Now that the department of justice | has the matter In hand, | have no hesi- | tancy in saying that l am convinced that l there is a conspiracy between certain | spinners and speculators operating on the New York Cotton Exchange. A con spiracy formed for the purpose of de- | pressing the price and controlling the 1 market and this has been done to the | detrlment and great injury of the cotton producers of the United States. The worlds cotton crop last year was about 24,000,0o0 bales and the spinners consumed ] 20, o9a 600 bales. Destroyed by fire, lost at sea. used in the manufacture of felts, | bats, rope, buggy cushions and backs, 1 pillows and mattresses, surgical line and medicated cotton for use in the European army. 1,ffSoo0 bales. That used in the manufacture of smokeess powder and ex- | plosive shells, as estimated by a retired 1 | 3,O0000
 1 This years cotton acreage was greatly | reduced in India by order of the British government for the purpose of producing food supplies for the British army, and the acreage was cut in Egypt for the same | purpose. Russia reduced her cotton acre age for the purpose of producing food for
 her army Great Britain and Russia fig ] ured that they could get all of the octton 1 they wanted from the United States be- cause we had produced upon an average
 for the last three years 15,000,000
 ACREAGE REDUCED
 l They also calculated that Germany and Austria would not be permitted to receive
 any of the 3000,0OO bales taken annually | from the United States. But their calcu- lations have all been upset. The cotton 1 producers of the United States reduced | their acreage 5,00O000 acres and cut the l fertilizer supply in half and instead of making the 100000 bale crop they are l making not more than 10,50000O bales. 6,0O0OC0 bales short of last years crop l Germany and Austria have received from i, other countries 100000 bales of the 1915 f; American crop and the worlds crop this year will be less than the United States 1 cotton crop of last year, and the world S
 supply, all told is going to be 6.o0oooo or
 100000 bales short of the worlds needs l for another year Now in spite of the
 small world crop and the exhausted sup ply of old cotton, and in spite of all the signs which point to a cotton famine next summer, the bear conspra tors of the l New York cotton exchange have set at I naught the law of supply and demand and prevented the producers from receiving , the price which conditions justify prices which would have obtained but for this conspiracy and unlawful interference on | the part of certain spinners and specula- ] tors on the New York cotton exchange ', Since the department of justice has
 taken hold of this matter, complaint has i been made to me that certain spinners and l spectators operating on the New Or 1 leans cotton exchange have conspired to- 1 gether to depress the price and control | the market there and that the conspiracy exists in both the New York and the New 1 Orleans cotton exchanges.
 | Heretofore when the ginners' report | and the government estimates have been
 published and they indicated a large crop
 there was a break of several points in 1 the market, and this year, when the gin- ners reports and the government esti- 1 mates have been the smallest in years {, indicating a crop of 100000 or 60O0, 900
 bales short of the last years crop. the price instead A going up, as 1t should l have done. has been depressed and
 manipulated by bear speculators. In the
 absence of this conspiracy and under the l Inhindered operation of the law of sup ] ply and demand, cotton would now be selling for 15 cents and maybe more
 SHOULD ELIMINATE EXCHANGE 1 We have two remedies, one to prose- cute and convict those who have con 1 spired together to put down and hold down the price of cotton. and the other :. ie by an act of Congress. The cotton
 exchange, which does not follow and re- { fleet the prices which should ob tain un- der the law of supply and demand is not helpful but hurtful to the cotton pro dGcer. It serves no legitimate purpose and ought to be abolished The rai.rnars