New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-13
Plan for Cotton
Sellers to Deliver
Outside This City
N. Y. Exchange Makes a
Proposal Relating to
Warehouses

ne I'VE" 1ork cotton Exchange in
memorandum sent to more than g.
WV cotton men yesterday proposed a
plan which would enable sellers at
their option to make deliveries on con-
tracts from warehouses outside this
city, instead of only in New York. The
programme, which is frankly tentative,
Is submitted as the contribution of the
exchange to the issue of the develop
nent of warehouses, with which the
cotton trade is now graphing.
Contract cotton, according to the sug-
gestlons made, could be delivered from
three selected places besides New York,
and deductions in billings in such cases
made to allow for transportation to
this city. Moreover. it is proposed that
differential of 81 be deducted from
the bills in all cases where the cotton
is delivered in outside Cities
Recommendations are made for
amendments in the existing Federal
laws affecting the cotton industry
contamination of this plan. Changes
a material variance between the dis
count fixed by law for delivery in New
York and that allowed in any other
selected market of delivery are urged.
1t adopted, these revisions would strike
out sections of the cotton futures act,
which some members of the Cotton Ex-
change believe account for the disparity
which has existed between prices of
spot cotton and prices of contracts on
the future exchanges. Public hearings
into the causes of this disparity will
be held to-day and tomorrow at the
exchange under the direction of Charles
]. Brand, chief of the Bureau of
Markets, of the United States Depart
ment of Agriculture.
AS outlined by a special committee
ulate such a plan, "the points of de-
livery are to be selected from list
Of spot markets specified by the gov
eminent for determination of our grade
differences, not over three points to be
used at the outset, the system being
as may seem desirable.
Warehouses to Be Licensed
Warehouses;" the statement con-
tines, "out side of the port Of New
York, in which cotton is stored, must
be licensed and bonded by the govern
ment, under the United States ware
house act Of August II, 1915, and ap-
proved by the New York Cotton Ex-
delivered and payment be made in New
York. Notices of delivery shall state
point of delivery.
THE weight and grade of cotton
shall be guaranteed by the warehouse
man, as provided in the regulations
under the United States warehouse act.
If this plan should not prove practical,
cotton may be turned out of the ware
houses and weighed at the expense Of
the dcliverer. Each bale shall then be
and classed and samples shall
be drawn in the presence of represen
tatives of the receiver and the de-
liverer. If these two representatives
cannot agree as to the grade of any
cotton delivered, the grade of bales in
dispute shall be appealed to Washing
ton.
"In billing cotton outside the Port
of New York there shall be deducted
from the bill an amount which shall
the cost of moving the cot
ton from the warehouse in which it is
located to a warehouse in the Port Of
New York, this amount-to cover dray-
age and freight.
CAS- this plan would give the seller
the advantage of delivery of cotton at
any one Of the points mentioned which
suited him best, while the buyer would
be placed at the disadvantage of hav-
ing to accept cotton at point which
might not suit his convenience, we be-
lieve that ditferential should be de-
Quoted from the bill in all cases where
cotton is delivered outside of the Port
of New York. One dollar per bale is
as fair difference"
Amendment of Law Suggested
A difficulty arises where grade
in any selected delivery
must vary materially from the grade
differences established by law govern
ing deliveries on the New York Cot
ton Exchange. For example: If the
below middling for low grades
of cotton in any selected point of de-
livery should be materially greater
than that fixed by law for delivery in
New York, contracts would be sold in
the New York market and the low
out moving the cotton from the point
Of greater discount. This would act
as a depressing influence on the future
market to such an extent as to make
the whole plan seem unavoidable unless
this difficulty could be removed.
ITO obviate this difficulty we sug-
gest that the existing law should be
so amended that we may require, as
to deliveries outside the Port Of New
York, that cotton below middling be