The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-14
EDERALCONTROLOF
COTTON ISPLANNED
President May Fix Price il AZ
ter Investigation 1t Is
Found Necessary.
WAR BOARD AS BUYER
Better Distribution Of All
Grades and Elimination of
Speculation Proposed. !.
Special Dsspatch TO TIE suS.


WASHINGTON, Sept. 13.-Initiai steps
for stabilising the cotton industry with
tina gathering Of this years crop, and
pos,ibly fixing basic prices and resula-
tons for the remainder OF the war were
taken by President Wilson to-day. His
action will be followed by the appoint
m.nt Of a cotton committee that win
carry out the programme he has laid
down and exercise such additional pow
ers as will relieve the chaos and uncer-
tsinty In cotton production and market
ing
The selection OF tho members Of the
committee was not made to-day. nor was
IL indicated whether they will be chosen
BY the Chief Executive or named by
Chairman Baruch as an additional
branch OF the War Industries Board.
The functions which the committee
will perform. according to limitations
from the President. are these:
l. Choose and carry out measures
that will open marketing facilities for
the great stock OF low grade cotton
stored in the country at this time.
2. Eliminate speculation in cotton
and take steps that will put an end
to boarding.
g. Apportion export orders 90 that
the low grades will be sold as well as
the high grades.
A fourth step which viii be taken
under the direction of the President
Is the sssction Of q special committee
Of thrse who will have authority to
purchase cotton for the United States
Government and for the Allies and at
prices that are approved by the Pres
dent The names on this committee
have not been announced yet
Surplus Of Low Grade Cotton.
President Wilson's decision to act In
the cotton situation came after re-
ports had been placed before him
showing that the demand for high grade
: cotton is far out of proportion Of that
for the low grades and that sur
plus OF the latter grades remains In the
hands Of producers and buyers in the
Southern States from last year, although
another crop Is being gathered.
Through agreements that were reached
with the allied countries soon after the
United States entered the war this Gov
eminent mas acted as participating agent
Tor their needs Protection OF the inter-
es,s of the Allies is one Of the incentives
behind the action OF the President to-
DAY.
Neutral countries In Europe, especially
Spain and Norway, have eagerly sought
cotton from the American States in the
last year. but because Of the lack Of
shipping bottoms have not been able to
obtain It, One Of the frst moves Of the
cotton committee Is expected to be that
OF supplying AZ far as possible the more
pressing needs OF the European neu-
trails One distinct advantage which
would arise from this policy would be an
advance in the rates of exchange in ia
yor OF this country.
Neither the War Industries Board nor
any other agency of the Government has
moved 10 Tx prices on cotton since the
war started. although sums at which
cotton goods and products may be sold
were specifed by the cotton division OF
the board several months ago. The
Presidents action to-day is the first in
umation that has been given that the
Government may engage in price fixing
on all grades OF cotton.
Presidents Reasons for Control.
The Presidents statement follows:
The demand for high grade cotton
which is'out of proportion to the avail
abe supply and the fact that the Gov
eminent through early agreements with
me Allies. must act rs a common buyer
loE a!!ed purchases, make 1t necessary
10 secure some basis OF distribution of
al grades OF cotton Based on the stand
ARD grades established by the Depart
ment OF Agriculture an effort will be
made 10 provide a way by which the low
Grade cotton will be brought to sale and
use along with the high grade cotton at
reasonable and Just prices.
IT Is believed that by this course
Doth the producer and consumer will lie
os'ter protected than by continuation of
me present chaotic conditions of the
market
The plan 10 to create. subject to tho
approval Of the President, a cotton COM |
m'ttee 10 devise methods for (a)
broadening the channels OF distribution |
ahd use OF the great stock Of low |
grades now practically unmarketable ;
,b) eliminating speculation and hoard |
orders
1t may be part OF this committees |
GUY 10 recommend basic prices on cot |
ION H. after investigation, It is found |
necessary. fair price will be fixed
During the investigation and in |
order TO avoid stagnation a separate |
committee OF three Is being set up with |
au'horIty to buy cotton for the use of |
me United States Government and tho |
AIiee at prices TO be approved by the |!
President"