New-York tribune., 1922-03-14


as he oaly visited the floor about once
| a week.
Mr.. Graham said he understood tn,
brokers kept record OF their opera
tions in their own terms on cards dur.
ing the day and later made entries or
sheets which went to the clearing
house association of tho exchange
These final records were kept secret
he said and could only he consulted
by tho president in searching out any
irregularity complained Of. Prices or
the American Cotton Exchange, the wit
ness testified, generally were little
higher than those on the New York
Cotton Exchange. for the reason that
smaller lots were traded in.
"1n the business Of artificial manipu-
lation should not cotton on both ex-
changes be worth the same figure -
asked Magistrate McAdoo.
eyes, sir"
But if your exchange has no out
side connection, how does it respond
so readily?"
THE brokers are live, up to-date
men. and they keep advised through
The petition of protest, read into
the record by Assistant District At
torney Simmons. stated THAT the
Mathcwson Trading Corporation has
for reasons of its own found it undc-
sirable to supply the needed short cot
ton to the ring, that since the cessation
of the function Of the Mathewson Trad
ing Company and the removal from the
ring of it's maximum of 10000 bales
the floor is terrible"
1t was suggested in the petition that
tho officers of $ho Ap,crioov Co++o,
Exchange purchase on the New York
Cotton Exchange a maximum of $1,000
bales, contracts cquitably distributed
among the sctive trading months, and
sell an exactly similar quantity Of
each position in the ring Of our ex-
change at public outcry simultaneously
with its purchase across the street
Carry said cotton short on our ring
at all times, transferring from month
TO month as position approaches matu-
rity. Increase or decrease the quantity
Of said short cotton outstanding from
time to time as may be necessary to
maintain quotations at or within few
points Of the New York Cotton Ex-
change
Magistrate McAdoo questioned the
witness as to why no action had been
taken on the petition. remarking:
According to the petition you had
no cotton to base your speculation on
unless you went across the street and
bought it to trade on
Mr.. Graham explained that he had
only read the first paragraph of the
petition. did not remember who signcd
it and that he understood it had been
withdrawn.
II was too busy with other important
matters to go into it and from a glance
| did not consider it pract:cal,' the
witness testified.
What could be moro important to
the president of an exchange than The
consideration of such a subject?" asked
Magistrate McAdoo.
Mr.. Graham was unable to recall
what other important matters he had
been engaged with.
The exchange head said that before
he became connected with the organiza-
tion it dealt in about $4,000 bales daily
The trading in the LAST three months
of 1921, he said, averaged shout |, ,60O,-
900 bales a month.
Questioned by Assistant District At
torney Simmons, Mr.. Graham said he
did not know whether Rose g. Son were
connected with any other brokerage
house in the exchange. Randolph
Rose is vice-presi dent of the exchange
ana MS nrm IS It's largest operator. Ac-
cording to Nh. Simmons, the protest
petition was signed by Rose & Son and
the following: Jennings & Co., Pat
ton & Co., Eblin & Co, Rosenberg &
Co.. Martin e. Co.. Levy & Co., Ander-
son g. Co., and McGuigan & Co.
AT the conclusion of Judge Graham's
direct testimony Albert Massey and
George Gordon Battle. representing, re-
spectively. the exchange and commit
tee of its mem bers, were permitted TO
question the witness. 1t was brought
out that the 10000 bales suggested to be
purchased in the petition was a sort Of
surplus supply TO keep the price Of
cotton down when the demand exceeded
the supply.
Mag gistratc McAdoo commented:
"Why, the purchase of the 10000 bales
was to check the wheels, SO they would
stop at the right number"
In response to Magistrate McAdoo
Mr.. Graham said that the only check