Evening star., 1928-04-23
COTTON FORECAST
UPHELD BY EXPERT
Department of Agriculture
Officials Back Crop Est.
mate in 1927 Crash.
+, the Associated Press.

j, the Associated Press
Department of Commerce officials got
their long-delayed opportunity today
to defend before the Senate cotton in
veStigating committee official estimates
as to the cotton carryover and price
trend predictions which had been held
responsible by previous witnesses for
precipitating the 1927 price crash.
Lloyd s. Tlenny, chief of the Bureau
Of Economics of the Agriculture De-
psrtment the agency which put out
the disputed statements. attempted TO
read long prepared explanation or
the circumstances leading up 10 the
price-trend statement of September Is
last around which the controversy has
ragged for months.
He was promptly interrupted how
ever. hv harragc of questions by Sena-
tor smith of South Carolina, committee
chairman. and Representative Rankin,
Mississippi sitting with the Senate IN
veStigators
Tenny tried repeatedly to proceed
with his statement. saying he would
cover each point his QuestionerS raised,
but started reading again only TO be
halted after each sentence.
Rests Case on Facts.
we are perfectly willing to rest our
case on the facts as | shall recite them
here" Tenny insisted. At the outset
the Government officials said the cir
culatlon waS highly conducive" to
futures market manipulations Hs
thought it might b. necessary for
Congress TO take some action TO curb
publicity on false rumors and un-
founded reports" and was promptly
challenged by Rankin with the Sug-
eeStion that the departments own
statements we're of that character.
Tenny denied that the departmental
carry over" computation. which is al
legged by experts of the New Orleans
Cotton Exchange to be from 100000 10
S00.0 900 bales too high had failed 10
employ Census Bureau reports.
He also denied that foreign grown
cotton in the United States had been
included in the original Government
estimate of 1900, 900 bales American
crop carTy-over.
Il shall show that all available in
formation confirms the fact that the
worlds carryover Of American cotton
on July 81. 1927. was about $500 600
bales" Tenny declared.
Tenny. in discussing the September
is price prediction. challenged the
statement that il was "humanely i'm
possible to forecast cotton prices"
Our reply is that it can be done
as it has been done" he said. Prices
are not accidents. but the results Of the
laws Of supply and demand.
That set committee members off on
an investigation of what individuals in
the Agriculture Department made up
the September Is statement.
Tennv named them. He was out of
the city at the time. he said, but he
accepted full responsibility for it, and
since his investigation of the research
work upon which it vas based, stood
By the downward trend prediction, de-
spite apparently "bullish" factors the
statement itself recited.
Then. MFR. Tenny. you ought 10 sub
NIT your resignation right now" Ran
kin declared
To Seek His Removal
The Mississippi member said he pro-
posed 10 press for TennyS removal.
Senator Hefiin. Alabama, wanted 10
know II Secretary Jardine had read the
statement before ii was issued Tenny
cid not know
The big feature that you and Sena-
tor Smith are overlooking" Tenny told
Senator Hefin, is the supply OF cot
Ton on hand"
He said that there had been total
Of 20 600 900 bales indicated when the
price statement was drawn up and
that such a total had never sold above
an average of 20 cents a pound
That overbslanced other apparently
bullish factors" he added.