Evening star., 1946-10-19
Cotton Markets Close
For Day TO Study
Causes Of Break
By the Asseeiaisd Press


NEW YORK, Oct. 19.-The New
York Cotton Exchange was closed
today. Decision not to open for the
short Saturday trading session was
announced shortly before the sched-
uled opening.
Similar action was taken by the
New Orleans and Chicago Cotton
Exchanges.
The Board of Managers of the
New York exchange in a statement
said, "It is the opinion of the board
that such action would best serve
the interests of the public and the
exchange"
Prices Slump SIS a Bale.
'It long has been custom that
when one cotton exchange closes. the
others follow suit" an exchange
spokesman said.
He added that the closing
"amounts to a breathing spell to-
analyze the situation over the week
end"
Closing of the exchanges for one
day followed a break in the market
which depressed prices about $50 a
bale from the close of trading Tues
day until yesterdays close.
There has been considerable spec
ulation as to causes of the sharp
slump. Among reasons advanced by
brokers were statements that cotton
prices had risen too high and were
due for an adjustment, that specu-
lative holdings were being liquidated
and that cautious attitude had de-
veloped both because of the possibil-
ity of decontrol of textiles and un-
certain business conditions.
u. S. Investigation Starts.
The Agriculture Department yes
terday said it is investigating the
decline to determine whether there
has been a move to manipulate
prices, following a statement by
Senator Elmer Thomas, Democrat,
of Oklahoma that a bear raid
caused the drop.
The department said it had asked
all clearing members OF the cotton
futures markets at New York, Chi
caeo and New Orleans, to report
details of all traders accounts hav-
ing open contracts or transactions
in cotton futures between the close
of business October Is and the close
of business october Is.
Senator Thomas demanded an in
quiry and said in telegram to
Agriculture Secretary Anderson that
he had positive information that
commodity exchanges located at
New York, Chicago and New Or
leans, working with their branch
houses, customers men and clients,
have planned and are now executing
a program to drive cotton prices
down to the lowest possible point"
Thomas Charge Denied.
At the same time Senator
Thomas, in a telegram to the cot
ton exchanges, said he had informa-
tion that the bear raid" was re-
suit of "a definite and well laid
plan" among cotton exchanges, cot
ton brokers and their clients "in vio-
lation of the law and to the detri-
ment of cotton growers.
The New York Cotton Exchange
denied categorically that this ex-
change is involved in any plan to
effect cotton prices" and asked the
Senator for "any tangible evidence
against any individual or individ-
uals under "our jurisdiction" in sup
port of his statements.
I'VE will undertake to investigate
and take remedial action should
such evidence warrant" said the
Exchange Telegram, signed by G. I.
Tolson, vice president of the ex-
change.
The New York Cotton Exchange
reiterated that stand yesterday when
Senator Thomas said he would seek
legislation forbidding "a policy per-
mitting exchange members to buy
and sell freely without expense and
risk" and placing all commodity
exchanges, commission houses and
Offices and their personnel under
Federal supervision.
The exchange today declined to
comment beyond the brief an
nouncement of the days closing.