396 ANNUAL EEPORTS OF DEPARTMENT OF AGEICULTURE. 



spot markets " for cotton, under the terms of the cotton futures act. 

 The cooperation of other markets was secured without such designa- 

 tion being given. It is expected that the investigation of the spot 

 markets of the South will continue and that others may be named 

 in the course of time as " bona fide spot markets." Such designations 

 not only assist in the proper enforcement of the cotton futures act, 

 but at the same time they add to the reliability of local quotations, 

 serving therefore to improve the facilities for marketing cotton in 

 many parts of the South. During the last fiscal year 13 cities were 

 named as bona fide spot markets. Under the cotton futures act the 

 quotations of five or more of these designated markets are required 

 to be used as the basis for obtaining commercial differences for the 

 settlement of future contracts on exchanges. The cities that haA^e 

 been so designated are as follows, all of them being used at the 

 present time except Charleston and Mobile : 



Aiisiista, Ga. Memphis, Tenn. 



Boston, Mass. Mobile, Ala. 



Charleston, S. C. Montgomery, Ala. 



Dallas, Tex. New Orleans, La. 



Galveston, Tex. Norfolk, Va. 



Houston, Tex. Savannah, Ga. 

 Little Rock, Ark. 



MARKET QUOTATIONS. 



The third field of work under this project is that of securing 

 market quotations. Daily quotations are obtained by wire from 

 each of the designated bona fide spot markets. These quotations are 

 tabulated and the differences in price between Middling and the 

 other grades are calculated and averaged. These average differences 

 are considered the true " commercial differences " which shall be 

 used in the settlement of future contracts for cotton. The differences 

 established under this project are not promulgated as " official," but 

 are used as checks against the commercial differences which the 

 future exchanges must ascertain and establish on their own respon- 

 sibility. 



Mr. W. R. Meadows has exercised direct supervision over the 

 work of this project. 



DETERMINATION OP DISPUTES. 



The provision made in the United States cotton futures act for the 

 hearing of disputes as to the grade, quality, or length of staple of 

 cotton arising between the persons making and receiving tenders of 

 cotton under section 5 contracts became operative February 18, 1915. 

 The Rules and Regulations of the Secretary of Agriculture made pur- 

 suant to the provisions of the act bearing on disputes were issued in 

 tentative form shortly prior to November 1, 1914, and in final form 

 on February 11, 1915. 



Prior to the date on which the first dispute was received attention 

 was given to the drafting of suggested forms to be used by the trade 

 in submitting disputes to the department. These forms were pub- 

 lished later in Service and Regulatory Announcement No. 4. Forms 

 were also drafted for the use of this office in the handling of disputes. 



Seven examiners were detailed to pass on most of the cotton in 

 disputes received during the month of March. The purpose was to 



