ADMINISTRATION OF IMPORTANT REGULATORY LAWS 9 1 



just in each case and set forth in his findings. Generally, 

 they are prorated on the basis of the errors in the claims of 

 each party. 



In the estabHshment of official standards for the various 

 grades of cotton, bales representing the characteristic qual- 

 ities of the cotton of each state are purchased throughout the 

 cotton belt, and used for the preparation of copies of the 

 official standards. These are placed in boxes especially con- 

 structed for the purpose, certified under the seal of the De- 

 partment of Agriculture, and are accompanied by photo- 

 graphs made of the contents of each box at the time of 

 certification. Sets of the official standards or fractional 

 parts thereof are sold to those desiring them at cost of 

 preparation. Purchasers of official standards, however, hold 

 them subject to examination by representatives of the De- 

 partment of ^Agriculture, and if for any reason they are 

 found to have deteriorated since their preparation or to 

 misrepresent the official cotton standards in any way, the 

 certificate of grade may be cancelled or removed. Such in- 

 spections are made without charge and official standards are 

 renewed at a nominal cost. Each set contains standards for 

 nine grades. Each box contains twelve samples showing 

 the degree of variation which may be allowed wnthin each 

 grade. These standards are used in most of the leading 

 European cotton exchanges, as well as in all important 

 American cotton markets. 



The price quotations of future contracts on cotton ex- 

 changes have a commanding influence upon the prices paid 

 for spot cotton. Prior to the enactment of the law, it was 

 believed that these quotations were not true barometers of 

 spot-cotton prices, but usually were unwarrantably low. and 

 at times fluctuated unduly in response to manipulation. 

 This condition was attributed largely to certain evil features 

 which had crept into the practices on future exchanges as 

 embodied in the form of contract used. One primary object 

 of the act, as already indicated, was to correct these practices 

 by inducing exchanges to adopt a form of contract free from 

 these objectionable features. 



