property and would consider it a bargain at that. In analyzing the public statements of assets and liabilities of cotton mill corporations it is extremely difficult to satisfactorily determine the asset value of the capital stock or the earnings, on account of the many opportunities for covering up sources of equity. It may be all right from a cotton manufacturer's standpoint to cover up equity and hide earnings, but, from an economic standpoint, it is a violation, for which there is little or no justification. In the days when the cotton mill was owned and controlled by a family, there is no question but that secrecy was a desirable and necessary factor, and fifty years ago, when cotton manufacturing and allied industries were partnerships, that might have been justified; but in fifty years, the cotton industry has grown from a capital investment of $100,000,000, with a product of $115,000,000, to over $600,000,000 capitalization, with a product value of $450,000,000, and yet we still have the old systems of accounting, of publicity to stockholders and to the public. In other words, the manufacturing end of the cotton industry has made tremendous economic advances, while the financial end has maintained inertia. It is a well settled law that a corporate charter constitutes a contract between the corporation and its stockholders, determining the exact and only purpose for which the stockholders' funds may be employed. Upon this principle of law rests the stability and honesty of management of corporations, and upon it is based the confidence, safety and protection of stockholders.

LISTING ON THE BOSTON EXCHANGE.

At the present time there is just one cotton mill stock listed on the Boston stock exchange, which is the Amoskeag Manufacturing Co. of Manchester, N. H., and I am told that this stock was listed more for sentimental than commercial reasons. Certainly transactions do not indicate any advantage from this listing, as, thus far, there has been but one sale and that was made to establish an initial quotation. It would not be difficult for New England cotton mill corporations to have their securities

listed upon the Boston stock exchange, and the advantages accruing to the creation of such a trading center for securities would be tremendous. I have no hesitancy in saying that there would be less fluctuation in the market quotations and better standing of cotton mill stocks from a collateral standpoint.

In conversation with an official of a Boston bank, I was told that a borrower on cotton mill stocks cannot put up his security for collateral within 10 per cent. as much value as the borrower with listed stock exchange collateral. That is to say, where 80 per cent. of the current market value could be borrowed on listed stock exchange securities, but little over 70 per cent. could be borrowed on cotton mill stocks at their current market value. The reason for this is apparent. The present market for cotton mill stocks is confined to two auctions per week in Boston and a comparatively small "Over the Counter" business created by a few investment securities houses.

The following requirements are necessary for the listing of stocks on the Boston stock exchange:

Name of Company; purpose for which organized; date of incorporation; under what law incorporated; amount of authorized capital stock; amount of capital issued; amount to be listed under the application; amount unissued and for what purpose reserved; par value of shares; amount paid in on each share. and in what manner paid (stating amount of stock paid for the property); is stock assessible; dividends paid if any; is any of this stock pooled or held in trust? full particulars required; location of principal office; location of transfer office, and name of transfer agent; place of registration; names of officers; names of directors. Separate papers plainly marked are required for each subject that follows; description and location of property, with map, if any; last report of company's treasurer or directors; certified copy of Charter and By-Laws of company; certified copy of court records, if any; detailed statement of present financial condition of company (showing debts and resources); list of stockholders, with number of shares to each; letter from transfer agent accepting office; letter from registrar.

accepting office; letter from counsel in legality of incorporation; copy of stock certificate (cancelled); detailed statement of bonded indebtedness; contract with registrar. All copies of deeds must be certified by Registrar of Deeds where recorded. Copy of Charter must be certified by Secretary of State where incorporated. All other certifications must be made by a Notary Public, who must state that he has compared the copy with original and it is correct. Trust organizations must also send a copy of the Deed of Trust. In making the application it is hereby agreed, as a condition precedent to the listing of the stock, that the company shall furnish to the committee, at any time, on demand, such reasonable information of its general condition as may be required, and that failure to give such information shall subject the Company to the penalty of having its stock stricken from the list, and in consideration of the listing of the stock, it is agreed that reasonable notice shall be given the Boston Stock Exchange of any intended increase of the stock or funded debt of said Company or Corporation, and also due notice of closing of transfer books for any purpose. The Boston Stock Exchange reserves the right to strike any security from the list at any time. The face of every bond, coupon or certificate of stock must be printed from steel plates which have been engraved in the best manner, with such varieties of work as will afford the greatest security against counterfeiting. For each document or instrument there must be at least two steel plates, viz.: a tint plate from which will be printed a non-photographic' color, so arranged as to underlie important portions of the face printing, and a face plate containing the vignettes and lettering of the descriptive or promissory portion of the document, to be printed in black or in black mixed with color. These two printings must be so made upon the paper that the combined effect of the whole, if photographed, would be a confused mass of lines and forms, and to effectually secure against counterfeiting by scientific or other processes; and the imprint of each denomination of bonds shall be of such distinctive appearance and color as to make it readily distinguishable from other denominations and issues. This

above rule includes certificates of deposit. In certificates for 100 shares, the figures must be engraved upon their face, and certificates for less than 100 shares must be printed in a different color and the words "Certificate for less than 100 shares" must be engraved upon the face.

Each original application for listing securities must be accompanied by a check for the amount of $100 for $2,000,000 or any portion thereof, of the par value of security presented for listing; $50 more for each additional $1,000,000 or portion thereof; $500 for $10,000,000 and over. For listing additional amounts $50 for each additional $1,000,000 or portion thereof, up to a total capitalization of $10,000,000. Said check should be drawn to the order of the treasurer of the Boston Stock Exchange and will immediately become the property of the Exchange.

It is required that a sample of each issue of stocks or bonds sought to be listed shall be referred to the committee for acceptance as to form, character, and workmanship, prior to application for their listing. No form of stock certificate or bond will be accepted unless it has been carefully engraved by some bank note engraving company whose work, the committee on stock list has been authorized, by the governing committee, to accept for admission to the list.

From the above it appears that the requirements for the listing of securities on the Boston stock exchange, are not severe, and the ratio of advantages accruing from listing, to the disadvantages of giving the above information, are self evident.

The PRESIDENT. This is certainly a very valuable paper.

The SECRETARY. I have received this telegram of cordial and fraternal interest to all.

CHARLOTTE, N. C., APRIL 16, 1908.

C. J. H. WOODBURY,

Secretary, National Association of Cotton Manufacturers,

Boston, Mass.

The American Cotton Manufacturers' Association extend greetings to the National Association of Cotton Manufacturers and wishes them a most happy and successful meeting.

C. B. BRYANT, Secretary.

Mr. MACCOLL wishes me to call attention to the meeting of the Committee on Resolutions at 9.30 tomorrow morning. The list of the Committee is written upon the blackboard and if any member has any subject which he thinks ought to be brought before the Association in the form of a resolution will he please hand it to Mr. MACCOLL.

The PRESIDENT. We now are to listen to a paper from an ex-president of this Association and one who has had much experience in dealing with the subject which he is to talk to us about, in connection with his presidency of the two International Conferences, the one at Washington and the other at Atlanta, of both of which he was the president. I have the pleasure of introducing Mr. JAMES R. MACCOLL. [Applause].