Except in very special cases this is a common title for stocks, bonds, etc., issued by incorporated companies, such as railways, electric light, gas, water, etc., but occasionally some such expression as " corporation stock of the City of New York " will refer to the municipal obligation of the same.
If the reader will first turn to the subject "Corporation," it will be found that a good many companies are incorporated under States other than that in which they transact business, which have enacted statutes to encourage incorporating under their laws. These States have located in some one of their principal, cities a trust company known by the above title, at which place many means are afforded for the greater facilitating the complying with the necessary laws of such States. These trust companies have rooms where meetings may be held; furnish blank forms of various kinds, and some one connected therewith is selected as the resident director of the company, and so on.
"Future" and "spot" transactions occur in cotton trading, which are explained under those subjects. The buying or selling unit is 100 bales, or 50,000 lbs. The average weight of a contract bale is, therefore, 500 lbs. Fluctuations are recorded in "points; " a cent is divided into 100 "points." If cotton declines 50 " points " it declines 1/2 cent per pound, or $2.50 on each bale, equal to $250 on the 100 bales. The commission charged non-members of the New York Cotton Exchange is $10 for buying and $10 for selling 100 bales, or $20 for the "round turn," as it is called. The margin demanded by brokers depends largely upon the character and standing of the customers; also somewhat upon the price of cotton. Before the World war, one cent per pound was about the usual margin, namely, $500 on each 100 bales, but during the war it has been much higher.
Cotton-Carrying Roads. The important railways of the South, or which extend into that section, and which carry the bulk of the cotton product, such, for instance, as the Central of Georgia Railway, Missouri, Kansas & Texas Railway, St. Louis South-western Railway, St. Louis & San Francisco Railroad, Seaboard Air Line Railway, Southern Railway, Illinois Central Railroad, Louisville & Nashville Railroad, Atlantic Coast Line, Rock Island Co., etc.