Greene County herald. (Leakesville, Miss.) 1898-current, 1906-08-10
SOUTHERN COTTON
SCANDAL PRODED
/
ACTION OF SECRETARY CHEATH
AM STRONGLY CONDEMNED.
ACCUSED OF SPECULATING

Owned Interest in Brokerage Business
and Had Also Been Specializing in
Cotton Futures for Himself and
Other Members. ~ a
Atlanta, Ga. Before the Committee
of Investigation named by President
Harvie Jordan to hear evidence that
certain officers of the Association own
ed an interest in a wel-known broker
age concern and also have been spec
ulating In cotton futures, Represen-
tative j. r. Anderson, of Chatham
County repeated the charges made by
him on the floor of the House last
week. He charged that Richard
Cheatham, Secretary of the Associa-
ton speculated in cotton futures, car
rying the accounts in the names of
Mike O'Grady and p. A. Lee. Mr..
Anderson also charged that Arthur A.
Fairchild, who appears as the manager
of the Bureau Of Publicity of the As
sociation, owned. one-eighth of the
stock of the Piedmont Brokerage Conn
pany, a concern which makes spe-
cialty of cotton futures. To support
these charges Mr.. Anderson submitted
number of affldavits and declared
that an order from Mr.. CheathaJn on
certain brokers would bring forth fur
ther evidence in proof of the charges.
Mr.. Cheatham produced in his defense
a statement, in which he declared:
The committee of fvesto which was
committed the investigation of the
charges brought by Representative An
sderson against certain officers of the
Southern Cotton Association met here
after concluding the taking of testi-
mony. AT the meeting which was held
behind closed doors, the evidence was
considered and a report completed
and sent to President Jordan, which
he in turn is to forward to the execu-
tive committee of the association for
final action at the meeting to be held
at Hot Springs, September 6.
The findings of the committee are as
follows:
The committee appointed by you to
investigate the motive and foundation
for certain charges against certain Of
fcers or alleged officers Of the South
ern Cotton Association, which for the
first time were named as Richard
Cheatham, secretary of said associa-
ton and A. A Fairchild. who is an
employe and not an officer of the as
sociation, has discharged their duty
by examining all witnesses produced
by both prosecution and defendant
and all witnesses Of whom they were
informed who could throw light on
the matter and beg to submit the fol-
lowing:
First, as to motive, we desire to
state that we find from the admitted
evidence of witnesses for the prosecu-
tion, that the basic PRONUNCIATION un-
DERIVING this whole mater is due to
the pending of bill in the legislature
of this state seeking to prevent spec
ulation or gambling in cotton futures.
In fact, all the witnesses for the pros
ecution and all of them with probably
but one exception, either owned an in
terest in a wire house OF bucketshop
or was an employe of the one or the
other, admitted that they would never
have exposed or appeared against Mr..
Cheatham but from the fact of his hav
ing taken such a decided stand for
such legislation, and we respectfully
submit that there is no prohibition
against any officer or officers, or mem
bers Of the Southern Cotton Associa4
tion trading for themselves or others
in cotton futures, but we, your commit
tee, believe as our states have to es-
tablish rules of law because of public
policy, it is the soundest public policy
that this association condemn In the
Strongest language possible dealing in
futures for themselves or others on
the part of any officer or officers or
employees of this association, or being
IN any way, by owning of stock or 9th
erwise interested in any concern deal
ing in cotton futures, buying or selling
same.
Mr.. Cheatham, the secretary, having
admitted to your committee suca deal
ing IN the name and for Michael
0'Grady and P. A. Lee, comes within
this rule, and such action on his part,
while an officer of this association,
meets our strongest disapproval and
condemnation. Your committee further
finds no reasonable excuse for or rea-
son for the use by him of the word
secretary after his name, signed to
checks In these transactions, but be-
lieve it to have been misleading and
a wrong against the association, whose
fVica Proai1auf u IT Heroboc. "a