The Birmingham age-herald., 1906-08-03
Committee Says BuCket8h0p Agi-
 tatiOn Caused Charges
CHEATHAM ACTED WRONGLY
Signing of Secretary" to Checks Used In Transactions Was Misleading and Was Wrong Against
 the Association.

Atlanta. August 2.-The committee of five, to which was committed the investi- gation of the charges brought by Repre- sentative Anderson against certain ofn- cers of the Southern Cotton association. met here today after concluding at mid- night the taking of testimony. The meet ing today to consider the evidence and formulate a report to President Jordan was held behind closed doors. The report was completed and sent to President Jor- dan. and is to be forwarded by him to the executive committee of the asso- citation for final action at the meeting. which is to be held at Hot Springs. Sep tember 6.
 With reference to Mir Cheatham, the report says:
 MT Cheatham having admitted to your committee such dealings in the name of himself and for Michael oGrady and P. A. Lee such action on his part, while an officer of this association, meets with our strongest disapproval and condemnation"
 The findings of the committee are as follows:
 Full Report of Findings.
 "The committee appointed by you to investigate the motive and foundation for certain charges against certain officers or alleged officers of the Southern Cot ton association, which, on yesterday, for the first time, were named as MT. Richard Cheatham secretary of said association, and MT. A. A. Fairchild, who Is an en- ploye, and not an officer of the assoca- mi hN aminlng all witnesses produced by both prosecution and defendant, and all Wit nesses of whom they were informed could throw light on the matter and beg to submit the following
 '1 As to motive we desire to state that we find from the admitted evidence of witnesses for the prosecution that the basic promulgation underlying this whole matter Is due to the pending of bill in the legislature of this state seeking to prevent speculation or gambling In cotton futures In fact, nearly all the witnesses for the prosecution, and all of them with probably one exception, either owned an interest in a wire house of bucketshop, or was an employe of the one or the other, admitted that they would never have ex- posed nor appeared against MT cheatham but from the fact of his having taken such decided stand for such legislation, and we respectfully submit that there Is no prohibition against any officer or of- ficers or members of the Southern Cotton association trading for themselves or oth- CTS in cotton futures, but we, your com mittee, believe as our states have to es- tablsh rules of law because of public policy, 1t Is the soundest public policy that this association condemn in tho strongest language possible dealing in fu- lures for themselves or others on the the part of any officer or officers. or em- ployes of this association. or being in any way by the owning of stocks or otherwise. interested in any concern dealing In cot ton futures. buying or selling same.
 Cheatham Comes With Rule.
 MT Cheatham, the secretary, having admitted to your committee such dealing in the name of and for Michael oiGrady and P A Lee, comes within this rule. and such action on his part while an of- 1cer of this association meets our strong est dlsapproval and condemnation. Your committee further finds no reasonable excuse for or reason for the use of. by him. of the word Secretary after his name signed to checks in these transac- tions. but believe it to have been mis- leading, and d wrong against the asso- citation. whose secretary he was, and this meets the same dsapproval and eondem- nation as above; applying this same rule to MT. A. A. Fairchild an employe of this assoc1ation. for he was unquestionably no moro, no less, we make the same finding as tC him"
 The resignation of Arthur A. Fairchild as manager of the publicity bureau, who admitted owning an interest in the Pied- mont Brokerage company, was rendered eLrly today. but no action is reported on ties.