The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1909-12-07
GAMBLING In COTTON
GOVERNMENT DETERMINED TO
MOVE AGAINST EVIL.
Planning an Investlgation-lf Q
Loophole is Found the Sherman
/, Anti. Trust Law. viii be Invoked.

The gambling In the cotton crop
in the financial exchanges throughout
the country may become the subject
of Leg action by the Department OF
Justice, according to reports ema-
mating from Washington, and the
move may result in landing in jail
some Of the biggest Gotten specula-
tors of the country under the pro-
visions of the Sherman antitrust
law. While no action has yet been
taken by Attorney General Wick
ersham, it is known that President
Taft has discussed the matter with
him with view to planning a thor
ough investigation in which the De
partment of Commerce and Labor
will act in conjunction.
From New York comes the rumor,
which has not been denied in Of
fetal circles here, that such an in
vestigation has already been ordered
by President Taft and is about to
begin in New York, under the : d.
rection OF Herbert Knox Smith, COM
missioner of corporations. 1t has
been learned that if this work has
been undertaken by the government,
secret agents of the Burnea OF Cor
porations will be employed, and for
the present nothing will be diVulged
in regard to the work.
Behind this latest move on the
part OF the Federal government are
the congressional delegations of all
of the cotton States of the South
and of the New England States in
which the great textile mills are 10
Gated One man who is largely re-
slionsible for tys interest e which
members Of congress and the Presi-
dent have shown. in cotton specula-
tion is Senator John Walter Smith,
of South Carolina, who for many
years has been prominently ,identi-
fed with the cotton growers, and
went to the Senate with the avowed
purpose of going after the ma
nipulators of the price of the South's
greatest prodhct. His cotton speech.
es in the Senate last winter attract
ed wide attention and greatly i'm
pressed his colleagues.
Cotton mill owners who are ready
to furnish the government with in
formation and are determined, ). to
wage the fight to the very end are
said to represent capital of $780,
100000. Their interest and that OF
the cotton growers is practically the
same in this instance. and the fact
that they have joined forces to aiG
the government in it's proposed in
vestigation and probable legal action
is taken to mean that the work will
be done thoroughly.
Officials of the Department OF JUS
tice who refuse to discuss what the
government Is doing in this connec-
ton nevertheless declare that cotton
gamblers could be reached under the
Sherman law if it can be establish
ed that their schemes are result
ing in prices that have DO relation
to the value Of a bale of cotton.
Clearly, say these officials, that
would be restraining trade within
the meaning of the antitrust law.
This much is certain, that thus far
the matter is in preliminary stage,
and the President and the attorney
general are not certain themselves
how far the work will be carried.
If Mr. Wickersham believes, after
the Bureau of Corporations inquiry
is complete, that there is chance
of success in the courts, proceedings
will be begun. If he does it is more
than likely that Mr.. Taft will ask
congress to enact. Legislation under
which this practice may be
stopped.