The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-12-04
COTTON GAMBLING TAbOOEO,
DEPARTMENT OF JUSTICE WILL,
BEGIN AN INVESTIGATION.
Cotton Mill Owners Will Back ND the
PrOsecutiOn-GrOwer Have Joined
Hands with Spinners i'm Movement
Planned to Reach Spectators
Under the Antitrust Law-Are
Restraining Trade Contrary to Law.


Restraining Trade Contrary to Law.
Warrington, Nov. 2S.-Cotton gam
bling in New York and Boston is
likely to become the subject of legal
action ~ the department of Justice
that may result in landing in Jail
some of the biggest cotton specula-
tors of the country under the provi-
sions Of the Sherman antitrust law.
While no action has yet been taken
by Attorney General Wickersham,
President Taft has discussed the
matter with him with view to plan
ming thorough investigation by his
department and the department Of
commerce and labor.
From New York today came the
rumor, which has not been denied in
official circles here, that such an in
vestigation has already been ordered
by President Taft and about to begin
in New York under the direction of
Herbert Knox Smith, commissioner
OF corporations. 1t was learned here
tonight that if THIS work has been
undertaken by the government, Sc
cret agents Of the bureau Of corpora
tions 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 located.
One man who is largely responsible
for the interest which members of
congress and the president have
shown in cotton speculation Is Sena-
tor e. d. Smith, Of South Carolina,
who for many years has been promi-
nently identified with the cotton
growers and came to the senate with
the avowed purpose of "going after
the manipulators Of the price of the
South's greatest product. His cotton
speeches in the senate last winter
attracted wide attention and greatly
impressed 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 an aggregate cap
ital Of $250,000,000. Their interest
and that Of cotton growers is prac-
tically the same in this instance, and
the fact that they have joined forces
to aid the government in it's proposed
investigation and probable legal ac-
ton Is taken here to mean that the
work will be done thoroughly.
Officials of the department of JUS
tice who refused to discuss what the
government is doing in this connec-
ton, nevertheless, declared today
that cotton gamblers could be reach
ed under the Sherman law if it can
be established that their schemes are
resulting in prices that have no rela-
ton to the value Of a bale of cotton.
Clearly say these officials, that would
be restraining trade within the mean
ing Of the antitrust law.
This much is certain, that thus far
the matter is in a 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 a 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
Memphis Commercial Appeal.