New-York tribune., 1910-04-19

Plan OF 6ulI Peel.
According TO one cotton man. the Dul pool
arranged 10 deliver 10 Southern spinners
May and July cotton at abnormaliy high
prices. planning with this assistance 10 alb
sorb enough II the worlds visible supply
TO erabie them TO maintain the price; an
arrangement perhaps existing, according 10
this man. through which the spinners would
receive part or the profits 10 be made by
the pool
The visible supply AZ This centre is at
present 1@oeo bales. The visible supply Of
the United States is figured at 25o0.oOo bales.
and the worlds visible supply is reckoned
as around 3.6o0,oo0 bales. The speculative
contracts on the local Cotton Exchange
for May delivery are Understood TO amount
90 between $4,000 and s0o0Oo bales.
From S0.Go to 5000 bales of cotton have
within the last few weeks been purchased
a. Liverpool for reshipment to this port.
According 70 one story. tha buyer has been
PatteR. who has planned in this way to
Gir1inish the available supply. as an aid in
keeping up prices: while other cotton men
say that the Liverpool purchases we're for
account Of New England spinners, who
could obtain the stsr!e more cheaply abroad
than from the buu pool at this centre.
The news OF the governments action
created much excitement 3n the Cotton EN-
Grange yesterday. Some OF the talk was
bitter, especially among the bull party.
some going so far a. TO say that the
leading spot cotton dealer IN the country,
McFadden. had been a heavy short seller,
and TO such an extent that the bull party
had the advantage over him. and that
lad been a factor in causing the spnners
The cotton market declined . to 90 points
for the nearby options yesterday. and IS
20 20 points for the new crop months. on
liquidation and bear selling. In the late
trading a rally OF 10 to II points occurred
on covering Of shorts and buying by spot
houses The May option closed at 1850
l4.6I against l4SGlAS on Saturday; July,
at lLS9G1A40 against l459 bid on Saturday,
ana october. at l2.S2a12S4 against l2.4Sg
1c.5O
The board Of managers OF The Cotton
Exchange received Yesterday the report Of
the committee or revision, and are expect
ed 10 make 1; public to-day. II is under
stood that the committee is Of the opinion
tha: the present system is perfect. and
needs no amending I'm any respect. AMI that
the managers coincide in tha; opinion
Washington. April lS-Attornev General
Wickersham has taken up the cudgel
against The reported pool in raw cotton.
which il is alleged already has resulted in
an increased price Of that staple and cur
tailment Of the output by manufacturers
and consequent loss OF employment by mill
hands He has given instructions TO have
the matter investigated by the grand jury
in the Southern District of New York, and
subppnas were issued there to-day. which
the officials Of the Department Of Justice
say mark the beginning of thorough in
vestgation by the government of the
alleged pool
Announcement OF the determination 10
proceed against the pool was coincident
With the publication Of the dispatches from
New York that MT. Wickersham had or
dered an inquiry by the special grand jury
as 10 the terms and conditions OF an agree
ment for the purchase and delivery Of
i5e,"1o bales Of cotton i'm a proceeding
against New Orleans cotton brokers.
William s Kenyon. the assistant To the
Attorney General. who is I'm charge of trust
prosecutions in the department, had a con
ference with Mr.. wickersham at New York
over the telephone touching the new move
made to-day. and subsequently made the
J
/ In connection with the discussion over
/ the prevalent high prices of food and other
commodities the attention Of the Attorney
General has been directed to the alleged
existence OF certain pools and combinations
operating corners in various commodities
and their effect on Interstate commerce.
Information was laid before him indicat-
ing the fact that q combination had been
formed between number OF operators TO
buy up all tho remaining unsold raw
cotton produced in the United States during
/ the crop year 19g9-'l0 and that the re-
/ suit OF the operations Of this pool the
price OF this cotton has already been ad-
Vanced 80 largely iu excess Of the normal
price that the cotton manufacturers had
greatly reduced their output rather than
buy az this eNorbitant price. throwing out
l OF employment upward OF 2 per cent Of the
! cotton mill operators Of the United States.
thus resulting in the mOnopolizatiOn Of the
/ entire visible supply OF raw cotton in the
I market and the diminution in the commerce
/ OF cotton goods.
/ II is expected that interesting disclosures
/ will be made as 10 the composition and
/ management Of this combination.
F-,.