The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-04-23
COTTON BULLS INDICTED.
CRIME TO ADVANCE PRICE OF
COTTON.
Attorney General Wickersham Be-
gins Remarkable Prosecution
Against Brown and Hayne-It is a
Scheme To Break the Price of Cot
ton I'm Interest of Manufacturers.

be started in New York tomorrow a
federal investigation without prece-
dent in this country. The attorney
general Of the United States has or
dered an inquiry into the gigantic
bull movement in cotton, with which
the names of James A. Patten Of
Chicago. Frank B. Hayne, william
p. Brown OF New Orleans and Eu-
ularly connected.
Hayne and Brown both appear as
defendants in the proceedings, but 1t
could not be learned whether Mr..
Patten will be subpoenaed at Chica-
40 TO come here and testify. He has
been generally credited, however.
with being the financial genius of the
pool. and In recent interviews he has
outlined his bullish position and his
determination to fight the supposed
bear clique. which has been reship-
ping cotton to this country from
England I'm endeavors TO break the
market. The bull movement has
reached such stage. however, that
there are rumors of a possible May
corner In the New York market.
Never before has the government
brought similar action against any
pool operation in the market on eth
er the long or the short side. Sub
poenas were issued at the direction
OF Mr.. wickersham, commanding a
dozen or more prominent New York
cotton brokers to appear before a
special federal grand jury tomorrow
to testify In the matter of the United
States against Frank b. Hayne and
William p. Brown"
The subpoenas demand the submis-
sion TO the special grand jury Of all
records papers. letters. memoranda
and an agreement dated February 26.
last by Mr.. Hayne. Brown and 9TH
ers. The agreement, the subpoenas
state. was for the purchase Of $50, 900
bales OF cotton for delivery In New
York during the months Of May and
July. inclusive. at certain prices and
under certain conditions. The fixing
of the price and conditions. the gov
ernment charges. was violation Of
law.
Announcement Of the governments
action was followed by a very excited
break in prices on the New York cot
ton exchange which at one time bade
fair TO result in almost as great a de-
monstration as that noted last jan
uary. Early In April the market had
very severe decline under heavy
liquidation and at that time there
were rumors circulating that the bulls
were abandoning their position. but
a considerable recovery in prices
since then suggested that the selling
had been largely In the way Of out
side liquidation and during the past
week or 10 days there have been re-
Moved rumors OF an impending
squeeze. The position In the near
months. at any rate, has led to heavy
shipments OF cotton TO New York for
delivery on contracts and the arrival
reported today were In excess Of 49,
900 bales. including nearly $4,000
from Liverpool. while the stock of
cotton available for delivery oil con-
tract has already increased from
about $1,000 bales 10 10000. Even
so, IL has been apprehended In local
circles that the amount of cotton ar
irving here from the South and abroad
would not completely satisfy the con-
tract held by bull leaders, which has
been estimated at about 400, 900
bales. and there has probably been
some scattered buying on the unex-
pectedly successful issue of the bull
campaign.
The selling which followed today's
threat OF possible legal obstacles TO
bullish plans. probably represented in
measure. the liquidation of this So
called trailing interest. In addition.
there was undoubtedly some selling
for the account OF professional trad
ers on the idea that legal action
might force the liquidation OF the
bull holdings. But usually close stu
dents OF trading around the local ring
expressed the opinion after the close
that the bull leaders themselves had
increased rather than reduced their
contract holdings and the market
ruled considerably steadicr i'm the
late trading and closed at . loss Of
only from Z 20 10 points for the day.
When the news OF the govern
ments decision at first was circulat-
ed. the marekt became very weak