New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-06-18
COTTON MEN INDICTED
Continued from first page

Brown closed with a postscript, which
follows:
ct also talked to a large spinner from
Spartsnburg by the name of Smith
feel sure he will Join. He is a friend of
Parker and Sythe- I have to be very
careful and mention as few names as
possible. otherwise the typewriter Will
catch on
telegraph message sent by Mr..
Hayne to Lewis W. Parker at Green
Vile. S c.. was mentioned in the third
overt act. the former saying: "To-days
market shows what will be done here If
matters hold The message was sent
from this city on March 1. when the
price of cotton was mounting. Mr..
Hayne and Mr.. Brown figure principally
in the first series Of overt acts, to and
including the agreement which formed
the basis of the cotton pool
Alleged Pool Agreement.
This a agreement was dated February
26, 1910. and is by Mr.. Brown and Mr..
Hayne as parties Of the first part. The
spinners and others are the parties of
the second part. The document men
tons the consideration as SO and then
continues;
The said parties of the second part here
by subscribe for, and authorize the par
ties Of the first part to buy for their &C
count contracts on the New York Cotton
Exchange for the future delivery OF the
spective names Said cotton to be pur-
chased for delivery in the months Of
March. April. May, June and July. 1919, or
n i1-jI ai n
months IN the discretion Of the parties Of
the first part and the committee herein
after set ont.
That committee was composed of
Lewis ". Parker, Fuller E Galloway
and J. ". Cannon. Relative to the price
to be charged the agreement has this to
say:
The price at which said contracts are
to be delivered 10 the parties of the second
part, through their brokers', is to be the
actual price at which purchased, but the
the average price of the cotton in all con-
tracts bought under the terms of this con-
tract. but in no event to exceed Is cents
4 pound, and in making said average no
contract turned in by any party thereto
and no cotton held by any party at this
date and turned in as compliance with
this contract, shall be counted or estt-
mated
ties to the contract or agreement was to
buy directly or indirectly any cotton for
future delivery on the cotton exchanges
until the parties of the first part had
completed the purchases provided for in
the pact. or until the price exceeded 10
cents a pound.
Relies on Second Count.
Alleged unlawful purchases of cotton
under this agreement are cited as having
been made by Mr.. Patten and others
mentioned in the indictment. The sec
end count contains the gist of the whole
indictment, and will be the one upon
which the government will make its
fight for conviction. In describing the
method alleged to have been devised to
control the trade in the states mentioned
in the first count Of the indictment the
second count declares:
berS Of and engage in an unlawful com
bination, in the form of an agreement, IN
der which they were. during the remainder
OF said crop year, severally to purchase,
for shipment from the divers places in
said Southern states where the same was
raised as aforesaid and for deliver to
cotton of said crops of said crop year and
prior crop years as was not being ab-
sorbed by the demands of foreign and do
mestic spinners and manufacturers and re
moved from the markets by such spinners
and manufacturers in the ordinary course
Of business as in this count aforesaid, as
day without seriously enhancing the price
thereof, but, nevertheless, to such an ex-
tent that together they would. long before
the end OF said crop year, have so much
Of that cotton In their possession, in said
city of New York that they could, by rea-
son Of the abnormal and Z, artificial condi-
nlerce. severaily demand arbitrary, exces~
sive and rnonopolistic prices for said cot
ton upon the sale thereof by them re-
spectively.
patten seenos Bored.
Mr.. Patten looked bored when he went
into United States Commissioner
Shields's room to sign the bail bond
Whenever he was asked q question he
would wave his hand YEARLY to his
counsel. Mr.. Woolman. Mr.. Scales and
the other men who had appeared before
Mr. Shields to sign the bond were as
seemingly Indifferent as Mr.. Patten. Mr..
Scales and Mr.. Brown kept away from
the group around the long table where
Mr.. Patten sat. Mr.. Hayne was inclined
to regard the matter as easy to defeat,
Mr. Woolman gave out q statement for
Mr.. Patten later in the day. in which he
said:
Mr. Patten was no party to any of these
spinners' contracts; he knew nothing about
them and took part or parttcipau ton in
them directly or Indirectly. Mr.. Patten.
being man Of high standing in his own
| community. hated very much TO be indicted.
notwithstanding the fact that there might
be no foundation for 1t, but now that 1t
is done there is nothing for us to do except
to have the federal courts determine
whether anything has been done by him,
directly or indirectly. that legally or morally
culpaIbe.
Colonel Thompson was graduated
from Annapolis in 1863. and served in
the navy until 1871. Then he studied
law at Harvard. and was admitted to
the bar in 1874. He was a member of
the Boston COMMON Council for several
years, and then went into the copper
and nickel smelling business. He was
for many years president of the oxford
Copper Company, and Is now chairman
of the board of directors of the Inter
national Nickel Company, president of
the United States Naval Academy
Alumni Association. and a member of