New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-06-17
INDICTMENTS TODAY
IN COTTON INQUIRY
Grand jury Completing Its Work
Finds True Bills Against
Staple Boosters.
FOUND UNDER SHERMAN ACT
Government Counsel Denies
That Bears Brought Action
to Get Even with the
Bull Operators.

After an investigation of the cotton
bull pool. covering altogether nearly Two
months, the federal grand jury com
pleted it's work yesterday. True bills
were found and indictments viii be
handed down to-day. when warrants will
be issued for the arrest of the persons
charged with conspiracy in restraint Of
trade under the provisions of the Sner-
man act. The proceedings from first 20
last were conducted by Clark McKer-
cher, an Assistant United states At
torney General. The indictments were
drawn by Oliver Pagan another as
sistant To Attorney General Wicker
sham.
Witnesses were called in the second
proceeding here, which was closed
yesterday. to appear in a certain ac-
ton now pending and undetermined in
the Circuit Court OF the Uni ed States
for the Southern District of New York
between the United States of America,
complainant, and James A. Patten and
others, defendants etc, demanding also
the production of all books. papers and
records, cable and telegraph messages.
agreements notices. memoranda or
copies thereof. including authorization
and directions TO purchase and sell raw
cotton. embracing the period from No
vember 80 last to august next
On April IS the f1r-t investigation was
begun and the defendants then named
were William P. Brown. F. B. Hayne. Of
New Orleans. and others. the others said
to have been Mr.. Patten and Eugene P.
preliminary to the second. and had for
its object the discovery of d bull pool
agreement entered into on February 26
of this year. The agreement was forth
coming after grand jury session COW
ering five days The present inquiry was
begun early in May.
The names of the men indicted may
be withheld until the bench warrants
are served. If the persons do not live
in this district there will have to be re-
moval proceedings. which will delay the
progress of the case a great deal
The Governments Allegations.
When the Investigation was first be-
gun statement was issued by the De-
partment of Justice, giving a summary
of the situation which brought about
the action. 1t follows:
Information was laid before the At
torney General indicating the fact that
a combination had been formed between
several operators to buy I'd all the re-
naming unused raw cotton produced ~
the United States in the crop of l909-1O.
and that as a result of the operation OF
this pool the price of cotton already has
been advanced so largely in excess of
the normal price that the cotton manu-
facturers had reduced greatly their out
put rather than buy at this exorbitant
price, thus throwing out of employment
more than 25 per cent of the cotton mill
operatives in the United States. and re-
sultins in the monopolization of the en-
tire visible supply of raw cotton in the
market and the diminution in the COM
merce of cotton goods
Witnesses from Many States
Witnesses have been heard from all
parts of the cotton producing section
of the country, and nearly every broker
in this city supposed to have Informal
ton of value vas subpen4d. Sons OF
the witnesses refused to produce their
books and papers. but only one got away
with his determination not to obey the
subpoena
Local brokers tried hard TO find out
who started the investigation, but did
not succeed. The government counsel
refused 20 give the name Of the COM
plainant or complainants. Mr. Patten
frequently denied that he had any part
in an agreement to control the cotton
stock. and gave out statements in which
he said that all his cotton operations
were in line with legitimate business
methods-tllat of buying in the cheapest
market and selling in the dearest
One of the government counsel denied
yesterday that the bears in the business
had taken this means of getting back At
the bulls. few brokers en- the bear
side OF the market were called at the
preliminary investigation when the
aerea01eut WAS beine sought