The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-18
COTTON POOL INDICTMENTS


but should he held until the cotton was
rendered The contract then contains
these provisions
The spinners and manufacturers agree
20 authorize the pool to buy for their
account contracts on the New York Cotton
ENchange for the future delivery Of a GER
tam number Of bales. the total number
BEING apportiOned among the respective
spinners, these purchases to he on de-
liyeries from March 90 June or July.
/ The pool agrees 90 subscribe on its own
account contracts upon the Cotton EX-
change bale Tor bale ~ subscribed by the
spinnerH and manufacturers, along the
same schedule Of deliveries all purchases
20 be appOrtiOned between the pool aud
the second parties 70 the agreement.
The operation Of the contract il 10
begin with the purchase ~ 800 600 bales
10y the spinners. though the understand
ing 10 that lSO. ono bales are to he paid for
by the pool That done the pool may
/ begin TO buy in such amounts and al
such times as Il deems hest. provided
no higher than rs cents a pound shall he
tho price paid. II the price goes above
that figure before the total amount 81
cotton subscribed 20 by both parties IL
purchased the buying will stop until the
agreed price again prevails
The price AZ which said contracts
are to he delivered 10 the parties Of the
second part uhe spinners and manu-
tacturersl. through their brokers. - 10
h the actual price az which purchased Ia
another clause in the contract cited by
the indictment. hut the Ultimate price
TO each subscriber shall he the average
price 81 the cotton in all contracts bought
under the terms 81 this CONTRACT
In arriving a. this average M cotton
already held by any party n the contract
and hv them turned into the pool shall
he estimated The contract closes With the
stipulation for the appointment of
committee II the spinners IN prorats all
purchases bought On their account AND
otherwise to represent them in the
manipulation Og the pOol machinery
The contract was dated February "A. 1910
An amendment IN Tho original contract
Was made IN MarCh THIS stipulated that
instead of an initial ioint purchase 81
3nn.On hsl~s I51 DO hales shall l,a The
first purchase and the poll agrees N
finance until natuTiivcortracts Tor 75.O0p
lales IN addition ~ tho amount otherwise
subscribed IN nv them and the srinnsrs
equally provided that The pool shall not
10 required n a~rept tho additions
cotton rendered until the parties ~ the
first and secOnd parts have both accented
the fun amount ~ the cotton subscribed
n Nv them equally
The remainder ~ the first count Of the
Indictment n taken tip with specifications
n purchases made nv each ~ the indicted
men under the contract specified The
other counts cite the several violations
" the Law made under the ousrafi0n n
tho popl
IN summing M the unusual aspects NJ
No" case which u thus oDanAd tho state
mant from the Attorney Generals ofice
saws
Pursuant ~ mi. agreement fhetv-sn
ths pool and Tho spinner and nanufaD.
i1rsrs N" p0ol acquired about r0U
bale, NJ raw cotton for delivery In NAV.
ohIrh With large amount alread, IN
hand us- ~ no lifted Out NJ tho three
principal market. NJ the world This
complete control ~ the MAJ market Nth
the furiher purchase ~ several hundred
thousand bales ~ me remaining supply
for delivery n Iuiy and AuRu.t vas boz
tended ~ complete the monopoly or tho
remainder n rho orop A. 'hs facts we're
presented ~ tho Department of Iust i,s
tins appeared ~ ne a typical instance ~
combination for The purpose NJ fore
sailing tho market securing ths entire
visible supply NJ raw rom modify during
period n months and securing the power
10 n''a'" NV" pro" me '"h'Nf'"'
N',n '"'"s "'"'n nc "I-r' QUESTION
70 Nn'n :, "l"'n pln'', A,'~n'''n ma Oeen
this was considered bv the depart ment
a. requiring thorough Investigation THIS
IhNe-, ''"n ha' r"-uU"l w 'All'l l'ns w"
'"Ahn jury 4" w" eA'''"n'" ~ 70" com
W" SUI W " '''''''N' uH'H' ''''''-'
Ahn '"' .uu', 'u''u- nav" I"''oNrn.
y nov 70 ~ u"l'''''''' 'nA' 'n'' pros
''n'lph m'o''e' any IN"'''n A. 70 W"
W"pIF's :" n'e'"''l' w 'sa'ng w COTTON ,
on 'he v" '"'H "'''n hA'hHnse "r "I
me QUESTION W n"A'hs' w 'h'hAhses ~
Az F." ""a'H WV" -Pe''" $50 Ut ""'-
'hh" 'o'n''hA''"h '"' an A'nNeH p'In"se'
ann ihA' pnII"-" one 'onn'inheH ny an
at o. congress nam"'|. 70 r"'ram ana
non"p""h" ln'"r-.A'" 'rane ava commerce"
m c"mmnh"' W" T"" ana Nhr"s''hied
nse NJ "hl'h - ~ p''"" 'hp''Ah'e ~ I'M"
" hole NATION
=, Arthur Marsh. president OF me New