New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-20
Announces Definitely That 1t Is
After the Spectators in
All Staples.
COTTON MEN BLAME BEARS
Drastic Inquiry To Be Made and
Criminal Indictments Found
if Possible-May
Call Patten.

cation Of the alleged cotton pool was the
beginning of a determination by the
government To make war on futures in
staples whether cotton or the food prod
ucts OF the fourteen brokers so far
subponaed in the present complaint
against Frank b. Hayne and William p
Brown. four testified yesterday. and it
was said that the government got pos
session Of the contract Of February 26
Of this year signed by the leaders i'm the
pool
The witnesses were Evans r. Dick, ].
Temple Gwathmey and Norrie SeIIar of
Dick Brothers & Co. and George W.
Neville. Of stephen NJ Weld & Co. AS
the government prosecutor. Clark Nc
Kerchcr. Assistant United States At
torney General could have the jury for
only two hours. the investigation went
over until tomorrow.
IN addition to the pool agreement
other information was obtained. espe-
Clally regarding agreements with certain
spinning interests. by which the spinners
were 10 take from the pool members all
the cotton delivered to them on the long
contract. These series Of agreements
were what the government was after.
and Mr.. McKercher took an afternoon
train for Washington to submit the re-
suit Of the initial inquiry.
Brokers VoIubIe in peniaIs.
Cotton brokers were in fighting
frame Of mind all day. Denials of the
existence Of pool or other agreements
came without A question being asked.
and i'm many instances the government
received harsh verbal treatment Tele-
graph messages chased one another over
the wires to all sections Of the country
20 reassure the correspondents Of firms
whose contracts might he affected. Mr.
Hayne received a message from a friend
in Rome. Ga. which said:
Are all the bears so scared that they
have to call for policeman"
From the Board Of Trade Of Thomson.
Ca. came a message:
Have wired Georgia congressman our
protest against Wickersham's action"
Several brokers declared that the in
vestigation WAS an interference with
legitimate business. and one said that
the same mon who are now bears in the
cotton market. and who are believed to
he hack Of the governments action. were
bulls in December. 1905. and compelled
Theodore A. Price to settle contracts for
sixty Thousand bales of December cot
ton which he had sold short at from 80
, to 50 points above the price of January
cotton. This was equivalent to from S3
So 81 n bale Carpenter Baggot & Go.
sent this message to two hundred firms
in this country and abroad.
Federal grand jury New York investisar-
ing alleged corner Nav cotton Thought
Instituted by unfortunate bears and spin
nerS. No corner contempt ted. but delivery
expected Government intervention invoked
II" create doubt. disgust and help 10 derress
price Of S0uth'S greatest cornmoditz- tuo
thirds Of which is used abroad. Tbinl5 ;D-
yestiEation shows weakness Of hears and
proves bull card.
In the Federal Building all the brokers
subppnaed were in the jury anteroom at
II O'Clock. the time mentioned i'm the
subppnas. They didn't seem TO have
any papers with them. but there wera
bulging pockets When the fourth man
was called it was seen that there vouId
be no time to hear any more. excepting
at an afternoon session. 1t took Mr. Nc
Kercher two hours to examine the four
men. and then rostponement until to-
morrow was announced.
May Subpoena Patten.
In addition 10 Messrs. Dick. Gwatb-
mey Sellar and Neville there were pres
ent William L. jerks. Nathaniel Carmen
ter, John McFadden. William u. Martin
+ p. Springs. Edward Moves. Richard
\. Springs. David II. Mi,er and William
r. Craig. There was rumor that
James A Patten would be subpnnaed
as soon as he arrived from Chicago.
There were rumors later in the dav
that Brown and Hayne would also be
subppnaed but these were allayed when
federal lawyer said that from the evil
dence obtained in the morning the gov
ernment had determined to find indict
ments for criminal prosecution if pos
sible This lawyer said:
1t was supposed that a civil action
would be all that would lee possible. but
the proceeding will be more drastic. The
investigation may be said to have al
ready broken up the pool for no member
of il viii now dare to operate according.
to the agreement for fear Of calling at
tention to his participation i'm the under
taking. The government does not intend
10 have action delayed, but will push IN.
case to a speedy conclusion"
Norris Sellar who was one Of the Wit
ncsses was seen in the afternoon He
wouldn't say a word about his Testimony
before the grand jury. when asked
whether be knew where the government
got its Information he said that the At
torney General might have started the
proceeding entirely on his own initiative
but repeated "A story that the inauir,,
Was instigated by exporters Of cotton to
China. saying that the high prices and
other conditions under which those
houses operate might have Influenced
them To go To the government with "A
complaint
Not Many Shorts, Says sellar.
Mr.. Sellar Indignantly denied story
that he knew who had made the COM
plant. and then speaking Of the reported
large short interests said:
There is no large short interest
Those who have sold cotton viii be able
u deliver every bale before May 81 with
I oUf fr,uhls IL is a mistake IN SO. a..