New-York tribune., 1910-04-19
GOVERNMENT JUMPS
ON COTTON BROKERS
Eight Subpenaed in Proceeding
Against Alleged Pool to
Corner Market.
MILLS ASKED FEDERAL AID
speculators Angrily Attribute
Washington Action 20 Shorts
--Elkirs Law In
voked.

vokeo.
10 testify IN aa action enth'ieo nc III,
S,s-es sst. Frank Z. Hesne ana "a
ar, y Brown. cotton brokers. eisA' JIM
-,,t,n brokers have oeen sunTaanaeu 10 ~
,.sr before she federal grand July ui'S
-,,oy-,irs. This is the beginning OF IN
rsck lyv ths government on the NC,
- ,,o,, s., cotton. and the men who we're
-.os ,,.,,N ,l,a -auers yesterday viii have
:, bring uBth them all the documents ana
- se,s hearins On an alleged attempt 10
,,on.-oi the delivery Of one hundred ano hity
,l-c,,Ssnd bales OF cotton IN lhe next 'lie
months.
The ,,.r who have been subprnaed are
n.,i1;sr, y Craig. J. Temple Gwathmey'
David II. KILLER, r. NJ. Weld. Nathaniel L.
c-s,nepter. Richard A. Springs, Norrle SEA
lar and Edward :. Moyse.
Who, l. was learned among cotton broA-
o.. thar the government was about TO DC
gin action there was much excitement MI
4-s,,- Vas one OF the first 10 hear ot II
Fe said:
Il do not know anything officially about
-ns ,,roceediug instituted by the govern
inert. have not been subpGnaed ana 81
I know about the matter is what haN'
7cad I'M the newspapers l consider thls q"
Indecent and outrageous action, and every
member Of the New York Cotton ENchanse
v-l,l whom ] have talked on the subject
:. kcs the same view Many az hem con
sider that if any member of tie exchange
tgs caused this action he should be expelled
Denies Attempt at Corner.
"our position in October was that We
-ocei,ed and shipped sixty-fve thousand 70
"a nc
hee- evidence that there was no attempt
,a corner October is the fact tha: May cot
ton in Decernbe- sold one hundrei ana fifty
poin.s above the figure at which Oct'ter
had closed. In March we received and
shinpe6 about sixty-five thousand bales
which were rendered to us Certainly no
s+tsu,pt WAC made 70 corner March, and 1
don't see how the government or any one
elsc ca, guess what our intentions are con-
cerrinz May or July.
L hardly think that the government VIII
decide that IL is legal or proper 10 sell con
trscts in New York AT price far below
what cotton can he bought for in the Sou'h
and rendered against these contracts ana
decide that II IS criminal 10 buy contracts
in New York and ask for delivery on them
when IN our opinion the cotton on those
Contracts Is cheaper than n can he bought
anywhere else in the United States"
George W Wickersham. United States
Attorney General has sent an assistant
Clark NJ Kercher. to present The govern
rneut's complaint 20 the jury and 10 eN-
anime the witnesses. According TO gov
ernnent lawyer. this action will not he an
a,ternpt 70 probe into legitimate specula-
tion. but an attack upon an alleged pool,
formed under an agreement in violation Of
the Elkins act
Mills Seek Federal Relief.
While the government has heard that
shere is an agreement in force TO control
Nav cotton. in fact, 10 control the staple
FOR the next three months. the writing has
not been obtained u was from manu-
facrurers who were held up i'm their sup
plies that the government received the
complaint Many mills in New England
were compelled to curtail their output and
some were shut down. They made an ap-
meal TO Mr. Wickersham for relief. At the
federal building il was said yesterday:
Mills that had cotton in stock could not
arrange for q new supply. They were
afraid 10 use what they had under such
conditions The future was uncertain. They
knew that there was a pool. They had
heard that with Brown and Hayne were
Eugene
Pa;ten, Of Chicago. They heard Of an
agreement TO purchase 10000 bales Of cot
ton for delivery between March and July
- certain prices and under certain condi-
tons II the government can establish that
this agreement exists it Will have a clear
case against the brokers. The action will
then take the form Of civil suit for an
Injunction"
The same man said that 81 the govern
rneut is successful in this investigation and
resultant prosecution a precedent will be
formed that VIII put il in a position TO at
-ack corners ia staples Of any kind. Ever
since ;he P;ttter corner in wheat last year
and the news that be was going 10 take a
hand In manipulating the cottor naarke; the
government has been making 4 quiet in
.estigatiol.
eileee EIkins Act Violation
Special Treasury agents have been in the
South and have visited the mills OF New
England and elsewhere on a still hunt for
>,sdence. y was not long before enough
had been gathered 20 make the Attorney
General sure that there was an agreement
m violation of the Eikins act. II was said
las, evening that Mr.. Wickersham would
issue = statement regarding the govern
uent position to-day.
Mr. Patten. who is in Chicago. viii start
Tor New York this morning fIis brokers
received = dispatch from him vesterda v
saving that he had not beer subpenaed
in the government action and knew nothing
.sboi1' 81 beyond the brief summary sent
him from Wall Street one Of Mr.. Pat
tens close business associates said y'ester-
cav that the latter had in recent months
been operating entirely Independently in
cotton as he operated last year in the
grain market TIe added that Mr Patten
had lately bought large amount Of cotton
lele and had made deliveries in the South.
a broker said.
The action Of The government has not
been insiigated by the largest spot dealers,
but represents q movement started by out
side Wall Street houses and individuals. in
order SO break the contract cotton market
for fheir own interest This fact was widely
discussed sn ire Street to-day, and IN par
IIcularly uupieassnt fashion. Ny best iE-
formation s. that Too action 10y the coy
sirniort has been inspired by interests who
ar short - cotton. WITH the object Of in
iYOUR