The herald and news. [volume] (Newberry S.C.) 1903-1937, 1910-06-21
INDICTMENTS IN COTTON SPOOL"
Eight Big Spectators Charged With
COnspiracy-Many Southern
Mills CO.ConspiratOrs.

. New York, June 1.-THE govern
ment came out in the open today, IN
it's attempt to prove that manipulate
ing the cotton market is against the
law. James A. Patten, of Chicago,
and seven lesser figures in the specu-
lative field have been indicted, charg-
ed with conspiracy in restraint OF
trade, under the Sherman antitrust
law.
The indictment was returned by a
special Federal grand jury late this
afternoon and handed up before Judge
Hough, in the United States circuit
court. Five of those indicted-Pat-
ten, Eugene B. Scales, Frank B.
Hayne, William P. Brown and NJ. H.
Rothchild-gave bail Of $4,000, as re-
ouired, through counsel. For the
other three, who were neither present
in court MOI represented by lawyers,
bench warrants were issued. They
are Sydney J. Herman, Robert NJ.
Thompson and Charles A. Kittle.
Immediately the indictment was an
nounced there was an excited break
on the New York cotton exchange,
July and August deliveries declining
about $3.50 a bale, July selling at
1881, and August at 1876, as against
1912 and 1854 at the close of bust
ness on the previous night.
The bull leaders, however, appeared
to be in no manner disturbed by the
governments action and by their buy
ing orders helped to rally prices dur
ing the last few minutes, July closing
at 1892 and August at 14.49 bid, or
about II to IA points up from the
low level Of the day.
Five counts are embraced in the in
dictment, which is in blanket form
and contains 10000 words. The first
count charges that the defendants
,"unlawfully did conspire with GER
tain corporations, not herein indicted,
to demand arbitrary, excessive and
monopolistic prices for cotton"
The firms mentioned as co-conspira-
tors, though not included in the in
dictment, include:
South Carolina-Aiken Manufacture
ing company, Bath; Bolton mills, Bel
ton; BraBndon Mills, Greenville; Cap
tai City Mills, Columbia; Easley Cot
ton Mills, Easley; Glenn Lowery
Manufacturing company, Whitmire;
CRANKY Cotton Mills Columbia; Green
wood Cotton Mills, Greenwood; Gren-
del Mills, Greenwood; Jackson Mills,
Iva; Lancaster Cotton Mills, Lancas-
ter; Langley Manufactury company,
Langley; Monaghan Mills, Green
vile; Ninety-Six Cotton Mills, Green
bia; Ottaray Mills, Union; Pelzer
wood; Olympia Cotton Mills, Colum-
Manufacturing company, Pelzer;
Piedmont Manufacturing company,
Piedmont; Richland Cotton Mills, Co.
lumbia; Riverside Manufacturing
company, Anderson; Saxon Mills,
Spartanburg; Seminole Manufacture
ing company, Clearwater; Toxaway
mills, Anderson; Union-Bufalo Mills
company, Union; Williamson Mills,
WILLIAMSON; Woodruff Cotton Mills,
Woodruff, Woodside Cotton Mills,
Greenville.
Describing the inside workings OF
the alleged conspiracy, the Indictment
says that the conspirators were to be-
come members of and engage in an
unlawful combination, in the form of
an agreement, under which they were
s~everally to purchase for shipment,
from the South to New York, all the
cotton not directly absorbed by the
demands of foreign and domestic
spinners and manufacturers in the or
binary course of business; in other
words, as much as they could pur-
chase from day to day without Sc
riously enhancing the price, but, new
ertheless, to such an extent that to-
gether they would long before the end
of the crop>year, have so much cotton
in their possession in the city of New
York that they could, "by reason Of
the abnormal artificial condition thus
produced in said trade and commerce,
severely demand arbitrary, excessive
and monopolistic prices"
None of the "conspirators," continu-
ed the indictment, was able to finance
the deal individually, thus proving, in
the governments logic, that none Of
the defendants was, or expected to be
a spinner or a manufacturer, and had