New-York tribune., 1910-04-22
From The Tribune Fuf.au.l
Washington Au-i


Washington. April q.
COTTON PRosECUTIoN.-In the esti-
nation Of the law officers OF the adrninistrs-
ton the current prosecution of the cotton
pool is much more fsrresChinE and impor-
tsnt than Is generally Appreciated. While.
of course. the punishment 81 those believed
20 have formed a combination in restraint
cf trade is the FIRST object sought. the sue
cessful issue Of THIS prosecution viii d.
more 20 establish the scope and beneficial
results ~ the sherman antitrust law than,
any case previously brought under that sc--
certain operators IN cotton have. according
20 the contention of the government. formed
pool for the enhancement of tho price OF
raw cotton. and 10 that end have sought u
exercise drastic control over interstate con-
nierce IN that commodity. They have IL is
maintained. sought 10 induce the nlsnufsct-
urers 10 huy their supplies solely from the
POOL ana have so far succeeded in their
EFFORTS 20 control tho trade in this COM
modify that their operations have resulted
IN closing many mills end throwing thou
sands Of worl0rnen cut of employment. II
The contentious or the government can h.
established. no more fragrant violation IF
the law against restraint Of trade could be
perpetrated. sno mons. in which the banef,;l
results Of such = combination are more
s'rikinglv illustrated The price Of raw
cotton has. Of course been materially az
Vanoed. and hardship has been inflicted m
circles reaching far beyond the immediate
vicinity OF the operators
WILL ESTABLISH PRINCIPLE-The
success of this suit will il IS believed. IS.
tshish = principle for the control Of those
Who seek 10 acquire nonopolistic control
of any given commodity. popularity known
as corners" will point the wav for further
prosecution of similar attempts, and VIII
n'oreover. define the limitations Of the fei-
erai government IN its exercise Of such con-
trol n is expected. also. that the success
or this prosecution will demonstrate the su-
perhuitv OF the pending bill prohibiting
dealings in cotton futures and possibly
demonstrate in advance its un constitution
slity N pools and corners which affect IN
terstate commerce can be successfully
prosecuted under the Sherman law. there
viii re no occasion for 2 statute probibI.-
ING the sale Of futures on the other hand
there T. sood reason 20 believe thata statue
prohibiting dealing I'm futures would Cove
unconstitutional The federal government
can oeal with such operations only II they
can he shown 10 affect interstate commerce.
which many pools and corners DO not. as
Tor instance some Of the wheat corners
which have been run. although rarely with
success, on the Chicago Board Of Trade.
CURING syMPToMs.-wben consr..s
attempts to penalize the sale Of cotton
futures, options, etc. II is. I'm IN. opinion
or those who have given most study TO this
6 80,
than the disease What Congress seeks 70
check is that speculation IN cotton which
Is pure gambling. The purchase in advance
OF sufficient supply Of raw material for
2 mill or the buying OF an option 10 cover
an underestimated demand when the frs,
purchase was made. is STRAIGHTFORWARD
ano honest transaction. dictated by the first
principles OF good business Purchase for
future selivery. or the buying OF ontions
"here there is no expectation or actual de-
livery or or utilizing such option. hut where
the parties 10 the trsnss ction purpose only
10 conclude II by . payment Of the differ
cree between the selling and the market
prices when the transaction natures is
gambling. and that is believed 10 be the
disease At which Congress seeks to strike
a blow. Unless. however. Il can be shown
that such gambling affects int srstste com
neroe IL viii he without the Jurisdiction
of the federal government. and that is tn.
reef on Uhich the pending bill. II IL b.
comes Law. is expected TO founder.
LONG AND SHORT HAUL-There sp-
pears 10 be little appreciation OF the srav-
ny Of the results which would attend The
enactment OF the long and short baur
clause incorporated IN the int.rstst. con-.
nlerce till by the I1o,,v. ,-,,--,,.s..
which has many friends in the Senate a.
though not enough il IS believed ~ e~.o,
us adoption. Those who have given the
most careful study 20 this subiec, main
tain that the enactment of such a pro,-isio,