Omaha daily bee., 1910-04-20
CgTOSEBG TRFURBQUIRY
w1CzEzszAM BACKS MOVEMENT
governments - MnEs sveepfnE Probe
% the Crest Hum Msvenens-
Hfw FIarry On Cntfsn
Erchmure.

E~xrhazEs.
NEW YORK April IA federal in
vesugaaun without nracsdenr In this cnun-
ty viii be started in View York Tomorrow
The attorney general % the United States
has ordered an inquiry INTO the gigantic
bull movement in cotton. with whlrn rhe
names Of James A Patten OF ChiCagu.
Frank B. HaVne and William P Brown
u View Orleans and Eugene Scales Of
Texas have BEEN popularity Connected.
Hayus and Bnown both appear A. de-
fendants IN Che proceedings but IL could
not be learned whether Mr Parrsn VII
be sunpnened az Chicago t1 come here
and TESTIFY. lie has heen generally cred
tied. huwsvar. with being The financial
genius of the puui. and 10 recent inter-
views he has outlined his nulliHh poHitlun
and hts determination 20 nghr the sup
posed bear clique which has been rsanip-
ping cotton TO this country rom ngiHn
Ia an eudearur to break the market
rhe bul movement mas reached such a
Etsas. however. thnt there ara uImurs OF
unsvibIa Nay corner In the New York
MARKET Never before has the government
= hrDuEhr similar action EainH any pool
operating In the market eitgier an the long
Or the short side
s~ubpaenns Are Issued.
Msaner we're the details n me proposed
inquiry available to-day subpOenas we're
issued az the direction Of Mr. WIukgrshau.
c~um1nnndinE a dozen or more prominent
New York cotton brokers to appear before
q special federal grand jury romurrow 20
testify in the matter Of the ~Cnitsd States
against Frank 3. Hayne and William p.
Brown
The suopoeuas Demand the submission
90 the fury OF al recnrrs. papers. letters.
memoranda and an agreement dated FED
ruary % last by Payne and Brown and
others
The agreement tina subph0snas stated.
WIS Tor rhs purchase Of I5a.0oo bales Of cot
ton for delivery In New York curing r1s
month Of March and July inclusive. At
certain prices and under certain conditions.
The fixing OF the prices and conditions.
tina government charges. was a violation Of
law
Exetsed Break In Prices.
announcement OF the governments action
was followed by a very sxuitsd break in
prices on the New York Cotton exchange.
which az one time bid fair to result IN al
most as great a decentralization as that
noted last January. Early In April the
market had n very severe setback under
heavy nuuidatf0n and at that time there
were rumurs circulating that the bulls
were abandoning their position. but q con-
Siderable recovery IN prices sinCs then sug-
gssted that t1e yelling had been largely IN
the way df outside i1afdanon and dursng
the PAST week or ten days thsra have been
raussFsd rumurs Of an impending squeeze.
ms position IN the near months al any
rato has Led % hsaTy shipments OF cotton
% New York Tor delivery ON contract and
rha arrivals repurted tudaT we're IN excess
OF 3.@s bales. including nearly 1A08 bales
from liverpool. whns tas stock OF c0tt0n
avA9labIs nor delivery on contracts has al.
ready Increased from about E.08 bales q
1808 bales.
Even 90, Il has been auprahanded in local
circles that zrn1utns OF 0oftnn arEirtnE herr
from the SCUM and abroad we're nut SUIT
nciant 70 satisfy compisraiy the CONTRACT
held BY tina bull lenders whtch have beer
esrmAaad at about aaaD bales. and Their
probably has bean sums sCnttsrud buyfnI
based upon an expected sucne1f1l Issue o.
TIA bull campaign.
me Rrl1E1nE IaoeEesE.
Tha sailing which followed today.s rhrsai
az possible legal obstacles To BuIiHh plans
probably represented in a large measur
ras Mgaidnn0n az this sO-caIlsd trailing IN
esrear. IN. addition thsrs was undoubrs6I'
soma sailing Cor the accuunt Of pnarsss1ona
traders an he idaA thar she Legal aarol
might force the liquidation OF the bul
haldingA
Usually GIoHa atudaufs Of trading arounl
the local ring sxprsHBed rhs opinfun arts
tina close that ths bull leaders taemselve
had mcrazsed rather than raducsa taei
contract holdings and ths marEst rsle
cGuaadsrnhiy srandiar In the Iana rradin
and alOssd a. q loss OF only rum 70 10 !
points rur rna azr
When the news az the Eovsrumsrra Al
efnnu az Ergr was sircuIasnd the marss
beoana weak and unssrrIed and lnside q
an hour Nav cottnu sold Ar IkE& ceuta a
% puiuts halnu ne high IavaI OF the an
and abuut q p1inra under the high Brar
af lnsE week. Nay CLOSED a. AS cent
aid.
Eater munfhs ayunpathi-ed n ne nsu