Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-06-18
FACES
INDICTMENT
F0RCORNER
MARKET MANIPULATION
NOW DECLARED ILLEGAL
Government Under Sherman
Act viii Attempt to Punish
Men Who Participated in the
Spectacular Deal in Cotton.
[s, NornIng JournaI speelal r.a.sa wIrel

nv Morning journal Special Tsassd Wirel
New York, June 1.-THE govern
ment came out In the open today in
its attempt to prove that manipulate
ing the cotton market is against the
lfw. james A. Patten OF Chicago end
seven lesser figures N the speculative
field have been Indicted charged with
conspiracy in restraint of tradc un-
der the sherman antitrust law.
The indictmcrt was returned by q
special federal grand jury late today
end handed up before Judge Hough
In the United States circuit court. Five
o. those Naturalization, Eugene b..
Scates, Frank b. Hayne, William f..
Brown and NJ. II. Rothschild-gave
bail Of s., 900. For the other three
who we're neither present in court nor
represented by lawyers, bench war
rants were issued. They are sydney
j.. Herman. Robert NJ. Thompson and
Charles A.. Kittlc.
When the indictments We're an
nounced there was IN excited break
on the New York cotton exchange.
The bun leaders, however, appear
cd undistnrbed by the governments
eetion and by their buying orders
helped to rally prices during the last
llfM llaIu1tN.
Five counts are embraced in the i'm
dietment, which IS in blanket form
and contains 5000 words. The first
count charges that the defendant un-
lawfully did conspirc with certain
coi positions not herein indicted TO
demend 9rbitIgry. excessive and mon
cpolistic prices for cotton"
Scores of cotton mills in Alabama,
Georgia end the Carolinas are named
as co-conspifators though not includ-
ed in the Indictment.
Describing the alleged conspiracy.
the Indictment saws that the c%onspira-
tois were to become members Of an
unlpwful combination under which
they were s%eyerally t. purchase for
shipment from the south TO New York
Ell cotton not directly absorbed by
the fen eign and domestic spinners and
manufacturers in the ordinary course
Of business, in other words, as much
ag they could buy from day to day
without seriously enhancing the price,
but nevertheless to such an extent
that before the end OF the crop year
they would have SO much cotton in
their possession in the city Of New
York that they could demand monop-
Olistic prices
There is appended to the indict-
ment what purpolts to be an agree
ment between Brown and Hayne as
parties Of the first part and certain
spinners as parties of the socnnd part,
through the medium of which 1t is al
legged cotton was illegally co1nered.
Potten's name does not figure in
the contract at all although he was
popularity credited with being the
chief leader In the bull movement. 1t
Is estimated hat the bull leaders dur
ing their campaign handled nearly
400. 600 bales of cotton, representing
q value Of $50. 900, 900.
Arthur S, Marsha, president OF the
New York cotton exchange, issued a
tonight In which he said
he he'd received a communication
from the United States attorney gem
clal saying that the proceedings were
merely to prevent corners
END were not aimed 1T regular trans
actions on the cotton exchange.
"This statement" says Mr.. Marsh, |
makes IT perfectly clear that mem
berg of h cotton exchange ana their
customers who are using contracts for |
future delivery of cotton made
upOn the exchange in the ordinary
course of their business need not fear
The slightest alarm with regard TO
The validity of these transactions. The
New York cotton exchange, us an cN-
'hange has no interest OF concern in
he ease at Issue
james A.. Patten, who is indicted,
nus been known lor years MS a corn
md wheat sneculntor and more latter
the cotton king"
Frank b. Hayne and William u.
iroWn are cotton operators of New
orleans ana Eugene 49,. Scales IS a
Otton operator in Texas.
The other indicted men are New
Workers. Robot NJ. Thompson is the
prominent of these. liz is Il
pecial partner IN the brokerage firm
5. II. =. Pell q Co, and a well
lnown financier. kittle Is a member
4 the same firm.