The citizen. (Honesdale, Pa.) 1908-1914, 1910-04-22
S2,0OO,000 Failure Due to
Pool Investigation.
OTHER FIRMS IN A BAD WAY.
James A. Patten, Leader of the Speeu-
lative Interests, Arrives In New
York With $1o,oo0ooo to Fight
Federal Inquiry.

New York. April 21.-The cotton sit
uation has become so acute owing to
dread of the result of the governments
investigation of the cotton pool that
more than one big Wall street house
dealing in cotton is in bad way finan-
cially, and if they should be forced to
the wall no one can predict where the
decentralization of the market will end.
The failure of Knight, Yancey Il Co.
one of the largest spot cotton firms in
the south with offices at Birmingham,
Ala: Decatur. Mobile and Memphis,
for S2,O0O,000 proved a disturbing fac
tor. The failure was attributed by cot
ton men generally TO the governments
investigation of the pool, said to be
engineered by William p. Brown.
Frank Il. Hayne and others.
James A. Patten. leader Of the cot
ton spectators, came to town to pro
test against the governments attitude
toward speculation in cotton. The
Gates following, who are friendly to
Patten, declared the cotton bears were
in hopeless position. since they were
short many thousands Of bales of cot
ton. while Patten and his friends had
the contracts and were prepared to
back them up with cash.
Patten brought $10,O00,O00 TO carry
on the fight. and he has the backing of
some of the most powerful Chicago
financial interests for a practically I'M
limited amount. Patten declared he
was prepared to pay cash for all the
cotton for which he had contracted.
| Patten informed the shorts that he
| had no desire to squeeze" them I'M
| mercifully, but was willing to let them
down on easy terms. These overtures
| were rejected.
The short interest in cotton is very
large. Some brokers estimate it al
| 100000 bales, but probably this is eX
aggerated Patten has 10000 bales
and experts in the cotton trade declare
| that he and his associates control no
| less than $4,000 bales, which would b,
near corner at the present time.
| 'If it is against the law to specu
late" declared Patten, I'm stop. Blu
so far as | know there is no statute
that prevents my buying cotton or any
thing else and paying for it.
"The story that l am financing the
operations of a so called cotton pool il
not true. / am a member of no pool
| have entered into contracts to bu,
cotton to be delivered to me during
May. l want the cotton. am read!
to pay for it with my own money.
wish to merchandise it. Any spinne
who wants any can buy it from me a
a reasonable price. | am not trying I
corner cotton.
"Spot cotton is cheaper here than
is anywhere else in the world. Tn
New York cotton exchange is a specu
lative market. Every time l try to SCI
any cotton a certain clique jumps on
and forces the price down. The pric
then doesn't represent a real marke
value. | intend to stand by my con
tracts and take delivery of the cotto
and pay for it.
81 gave my Liverpool brokers in
structions to sell my cotton to spinner
and not to spectators. This has bee
my practice every since | have aC
cepted delivery Of my cotton, whic
was turned over to me in January an
March.
81 have no agreement with anybod
about buying cotton except with tn
men who are to sell to me. | neve
knew Mr.. Hayne or Mr.. Brown unit
some time after | was long on cOttOr
Then it was only natural that W
should meet and discuss our commo
| interests"