The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-12-18
FIGHT FOLLOWS COTTON POOL
ROT BROkERS RE-
SYST MS ATTACK on THEN.
Eugene scales Has Not Done Besiily
Harm to Rethschiid Vet. No Far N
the Papers Reveal Meanwhile the
Csttsa Exchange Mustn't Harm Ms,se


Moyse 4 Co. n Cotton Exchange firm
at =, Beaver street. for an Injunction
restraining the Cotton Exchange from
taking action against the firm on u COM
plant fled by Morris II. Rothschild.
one Of theosiy men indicted by the Fed
eral Grand jury IN connection with the
cotton pool last August. was fled in the
Suprem. Court yesterday. and the details
Of the suit. which have been withheld
by counsel in the case. became known.
The papers showed that Supreme
Court Justice Seabury has appointed
J Hampden Dougherty referee to ex-
amin. Mr. Roth-child before trial in
order that his testimony may he used
in the application TO continue a tempo
rary injunction obtained week ago
by tn. Moyse firm
In their application 10 examine Roths-
child Moyse 4 Co act forth that certain
statements h. made in his complaint
to the Cotton Exchange against the Moyse
firm should he. the subject II an -Samina-
ton before the injunction motion is made.
The Court granted the application to
examine Rothschild "a To certain matters
--t forth. but denied it a. to others. The
plaintiffs filed yesterday notice Of appeal
from Justic" Seahury's ruling. and the
examination of Mr. Ro,h~child will he
stayed pending IN" appellate Division
decision. a. will also IN. motion to con
tInua the TEMPORARY Injunction. which
r.rnain- in .Iec, pending tn. decision
ON IN. motion
The Moys. suit i, directed against both
thu New York Cotton Exch,nS' and
the -IIJ.rvisorv committee which has
been INV .Sti gating the Rothschild charges
Th.. complaint sets forth that Roth-chIld
by his own admission Was gIllty ot Grim
nal conspirL"y IN conn .ctlon with the
cot m pool. AMI that as a crime - In
voly"I the supervisory commute" has
no right tn act on Ro;hSchIli's charg 60
even II they ara true. and the firm says
they are fal-"
The complaint allcgo- that late IN 1909
aud early Ia 1910 Ro'hSChiid IN con
spirac~ with Eugene Scales. James 4.
Patton. William = Brown. Frank r.
Ham" and Robert VI Thompson, all of
whom have been indicted. organized "A
pool IN March Ma. July and August
options. Under the pool agreement each
member Was To buy certain amount Of
colt On. pay Tor II on delivery and keep
it oG Iiss ma. rkot .Hsssi November. the
complaint says Rothschild'- share was
$3.50 bales. which II" bought and paid for
The NoySe firm -ay@ that the pool was
successful and that IN August cotton went
to ~ cents. ~ highest point IN thirty
years Then Scales became suspicious
because Of "A -udt.n decline in the mar
~, and declared that one % IN" members
o. tn. pool had broken his agr~-men,
to hoi his cotton. II l. alleged that
Scale. accused Rothschild Of selling on,
hls share. and although Rothschild made
denial Scales stiu insisted that h. had
broken tn" agreement and threatened To
do ham bodily harm.
RuthsChild then. a. alleged. came 80
IN" MOy~. firm. who we're hts principal
brok"r- and begged and entreated the
plaintiffs To give him letter stating
that h" had not rrdelivcrsd his pool
holdings on tn" exchange The plaintiffs
wrot. IN" lett". practically at koth-child y
dictatIon. u L. said. The letter. which
was dated September ~. IL attached To
the complaint and is a. follows:
DT.H SIR Concerning IN" rapport 20
whIrh YOU refer that you have rrdeliverr.i
cotton taken NJ nv you ia summer months
nrrr IN New York We wish to -ay emphatic
ally thai won hav. don. nothing q! the
sort through our house and W. have nc
a.
through any other medium "" know 81
III. -al-- which YOU nave made and IN
/ every INSTANCE such sales we're mad. at "A
sarrihc.. h.Iow the value oi the current
month and always with ~" understanding
that IN. cotton sold :" ~pinn.rs and not
To- ~. remembered
Two day- later Roihschiid - alleged
to have. nn- w.-ed IN. letter a. follows
SIR- In reference to .NoD bales of cotton
suot. which YOU ~oli 20 mills for my account
I would krndly ask YOU 10 show my delivery
81 rh.. cotton and TO stat" nlm-- of puT-
chaser Please answer by bearer
Tn. plaintiffs -av this letter revealed
that Rothrchild'- real purpose in getting
IN. letter from them was 10 dodge civil
and criminal liability by fastening blame
on his brokers They consulted their
ATTORNEYS Rothschild conducted "a cor.
r..sunndcnc. with the firm in which he
ret Gated hi. demands for the names 81
the purchasers Of his cotton. and on DC,
toi.r 10 hc filed his complaint with the
s,,perv isorv committee 81 the Cotton Fx-
change ask ing that the exchange mem
bors be expelled He alleged that h.
rave d"iinite inst r,Ictio 10 sell only Ia
apinnsrs and that IN. firm lettnr tended
hat has nh al htli