The herald and news. [volume] (Newberry S.C.) 1903-1937, 1910-04-22
AFTER sPECUIATORS.
Subpoenaes Issued Commanding New
York Brokers to Appear Be-
fore Special jury.

Ot1Su dA 4ANUAAy law
bull movement in cotton, with which
the names of James A. Patten, OF
Chicago; Frank B. Hayne and VIII
liam P. Brown, Of New Orleans, and
Eugene Scales, of Texas, have been
popularly connected.
Hayne and Brown both appear as
defendants in the proceedings, but it
eould not be learned whether Nh
Patten will be subpoenaed at Chicago
to come here and testify. He has
neen generally credited, however,
b being the financial genius OF
pool, and in recent interviews he
outlined his bullish position, and
determination to fight the sup
bear clique, which has been re-
bing cotton to this country, from
end. in an endeavor to break the
ct. The bull movement has
led such a stage, however, that
are rumors Of a. possible MAY
: in the New York market.
Entirely New Move.
. Ter before has the government
1t similar action against any
operating in the market on elth-
long or the short side. Sub
we're issued at the direction
Wickersham, commanding a
r more prominent New York
brokers to appear before a
Federal grand jury tomorrow
y in the matter Of the "Unlt-
S against Frank B. Hayne and
P. Brown.
dbpoenaes demand the sub
-. 10 the special grand jury Of
IS, papers, letters, memoran-
agreement, dated February
Hayne, Brown and others.
aent, the subpoenaes state,
(e purchase Of 100000 bales
l. )5n for delivery in New York
dufl4g the months of May and July,
inclusive, at certain prices and un-
der certain conditions. The fixing Of
the prices and conditions, the govern
ment charges, was a violation of law.
Caused Prices to Break.
Announcement Of the governments
action was followed by a very excited
break in prices on the New York cot
ton exchange, which at one time bid
fair to result in almost as great a
demoralnation as that noted last
January. Early in April the market
had a very severe setback under heavy
liquidation, and at that time there
were rumors circulating that the
bulls were abandoning their position,
but considerable recovery IN prices
since then suggested that the selling
had been largely in the way of out
side liquidation, and during the past
week or ten days there have been
renewed rumors Of an impending
squeeze. The position in the near
months, at any rate, has led to heavy
shipments of cotton to New York for
delivery on contract, and the arrivals
reported today were in excess Of 23,-
poo bales, including nearly $4,000
From Liverpool, while the stock Of
cotton available for delivery on con-
tract has already increased from
about $1,000 bales to 100000. Even
so, it has been apprehended in local
circles that the amounts of cotton
arriving here from the South and
abroad were not sufficient to COM
pletely satisfy the contracts held by
the bull leaders, which have been
estimated at about 100000 bales, and
there has probably been some scat
tered buying based on an une2pect-
ed successful issue Of the bull cam
paign.
Might Force Liquidation.
The selling which followed today's
threat of possible legal obstacles 10
bullish plans probably represented, in
a measure, the liquidation of this So
called trailing interest. In addition
there was undoubtedly some selling
for the account of professional trad
ers, on the idea that legal action
might force the liquidation of the
bull holdings. But usually close
students Of trading around the local
lring expressed the opinion, after the
close, that the bull leaders themselves
had Increased rather than reduced
thier contract holdings, and the mar
ket ruled considerably stes dier in the
late trading and closed at a loss of
only from 10 to 19 points for the
day.
j When the news Of the government 5
decision at first was circulated, the
market hecano var-v waal< an6 11neat