The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-23
CHARGES FALSE
SAYS GOVERNOR
CONFER SAYS HE FORMED NO con-
sPIRACY WITH OTHER COTTON
MANUFACTURED AND WICKER
SHAM WAS MISLED

In your press dispatches of June Is
charges are made that the Avondale and
Central mills, of which l am president,
have formed a conspiracy In connection
with other mills and other parties, "un-
der which they We're seyerally to pur-
chase for shipment from the south to
New York all cotton not directly absorbed
] by domestic spinners and manufacturers
In ordinary course of business. In other
words, as much as they could purchase
from day to day without seriously en-
HANGING the price but nevertheless to
such an extent that together they would
long before the end OF the crop year
have SO much cotton in their possession
in the city of New York that they could
by reason of the abnormal and artificial
conditions, thus proceed in said trade and
commerce severally demand arbitrary
excessive and monopolistic prices. None
of the conspirators. continue the indict-
ment, was able to finance the deal indi-
vidually, thus proving from the govern
ment's logic that none of the defendants
were expected to be spinners or manu-
ld1Nuitibf anu noo nv use va SS@fA
ton other than selling It,"
The above statement is false. 1t was
| for the purpose of preventing just such
conditions that our mills went into the
New York market and bought. paid for and
had shipped to our mills at Birmingham
and sylacauga for manufacturing pur-
poses 1000 bales OF cotton. So far as
know other mills made a similar trans
| action.
The parties indicted. Messrs. Brown,
Patton. Haynes and others-all strangers
to mel am informed received every bale
rendered on their purchases on the New
York market, and paid for and shipped 1t
to the manufacturers. Nothing SO hurts
and demoralizes the cotton growers and
cotton manufacturers as violent up and
downs in the price of the product. To
prevent such radical changes and to main
tain a steady market our purchase was
made
| regard the New York cotton exchange
as most hurtful in its influence on both
the spinner and planter. Members of the
cotton exchange have shipped large guam
titles of cotton to New York and have
held it there, as I understand, not for
the purpose of reshipping IT to the manu-
facturers, but for the purpose of using 1t
as loaded dice to WEIGH the market In the
direction which best suits their interest as
purchasers or sellers on the speculative
market.
ho ocecntioO ~ the fpdaral
government of parties named in the In
dictment appears to me to be In the In
terest of those spectators who have sold
hundreds of thousands of bales of cot
ton which they did not, and could not
have. expecting the pressure of the
stocks of cotton held in the New York
warehouses to unnaturally affect the mar
ket. swaying IT either UP or down in favor
of the spectators.
l-rn buying this cotton and shipping II
out of New York we took from the
SPECTATORS the power of governing the
market. thus leaving the price of cotton
on the natural price of supply and de-
mand. The buying of, paying for and
shipping out of that cotton, in my opin-
| ION, WIS a ltSltliidtc tidH5dttloH. nc
holding of that cotton by spectators for
the purpose of welching and dicing the
market was in the highest sense destruc-
tive of conditions which make legitimate
market transactions and unnaturally at
feet and hurt the spinning and planting
interest Violent fluctuations in January
cotton were caused by these interests
after this manner and that transaction
demoralized the price Of both cotton and
cotton goods and caused the loss of many
millions of dollars to the cotton growef
and cotton manufacturer.
Mr.. Wickersham, the Attorney General.
in my opinion. for what he conceived to
be the interest of the New England spin
ners. unwittingly took the side OF the
most vicious gamblers. set of men who
have no regard for the interest OF either
the cotton manufacturer or cotton grower.
In written addresses l have many times
made the statement that the southern
cotton grower has fewer friends in court
and is more adrift In the schemes of OPP
preston and depression than any other
| class in America. In consequence OF
which he Is the poorest paid for his prod
uct and the poorest paid for his labor
- -. ->~,-s,t nf this diced cotton could
"a kept out Of the New
| fof r.a,h the government would
| uq1 anlsa 81 to assemble cottor
ssour o4easa We markets like Ne"
| ST. h.tw 1tleans for the purpose OF
ae zig as citing the market. ant
sa'4 ssasfe oilers on those exchanges
e IL ataE heir sales and deliveries
.Est pSes practicable for the man
l nt&cfi1el ~ and use the cotton. ther
4 gts8S racs build be accomplished fo
9TH tho ;sss and the spinner.
| T5 ssa4x grade Of cotton so Low
] sa 4 mae ctically punk was carried
81 80 M 81 TX warehouses to be uset
8 ~ eesA It around the neck of cot
saa III sa ylrpose Of making prices
FA.5e $ no 8 ling what that stuff cos
,s ,sszca III, vers. Transactions baset
On - er4sse3 stencil which 1t will taxi
Z rig iine the New York cotton ex