The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-19

ment.
The witnesses are also directed 60 bring
before tho GRAND jury any other agree
Elents pertaining to the frat agreement
or supplementary thereto. a. well a.
letters. papers and memoranda relating
20 the transnittal. receipt and custody %
any Of the contracts
Nothing further could ha learned at
the Fedora Binding Yesterday regarding
the precise nature ~ tho contemplated
proceedings than that the action was
apparently i.gun GA the theory that a
bull pool - NAV be a combination in
restraint % trade.
The news caused Rr~at eHcitsTnen
on the Cotton EUhAng- and the bulls
aid the action had been inSti gated by
tho hsar~ In "a desperate attempt to force
the memb.TS ~ the pool to liauidatc.
On receipt NJ IN" news cotton sold down
o. hale That thu break was 20 small
vas attributed 90 the fart that the public
is not generally interested in the market
and that those CONCERNED are the traders
them~elve, AZ the close OF the DAYS
trading the governors Of the Cotton EK-
change held a meeting the call for which
was sent ont last Friday. President
Brennocke of tho exchange said later
that the Government's action against
the bull pool had not been taken Up.
He said that no onhcial % the exchange
had been -ubppnAed.
William p. Brown and Frank B. Hayne.
the New Orleans brokers named by the
Government as defendants. are said to
be the principal Representatives here
Of the hull traders. Their principal
associates are said 10 be Eugene Scales
of Texas and James 4. Patten OF Chicago.
TWAS said bv members..of the exchange
that the Government present action
h without precedent. The following
statement was made On the exchange:
4 There does not appear 10 he any Law
against any one buying cotton on con-
tracts. either for investment or on apacu-
iAfion. holding IL II the buyer wants TO
and making the seller deliver the Goods.
But a conspiracy has been entsred
into 20 bring about q corner that h an
other matter. which may DO dissolved
through such proceedings a. appoar in
4 the present. situation to have been brought
AGAINST the bulls IL h up 10 the Govern
ment nov TO prove it, case"
Frank b. Hayne was on the floor Of
' the Cotton Exchange here yesterday.
He said that the only knowledge he had
Of the contemplated action against him
, and hia associates had come through
the newspaper. He vac 81 the opiEioa
that the action had been brought about
by followers Of the bear Inarket who
we're now doing the cry baby act. Mr..
HAyne said:
exchange with whom 1 have spoken
considers this an uncalled for and out
rRReous action. and many of them stated
that II u originated with any member
Of the exchange u was their opsnion that
such member or members should he
expelled
AS for our own position continued
Dir. Hayne. in October w. recei we'd
and shipped out about 7O0O0 bales Of
made No attempt to corner October This
y proved by the fact thar during Decem-
Der Nav cotton sold for about $50 potnts |
higher than October closed.
In March We received and shipped
out about as IN hal@s which wera ten
cered IN. Tat there vas certainly no at
tempt made Ia corner March colt n !
And ! do not $50 how the Gov, rlment or |
any one ~ls" can glIees what orr inten- |
eons ara regarding MAJ Dr july
Il hardly think that the Government
will decid" that u h legal and proper to !
eel contracts IN New York az a price far I
below what the cotton can b. bought for /
N the South To he terdered against the 4
same and decide that H 10 criminal to !
buy contracts in the New York market 4
and ask for delivery ~ cotton when in !
our opinion " IL cheaper than u cen be I
bought for Anywhers slss ~ ths United I
stAfes
Mr. Hayne said tina, the boil wa.y5l |
and DIVINE ProvidenC-- are To blame |
Tor the high prices ~ cotton and that \
n anipulation ~ the market has nothinR \
AZ all TO d. with 10
James 4. Patteu. the big Chicago bull
cent word TO his friends hare yesterday
that he had not been served in the Gov /
ernment's action and knew nothing about
IL until informed 10y Telegram. He will /
leave Chicago for New York to-day he J
would not say a word - reporters y---
terday
II - the contention ~ Patterns broken. I
and associates thai Pa''-n ha. bs.n in J
no pool in cotton NJ any time sInc'. be- l.-- /
gan operations on 10" Cotton Exchange
last year. They saw that h. has Or"ra,asi /
Independently IN cotton. just a. he did ia /
wheat and thst ~ = by accident RAJ her
than design that b" - On the sam, -,sl.. .
of ths gnnsk-.. - Brown and Hayt,.. q al
their s-,.-slt Mr. HaylE' Yesterday
tack'd Patton. friends ~ IN this e---r-
ton.
Mr. = ...u. b. ~.s aided rs- g,v"u u
= r'ictIuus l'' ~ rpt tuu Nhi,n he ~ ssY'-
30 "d 80 buy tuf ttiur- delivery IL.
'ught rrd ~ y let Nh~fi"N''r ia" cUtt,,n
h. rendered .a,or,iittE go CuutTsct He
has Ia Tc's-nt months sold T. gree deal ~ I
cotton to ssIiuner- iu fh- Solth AID ia
New England. and will .hus di-T-D-.. "f
that which he sNiS'ct- tO IT. d'livknrd &"
him on cIutrEr.
i rcpresepl stiya 20 n house Nhish hG.
taken 81 h"srtsn Position uu Cu,tOn nd
who's ctiEtOmeTr are sad - ue shoTi Of
May and July explained the situation iu
cotton yesterday 10y saying ,hat IN. bull
pool he's formal Hgreemsut with sOin-
nerr IN the South To- ,lsIN er 20 them NAV
and July cotton ~ Inflated DriCes hu,anR
with the assistance 81 tho sptnners TO
absorb sufficient % the visible supply Of
cotton m the worlds market 10 maintain
the fictitious price on the very large
speculative lines held by tho pool
While This wss said % the spIuncrs -
the South. Arthur p Marsh the VIC.
presids mt Of the Cotton EXchange Ka 20
n his opinion thA, the Government
action had been inspired by the New Eng
land spinners. who don't like the Ne~
York Cotton Exchange aud are quaFrelIink
with present prices Mr. Marsh said
that The feeling ~ New England ~ -
strong thai a bishop IN Massachusetts,
recently denounced the Cotton ExchanK-
from the pulpit Mr. Marsh said that hs
didn't believe the action had b~en
started through efforts - any exchange
nrerrirsT NJ members
1no~e Interested in cotton figured
yesi erday that the visible supply an
over the world 10 about 3OO0. OnO bales. ~
fah - 2