Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-18
FIVE COUNTS ARE FOUND
CHARGING CONSPIRACY
Government Comes Out in the Open
and Makes Attempt to Prove the
Corporations Join Together and De
mand Arbitrary, Excessive and
MonopoIstic Prices for the Staple

iating the cotton market Is against
the law. James A. Patton. of
Chicago. and seven lesser figures In
he speculative field. have been in
dicted. charged with conspiracy in
restraint OF trade under the Sherman
antitrust law.
The indictment was returned by n
special federal grad jury late this
afternoon and handed up before
Judge Hough, in the United States
Circuit Court. Five of those indicted
-Patten. Eugene b. Scales, Frank b.
Hayne, William p. Brown and NJ. II.
Hothschild, gave bail of $1,000 as re-
quired through counsel. For the
other three who We're neither present
in court nor represented by lawyers.
bench warrants were issued. They are
Sidney J. Herman, Robert NJ. Thomp-
son and Charles A. Kittle.
Five Counts Embraced.
Five counts are embraced in the In
dictment which is in blanket form aud
contains ten thousand words. The
first count charges that the defendants
XXXX unlawfully did conspire with
certain corporations not herein indi.
Gated to demand arbitrary, excessive
and monopolistic prices for cot
ton"
Describing the inside workings OF
the alleged conspiracy. the indict-
ment says that the conspiratOrs were
20 become members of and engage in
an unlawful combination In the form
CT an agreement under which they
H.
ment from the South To- New York all
the cotton not directly absorbed by
the demands of foreign domestic spin
ners and manufacturers in the ordi-
nary course OF business: in other
words. as much as they could pur-
chase from day to day without serious.
~ enhancing the price. but. neverthe-
less. to such an extent that together
, they would. long before the end of
he crop year. have so much cotton
/ in their possession in the city of
New York that they could. by reason
CT the abnormal and artificial con
dition thus produced in said trade
and commerce. severally demand ar
bitrary, excessive and monopolistic
rrices.
no use ror }Sucn cotton.
None Of the 'conspiratoTs." coniin-
ued the Indictment. was able to
finance the deal individually, thus
proving in the governments logic
that none of the defendants was.
or expected 10 he. spinner or manu-
facturer and had no use for such
cotton other than 10 sell H.
There is appended 10 the indict
ment what purports to be an agree
Enent between Browne and Haync as
parties Of the first part and certain
spinners as parties Of the second part. .
through the medium of which il is al
legged cotton was Illegally cornercd.
The contract signed in Now York
on February %. 1910. and amended
on March :. 1910. says among other
things:
The Contract.
The said parties Of the second rar.
hereby subscribe for. ana autf orize
the parties Of the first part 10 buy for
their account. contracts on the New
York Cotton Exchange for the future
delivery II the number Of bales set
opposite their respective names. said
cotton 10 be purchased for delivery
in the months Of March. April. May.
June or July. 1910. OF divided among
two or more Of those months. I'm the
discretion IF the parties Of the Grsf
Fart and the committee hereinafter
set out.
The said parties % the first pari
subscribe Tor. on their own account
and such others as they NAV as
sociaic with ffcmscivcs IN the cyccu-
lion 81 this contract. contracts upoi,
the New York Cotton Exchange f-r
al equal numrer ~ bales 81 cotton
a. subscribed for By the parties 81 ihe
second part. also to b. delivered ~
The months ~ March. April. Nav.
June and July. 1919. a. aforesaid.
The said parties of the FIRST parf
agree 10 bus jointly said contracts Tor
account OF the parties 81 the second
part. ard the parties 81 The SECOND
part and TO deliver said contracts
purchaecd on account OF rarfics of ne
second Part to the brokers II fhc
rsriics ~ The second part. ~ ~ them
designated
A. said purchases are made TIE
SANE shall b. arruriicpcd between fhc
parties hereto ono iaif thereof 70 10
parties Of Che hTs; part and one hair