Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-18
COTTON MEN HELD
Indicted, Charged With Con-
spring to Restrain Trade.
BAIL PROMPTLY GIVEN
Alleged Combination to Corner Sup
ply Of Raw Product.
AGREEMENT WITH SPINNERS
Counsel for Patten Claims That Con-
tract Does Not Prevent SAILS to
Any Legitimate Buyer.


| NEW YORK, June 1S-On the charge
OF conspiring TO restrain trade, the fol.
lowing eight men of large means were
indicted yesterday under the Sherman
antitrust laws: James A. Patten of Chi
cago. Frank B. Hayne of New Orleans
William p. Brown of New Orleans, Eu.
gene G. Scales of Texas, Robert NJ
Thompson Of New York, Charles A. Kit.
tie Of New York. Sydney J. Hartman OF
Shreveport. La. and Morris II. Roth
schild of Woodville, Miss.
The indictment is 10000 words long. but
j does not make clear the alleged offenses
committed by Col. Thompson, Kittle or
in fact, anybody except Hayne. Brown
Patten and Scales. The offense charged
against them is buying a lot of cotton ir
/ conjunction with great many cotton
mills or sp:nners ana agreeing not to sell
it in New York, New Orleans or Liver
pool before November !. /, 1910. The
amount Of cotton to be bought was u.s.
coo bales for the spinners and $4,000
bales for Hayne and Brown, the names
of Patten and Scales not being men
toned in the agreement that the indict.
ment reproduces.
Handing Down Indictments.
The indicted men were notified that the
indictments would be handed down at 4
p. m. Patten, Brown, Hayne, Scales and
Rotchschild were on time to the dot, bu,
the grand jury did not file into the United
States circuit court. presided over by
Judge Hough. until 4:15. Former Senator
John c. Spooner represented Brown
Hayne, Scales and Rothschild and Henry
WUllman appeared for Patteu.
The proceedings in court lasted only a
few minutes. The foreman Of the jury
handed the indictment to Clerk Leary. He
did not even read ii and none of the &C
| cused men knew the details Of the crime
charged against them until later.
Bail Furnished
None Of the accused men had to stand
! up and plead Mr.. Wollman entered q
plea of not guilty for Patten and ex.
Senator Spooner did the same for his
four clients. District Attorney Wise sug-
sested 5000 bail for each defendant and
Judge Hough assented.
The cotton spectators, led by Wolman,
| marched straight to the Office of .om-
missioner Shields. There Patterns bond
was signed by the Fidelity and Deposit
Company and the bonds of the others by
| the National Surety Company.
attorney Generals statement.
Attorney General Nickersham, in
justification Of his course, prepared type
written statement which was givens te
the newspaper men as soon as the in
dictments were announced. The Attorney
General holds that the operations of the
bull cotton pool bear on the high cost OF
living problem.
His statement ran in part as follows.
These indictments are the result OF
an investigation based upon information
that the persons indicted with others
had formed a combination for the pur-
pose of cornering the entire remaining
supply of raw cotton of the crop of 1909
thus creating an artificial shortage.
"Spinners agreed to join the conspiracy
TO the extent of purchases Of several
thousand bales Of cotton to be removed
from the market Pursuant to this
agreement the pool acquired about 800 .OOC
! bales Of raw cotton for delivery In May.
| This complete control Of the May market,
with the further purchase of several hun
dred bales of the remaining supply for
delivery in July and August, was intend
ed to complete the monopoly of the re.
| mainder Of the CROP
Statement for Patten.
On behalf Of Patten. his counsel, Henry
Wolllnan. said last night:
"A hasty reading of this indictment
shows that apparently the most import
ant thing relied upon by the government
Is what is called the spinners' contract
that is, a contract between some Of the
parties and certain spinners with refer
ence to the purchase by the spinners OF
certain cotton, which they agreed not to