Daily Kennebec journal., 1910-06-18
Federal Grand Jury Names
Patten and Seven Others,
Charging Conspiracy In Con.
nection With Cotton Pool.
Excited Break In Cotton Exchange
Follows Indictment.

New York, June 17.-The government
came out in the open today in its ef-
fort to prove that manipulating the
cotton market is against the law.
James A. Patten of Chicago and seven
lesser figures in the speculative field
have been indicted, charged with con-
spiracy in restraint of trade under the
Sherman antitrust law. The indict-
ment was returned by special fed
eral grand jury late today and hand
ed up before Judge Hough in the Unit
ed States circuit court Five of those
indicted-Patten, Eugene B. Scales,
Frank B. Hayne, William P. Brown
and Nj. H. Rothschld. gave bail of $500
as required, through counsel. For the
other three who were neither present
in court, nor represented by lawyers.
bench warrants were issued. They are
Sydney J. Harmon Robert M. Thomp-
son and Charles A. Kittle.
Immediately after the indictment was
announced there was an excited break
on the New York Cotton Exchange.
July and August deliveries declined
about $3.50 a bale, July selling at $14.S1
and Aug. at $14.35 as against $15.12 and
S1464 at the close of business on the
previous night. The bull leaders. how
ever, appeared to be in no manner dis
turbed by the government action and
by their buying orders helped to rally
prices during the last few minutes.
July closed at s14.92 and August at
$1449 bid, or about II points to IA
points up from the low level of the day.
Five counts are embraced in the in
dictment which is in blanket form and
contains 10000 words.
The first count charges that the de-
PENDANTS, unlawfully conspired with
certain corporations not indicted to
demand arbitrary, excessive and mo-
nopolistic prices for cotton.
Describing the inside workings of the
alleged conspiracy the indictment says
that the consprators were to become
members of and engage in an unlawful
combination in the form of an agree
ment, under which they were severally
to purchase for shipment from the South
to New York all the cotton not directly
absorbed by the demands of foreign and
domestic spinners and manufacturers IN
the ordinary course of business; in other
words, as much as they could purchase
from day to day without seriously en-
hancing the prices. 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 con-
dtion thus produced in said trade and
commerce, severally demand arbitrary,
excessive and monopolistic prices
None of the "conspirators" was able to
finance the dealing individuals, this prov
ing the government logic that none of
the defendants was or expected to be a
spinner or manufacturer and had no use
for cotton other than to sell it.
There is appended to the indictment
what purports to be an agreement be-
tween Brown and Haines as parties of the
first part and certain spinners as parties
of the second part, through the medium
of which, it is alleged. cotton was lille
gally cornered This alleged contract
was signed in New York Feb. 26, 1910
and amended on March Z. 1910.