The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-18
COTTON POOL INDICTMENTS
PATTEN, col. THOMPSON AND
SIX OTHERS ARE Accused.
Two New Workers Absent when lRdlci-
msnts Are FSund Others Released
on nail CRaFSe Of Violating sher-
man Law AFiInCIAlly 10 Raise Prices.

man Law Arttnoially 10 Walse Prices.
The Federal Grand Jury yesterday
handed In an indictment against tight
members Of the so-called cotton pool
formed last February, char ing them with
q conspiracy in restraint Of trade under
sections 1 and Of the antitrust Law.
These men are Col Robert NJ Thomp-
son Of New York. who IA a special partner
in the firm Of s. HI Pell 4 Co. cotton
brokers. At - Exchange place, and
Charles A. Kittle. the Cotton Exchange
member for that firm; James A. Patten.
the Chicago wheat speculator who turned
HE activities toward the cotton market
recently; Eugene r. Scales, a cotton
speculator Of Houston. Tex, Sydney J.
Hartman, q cotton speculs,or o. Shreve-
port. La: Morris H. Rothschild. a
Spectator and mill owner in Mis~iSaippi;
Frank r. Hayne and william P Brown
Of the firm Of W. p Brown A Co. both
cotton dealers Of New Orleans.
According to statement Ivy the
Attorney General, the finding 81 the
indictment yesterday Is new de-
parture in the Governments construc-
ton Of the antitrust law. The eight
under indictment are alleged 90 have
bean guilty II forestalling the cotton
market after having secured the entire
visible supply 81 raw cotton and in this
gay securing the power 10 dictate the
price 70 the consumer To effect this a
combination between these eight named
in the indictment and certain cotton
spinners and manufacturers was neces-
sary. and. in the wording Of the Grand
JuFy's iindinGs, such a combination
amounted 10 q monopoly In restraint Of
trade.
The terms Of the indictment do no,
reflect upon the proprieay Of methods
Of dealing ir cotton generally in vogue
on the New York Cotton Exchange The
indictment. saws the Attorney General. l.
against a definite combination for an
avowei purpose which has heen con
demrei bv a. ac, ~ Congress
When the Grand Jury hlei into he
Circuit tour. where Judge HouRh vas
sitting. al Of the mel namei In the in
dic,mer' we're present except Col Robert
~ Thompson and charles A kitilr
Assistant Attorney General tla-k MChsr
che. WIN with olive Pagan hal pre-.
pared the cstse " the Government. WAS
IN comt with Unttei States District Al
tlruev Henry 4 Wise
With Patten was his Awver. Henry
Woi'man. ~ senator John G. Spooucr
apg,sarei ~ counsel Tor the five others
who put in an app~ararc- All Of them
sai tight in Their chEirs without much
rouversaiiDu AID wAiiel 10 sse what
Woull happen. Judge llouRh. who hal
ean listening 20 a. a-gumeu' in an
imirahy case. caught sixht 81 NJ
Spoorsr aud Juok. At him luiyy.r'lly
over the top of fis speci ac''- Tor a uirui-
What ere Won doing h-re Mr
Spporers- the Judge inquired 4 .lor p
.upnose YOU are interest" / b. az argument
~ this kind
Just then the Grand Jury came iu and
their foreman prrsenie The indictment
District At Irusv Wise ru-- - tell Judge
Hpugh that -iN ~ the ght m-lt'yue
49,. m O,Urt and h- asked that Mpnda~
five p. he sci rpr 'h, time Tor tn- m'k.ug
y further pls' lime judge Rough ,-f tire
the fnr Iuly .
4 all nv Inc bai ~ SON ayiro- DO
sail. -sud parole the I.Fe1ia = iu the
custody Of their cOui sel fur that time
An-r that the siv indicted alton
brlksrs accympaui.d bv their counsel
moved over ~ M. uiiir. II Commissioner
Shields and there they -,gn"i and he.
Iivrrad their bonds S,alrs Hartman
Roihsshild. Brown aud Hayu' wrrs
banded by the National Security t'Umpauy
The Fidelity and Deposit Company ~
Maryland put up the s.OOO for Patten
Bench warrants were --t,cd Tor Col
Thompson and Kiitle District Attorney
Wis., sought this ~ q matter ~ form. he
said IL thought neither would try 20
svade trial.
The Indictment H. len Nv. counts The
first count ~ the indictment. after naming
the defendants cites last II hftv-two
cotton aud spinning manufacturing ron
cerns ~ certain corporations not herein
Indicted with which tbs defendants had
unlawfully coBspired ~ monopolize the
trade ia the cotton crop year september,
iRa. 20 September. 1910. The milling
companies specified are all corporations
~ Alabama. Georgia and North and
south Carolina
The obisrt ~ the combinAtio into |
then set forth In the indictment Il was |
known 10 them. ths Grand Jury sets forth !
that the c0tiOn crOp for the crop wear |
1879. 10 Appro ximatsd iO.SD0OO bales /
and that about 7as. ON bales Of the crops |
u prior crop years we're available /,
In September. 1919. The combination !
sought % purchase ill u the cotton that /
was not absorbed by the demands Of !
lorsiRn and domestic spiuners guardsdly /
20 a. not 10 enhance the prics. until long |
bcfore the end Of the present crop year
they would have ~ much % the crop
in their bands here in New York that ]
they could create an artificial price
ia proof Of tho allegation that there
vas a combining Of forces between the
81 ght brokers the indictment sets forth
a series Of letters and kilograms sent
by Brown and Hayne 10 LeWis " Parker
and Other mill men Interested in the pool
InR achems These letters indicate that
there had been sgn~rs ~ a certain apee-
ment and that various individuals we're
purchasing cotton for the mutual interests
- ~ 4. a..