The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1910-04-21
GOVERNMENT HELPS BEARS.
Wickersham Begins Conspiracy Pro-
ceedings against Cotton Bulls.


New York, April 18.-There will
be started in New York tomorrow a
federal investigation without prece-
dent in this country. The attorney
general of the United States has or
dered an inquiry into the gigantic
bull movement in cotton, with which
the names of James A. Patten, Of
Chicago, Frank B. Hayne, William
P. Brown, of New Orleans, and Eu-
gene Scales, of Texas, have been
popularly connected.
Hayne and Brown both> appear as
defendants in the proceedings, but 1t
could not be learned whether Mr..
Patten will be subpoenaed at Chi
cago to come here and testify. He
has been generally credited, however,
with being the financial genius of the
pool and in recent interviews he has
outlined his bullish position and his
determination to fight the supposed
bear CLIQUE, which has been reship-
ping cotton to this country from
England in endeavor to break the
market. The bull movement has
reached such a stage, however, that
there are rumors of a possible May
corner in the New York market.
A New Move.
Never before has the government
brought similar action against any
pool operation in the market on
either the long or the short side.
Subpoenas were issued at the direc-
ton of Mr.. Wickersham, commanding
a dozen or more prominent New
York cotton brokers to appear be-
fore special federal grand jury to-
morrow to testify in the matter of
the United States against Frank B.
Hayne and William P. Brown"
The subpoenas demand the submis-
sion to the special grand jury of all
records, papers, letters, memoranda,
and an agreement dated February
26, last, by Hayne, Brown and 9TH
ers. The agreement, the subpoena
state, was for the purchase of 150,-
900 bales of cotton for delivery In
New York during the months of May
and July, inclusive at certain prices
and under certain conditions. The
fixing of the price and conditions,
the government charges, was a vio-
lation Of law.
Excited Break Follows.
Announcement of the governments
action was followed by very ex--
cited break in prices on the New
York cotton exchange which at one
time bade fair to result in almost as
great a demonstration as that noted
last January Early in April the
market bad very severe decline un--
der heavy liquidation and at that
time there were rumors circulating
that the bulls were abandoning their
position, but a considerable recov-
cry in prices since then suggested
that the selling had been largely. in
the way of outside liquidation and
during the past week or 10 days
there have been renewed rumors of
an impending squeeze. The posi-
ton in the near months, at any rate,
has led to heavy shipments OF cotton
to New York for delivery on con-
tracts and the arrivals reported to-
day were In excess of $4,000 bales,
including nearly 14,000 from Liver
pool, while the stock Of cotton avail
able for delivery on contract has al
ready increased from about $1,000
bales to 10000. Even so, it has
been apprehended in local circles that
the amount of cotton arriving here
from the South and abroad would
not completely satisfy the contract
held by bull leaders, which has been
estimated at about 100000 bales, and
there has probably been some scat
tered buying on the unexpected spc-
cessfut issue of the bull campaign.
Traders Get Out.
The selling which followed to-day's
threat of possible legal obstacles to
bullish plans, probably represented in
a measure, the liquidation OF this So
called trailing interest. In addition;
there was undoubtedly some selling
for the account of professional trad
ers on the idea that legal action
might force the liquidation Of the
bull holdings. But usually close STU
dents of trading around the local
ring expressed the opinion after the
close that the bull leaders them
selves had increased rather than re-