The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-17
WHY COTTON men
ARE PROSECUTED
Contract for Pool Is Reveal
ed By An AIabamian
GOVERNMENT TAKES A HAND
1t Develops Tint the Cotton Bears
Were the Main Ones IN Exposing
the Big Deal with the
spinners

New York, August 16.-Special.) 1.-THE
origin of the prosecution begun by the
federal COY --nment three months ago
against ths .rs of the bull movement
in cotton. = rported to be revealed in
an affidssse g ade by w. B. Tanner, sec
tary Of Montgomery Cotton mills of
Montgf Ala, copies of which were
receiY this city today. 1t was the
New GO cotton exchange house of Craig
& which had the close relations
wfos MsFadden interests. the alleged
directed against the bull campaign
ucted by Hayne, Brown, Patten and
oe-zers and also in touch with cotton in
terests in the south, that was the channel
through which, possibly through third
party, copy of the Hayne-Brown con-
tract with the. southern, cotton spinners
Is alleged to have been brought to the at
tention. of the government
The Tanner affidavit goes back to the
time last March when they and number
of other southern cotton spinners were
approached by the Hayne-Brown-Patten
group with the proposal that they Join
this group in the purchase of 100000 bales
of cotton on the New York cotton ex-
change where 1t was suggested the cot
ton required by these spinners could be
had more cheaply than II 1t was bought
In the southern cotton markets The
contract provided that the mills subscrib-
ing to 1t would not engage In any deal
ings on the cotton exchange prior to No
vember 1 of this year, the mills binding
themselves at the same time to take their
share of the cotton upon delivery.
Signed the Contract
The Montgomery Cotton mills, after ad-
yising with Craig & Jenks about the mat
ter, and being advised against 1t by this
firm. became a party to the Hayne con-
tract. Meanwhile Mr.. Tanner. secretary
of the Montgomery mills, had sent COPY
of the contract to Craig & Jeniss, instruct
Ing them, he alleges, to hold 1t in con-
fldence. The fir a repeatedly sought. he
SAYS. for pcImissaon to make use of the
contract as they might SEQ fit, but he
steadily refused to let them do SO, he
says.
Mr.. Tanner came to New York on Apri
2S about 10 days after the federal gran
jury In New York had taken up the in
vestisation Of the Hayne contract with
southern mills. He had an interview with
w. R. Craig. head of the Arm of Craig &
jerks In the Office of that firm, but dis
cussion Of the use which It was proposed
by the New York house to make of the
contract form which Tanner had sen,
them was postponed until the afternoon,
when Mr.. Craig arranged to have his at
torney present at the conference.
The Tanner affidavit alleges that this
attorney was introduced to him as Mr.
Baldwin, who proceeded to explain to hin
that he was counsel for Craig & Jenki
and other cotton houses and that as
counsel for these firms he had advised
them to submit all papers In their pos.
session bearing on this contract to the
grand jury In response to the subpoens
OF that body
Baldwin Explains
Mr. Tanner alleges in his AFFIDAVIT thai
Mr. Baldwin, after explaining that he
had formerly been an assistant United
States district attorney. and that he was
In intimate relations with the district at.
torney's Office here and with Attorney
General Wickersham proceeded to dilatt
on the disgrace which would befall Mr.
Tanner were he to be prosecuted for his
participation in the Hayne contract
1t was explained to Mr. Tanner that tht
Attorney General was In possession of his
name In connection with this cotton con.
tract, but that he was disposed to be
lenient to Mr.. Tanner II he would tell all
he knew about the contract Mr. Bald
win represented to Mr.. Tanner, the lat
ter alleges, that he was authorized tc
promise immunity il Mr.. Tanner would
turn. states evidence. He refused to dc
SO and announced to Baldwin and CRAIG
that instead he would relate the facts In
the case to Mr.. Hayne.
At this suggestion. Mr.. Tanner alleges
In his affidavit. Mr. Baldwin tried hard
to dissuade him from speaking to Hayns
about the matter, saying that 1t would be
embarrassing to Craig & Jenks. Mr.
Craig admitted. the AFFIDAVIT alleges, that
he bad shown the contract to Mr.. Nc
Fadden and also to David H. Miller
whore Mr.. Miller got the copy Of the
contract which was the basis OF the gov
+ernments action against Hayne and hie
associates In the bull movement In cot
ton and was one of the mysteries con.
nected with the early stages of this cot
ton prosecution.
Craig Showed Contract
The fact that w. r. Craig showed tht
contract to McFadden, who was credited
with leading the movement against the
Hayne- Brown Patten group as alleged ir
the Tanner affidavit, fits In with sugges-
tions made by the cotton bulls that 1t was
through concerns opposed to them In the
market that Information was laid before
the government upon which the cotton
prosecutions were based.
This belief on the part of the cotton
bulls was the basis OF bitter feeling on
their part against the McFadden interests
and others allied with them. This Tanner
affidavh was regarded yesterday by cot.
ton men who had copies of 1t az likely
to still further widen the breach between
the cotton bulls and bears on the New
York Cotton exchange
Confession Of wife Murder