The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-04-19
COTTON POOL NEXT
Observation-Disclosures Suits
in New York.
COURT ISSUES sUBPOENAs
Action Against Alleged Combine of
Traders Follows Investigation
Made by Federal Grand Jury-De-
partment Intimates that II May
Proceed Against Other Bodies.

The cotton pool alleged TO exist
among prominent operators Is 70 be in
vestigated by the Attorney General.
Following it's attack on the beef trust.
the announcement Of investigations OF the
alleged butter trust and the soft coat
combine, the Department Of Justice let
it be known through formal statement
yesterday by authority Of Mr.. Wicker
sham that proceedings 10 break up the
alleged cotton pool had been begun at
New York
According to department officials. the
suits will be begun under the criminal
provision OF the Sherman antitrust law,
it being the belief OF the government that
the operators in the pool have so COM
bined that they practically have obtained
a monopoly Just who IS 20 feel the
weight OF government wrath Is unknown
here the department refusing all infor-
nation as 20 the identity Of the persons
involved Il was made known, however.
that subpoenas were issued at New York
yesterday for men concerned IA the pool
The Issuance Of these subpoenas follow
ed a grand jury investigation IN the
southern district OF New York. which vas
begun at the instance Of Attorney Cen
eral Wickersham.
May Attack other Pools.
In the formal statement given out at
the department. there was an intimation
that the cotton pool was not the only
one that might be investigated. The At
torney General. it is understood. will not
hesitate to prosecute any pool or combi-
nation which is brought 20 his notice as
offending under the law. This is the
formal statement issued by the depart
ment.
In connection with the discussion over
the prevalent high prices OF food and
other commodities, the attention OF the
Attorney General has been directed 10
the alleged existence OF certain pools and
combinations operating corners in various
commodities and their effect upon inter-
state commerce.
Acts Upon Information.
Information has been laid before him
indicating that a combination has been
formed between a number OF operators
70 buy up all the remaining unused raw
cotton produced in the United States dur
Ing the crop year OF Is09-10 and that
as the result Of the operations OF this
pool De price Of this ctton has already
been advanced so largely IN excess OF
the normal price that the cotton manu-
facturers have greatly reduced their
manufactures rather than buy al this
exorhitant price, throwing out OF en-
ployment upward OF . per cent OF the
cotton mill operatives OF the United
States. thus resulting in the unonopollza-
ton OF thpsontire visible supply Of raw
cotton IN the market and the diminution
in the commerce Of cotton goods
The Attorney General thereupon gave
instructions 70 have the matter lnvestl-
gated by the grand jury in the southern
district OF New York. and subpoenas
were Issued which make the commence
ment Of a thorough investigation by the
government OF the alleged pool. Il is
anticipated that interesting disclosures
VIII be made as TO the composition and
management OF this combination"