The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-11-18

queSeioh dS the cOttOn producer SeeS
1t, and use the arm Of the law. as
far as possible, for their relief.
would be glad to have an ex-
preston Of opinion from you. as t.
whether such prosecution would.
In your Judgment be entertained Ly
the courts, and If there is any likeli.
hood OF the department of justice
taking such a step.
Living in this section where cot
ton is the prevailing crop. it is
great disappointment to me that the
producer should be robbed Of his
legitimate profit on that crop. If
the government can extend my aid
1t could never come more timely.
Respectfully.
WYATT AIKEN. M. G.
Wickersham's Reply.
Washington. d. c., Nov. 8, 1911.-
The Hon. Wyatt Aiken. NJ. c., Able
Vile. South Caroi,na.-My Dear Sic.
1 have your favor Of the 31st ultimo.
quite agree win, you on the gen.
eral proposition, that IL cornering q
product which Is dealt in In inter-
state commerce Tor the purpose of
increasing Its price. Is illegal. sim
liar cornering for the purpose Of de
pressing the price Is likewise illegal.
The formation OF the corner for in
creasing the price Is easily under
stood. A number Of men get to-
gether. and by their combined means
or credit buy up enough Of the COM
modify to control the market, with
hold 1t from sale until the demand
for It forces the price to the point
at which they are willing to let it
go. and thereby impose upon the
manufacturer. who must use the
product, the burden Of an artificial
price.
1t is not SO clear by what process
bear pool" is organized Or con-
Quoted. and ! have no evidence in
this department Of tang,b.e char
acter which enables me 10 form the
opinion that any designated iudivld-
uals have combined to is2ress the
price Of cotton below its normal
price and 1t Is not clear in my
mind how such bear pool"
can operate to restrain inter-
state commerce. suppose the
method by which such a combination
would operate would he u throw
upon the market at given time "a
quantity Of commodity IN exec SIS
of the demand. which would result
In its being taken only ut p,,ces
which would enaoie them to sell at
a profit.
1 don't at all know what the prac-
tice Ia among the cotton growers in
your state respecting the sale OF
their product. When / last had oc-
casion to examine the question. a
Few years ago. the crop was pretty
generally sold to cotton factors
before 1t was picked. the price be-
ing based upon the prevailing price
Of the previous year. and Increased
or decreased according to the ratio
between the crop produced in tn.
country the preceding year and the
estimated crop OF the current year.
Generally speaking j take 1t that
the bulls and bears are the bI ok
ers. who. on the cotton exchange,
are seeking to increase and depv.ss
prices. respectively. The bears ;
are trying to beat down the prices
In order to buy at low figure, and
the bulls are trying to run prices
up to sell at a high figure.
The interestsof the spinners would
be. generally, with the bears" and
the interest Of the factors, or cotton.
dealers. with the bulls" A 9" car
movement would be initiated +; for
example, concerns dealing in cotton
had borrowed very largely ,n a close
margin. and for some reason or other
were compelled to sell for the pur-
pose OF meeting other loans, and a
movement once begun, toward tins
lowering of prices. would be apt to
gain headway because other ps,oIc
having cotton on margin, would le
fearful OF a greater loss ie they
waited until the price went lower.
and 80 would rush into the .. ,rket
determined to get rid Of their rr,.
duct at a given time.
How a bear pool" would operate.
confess do not quite understand.
nor do l know of the existence of
"a