Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-13
LAW FOR THE BULL POOL
| ALSO GOOD FOR BEARS
Representative Aiken Says De.
preston of Prices Is on Par
With Initiation.

There has been an interesting eX
change of letters between Representa-
tive Wyatt Aiken of South Carolina
and Attorney General Wickersham
relative to the government prosecution
of the bull cotton pool. This case is
now before the United States Supreme
Court. Mr.. Aiken insists that mas
much as the Department OF Justice
took action against the group OF men
alleged to have banded together to
advance the price of cotton. there is
every reason why 1t should begin
prosecution of the bear cotton pool
which has succeeded in depressing the
price Of cotton.
Regarded as Parallel Case.
while do not concur in the opinion
that 1t was the proper function of the
government to interfere with the en-
HANGED value Of a commodity that meant
SO much for the wealth Of this country
Mr.. Aiken declares, II assume that you
can justify the prosecution legally. If.
then, the government had legal right to
proceed against a combination of specu-
lators whose purpose was to force up
the price of cotton. 1t follows that 1t has
the same legal right to proceed against
combination whose purpose 1t is to
force down the price Of the same COM
modify.
"Of the American cotton crop approx
mately one-half is sold In foreign markets.
It Is certain that bear pressure on
Wall street has forced a decline Of )
cents a pound in the present market.
thereby robbing the south Of approximate
~ $lO5, 100000 and giving it to foreign
spinners.
Alleged Methods Employed.
This decline has been brought about
by the bear eiemeHt aoverselling the
market. publishing false or smisleading
statements and combining to Keep buyers
out Of the market. -. e $3.50
.'Then should not tbkS ts9nssH inter
would probably reveal ample grounds for
criminal actien against the leaders. and
prosecution would probably, dissolve the
unfair combination and allow cotton 10
resume its normal price. At any rate, IL
seems incumbent on the government, In
the premises, to throw the yeisht of its
power with the people. II the govern
ment can extend any aid it could never
come more timely
In his reply the Attorney General says
he agrees with Mr.. Aiken ION the general
proposition that II cornering, product
which is dealt In in interstate commerce
for the purpose of increasing its price Is
illegal, similar cornering for the purpose
Of depressing its price is likewise illegal.
"Bear Pool" Puzzles Him.
But Mr.. Wickersham goes on to say
that while 1t is easy to understand the
formation of a corner for the purpose of
increasing the price. 1t is not SO clear to
him by what process a bear poor is
organized or conducted.
II have no evidence in this depart
ment of tangible character he says,
which enables me ITO form the opin-
ion that any designated individuals
have combined to depress the price OF
cotton below It's normal figure. He
adds that if the Supreme Court de-
cides the essential question involved
in the bull cotton corner case now
before it, and not let the case go Oft
on a technical matter Of pleading. we
may have some light which will be OF
aid in the enforcement of the law
against other combinations of like
character But aside from that the
greatest difficulty l should have In
dealing with the case you mention Is
what l have outlined.