The Washington times., 1911-04-28
Representative Puts in Reso-
lutions Directing Depart
ment of Justice to Act.
AFTER BEARS" IN
NEW YORK MARKET
James A. Patten One Of Men Who
May Be Affected If House
Is Favorable.

Close upon the announcement Of the
Department of Justice that 1t would
appeal from the quashing of counts in
indictments against alleged cotton
bulls" by Judge Noyes in New York.
comes the introduction Of three resolu-
tons by Representative Blackmon OF
Alabama, asking Information about
that activity of the department and di-
recting its attention to alleged combina-
tons of cotton bears" and wheat
bulls"
The first resolution calls upon the At
torney General for an account of what
Information he had as a basis Of the
indictments obtained against Frank B.
Hayne and William P. Brown, Of New
Orleans; Eugene Scales, OF Texas. and
James A Patten, Of Chicago.
The indictments, charging the men
with forming a pool to advance the
price of cotton and with maintaining
a corner" were returned in New York
in May, 1870 practically at the culmina-
ton Of what was regarded as one of
the most successful campaigns ever
conducted in the cotton market.
Blamed the Bears.
There was an instant accusation that
the Department of Justice had been
stirred to activity by the bears of the
New York cotton market, caught woe
fully short and unable to protect them
selves except at costly prices. The
cry was naturally loudest among farm
ers and in the South. It was declared
that the department had permitted it
self to be used in manipulation of the
market.
Mr.. Rlackmon's first resolution asks
for information to determine the pro-
meedings of the department against
Hayne and others. The two other reso-
lutions are in line with sentiments OF
the South and Of farmers in other parts
Of the country. There has been a feel
ing that while for years the bears of
the New York cotton market were con-
stantly accused of combining to depress
the price of cotton there was never an
action against them at law. Almost at
the first success of bull operators in
New York. it was said, the department
acted. The second resolution directs the
department to institute proceedings
against the persons alleged to have COM
bined in restraint OF trade by forming
pool to corner cotton.
The third directs the department to
institute proceedings against persons
alleged to have conspired to advance
the price Of wheat hv a corner.
Directed At Patte.
This third resolution is made espe-
Cially notable by reason OF the fact that
Patten, indicted with the cotton men
with whom ne was alleged to have op-
Grated. was reported a year previously
to have been the leader in a bull cam
paign that sent wheat so high as to
cause an increase In the price of -four
and bread. though there were no pro-
ceedings against him or any one else for
that alleged combination.
The Department of Justice recently
announced that II would appeal from
Judge Noyes decision, and that If the
appeal were sustained 1t would proceed
against all violators Of the Sherman act
who "cornered" the markets. In the
meantime, there have been many pro-
tests against the departments indict-
ments Of men who advanced prices,
The men indicted said they acted in
dependently. In the evidence against
them were papers said to be agreements
between themselves and Southern and
New England spinners. There were no
indictments against the latter, however
1t is very probable that Representa-
tive Blackmon's resolutions will have
favorable action. The cotton men have
q wide sympathy, and sentiment against
speculation in farm products is strong
In the House and among the people.
The bears who were not prosecuted,
the bulls say, had sold cotton which
they did not possess. and were there
fore short in the future market and un-
able to cover except at heavy loss,
while the bulls had bought cotton on
contracts, and stood ready, money in
hand, to take over the spot cotton.