The herald and news. [volume] (Newberry S.C.) 1903-1937, 1911-11-17
ADMITS IGNORANCE
Knows Only Bull Methods in Cotton
Dealings-Asks for Information
Concerning "Bear Pool"

SpOnQlnS to request uIduS oy IGVp4e-
sentative Wyatt Aiken, Of South Caro-
lima, that the federal government un-
dertake the prosecution of "bears,
who it is alleged are engaged in de-
pressing the price of cotton to the
financial detrlment of Southern pro-
ducers, Attorney General Wickersham
frankly admits he does not understand
workings of "bear pool" or how such
g combination could operate in re-
stcalnt of commerce.
In correspondence made public to-
:;av, it is stated by the attorney gen.
eral that he has no tangible evidence
of the existence Of any such pool and
requests Mr.. Aiken to furnish him IN
formation.
The governments counsel, in con-
nection with corners, Nj. Wickersham
intimated, would be governed largely
by the decision Of the supreme court
in the pending case against alleged
bulls" charged with cornering the
market to increase it's price.
Should Work Both Ways.
Mr. Aiken declares that if the gov
ernment had the legal right to proceed
against a combination Of spectators,
whose purpose was to force up the
price Of cotton, it has the same legal
right to prosecute a combination
seeking to depress the price of the
same commodity.
cit is certain he added, that bear
pressure on Wall street has forced a
decline of fully three cents per pound
in the future market, thereby robbing
the South of approximately S105,000,-
900 and giving it to foreign spinners.
This decline has been brought about
by the bear element overselling the
market, publishing false or mislead-
ing statements and combining to keep
buyers out of the market
The attorney general agrees with
Mr.. Aiken as to the general PROPOSE
ton, that if cornering a product to in
cite. price is illegal similar cornering
to depress the price is likewise illegal.
Following are the letter of Repre-
sentatif fe Aiken to Attorney General
Wickersham and the latter's reply:
Mr. Aiken's Letter.
Abbeville, S. c., Oct. 81, 1911.
The Hon. George W. Wickersham,
Attorney General; Washington, D. C..
Dear Sir: notice that the case
against the Wall street "bulls;" charg-
ing them with cornering cotton, is
still in the courts, and assume that
you will push the prosecution to a
conclusion.
While do not concur in the opinion
that it was the proper function of the
government to interfere with the en-I
haneed value of a commodity that
meant so much for the wealth of this
country, assume that you can justi-
fySS the prosecution legally.
If then, the government had a<legal
right to proceed against a combina-
ton of spectators whose purpose was
to force up the price of cotton, it, fol-
lows that it has the same legal right
to proceed against a combination
whose purpose is to force down the
price of the same commodity:
! OF the American cotton crop, appl o.
ximate1y one-half is sold in foreign
markets. A decline of two cents per
pound means the loss to this country
of S60,000,0GG and to the Southern far
mer of S120,000,000.: It is certain that
USGI pa CSSUlC OI w d.! Sl1tSL AcS
% forced a decline of fully three cents
per pound in the present market,
thereby robbing the South of approxi-
mately s1O5,OOO,OOO and giving it to
= foreign spinners. This decline has
been brought about by the bear ele-
ment overselling the market, publish
ing false or misleading statement, and
combining to keep buyers out of the
market. With no extensive knowledge
of exchange methods, think it is safe
to say that if a combination may ad
vance the market, a combination may
likewise depress it, and the fact is, it
is now being done.
Then should not the government in
terpose? If it was right in the former