The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-04-26
TO APPEAL COTTON POOL CASE
No MORE CORNERS" IF WICK
ERSHAM SICCEEDS.
Government Hopes 10 Make " Impossible
for Spectators to Fix Prices for
Commodities In Daily Use Judge
NOycs's Decision to supreme Court.

Commodities In Daily Use Judge
Noycs's Decision to supreme Court.
WASHINGTON. April Attorney
General Wickersham has directed that an
appeal I've taken to the Supreme Court
from the decision Of Judge Noyes Of the
United States Circuit Court of New York
in the so-called cotton pool case.
! Underlying this appeal is an attempt on
the part of the Government to find a means
of preventing the fixing of the price Of any
commodity in daily Use by speculation on
exchanges. The Department of Justice
holds that il the counts in the cotton pool
indictment which Judge Noyes held bad
on demnrrer are finally sustained they will
he effective in combating every element
on either side of corner"
Several we'll known cotton spectators
were involved in the cotton pool case
They were indicted for alleged violation
Of the Sherman antitrust law in running
corner on last years cotton crop. The
indictment was in eight counts, some OF
which alleged specific contracts. a COM
bination and conspiracy to control the
supply in the actual commodity.
The last two counts alleged conspir-
acy to control the price OF cotton by
speculation and cornering the market
on the New York Cotton Exchange. This
was to be accomplished by means Of con-
tracts for future delivery of the COM
tv,Or@itx, in No ,sha o al n
that the price could be enhanced and used
on all other domestic markets. The IL
legal restraint was alleged to be accom-
plished by forcing the mills to pay an
artificial and exorbitant price.
The defendants demurred to the indict-
ment Judge Noyes decided that four
counts charging a contract. conspiracy
and combination TO restrain trade should
stand. but that three counts specifically
charging violation OF the Sherman act by
cornering the market were bad. While such
corners are illegal they do not directly re-
strain interstate trade in cotton.
Judge Noyes said Corners are illegal.
They are combinations contrary to public
policy and all contracts and undertakings
in support thereof are void A corner is
altogether wrong. both from legal and
an economical standpoint. but it would
seem to be condemned by other principles
Of public policy than those particularly
relating TO combinatio ions in restraint OF
competition
County branches OF the Farmers
Union" in many States have recently
| passed resolutions embodying in part
the phraseology OF Judge Noyes's deci-
sion. These resolutions have condemned
the prosecution Of the so-called bull
spectators and have called on the De-
partment of Justice to prosecute the
bears.
The Department Of Justice contends.
however. that il is not question OF bull
or bear. The prosecution was directed
against a combination OF individuals
banded together for purely speculative
purposes and who are alleged to have
got control Of the supply and price of a
| staple commodity dealt in in interstate
commerce. This control they have exer-
cised, II is charged. in putting up the
price to the injury and loss OF the great
cotton spinning industries. which were
forced to curtail operations and in some
cases to close their mills. and also to the
injury Of the consumers.
| There will be no hesitancy on the par
Of the Department Of Justice. it is said
in bringing similar proceedings against
the individuals Of any combination where
any proof OF such conspiracy can be
found that would be in violation Of Fed
eral laws. whether the conspiracy was
for the purpose OF enhancing or depress-
ing the price.
1t is the contention of the Department
that such speculation can have nothing
TO do with the actual value Of raw cotton
| in legitimate trade.