New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-04-26
ATTACK ALL CORNERS
IS W|CKERSHAM'S PLAN
Attorney General Would Pros
eCute "BearS" as Well
as "BuIIS."
GOING TO SUPREME COURT
BY Appeal in Cotton Case He Will
Seek Ruling That All Com
binations to Control Prices
Are Unlawful

April ~D-'tlOTN NItH-
eral Wickersham will appeal to the
United States Supreme Court to sustain
the so-called corner counts" in the gov
ernment's indictment of James a Pat
ten. Eugene c. Scales. Frank r. Hayne.
William P. Brown and Robert NJ.
Thompson, charged with leading the
May corner Of 1910 on the New York
Cotton Exchange
Judge Noyes. in the Circuit Court for
the Southern District of New York. sus-
tained all the counts of the indiotme mt
except those charging a corner to fix the
price Of raw cotton. He condemned the
practice unreservedly. but held that it
did not come within the meaning of the
based. Attorney General Wickersham's s
appeal is from that part of the decision
Underlying the appeal, however. is
move regarded by the Department Of
Justice as far overshadowing the cotton
corner case itself in importance. II Is
Attorney General Understands attempt
10 find a means finally to prevent the
fixing Of prices of commodities in daily
use by the people by speculation on ex-
changes.
\ weapon more effective than any the
Department of Justice now has for the
prosecution of trusts and monopolies will
be at hand if the Supreme Court rules
that the fixing of prices by cornering
markets comes within the purview Of
the antitrust law
President Taft and the ATTORNEY Cen
eral are daily receiving protests and
resolutions from farmers unions and
oranges in the South denouncing the
government for its prosecution Of the
cotton bulls" and its apparent inaction
regarding The bears
Attorney General Wickersham made
it plain TO day that II the Supreme Court
should support the Department of Jus
tice in lts contentious in the present
appeal prosecutions would Immediately
be begun against the individuals in any
combination. whether the conspiracy
were 10 bull or bear" the prices Of
commodity.
In the cotton case the Department of
Justice holds that speculation can have
nothing 10 d. with the actual value of
raw cotton in legitimate trade, which
should be fixed by the normal laws of
supply and demand for spinning pur-
poses In this instance the prosecution
is against men accused Of pulling the
market. The Department OF Justice will
prosecute bears with equqal readiness
where there is evidence Of violations OF
law.
Attorney General Wickersham and So
licitor General Lehman will personally
conduct the appeal in the cotton case.
The bull campaign in cotton which
was conducted in 1910 was one OF the most
successful in the history Of the New York
Cotton Exchange, and 1t was estimated
that the leaders Of II. James \. Patten.
W. T. Brown. F b. Hayne and K. G.
Scales, known as the Big Four" made
between slO,U0.OoO and sl2.oO0.CO on their
deals of May, July and August.
Patten retired from the operations after
the federal government ndd oDtalHed HIS
indictment because of his connection with
the deals in May cotton. He is credited.
however with having made several
millions through his transactions in that
month.
The bulls" nevertheless. did not have
plain sailing. In January the bears
made savage raid which forced prices
down SIS bale and caused the bulls
paper losses Of several millions. The
bulls" more than made this loss up in
the operations of May. July and August.
In December 1910. Patten, Scales and
Brown were arraiened in the United States
Circuit Court on an indictment charging
them with being members Of pool 10
corner cotton in contravention of the Sher-
man antitrust law There were eight
counts in the indictment The first and
principal one charged that on January
! the defendants conspired with Charles
4. Kittle and others to monopolize inter
state trade and commerce in available
cotton in the last four months OF the
crop year ended September /. 1870 by
purchasing in manner calculated TO
avoid enhancing the price thereof enough
cotton to accomplish their ends The de-
PENDANTS furnished 100 bail each.
Judge Moves. Of the United States Cir
cult Court sustained all the counts in the
Indictment except those charging corner
to Ak the price Of raw cotton.