The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-11
COTTON CORNER CRIMINAL.
SUPREME COURT RENDERS DE.
ClsIoN AGAINST COTTON
BULLS.
Speculative Combinations To Corner
and Advance Prices of Interstate
commodities Violate the Sherman
i@w-Patten, Scales, IIayne and
Brown Must Stand Trial for Trying
To Corner Cotton.

court OF the United States today laid
down the far-reaching principle that
corners OF interstate commodities
such as articles OF clothing and food
are In violation of the Sherman anti
trust law and held that as far as the
sherman law was concerned. the in
dictment In the New York federal
court OF James Patten. Eugene c..
Scales. Frank II. Hayne and William
p. Brown for "conspiring to run an
alleged cotton corner" was valid. The
case against them was sent back for
tE'al or other proceedings
Justice Van Devanter announced
the opinion OF the court. Justice
Lurton delivered a dissenting opin-
Ion I'm which Chief Justice White and
Justice Holmes concurred. The ma
Jority OF the court held that the cir
cult court for southern New York had
decided that the indictment charged
withholding" of the cotton from the
market. a necessary element of cor
ner as admitted by the government
The minority held that the circuit
court had found the indictment did
not so charge and for that reason the
indictment was IA, ity.
According TO the justice, the cor
rsctness of the h-lding OF the circuit
court TO the Indictment charging
withholding and as to the suffi-
cheney OF the indictment on other
technical points. has to be accepted
at this time without question by the
supreme court. The points thus left
undecided today may be made the
basis for bringing the case to the
court again II the defendants are con-
victed.
Solicitor General Bullltt, who pre-
sented the governments side OF the
case. issued a statement after the de-
cision I'm which he said at last way
had been found to stop the running
up OF prices by men who sought TO
corner the market not only OF cotton
but wheat. corn. lard and other COM
moditles.
In his opinion. Justice Van Devan-
ter dealt at length with the defense
that the accused men were not en-
gagged I'm Interstate commerce.
The first section of the act upon
which the counts are founded" said
he. 'is not confined To voluntary re-
straint, as where persons engaged in
Interstate trade or commerce agree
Co suppress competition among them
selves but includes as we'll involun-
tary restraints. as where persons not
so engaged conspired To compel ac-
ton by others or to create artificial
conditions which necessarily impede
OF burden the due course of such
trade OF commerce or restrict the
common liberty to engage therein"
The Standard oil case was quoted
In support OF this decree.
Oficlals claim this language will
materially strengthen their fight
against combinations violating the
law.
Justice Van Devanter replied TO the
argument that running a corner slim
ulates instead OF restraining trade by
showing that this might be true for a
time but that the corner was forbid
den by the law because II thwartcd
the usual operation OF laws OF supply
and demand, withdrew the commod-
ity from the normal current OF trade,
enhanced prices and produced practi-
cally the same evils as the suppression
OF competition. lie said the statute
did not apply TO corners OF purely
intrastate trade nor where the effect
upon Interstate trade was indirect and
added that In the present case the
trade was not intrastate and the ef-
feet was not Indirect
1T was "a conspiracy To run n cor
ner i'm the market" he said. The
commodity 20 be cornered was cot
ton. a product Ot the Southern States.
largely used and consumed in the
Northern States II was n subject of
interstate trade. The corner was to
be conducted on the cotton exchange
In New York city. but by means which
would enable the conspirators TO OH
tain control Of the available supply
and TO enhance the price To all buy
ers In every market Of the country.
Bearing In mind that such was
the nature. or object and scope Of
the conspiracy We regard II altogether
plain that by It's necessary operation
4, would directly and materially i'm
pcde and burden the due course of
trade and commerce among the states
"a fhsref,rc fpnict uu,p tho public