The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-07
PATTERNS COTTON
CORNER REACHED
BY SHERMAN LAM
Supreme Court OF the United
States Says He Must
Stand Trial
ANTITRUST LAW 50 81
REACHES THE CASE
Question Met Squarely and
Decision Puts an End to !
Cornering OF ANY
Necessities

WASHINGTON, Jan. 6.-~-The da&0s
Of corners such as the famou4a
Hutchinson and Letter corners. In
wheat, James A, Patterns corners txkS
wheat and cotton, and Dan Suiiy0S
corner in cotton--were brought CceA
an end today when the Supreme couxEs
held that the men who attempt themAs
In the future may be criminally pro-
secuted under the Sherman anti-srusA
law.
The courts opinion was handle
down in the so-called Patten ''cott0M&
corner case in which James A. Pat
ten. Eugene g. Scales. Frank ~
Hayne, Robert NJ. Thompson, SydnAII
J. Hartman, Morris Rothschiid. C.. Al
Kettle. and William p Brown, w4f9@
indicted for manipulating cornG4
in cotton, In 1910. The Supreun
court sent the case back TO the Cir
cult court for the Southern distrtc
of New York for trial
The profits realized in the Pate
cotton corner were given as $40, o00ss
600.
Responsible For Acts. III
Under the Supreme courts inter-
probation OF the Sherman act. 1t ~
not necessary that the governfn6n4
ailege specific intent on the part 90
all available supply of a commoditys
and 70 initiate prices. las Is shown ~
prior decisions of this court" saymE
the opinion, the conspirators must
be held to have intended the nece1~'
sary and direct consequences of their
acts and cannot be held to say thA'
contrary"
The decision or the court below
held that the counts called in qu6mes
-
under the Sherman law. because thAe1e
was no direct restraint Of trade. Th4S
Supreme court holds this to be erroEs
and finds that there was such in0ts3
rect but necessary restraint of trade
as TO come within the meaning or th9l
law.
Power In Sherman Law.
The opinion is far reaching In tn
consequences. It establishes the fAces
that generally there Is power -
the Sherman law to reach and PUNISH
criuinally those who run a corna4
In any commodity Of general Use.
In the opinion. Justice Vandevart4I
reasons that cotton is the chief pro~
duct of the Southern States. and thA4.
the volume OF the production mov14
In interstate commerce. Any cosseI
spiracy to buy up with the intent 81
hold the visible supply and enhan0o
prices not only makes It impossih3oI
and difficult for manufacturers a14a
spinners to get raw material to servo
the needs of the public. but interviews
with the rnorment of a very tmportaN4
part of interstate commerce.
1t was contended by counsel for til
cotton men that participants In r
corner were not "conspirators" to T4l
strain trade, and that the govern
nrenths charge WAS too remote and -
direct.
Meets Question Squarcly.
THE contracts OF the defendanta;
Judge Van Devanter declar66
amounted practically to issuance ~
orders to bury more cotton than ~
actual supply. This was b naeana4
stimulating the market-of operating
a corner"
The high court squarsiy met t61
question OF legality Of 'corners." IT.
lower court ruled that such operatto4
were not Illegal under the antt-txu1
law.
This was a conspiracy to coE11G[
the market" Justice Van DevAnt1
asserted. "Tt was a subject OF intae1
state commerce, 1t was to enhaMoM
the price TO al. buyers In the con-
try.
Upon the corner becoming e.
tive, there could be no trading e1ooX
az the conspira.ors might elect
I'VE regard It as plain that n.
corner would. directly impede c.
rnarce in the United States. ! 81 ,:9 7Ss3a1
"The conspirators must be held ~
have intended the consequences RI
their act. This was a conspiracy e.
dominate the entire cotton trade NM
the country.
I'VE are of the opinion that TN
Sherman statute does embrace the ~
lenses charged"
Justice Lurton dtsserted from t.
opinion on technical grounds.
The attorney general 10 pleAQ
with the opinion. Having estAhliD4
by this suit the fact corner In -
commodity Of general use 10 crtmi1
oftense against the Sherman law. n
attorney general believes that n 1~
found the most effective weapon e.
| correcting high cost OF living"