The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-01-06
BROKERPATTEN
GOES TO TRIAL ON
COTTON CORNER|NG
Federal Court Here Must De-,
eide His Liability Under the
Sherman Law.
I'm 100000 DEAL.
U. S. Supreme Court Decides
Cornering Is a Restraint of
Interstate Commerce.
," IN 100000 DEAL.

WASHINGTON. Jan. by uphold
ing certain disputed counts against
James A. PaNen and others. charged
with a violation Of the Sherman Anti.
Trust law In running q so-cailed cot
ton corner. the Supreme Court to-day
sent the care against the men to trial
In the lower courts.
The decision OF the supreme Court
settled tho important question that a
CORNER" OF any commodity IL a restraint
OF Interstate commerce and may be a
violation OF the Sherman Antitrust Law.
To-day's decision docs not determine the
question OF guilt OF Patten or the other
defendants. but sends the case back 20
the lower cvdrt for trial on the facts
with the important principle Of law es-
tabilshcd that ia corner IN cotton II
proved the sherman statute IL violated.
Patten. Eugene q. Scales. Frank ~
Iiayne and william p. Brown were In
dlo,ed in New York an charges Of con-
spring on Jan. l. 1910. to corner cot
ton by extensive buying on the New
York Cotton Exchange. as resu!. OF
which the prices would be enhanced and
ultimately bring arbitrary and excessive
prices. The conspiracy was described ~
calculated TO yield si0.Ooo. 900 In pronts.
In his opinion Justice Vsndeven,er
said:
1T well NAV he that running q
corner unds for n time to stimulate
con,pe t!tion. but this does not prevent
Il from beng a forbidden restraint, 'oi
q. al A tho
modify from the normal current OF
trade. 70 enhance the price artlhcially
to hamper users and consumers In
satisfying their needs and to produce
practically the same evils as does The
suppression Of competition"
The alleged violation Of the Sher'
man law wss set forth In the indict
msnt In eight different ways In q
many counts. the defendants bcinl
liable for trial on any one. Before
1.-THE defendants could be placed on tria
the United States Circuit Court 10,
Southern New York held insumcien
four counts a. not stating an offsnss
The Government appealed from tina
decision to the Supreme Court.
Justice vandeventer. In annouu cinl
the opinion. said the Supreme Court .
this time. under the law. was not al
thorised to review the lower court
construction or Interpretation Of the In
dictmsnt ~ such. but only the lowe
courts Interpretation Of the statute
Therefore. he added. the court passe'
by those points raised BY the Govern
meut.
FOR the present the decision Of IN
lower court on this point must be 90
cepted a. correct. he aaid. He the
paused to tho holding Of the lower coui
that running a corner was not . vic
iation Of the law. because the restrain
was too indirect and not voluntary.
I'VE hold that the restraint need NJ
be voluntary. but In che light OF u
STANDARD OIL case may b involuntary
Justice Vandeventer said that u
inquiry TO the public was the san
whether the effect was voluntary or II
voluntary.
Justice Lurton announced . dissentr
opinion In which Chief Justice VIII
and Justice Holmes conCurred.
|. The case will nov 60 beck TO u
!, Federal Court Of Southern New Yoi
for trial or other proceeding.