The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-07
COTTON SWINDLE
BY MAIL CHARGED
Philip c. WadswOrth Arrested
by Postal Inspectors on At
lanta Indictment.
BAIL IS FIXED AT $500

Philip G. wadsworth. one OF the
founders Of the Cotton Growers Coop
erative Society Of Atlanta. Ga. was ar
rested by Post ONCE Inspectors Mayhem
and Martin yesterday in the offices OF
Raymond Pynchon & Co. brokers. III
Broadway. He was arraigned before
United States Commissions H%oughton
on a warrant charging him with using
the mails to dcfraud in a scheme to or
ganize all the cotton growers OF the
South so they might throw of the
shackles imposed on them by cotton
manipulators.
Wadsworth was vice-president OF the
Cotton Growers society, which expected
some day to issue $4,000. 900 worth OF
capital stock and make Nil the moneyed
interests OF the country bend the knee.
His home is in Texas City. but he told
the Commissioned that he had been here
with his wife for two weeks. working
in the offices of Raymond Pynchon & Co.
over the details of the organization Of
another company in Texas City, The
brokerage concern, he said, wac helping
to organize the new venture the nature
OF which he did not state. At the sug-
gestiOn of Assistant United States At
torney Edwin NJ. stanton ne was held In
s2.5O0 bail for removal 10 Atlanta. He
Will be given another hearing before the
COMMISSIONS on August 26.
Some of the modest predictions made
Tor the future OF the Cotton Growers Co.
operative Society In its own literature
were that the society would place at the
disposal OF the cotton growers within
o years n concentrated capital OF
$1,000. 900. 900 that II would free the
from ''serfdom and poverty
and place them upon their rightful
throne. put a crown on their heads and
ere the Christmas bells ring again make
them kings and priests OF prosperity"
The stock selling literature sent out
from the offices OF the society In the
Third National Bank Building of At
lauta gave John NJ. Green as president
7. G. Wadsworth. vice-president: A. c.
Werber. secretary and treasurer. and
James l.. Anderson. attorney. MIR. An
derson is a prominent lawyer in Atlanta
and a membe of the law firm of An
derson. Fielder. Roundtree and Wilson.
How much stock was sold is no; set
forth in the Indictment sent from At
lanta.
The soclety's alleged plan for scientif-
cal,y marketing the entire American
cotton crop provided for the hiring OF
one superintendent and nine supervisors
for each OF the 500 counties in the cot
ton belt. These men were to be selected
by leading farmers. business men and
bankers of the community and were each
to receive a salary OF $4,000 a year as
well as commissions on the cotton they
brought in.
.\fter the cotton was disposed of = by
the society the grower could. II he
wished. sell the securities back to the
company and thus get the full price for
the cotton in cash or he could negotiate
a loan Of so per cent. OF the value of the
securities and thus save himself from
having 10 mortgage his crop and farm,
each year.
This. the literature asserted, was the
outline Of the greatest financial scheme
in the world designed solely for the good
robbed 10y the maripulators of $4,000.
600 each year and whose unwillingness
To combine made them easy meat
Each Of the 5000 superintendent and
supervisors was required to buy stock IL
the society at Sl1J IA share. In this way,
II is alleged in the indictment, the So
ciety swindled W. j. Speights and j. ii
Mize of buchanan. Ga. W. h. Lovett oi
Luthersville. Ca, and II. A. childs OF
Butler, Ga.
Attorney Arthur e. Pullman repre-
sented Wadsworth Yesterday.