The New York herald., 1922-06-07
COTTON BOARD PLOT
DESCRIBED AT TRIAL
n. Y. Exchange Determined
to Crush Young Body,
Says Witness.
JEALOUSY is CHARGED
Edward III. Weld Said to
Have Offered 100000
for New Ring.
CASE MAY CLOSE TO-DAY
Judge and Jury Invited to See
Brokers in Action as in
Murder Cases.
CASE MAY CLOSE TO-DAY

Edward L. Patton. a director of the
American Cotton Exchange, testifyfng
Yesterday as one of the last wit
nesses in the trial of the exchange for
alleged bucketing, charged that the
New York Cotton Exchange was de-
termined to crush its younger rival
and for some time had maintained an
unfriendly attitude toward it.
Mr.. Patton told of having been ap-
preached by one of the governors OF
the New York Cotton Exchange and
invited to withdraw from the Ameri-
can Exchange before its cornerstone
was pulled from under him.
The witness said he had been told
he could take out membership in the
New York Cotton Exchange or any
other similar exchange. Similar over
lures had been made, he asserted, to
J. H. Watson, Samuel Landecker of
Ormsbee & Landecker and w. b. Will
son, three former brokers on the
American Cotton Exchange who testi-
fed for the prosecution.
These proposals. made early this
year, according to the witness, came
through Mr.. Watson and Louis Brooks,
a director OF the New York Cotton
Exchange.
Tells Of watson Overturcs.
On direct examination by George Cor
don Battle. counsel for the exchange.
Patton said:
"About the first of February ]. II.
Watson came into my Office. He told
me that he and Wilson and Landecker
had several conferences with Brooks
and that he had told them the New
York Cotton Exchange was determined
TO close the American Cotton Exchange.
"Watson told me that Brooks was
willing to give me an opportunity TO
get out from under and withdraw from
our exchange. He said Brooks had
guaranteed any of US who did so could
become members of the New York Cot
ton Exchange. the New Orleans Cotton
Exchange or any exchange we desired
The purpose OF this alleged drive
against the American exchange, said
fhe witness. was to form an odd lot ex-
change. similar to the American, except
that IL would be made to handle twenty
to eighty bale transactions. The Amer
lean has done business under mini
mum OF ten; its maximum is not stipu-
lated
..weId would Give 100000"
Patton said Brooks had planned to
invest $4,000 and Edward Nj. Weld,
president of the New York Cotton Ex-
change. 100000 to start up the new
exchange. Patton told of a luncheon
with Brooks. Wilson, Landecker and
Watson. where previous overtures al
legged to have been made by Watson
were discussed by Mr.. Brooks. lie went
on:
Brooks stated that his exchange was
determined to crush ours and that ne
had been appointed to do the dirty
work. He confirmed the statements
Watson had made to me and spoke OF
the odd lot exchange which was to be
organized. He said the me mbefshi OF
the new exchange would nave 70 DC
voted on by the New York and New
Orleans exchanges
A similar offer. said Patton had been
made to A. r. Jennings. another direc-
tor of the American Cotton Exchange.
after Patton had conferred with him
Following the luncheon with Brooks and
the three former associates on the
American exchange.
No Traitor to His Exchange.
Hugo wintner. Assistant District At
torney. on cross examination stressed
the lunch con meeting with Brooks and
asked the witness IL he had gone to spy
and report later TO George W. Pratt.
his father-in-law. who is secretary of
the American Cotton Exchange. Patton
said no, and added:
IT went out of my own interest. II
had been reported that the exchange
was going 20 be crushed in forty-eight
hours and j thought ] would look
into It,"
How was the exchange going to be
crushed?'' Mr.. Wintner asked.
II have no idea," was the reply.
Isn't IL a fact that you were ready
to go over. to Brooks and tell all about
tradngs on your exchange until your
father-in-law told you not to do so?"
NO sir: I'm no a'toT.''
Traitor to whom?y
''To the American Cotton Exchange"
colder Exchange Jealous"
Later Mr. Wintner asked about Pat
tons purchases from the New York Cot
ton Exchange. which, the witness said.
last year ran into thousands OF bales"
Patton denied that these transactions
we're for his own protection and insisted
they were for his customers. Then he
said that the New York Exchange ha 1
"never been very friendly" toward the
American Exchange because Of the busi-
ness which II had taken away.
"Do you mean that the New York
Exchange was Jealous OF the American
with its fifteen brokers?' he was asked.
Absolutely" the witness replied.
Following Patton's testimony albert
Massey. for the exchange, extended a
formal invitation to Justice Marcus and
tte jury TO visit tho exchange and in
sn~ct the ring and its equipment. Mr..
WIntner remarked that he had never
heard OF such an offer except In homicide
cases" Justice Marcus declined the
Invitation ard declined to dlrec: the jury
TO accept It,
The case probably will go TO the jury
this afternoon.
HEACH WANTS NO LOAFERs.