The New York herald., 1922-03-16
Sales in 10 Bale Lots and
Wide Delivery Give Ad-
vantage, He Says.
HEARINGS END TUESDAY
Magistrate McAdoo Then Can
Decide if Grand Jury Ac-
tiOn Is Warranted.

Testimony at the John Doe inquiry
before Chief Magistrate William Nc
Adoo into alleged bucketing transac-
tions on the American Cotton Ex-
change caused q noticeable falling off
in tie business Of the exchange yes
terday as a result of publication of
reports of the hearing in newspapers
of the Southern States, where most Of
the clients of brokers of the exchange
reside.
A. w. Graham, president Of the ex-
change, said, however, that the cx
change would be able to weather the
attack, though possible withdrawal CT
accounts. from some of the smaller
brokers might make the situation diff
cult for those particular brokers.
To offset the effects of unfav orable
publicity. Mr. Graham telegraphed last
night to thirty-four newspapers in every
State from Virginia to the Rio Grande
appealing to the Southern public to
withhold judgment until the American
exchange has had opportunity to pre-
sent its side.
The John Doe hearing will continue
before Magistrate McAdoo this after
noon, at which time, II Is expected, the
inquiry will be finished. 1t will remain
then for Magistrate McAdoo to hand
up his presentments. if any. to the Dis
trict Attorney or the Grand Jury The
new evidence is expected to be largely
documentary.
wants Judgment Withheld.
Mr.. Graham's appeal to head off de-
fection of the exchanges Southern pat
ronage was:
80 many misleading statements have
been sent out from New York relating
to the John Doe inquiry into the man
agement of cotton exchanges now be-
ing conducted by Chief Magistrate NC
Adoo. that 7 deem it my duty TO the
members of the American Cotton Ex-
change to make this statement. asking
the public to withhold judgment until
the evidence for. as we'll as against, said
exchange can be presented.
"The matter being heard by Judge
McAdoo is on an information filed by
Hon. Joab Banton, District Attorney.
in which no persons or corporations ara
named. The Chief Magistrate an
nounced that he would pursue the same
course as in an investigation by grand
would be allowed: neither parties af-
fected nor their witnesses would be
heard. nor would any attorney be per-
mitted to ask questions except by cour-
tesv of the District Attorney
THE witnesses SO far examined have
been Albert r. Marsh. expert for the
New York Cotton Exchange. and A. w.
Graham, president of the American Cot
ton Exchange: Samuel Landecker. for
4
left the American Cotton Exchange un-
der charges, and w. b. Wilson and y.
II. Watson, expelled from the Ameri-
can Cotton Exchange on February y.
1922, after 1t was discovered that they
were acting with Louis Brooks and
other members OF the New York Cotton
Exchange. who had said that the inten-
tion was to crush the American Cotton
Exchange.
"OnIy One Firm Has Failed"
THE grievance against the American
Cotton Exchange Is caused by the fact
that while the New York Cotton Ex-
change will not trade in units OF less
than 100 bales nor contract to deliver
cotton elsewhere than In New York the
American has demonstrated that IL Is
entirely feasible to deal in units OF ten
liver at any OF the points In the South
designated by the Department OF Agrl-
culture as a spot cotton market.
while the American Exchange was
doing a small business IL did not excite
the envy and prejudice OF the New York
Cotton Exchange, but when business
grew with such extraordinary rapd:ty
on the American then Il was decided to
crush the young competitor.
The brokers on the American Cot
ton Exchange are intelligent, active and
and compare in personnel with
those on any exchange in the country.
IL Is noteworthy that in the great crash
among brokers in New York only one
member of the American Exchange has
failed His failure was cause by trans
actions in stocks and not In cotton
"Of the $50 members Of the exchange
over $50 are residents of Southern
States. and most Of them dealers in
cotton. The American Cotton Exchange
has nothing to fear from a most search
ing investigation Of it's affairs, and
simply asks the public n withhold ftldp-