The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-18
SECRETS OF
GAMBLING
EXPOSED
Fight on Little Exchange
Brings Out in Court Some
of the Methods

New York. March l3.-Critic:sinS
methods Of operation OF the -Alneri-
can cotton exchange during the
John Doc" inquiry into its affairs
today. Chief Magistrate McAdoo de-
c]arcd i! appears lat the exchange
had 10 cotton on which 10 base its
trading unless it purchased across
the street from the New York cot
ton exchange
The American exchange pur-
chased 5000 bales from the New
York exchange simply for use by
the brokers in checking the wheel
so it would stop at n winning num-
bcr." he added.
These comments were evoked by
testimony OF former Judge y. w.
Graham. president OF the American
exchange. who spen, the afternoon
on ;hc witness stand.
Mr.. Graham disclaimed knowl-
edge of Il petition, offered in eri-
dence in which exchange officials
were advised by members that the
state OF trading on the floor is ter
riblc" following withdrawal Of {,
firm which cuStomarily had held
10. 900 bales TO cover brokers who
sold short.
The petition urged the purchase
times in the trading when the buy
Of 5000 bals TO sell at opporrune
erS' demands exceeded sales SO tar
rs 10 halt trading and force prices
upward. Revenues Of the members
would thereby be doubled. trGbled
ana perhaps quadrupled, the peti-
ton said
Mr.. Craham was ordered by the
magistrate to present TO the dis
trict attorney tomorrow names Q!
q half dozen Southern planters who
benefited by the chance TO specu
late. offered with the opening OF the
exchange"
This order was based upon testi-
ncny that the eXchang" MAS toand-
&C in the open market By using ten
bales as the minimum unit nj rams
actions, thereby opening :he field
TO smaller growers eliminated from
the New York cotton exchange AND
the New Orleans cotton exchange
by a 100 bale minimum 1aii.
Questioned concerning the duties
OF his Office as president OF the eX-
change, Mr.. Graham ;A-;'.E."d .s2
opened the mail. presided 1T meet
ings OF the board Of directors and
attended TO litigation Instituted 20
rid the exchange OF certain rlst;I-
j. brokers"
The witness presented little
knowledge Of the actual wcrEiceS
ct Tie instiption. tie did not know
what ticker service was used; how
price quotations 4were based; or
how ii ,aiSht be determined what
cotton sold actually was delivered
he said He was chosen president
of the exchange. he asserted. fol-
OF the Untrd States treasury de-
part mcnt 70 enforce the cotton fu-
lures act in New York. He said
~. was the son OF q North Carolina
cotton grower, but that he had no
personal experience with cotton ard
never bought or sold a bale OF
cotton on the exchange
In other words" Magistrate Nc
Adoo iucrposed. you were elected
cresidcnt, of this exchange and drew.
a salary nf 5000 a year because
Of the moral effect upon its GUS
toners Of your name as judge and
former official Of the treasury de-
partmcnt.
Mn. Graham declared that sew
eral member Of the exchange had
been expelled recently on charges
that thcy had taken their custom
ers money without delivering any
thing for it." Another firm was
expelled. he said, for knocking the
exchange" in letters to customers
Throughout The country. warning
them 10 discontinue their accounts
v ith tho American exchange on the
.round that It was unreliable.
The Witness also claimed TO h>lvt.
uncovered Il plot OF the New York
cotton exchange and the Eew Or
leans cotton exchange TO put the
American cotton exchange ont OF
business. The hearing will be re-
sumcd tomorrow.
c-eAe
unNuEC WEAK