The New York herald., 1922-03-18
IL COTTON MEN MAY
Be Hailed TO court
BantOn Would Have Nc
AdOo Hear Cases Uncovered
i'm John Doe Inquiry.
EXCHANGE FAVORS 1T
Reference to Grand Jury
Would Mean Delay in
Refutation.
DEALS IN SOUTH WATCHED
Board Keeps Up Business De.
spite Handicap of Charges
Against 1t.

District Attorney Joab n. Banton
win aai< Chief Magistrate william Nc
Ados to-day to preside over . hear
ing Of formal complaints against the
twelve officers. directors and brokers
Of the American Cotton Exchange
mentioned In Magistrate McAdoo's
presentment that the exchange and its
members are conducting q bucket
shop.
II the Chief Magistrate can take
personal charge OF such q hearing Of
complaints by Monday or Tuesday the
District Attorney will follow that
course Otherwise he win hand the
preseutment and the evidence sub
mltted to the Magistrate At the John
Doc hearing to Grand Jury imme-
diately. with charges Of bucketing or
conspiracy. ether or both. he said.
Mr.. Banton desires no delay In a
trial Of accusations against the ex-
change and its brokers. or clearing
them o. the irnputa1ons.
m the meanwhile It developed ti,at the
future inquiry, whether II be before q
committing magistrate or Grand Jury.
may extend throughout tho South.
where members OF the American Cot
ton Exchange have numerous agents
ana representatives and where the vast
majority Of their clients reside
Literature Sent out.
Testimony and evidence submitted at
the John Doc hearing indicated that
literature sent broadcast in the South
is designed to lead persons Of limited
means to speculate in small units on
the cotton market, that In many In
stances those spectators were at great
Disadvantages, and that exchange
brokers had agents In Southern cities
handling transactions with Southern
speculatore.
Mr.. Benton said whatever course was
taken. the inquiry would include scru-
tiny Of the relation OF the Southern
agents and representatives with the
activities Of brokers accused in New
York. Wherever 1t may be shown that
such agents have aided and Allotted in
violation of law. he explained. they
VIM be made principals and their ex-
tradition to New York will be asked.
Magistrate McAdoo's presentment sug-
gested complaints also against tho Off
GERS and directors of the exchange. Two
Of the directors live IN the South. They
are w. 8. Forbes OF Richmond. Va. and
Tracy /. Hickman Of Augusta. Ga.
Mr.. Banton asserted that 1t was I'm
possible to say yet whether those di-
rectors would be included In any COM
plants. the course regarding them de-
pending on the nature OF the crime
alleged. In other words. II " appears
that not being in close touch with the
direction of the affairs Of the exchange,
IS would be the case probably with the
New York directors, the Southern di-
rectors are not implicated In Illegal
dealings of the exchange they may not
be included unless legal technicality
ccrnpels 1t.
third Southerner mentioned In the
presentment III connection with recon-
,nenda tion regarding the directors was
r. y. Whitaker OF Raleigh. N. c. IL was
learned that he no longer was director
of the exchage. and that, therefore, he
was exempt from the presentment. un-
less 1t developed later that he happened
10 be involved In some criminal act that
might have been committed before he
ceased to be director.
Tho wording of the presentment Is
such as to indicate that Magistrate Nc
than were mentioned specifically may
become involved when the District At
torney's action gets under way.
Not Altogether Clear.
MIR Banton Is ready TO act at once,
the sooner the better, but the present
rient is not altogether clear to him on
the point of procedure as outlined In the
following paragraph of the presentment:
II 49,
siven warrants presentation directly to
the Grand Jury or taking a complaint
against the officers and persons in
charge OF the American Cotton Ex-
change as for conducting a bucket
shop"
Mr. Bantcn's judgmet is that the John
Doe hearing should be turned directly
back to Magistrate McAdoo for con-
tinued Investigation. But the District
Attorney is not sure that that course Is
contemplated In the presentment. The
Chief Magistrate was not at his office,
but the District Attorney expects to con-
fer with him on that point this morning
Mr.. Banton said that no other maGis-
trate. he thought. Is available to give
Ills time to the matter, unless II be the
Chief Magistrate, and unless the Chief
Magistrate can take up the matter early
next week and 60 right through with
u II will be necessary to send the mat
TER 20 the Grand Jury. If taken before
Il magistrate as routine business. said
Mr.. Banton. II would take month to
hoar the case. which Is considered too
long.
Tho exchange and It's brokers arc
anxious 10 20 before a magistrate so
that they may have an opportunity to
sefuto evidence against them. That
would not be possible In a Grand Jury
proceeding. Meanwhile. II was pointed
cut, the exchange 10 suffering, particu-
larry among its Southern patrons, from
the effect of the adverse publicity of the
John Doe testimony.