Evening star., 1935-01-13
CUTTEN CHARGES
ARE ARGUED HERE
Grain Broker Silent During
Session Involving Duel
Between Attorneys.
Flushed and slightly nervous, a

Flushed and slightly nervous, a
gray-haired little man of 81 sat before
Secretary Of Agriculture Wallace,
Secretary of Commerce Roper and
Attorney General Cummings yester-
day and heard himself called "the
greatest grain speculator this country
ever had"
He was Arthur w. Cutten, Chicago
grain broker, sometimes known as
1.-The mystery man of La Sale street"
whose slightest activity in connection
with the grain trading marts has been
considered sufficient to cause a turn
over of millions of dollars.
Without uttering word in his own
defense, he heard himself charged
yesterday with attempted manipula-
ton of the markets, with conspiracy
and collusion in connection with his
dealings, with making false reports
of some of those dealings and with
making no report at all on some
others.
Counsel Denies Charges.
On his behalf. he heard Orville
Taylor, his chief counsel, deny the
first three of these charges and claim
extenuating circumstances while ad-
mitting the fourth. The extenuating
circumstances. Taylor declared. were
the negligence of an office girl en-
ployed by Cutten and the negligence
of the head of the Chicago Office OF
the Grain Futures Administration.
Earlier in the hearing before the
three cabinet officers, Cutten heard
Leo F. Tierney, special attorney for
the Government, denounce him as
conspirator for his alleged practice
of maintaining numerous accounts
with several brokerage firms. each ac-
count listing short holdings in grain
in amounts up to 100000 bushels.
The total of these short holdings
reached a maximum of 100000 BUSH
els at one time, Tierney said, this
amounting to about 20 per cent of the
whole volume of open contracts on
that date. Members of the broker
age firms were knowingly fellow con-
spirators, Tierney charged.
Cutten also listened while Taylor
described him as a man of prominence
in his community, of unimpeachable
integrity and of the finest sense of
honor in his business dealings. A
man. Taylor continued. whose good
name and reputation never before had
been aSsailed.
Official Is Scored.
Attentive throughout, he listened
while Taylor blamed an Office girl for
negligence, then bitterly scored Leslie
A. FitZ, Chicago official of the Grain
Administration, for 'willful negligence"
in failing to notify the operator that
regulations were not being complied
with.
The Office girl, Taylor explained
had replaced former secretary who
had filed satisfactory reports in 1927
1929. The new girl had failed to file
the reports in 1880 and Fitz had al
lowed 18 months to elapse before
bringing it to the attention of Cut
tens Office. Reports filed at that
time. Taylor insisted. had been de-
clared adequate although the Gov
ernment now claims them to have
been false.
AS the two-hour hearing neared its
close. Cutten heard Tierney return to
the stand to scoff at the defense claim
that it was incumbent upon Fitz to
notify the brokerage Office that they
must comply with certain regulations
He heard Tierney declare further that
the broker knew to the bushel how
much grain he held on any day and
that he knew what the Government
regulations were. that he was not de-
pendent in any degree upon single
Office girl to fill such requirements.
Hyde Telegram Read.
Finally, he heard the Government
attorney read a telegram signed by
former Secretary of Agriculture Hyde
OF the Hoover administration asking
the operator to desist from his short
trading activities in grains, if reports
were true that such operations were
going on. In reply, Tierney read a
telegram to Hyde from Cutten in
which the latter denied he was active
in grains. On the day that the tele-
gram was sent, Tierney charged, Cut
ten was short by more than 100000
bushels of wheat.
A decision on the case, involving
disbarment from further trading if
the charges are upheld, probably will
be rendered in two or three weeks, one
of the members of the commission said
after adjournment.
Testimony taken in previous hear
ings in Chicago will be studied by the
commission, as well as further legal
argument submitted in the form of
brief BY counsel for Cutten.