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The Pickens sentinel. (Pickens, S.C.) 1911-2016, February 29, 1912, Image 1

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Entered April 23. 1903 at Piektler . .- as ace-~md vI::- x u m-.a~~ ', ~r (a un - of n .-- ... 3 9 -
Asks for Drastic Regulation of
Cotton Exchange. Gives
Some Interesting Fig
ures on Cotton
Mr. Hay. Mr. Chairman. .I
yield 15 minutes to the. gentle
man from South Carolina (Mr.
Aiken.) -
Mr. Aiken of South Carolina.
Mr. Chairman, some time ago I
introduced a bill (H. R. 12408)
the purpose of which is to reg
ulate transactions ion the pro
duce exchanges of this country.
This bill if enacted into law, will
confine tran'sanctions on the ex
.changes to crop products actual
ly in existence and re'ady for
dilivery, fixing proper penalties
for violations of its provisons.
At the same time I introduced
this bill -July 12, 1911-I knew
ia a general way the evils of
exchange methods, but their
enormity was not known lo me
fully antil the closing mionths
of that year. .
Only a few years ago a large
percent of the lands and homes
of southern fariners were under
mottgage. . Reduced to poverty
by the war, the southern soldier
came home to enlist in an indus
trial struggle full of deprivation
andllittle!less terrible in its effects
than the scene of blood and
carnage through whilh he had
passed. Cotton, by reason of its
climatic adaptability and ready
market value. is the natural
southern crop, and its cultiva
tion offered the only hope to the
southern farmer after the War
of Secession. In the history of
its decline in price to less than
half the cost of production could
be written a history of depriva
tion, suffering, and even want
never before experienced by a
people of like refinement and in
telligence. Northern cotton mills
were reaping a harvest. They
extended their investment to
the North and South, mill in
terests flourished as never before
in the history of this country.
Southern homes were swept
from their owners and converted
into mill profits, and these in
tarn nlaced in new mills. Hard
as was the struggle with the
cotton farmer, it was not with
out its beneficial results in cre
ating new demand for his cot
ton Though many wereldriven
-from their farms to seek work
in the mills, a better day began
to dawn on those who remained
on the farns. Increased manu
facturing took cotton more and
more out of the hands o1 the
specuiator, and it began to com
mand a price that gave a profit
to the producer. Mortgaaes,
yellow wvith .age, were lifted
from southern homes, and peace
and contentment could be read
even in the lines of the furrowed
These dark days in our his
tory will never be reenacted.
Our peoole have concluded1 that
they are entitled to a part of the
profit of their crop, Trhey have
built warehouses and so diversi
fied- their crops as to stand the
assault of the cotton gambler,
and a few of them, at least, will
share the profit with him and
the mill men.
Determined, then, as a few of
our people are, to have share in
the profit on their cot ton. the
indignation they feel to ward a
lot of cotton gamblers whorK
market manipulations has robb
ed themn of millions of dollars'
profit on this crop is not hy~d to
understand. The poorvr, the
more helpless, has bernqueezed
out and fo ~ to part wit h his
-. w the cost of propu(
tion. iThis has already been
~Tto yer goMsr Brown
Havne, Scales and oteswr
charged with mamntaunmg a
pool to hold up the price ofa ct.
ton, the Attorney Generai of the
United States had them indicr '
before a federal grand j ury
And for ixhose protectio.'.
was done at-the instam' of
lot of bear thieves who s *n
atically robbed southern iplir
for more than 'thirty vars
The indictment alIeged that mil
men had to pay a tictitious pric<
for their cotton, and many (:
them were forced to shut down
I know something of this insid
history of that so-called bul
pool, and I state as a fact tha
the .idea originated with a south
ern mill president of La Grange
Ga., that the details were work
ed out at Greenville. im my owi
State, and that so-called bul
operators were brought in to ai
the cotton manufacturers to up
hold the price of raw materia
against the manipulation of t
conscienceless band of robbeo
As evidence that the Attor
uey General proceeded at itI
instance of the bear cliquo or
exchange, not the character o
the witnesses called. Without
exception they were representza
tives of firms who had sold cot
ton heavily in excess of supply.
And note the further fact that
not a single mill man appear
in the list of witnesses. At the
time the so-called "bull" poo!
came into existence the future
cotton market was a cent a
pound or more beow the spot
narket, held down by the beai
gambler. Tie dry-goods ier
chant wanted to base the price
in buying on the future anld not
on the spot-cotton market. amd
refuse to buy except on that
basis..- This produced stagna
tion in the cloth market and it
was to eliminate this feature
that mill men originated the so
called pool to maintain a party
between the spot and the future
But suppose American cotton
mills were p'aced at a single dis
advantage by- "bull" support of
the market, can the Attornev
3eneral be excused for protect
ing even them at the cost of
millions to American commerce f
.When we consider that the
United States raised 69.9 per
cent. of the world's supyly and
cosumes only 24.-7 per cent.
the magnitude of the injury
done to American commerce
and American business by the
effort to depress the price of cot
ton is apparent. That his act
did not reduce the price of c:ot
ton at the time more than
cents per pound is duec to the
stubborness with which Hlayne,
Brown, Scales and others bought
all actual cotton offered, instead
of accepting settlement of mar
gins, which is a trick of the
trade to sell large quantites of
cotton not in existence. Such a
decline was confident ly an tici -
pated. A week before Brown
and Hayne knew that ther were
oing to be prosecuted a "beur'
irm, in trying to get a certain
party to sell the market said:.
I know something is goin. tf
happen that will cause a break
nu the market 'of from 100 te
200) points.
Sups the. break had ma
ecline, to give forelt p inn'p
about 90,000,000 ;to 'ave oi
:30,000000, ostensibly ioAmri
can spinners, really to WVah
street gamblers. Will the tion
never come when Governue
representatives and oliicers c:1
see other interests than thos
that are center-ed in New iork
- the hard-working, respectat(
I izen of the 1litedI State
- hw!! up by the Goves unc1
~rught into si1 h0
The worild ' eo
cotton~as stated~ in DI L
page 2:;, of the Dcpl r
Agiulture, is 21. ,0, I
?he statt'eent:
it1 app'.taS probable thu
enn i-awrea dturmno whe v(:,
n~~~~ ligAg 3,912.
i her words. the presen
rop will barly net the dei
mand, colditions being norma
in ther cotton raising countries
i in India, for instanc the cro
is conceded to be short aboul
:1,500,000 balcs, and we hav
hea1l nothing of a large croy
in any other part of :the world.
We raised as heretofore stated,
approximately 70 per cent. an(
- this represents say 15,000,00(
bales. The other cotton produc
ing countries raise 30 uer cent.
or 6,400.000 bales. The total,
then. will be 21,400,000 bales as
agailst a consumption of 21,
000.,000. But India, as stated,
1is 1,500,000 bales short, which.
taken from -the iotal supply.
would seeim to indicate a short
awe in- he world's supply of the
crop of sometlhing like 1,100,000
bales of cotton. We need 21,
000,000 bales of cotton, we have
on1 19,900.000 bales with which
to supply them. In the face of
these facts cotton has been ham
mered down to 8 cents per pound,
2 cents below the cost of pro
dRuction, by a merciless set of
Meaning no disrespec.t, but in
criticism of the narrowness of
the Attorney General's view and
the siortsightedness of his poli
cy, I charge that he, more than
all other combined agencies is
responsible for this condition.
His prosecution of 'the so-called
bull element of the exchange
has driren out competition and
made the market a one-sided af
fair. No single operator can
affect prices on the exchange,
and no sane "bull" operator
would enter a combination while
he or his fellows were unde!
prosecntion by the Federal
couirts charged with this very
oftense. The "bears' may com
bine at-will, but. ftr the "bulls"
to combine is in restraint of
trade, is an affront to thegentle
men of Wall street, and proper
cau-e for Government interven
tion. What a spectacle.
Mr. Chairman. if the Attor
ney Gener". concludes finally
that he can not proceed against
--bull' operators, I believe a
committee of Congress should
mvakc investigation of exchange
methods. If it is a fact that
ndlilions of hales of cottoni are
oild annually on the exchange
that never had and were never
ntended to have existence,
herleby abnormally depressing
its price, then the evil should be
eradiented. in the name of
coilfnon decency, inl considera
ion for the southern farmer,
who contributes fiore to the ex
port tr'ade Of the Unit ed State:s
than hailf of the rest of this
con* ()1iYcJmined((, this pirae
on his Prmducnts shoul be stopp)
* . If th !]A-()t toni e.xchaniges are
(ed by the "bears,"- it wvoull be
initelyc1 better to abolish them
altogecth'er. Congress should
know~ the facts, aniX knowing
thilem Thould pass such legisla
inher a wili pro'tect thle po
co 4f (A ((t on \ woIuld have beten
of it has '-ld as & lawx as S cenlts
per piorund (Owing to bear mm~a
by' 'e Gvern1:nenit, the co)tton
i, ucr has easily lost .3 (cnts
pe pond on3501 the entIre crop 01
. 150(,00: and two-thirds of
thi amount, o': approximiately
-1 ?5,00,00. has been given tc
forin sPiiners.
Vlr Tribble. Wili the-gentle
man y kil fr a qluesti.)ns
Mr. Aiken of South Carolina.
Mr. Tribble. I unde-rstanl(
- I en.'tilmanintroducedI his
* n e time ago.
in of South Carolina
T '.Il as the gentle
-.. ..,1 If >outh Carolina
, \ a E'.- e n abetogt 1'
reoi't at all I ite c)nmi
fr. Trih. Th: h Id not
tigaei that. so far the
gentlemm knows, so as to i
port that bil
Mr Aiken of South Caiolina.
They have not, so far as [ know.
I would willingly aeord sinceri
ty of purpnse to the Attorney
General if. areptig tliis hri
of the dilemma, he did not dp
pear rediculous in the sight of
all good citizons. interested n
the welfare of a common col-!
try. Perhaps, as a newspape
in my district tersely puts it:
"H'He prefers the hug of the bear
to the horns of the bull." (Ap
plause on the Democratic side.)
While I thought the prosecU
tion of Brown, Hayne. and
Scales was little less than crimi
nal, since the Atto-ney General
has assumed the responsibilty
and given the "bears" the bene
fit of the Government's support.
I could see no reason why the
"hear" elenient, wvho had robW
ed the producing class of fully
.3,000,000 should ..ot also be
mrosecuted. and to that extent
aid in demoralising their robber
band. With this idea in view.
I directed a letter to the Attor
ney General, asking why these
men should no be prosecuted.
I have my letter to him and his
reply. I shall not read them,
but will ask leave to print them
in the Record.
In his reply the attorriey Gen
eral says if he had evidence of
the existence of a "bear" pool
he would proceed against it, as
he has proceeded against the so
called "bull" pool. While I can
not furnish him such evidence
ais wonl(l be conclusive in court,
such investietion as 1 have
made convinces me t hat the evi
dence against th- "bear" and
"bull" elements of the ex
changes is t angible alike: that
the market can neither be boost
ed nor beared by one man (Ap
plaused on the Democraticside):
that there are men on the ex
changes who opcrate almost ex
clusively on the "bear" side and
operate in collusion with other
"bear" - oper'ators: that/ these
raidis on the market are of ten
planned m nths before the actu
al coup: and that the r'obber
band planning them will use
every possible inst irumen t a lityv.
Incluing . the Government. In,
carry ont their danable pur'
po0ses. How many times have
they had advance inform atio~n
of the Government reports
Who would deny that they have
or have had agents inf the stat is
tical depar ienlts of this Gov
ernment? Now, 1 hese fact s arle
all known to Ilhe Attorney en
eral, and vet h10 comes up wt
the prosfciuin to thle "bull'
'ligne1 ini hiS right .hand, and in
hi'~ left had with th~e lme ex
case that lhe do's not knowv. wvho
the "'bears" are. (Applaus on
the Democratic side.)
The Regular "bear" cotton
spec(ulator is as u-el knc'V~wn in
exhange cir''cs as th of~ii .ers
Ih name us of seveta -hear
imi wh 1wixvll be found on the
-b-r ide of every iml)prtn
'.xchange transancti1(n, an.)
(ici it's of thle Government rail
on i he mariket t wo years ago.
if the Attorney Genleral will r
ingeac an c l i th arie
unde poecui~nfor evi dence,
and then rake the leth-r' fib~ s 0of
the "bear ilemntii, as fle U
in the case of his lUmceeni on1
the "hlulls"' lhe xvill noit heQ lak
ing for evidenc'e, A "bLear pn 1
was rin. which held the futur
market a cent a ponnaI hel w
the spot market at the very
time the Government began pro
ceedings against the se-called
- "hull"' elique. and that very act,
-as I have shown, gave ri-c to
t~ .-'ald 'lull'' pool as a
Mr..Nkl )I ion
thatat 2. a ':
wer1c jc
th11 6 1u IT4.11p Zi o
il 1hildb Slji e h1: "i
111r.iil ie 1 mil or ally ii gnu il
this NOi!
Aifr Ok1ivl ("', u~ sol' i i'.I
TlwrcheiaN 1)(1wcn fi2I I
O far as I know,
M~r. ilCffli. S.--,; 1i i i n I
~111 alll hi 1I. 1tO HI u
Not ~ 1 to 1,11,111"k . I v~
imean of j n A LS WV. lit - lA
Not; to 1117sf~I2Ytti
f tijt SVt dwI c W.! i ti ll \V
aftill f IN till into" S1- wasi
worflv an1 odm WKI Cv
Li ph.to tIP puldi Ai w a
at lor ill r at . (
It is rulwttl 1 i W O \ ii
'lev wvill J(I
giarloyr. 7m oa(mwD
1 77*. 7 ' 4 --7
Illy_ TOWiI
_____PIED!IO 1
This L'O~i town is note(I for its hospitality,
i ( ): I ) ordert. E vevv door is wide open
to strng~ers; the people strictly moral and law
11 ierC pirevais.
here has riot been a seriouis crime commit
id hre mn mny\ y'ears. We have only oic blue
cal, ai' his, services i a're rarely called into re
uisi iomn; (circh anti S11nday school' member
o giad1ualiv grows; inisiness increases yearly
ui iherefor e there is no reason that we should,
n i hippy and contented in this good town.
Ech <biy we take a step forward. Soon
we will quit paddling through the muc and walk
(n paved streets.
Our mI.chnts are always busy. People
e-onie hiI lrom ill mountains and from the low
huio buy. to They get their monev's woith
(" wy0 :--." -isfid thlat they resolve
om' buzer gainl.
. Tis. is one of~ the best markets in the State
or Co; o :1n(1 Cot toni and( all farm products, and
n U 4 utoe t rades herei~i he has been won
.!'' god inwn to ;j\e, mlove and~ have
a i. AUi who are here say so. The
*... '.water in flhe world (Greenville
* ~x; K'~.Thue h;aY I1(Oli(, and(1 joyan
* * (~:81noinenit fore'vermlfore.
is;numer. They canni1ot find a better,
healUt hier place to spend the
: 1 i nvigoratinig, the climate
S.~~ ihe c*eva'tingr hills inspiring. W\\e
o \.( exeel lent hotels, bult these arc
I b hwea and ~ triansient patrons. The
o nanin h. ,se~s ::re well filled, anid some
;nid get buisy ovIe accommuuodation
h:n \.-ib ->, UV' 1CL :t(rhI \ ,-r;IhinLr ho(rL for
~ . Heavy Loss by Ffre
Houston, Texas.--In the wake
of the most destructive fire in
the history of Houston, smould
ering wreckage tonight covers
an area of about seven blocks'
wide and a mile tong in the eas
tern po'rtion of the city.
More than a dozen of the most'
important enterprises in the cityF
are in-ruins; 200 or more dwell
Lings andstoresareinashesand
approximately 1.000 persons are
An accurate statement of the
monetary loss is not yet possible
but the most conserivative esti
mates are that the amount will
reach $7,000,000. The insurance
will not exceed 40 per cent. Ex
cept for a few who suffered mi
nor burns and bruises, no casu
alties attended the fire.
Warehouse .Commioners
J. W. McCown of Florence,
chairman; John S. Horlbeck of
Charleston, T. L. Clinkscales
of Anderson is the personnel of
the new State warehouse* com
mission, to take charge of the
State system of cotton ware
houses created under the act of
the present session and approved
by the governor.
The terms of the members are
six, four and two yTear, t
selected by lot, the three
members elected.
Agree on Parcels Post
It looks as if congress would
pass the parcels post law. From
a dispatch a few days ago to the
daily press the following is tak
en: -
Democratic members of the
house committee on postoffices
and post roads have agreed to in
corporate in the appropriation
bill provisions for the establish
ment of a general. parcels post
system. They haN e also agreed
upon a domestic rate of 12 cents
and a maximum package of 11
pounds.. This is the present in
ternational post rate.
They would also provide for a
rural parcels post, the rate to be
5 cents for one pound and 2 cents
for each additional pound. The.
provisions will be incorporated
in the bill to be reported to the
house some time next week, but
the actual wording of the provi
sion's has not beeni~~ T~
decision was reached after long
consideration of the subject, a -
few Democratic members advo-J
cating a system of parcels post
zones in which would prevail
different rates. This was final
ly passed anid the international
rate ordered recommended for t
general routes and the .limited, '
graded rates for rural routes.
AnOld Bar Room.
But what is an "old bar-room"
-an "open saloon?" The no
tion of the South Carolinian is ~
vague and is obtained only from ~
reading descriptions of "gilded
dens of iniquity" that are stilt
to be found in such benighted
regions as Virginia, Pennsylva
nia and New York. Neverthe
less, persons who wish to be ii
formed and are unable to travel
half a thousand miles may oh- :~
tain a fair idea of them at the -
race track in Charleston.--The
Acts Not Approved4
Over one hundred acts and ;
joint resolutions passed at- the-2
present session of the general
assembly have been forwarded
by the governor to the secretary
of state, where they are now on -
file as statutes of South Carolina.
An examination of the mass of
ratified acts shows that only
three or four of the entire lot
have been given the official sig
nature of approval. In the re
mainder, the line drawn for the
signature of the governor, above
the word "governor," he left
blank.--The State.

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