The Houston Post. (Houston, Tex.), Vol. 25TH YEAR, Ed. 1 Saturday, January 15, 1910 Page: 1 of 16
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mm.
-j fk-! /\ Read The Post
I Ml II during the
^ w coming year
All the News while it is News"
Kl
SIXTEEN PAGES TODAY
rn\jc.o 1UUAT
THE HOUSTON POST.
25TH YEAR.
HOUSTON. TEXAS, SATURDAY. JANUARY 15, 1910.
PRICE, 5 CENTS.
It's Embarrassingtz
ance on the news of the day.
The Post gives it every morn-
ing before you meet your iriends
TAFJ INDORSED THE
VIEWS OF BALL1NGER
In Special Message to Congress on the Conser-
vation of Natural Resources.
THE CLAJS.FICATIO^ .UMMARY OF NEWS
Of Public lands According
to Value First Step.
URGED $30,000,033 BONDS
To Carry to Completion Pn j.cts
Outlined by Interior Secretary.
ON'WATERS AY IMPROVE MEN IS
The President Urged Continuin
Contracts by Congress to Com-
plete Wcrk Already4 Un-
der Way.
Pre jrt Rgfirtrt.)
WASHINGTON. January 14.—President
Taft's special message on conservation of
natural resources sent to congress Is as
follows:
To the Senate and the House of Repre-
sentatives.
In my annual message I reserved the
subject of the conservation of our natural
resources for consideration in a special
message as follows:
"In several departments there Is pre-
sented the necessity for legislation look-
ing to the further conservation of our
natural resources and the subject Is one
of such Importance ns to require a more
detal ed and extended discussion than
can be entered upon In this communica-
tion. For tlils reason I shall take an
early opportunity to send a special mes-
sage to congress on the subject of the
Improvement of our waterways; upon the
reclamation and irrigation of arid, seml-
srid and swamp lands; upon the p eser-
vbtIon of our forests and the reforest-
ing of suitable areas; upon the reclassi-
fication of the public domain with a view
of separation from agricultural settle-
ment, mineral, coal and phosphorous land
and sites belonging to the government,
bordering on streams suitable for tha
Utilization of water power."
In 18fio w* had a pub ic domain of 1,055,-
911,288 ac es. We have now 731 64,081
acres confined largely to mountain ranges
and seml-arld and arid plains. We have
in addition 868,085,975 acres of land la
Alaska.
The public lands were during the earli-
est administrations treated as a National
asset for the liquidation of the public
debt and as a source of reward for our
soldiers stid sailors. Later on they we. q
donated In large amounts In aid of the
construction of wagon roads and rail-
ways In order to open up regions in the
West, then almost Inaccessible. All the
principal land statutes were enacted
more than a quarter of a century ago.
The homestead act, the pre-emption and
timber culture act, the coal land and the
mining acts were among these.
PRIVATE OWNERSHIP FEARED.
The tapld disposition of the public lands
under the early statutes and the lax
methods of distribution prevailing, due,
I think, to the belief that the lands
should rapidly pass Into private owner-
ship, (ave rise to the Impression that
the public domain was legitimate prey
for the unscrupulous and that It was not
contrary to. good morals to circumvent
the Jand laws.
This prodigal manner of disposition re-
sulted in the passing of large a. eas of
valuable land and many of our natural
resources Into the hands of persons who
felt little or no responsibility for promot-
ing the natural welfare through their
development. The truth is that title to
millions df acres of publlo lands was
fraudulently obtained and that the rign.
to recover a la ge part of such lands
for the government ong since ceased by
reason of statutes of limitation.
There lias developed in recent years a
deep concern in the public mind respect-
ing the preservation and proper use of
our natural resources. This has been
practically directed towa ds the conserva-
tion of the resources of the publlo do-
main.
The problem Is how to save and how
to utilize, how to conserve and still to
develop; for no sane person can contend
that It Is for the common good that na-
ture's blessings are only for unborn gen-
eratlons.
Among the most noteworthy reforms
Initiated by my distinguished predecessor
was the vigorous prosecution of land
frauds and the bringing to public atten-
tion of the necessity of preserving the re-
maining public domain from further
spoliation for the maintenance and ex-
tension of our forest resources and for
the enactment of laws amending the ob-
solete statutes so as to retain govern-
mental control over that part of the pub-
lic domain within which there are valu-
able deposits of coal and oil and of phos-
phate. and In addition thereto to pre-
serve control, under conditions favorable
to the public of the lands along the
streams In which the fall of water can
be made to generate power to be trans-
mitted In the form of electricity many
miles to the point of Its usefulness as
water power sites.
ABITSE OF THE LAND LAWS.
The Investigation In the abuse of land
laws and prosecution of land laws have
been vigorously prosecuted under my ad-
ministration as has been the withdrawal
of coal lands for classification and valua-
tion and the temporary holding of power
sites. Since March 4, 1904. temporary
withdrawals of power sites have been
made on 102 streams, and these with-
drawals therefore cover 229 per cent more
(Continued on Page Suven.)
COTTON PRICES CRUMBLED A
UNDER ENORMOUS LIQUIDATION
Spectacular Slump of 109 to 116 Points From High Levels of Day Demoralized
Market at New Orleans—Decline of $15 Per Bale From Top Record of
Season—Bears Checked Downturn by Profit Taking.
THE WEATHER.
Forecast for Houston and vicinity for Satur-
day—Partly cloudy and warmer.
Temperature and precipitation records for
Houston for the twenty-four hours ended at 7
p. m Fridays
Temperature—Maximum 65; minimum 44...
Precipitation .06.
(Associated Press Report.)
WASHINGTON. January 14.—East Texas
— Partly cloudy, with rising temperature Satur-
day and Sunday; light variable winds, becom-
ing moderately south.
Louisiana—Generally fair Saturday and Sun-
day: warmer Sunday; moderate shifting to
south winds.
West Texas—Partly cloudy with moderate
temperature Saturday and Sunday.
Oklahoma—Unsettled and warmer Saturday.
Sunday fair.
Washington,
INSURGENT SENATORS have determined to
show up administration measures which fa-
vor the interests.
T1IE QUESTION of the right of witnesses In
the Ballinger-Pinchot investigation to be rep-
resented by counsel is puzzling congress.
THE PRESIDENT submitted to the congress 1
a special message on conservation of natural I
resources, epitomizing in recommendations
the ideas of the secretary of the interior.
STATEMENTS issued from the White Ilousa
and by Representative Dwight indicated that I
a truce had been declared between the re- t
publican insurgents and the administration.
REPRESENTATIVE HENRY'S resolution
proposing a change 'of the date of presiden- j
tial inaugurations was saved from defeat by
an unexpected early adjournment of the ,
bouse. i
Domestio.
TENNESSEE authorities are taking precau-
tions to protect the fish workers at Reelfoot
Lake from the night riders.
BARON EMIL KARL VON MUELLER, ar-
rested at Los Angeles, is alleged to have
married fifty women in order to secure their
money.
CHARLES R. HEIKE. secretary and treasurer
of the American Sugar Refining company,
and others were indicted at New York in
connection with the sugar fraud cases.
SENATOR GIBBS of Yazoo at Jackson. Miss.,
upset the democratic senatorial caucus by a
proposition for the election of a successor to
• v., t-it — F'nited S'afs Senator Mcl^aurin.
ONE of the worst slumps in the history of
cotton future trading occurred when prices
broKi at .Siw Uruans .nici New \ ork yes
tcrday under the heaviest liquidation of the
present bear raid.
DEMORALIZATION in the final hour of the
session in the New York stock market was
accompanied by a general shrinkage of val-
ues. E. G. Scales, the Texas bull, lost a
fortune on the decline.
Foreign.
THE MILITARY troubles in Spain were re-
ported at Madrid to have been incited by the
Carlists.
ABBE GAQUEL, who is revising the vulgate,
in a lecture at Rome, paid a high tribute to
American generosity in extending financial
aid.
THE BRITISH parliamentary election cam-
paign closed, the struggle having concen-
trated in the demand for the elimination of
th' house of lords.
ESTR \D.VS VICTORY at Acoyapa was de-
nied by reports from San Juan del Sur,
where the Nicaraguan insurgents are prepar-
ing to advance on Greytown.
Texas.
O. B. COLQUITT indorsed the movrment for
a State institution for Indigent consumptives.
WORD reached Galveston that the death of
G. D. Dimmick at Havana, Cuba, was acci-
dental drowning.
ARGUMENTS were begun in the alleged Chi-
nese smuggling conspiracy cases at Galveston
and the jury may be charged today.
DR. GEORGE W. LARENDON of Houston
was appointed one of the delegates to the
Rockefeller hookworm commission meeting at
Atlanta.
W. T. LOUDERMILK, president of the Texas
Farmers' Union, at Fort Worth denied that
action had been taken to deny seats in the
coming convention to opposing factions.
CHARGES were made on the floor of the con.
vention of corn growers at Dallas that at a
secret caucus candidates had been groomed
for commissioner of agriculture and railroad
commissioner.
Railroads.
A MEETING of the stockholders of the St.
Louis, Brownsville and Mexico has been
called to consider a proposed $20,000,000
loan.
ML'CH PROGRESS was made before the
Western classification subcommittee at San
Antonio, little discussion attending opposi-
tions.
(.Associated Press Report.)
NEW ORLEANS, January- 14.—One of
tlie worst slumps In the history of cot-
ton future trading was recorded here to-
day. Prices of the old crop deliveries
broke soon after the lunch hour In a most
sensational manner and within a very
short time were 109 to 116 points down
from the high levels of the day, a loss
of about $5.80 a bale.
Within less than half an hour's trad-
ing there was a break of 60 points and
prices crumbled away, as registered on
the sale board from 7 to 11 points at f
time. Almost 3 cents a pound lower th?
the highest levels ot the season were t-'
prices established. *
The cause of the break was "•enec' /
regarded as without explanation. I^- ,'e
traders. Including prominent Sov*- t-n
bulls who recently went to New York,
have been talking very bullishly. It is
known, however, that a powerful bear
clique has trained Its guns on this bull
faction.
STARTED IN NEW YORK.
The decline started in New York and
followed a period of quiet trading in
which the market had taken on a steady
tone, a fact which led the bulls to be-
lieve that liquidation from outside was
about over. Suddenly the selling started
and In a few minutes' time the market
was In a state of semi-panic with long
cotton, being thrown overboard by the
thousands of bales. In the last half hou •
the decline was checked by profit tak-
ing by the bears. They bought heavily
and the result was a reaction of about 30
points, or $1.50 per bale.
After the demoralizing break in cotton
futures markets at both New Orleans and
New York prices were carried down to
points ranging from $5 to $6 a bale be-
low the highest of the morning, a slight
.recovery bein<» brought about by the
bears themselves who bought large quan-
tities of cotton rather than carry too
many sales over night.
WAS $15 BELOW HIGH LEVEL.
At New Orleans the old crops closed at
levels which ranged from 88 to 90 points
j below the highest of the day, a loss of
j o "* $4.50 a bale. The closing levels
69 to 72 points below the close of
c" erday, equivalent to about $3.50 a
* e. The lowest levels of the day were
out $15 a bale below the highest of the
'> inter and were the lowest recorded since
£i-he present slump set in a short time
if aK°-
> March and May, the most conspicuous
ffj options in the break, closed in New Or-
leans at 13.96 and 14.20, respectively,
March in New Y"ork closed 13.75 and May
13.90. Between 15 and 20 points were re-
covered in New Orleans after the close
of the market in New York.
MARKET WENT TO PIECES.
Futures opened steady at a decline of
1 to 9 points in sympathy with weakness
in New York. In the early hours the
market was steady and at one time was
16®19 points over yesterday's closing. In
the afternoon the market went all to
pieces and prices crumbled away in a
manner seldom seen before. The more
active old crop deliveries fell 109 to 11U
from the top, breaking at one time 60
points in less than fifteen minutes.
Panic reigned around the ring and long
cotton was thrown overboard for any
price It would bring. Bulls offered no
support and finally the bears themselves
checked the decline by profit-taking. At
the lowest the market was almost ex-
actly 3 cents under the high levels or
the season reached in the last week or
last year.
LONG LINES LIQUIDATED.
All sorts of rumors were In circulation
as to the cause of the decline, most of
them being that some large long lines
were being liquidated. Outside the fact
that the selling began in New York no
one here had any idea of what started
the decline.
Toward the end of the day the reaction
became strong and the market closed at
net decline of 69@72 points for the day
and 83@90 points down on all old crops.
October closed at a net decline of 17
points. At the lowest of the day October
was 41 points down. May was the weak-
est month In today's trading.
NO QUOTATIONS AT MEMPHIS.
Boards Wiped Off and Spot Cotton
Market Nominal.
(Associated Press Report.)
MEMPHIS. Tenn., January 14.—For the
first time in the history of the Memphis
cotton exchange all quotations were
wiped off the board today, the entire spot
cotton market being nominal. In other
times, when buyers and sellers have been
widely at variance, old prices have been
allowed to stand and the tone been made
nominal, but In this recent Instance all
quotations have been withdrawn.
This, is the result of the action of the
factors and spot cotton holders of the
city who at the recent decline of more
than 2 cents In options in New York have
refused to sell cotton at a decline ex-
ceeding 1-4 of a cent, and many not even
at that small concession. In view of the
absolute lack of cotton to be had, the
quotation committee was unable to fix
prices.
One factor had printed a large card,
which read, "No cotton for sale." This
was placed on his cotton room door.
The stock of cotton in Memphis Is In
round figures 200,000 bales, but so confi-
dent are those who own it that higher
values will prevail that they have adopt-
ed the course as above outlined.
Sport,
THE AMERICAN aviator Curtiss at Los An-
geles made a record for a mile and a half
course, going that distance in 2:12 flat.
THE RADICAL element of the Western Golf
association, which meets today at Chicago,
has planned to organize the American Golf
association.
WAS 1)EA\0RALIZED
IS MAN H.GHER UP
CRISIS NOW FACED
STOCK PRICES CRUMBLED ON
LIQUIDATION.
CHARLES R. HEIKE INDICTED
FOR SUGAR FRAUDS.
THE BRITISH PARLIAMENTARY
ELECTION CAMPAIGN CLOSED.
Largest Net Loss Was Consolidated
Gas, Which Declined 6 Points.
Entire List Suffered.
Secretary and Treasurer of Ameri-
can Refining Company Charged
With Conspiracy.
Intense Class Feeling Engendered.
"Vote to Protect Vote," Liberal
Organ's Exhortation,
(.Associated Press Report.)
NEW YORK, January 14.—The down-
ward movement in the stock market,
which had its inception last week and has
proceeded with more or less regularity
since that time, assumed larger propor-
tions today when on heavy liquidation
prices crumbled throughout the list.
There was demoralization in the final
hour and the close left a majority of the
active issues at the lowest level seen in
many weeks.
NO SPECIFIC REASON.
So many conflicting conditions enter
Into the market situation at this time
that it v^ould seem idle to attribute the
steady shrinkage of prices to any specific
reason. In some quarters the situation
Is likened to that in the fall of 1907, but
the sound position of the banks, the in-
creasing ease of money, the continuance
of prosperous business in almost all com-
mercial and industrial lines are them-
selves enough to offset fears.
The recent Rock Island episode undoubt-
edly gave rise to misgivings and the pres-
ent status of the American Tobacco and
Standard Oil cases at Washington are
not reassuring to the conservative ele-
ments, whose operations in the securities
markets are always to be reckoned with.
1,258.000 SHARES SOLD.
Trading today reached 1,258,000 shares.
Of this amount 25 per cent was in United
States Steel. Other stocks that helped
swell the day's business were" Reading,
in which 200,000 shares changed hands,
and Union and Southern Pacific. The
largest net loss was in Consolidated Gas,
which declined almost 6 points, while
other declines ranging from 2 to 3 points
were general.
The bond market was affected to an
unusual degree, all the better known is-
sues showing severe declines.
Houston.
THE REAL ESTATE transfers filed Friday
aggregated $26,136.
FOUR felony convictions were obtained in the
criminal court Friday.
J. W. HEBBARD, wanted for forgery in
Houston, was arrested in Austin.
ARRANGEMENTS are being completed for
the annual banquet of the Bar association.
THE CONTRACT for furnishing the lighting
fixtures for the new court house has been
awarded.
CHIEF ELLIS has Inaugurated a plan by
which he hopes to stop the selling of liquors
on Sunday.
PRESIDENT PETTENGILL of the South-
western Telegraph and Telephone company
was in Houston Friday.
THE FIFTY-SIXTH anniversary of the Hous-
ton Turnvcrein was celebrated Friday at
Turner Hall with a banquet and grand ball.
POSTAL CABLE NAME CHANGED
To Be Known as Transcontinental
After Febrnary 17.
(Associated Press Report.)
NEW YORK, January 14.—The Postal
Telegraph-Cable company, on petition of
Its vice president. Charles C. Adams, ob-
tained an order In the supreme court to-
day permitting the company to change
Its name to the Transcontinental Tele-
graph company on or after February 17.
The petition revealed that the Postal
company has not been In the overland
telegraph business for several years.
"Some years ago," Mr. Adams stated
In his affidavit." the Company disposed
of Its telegraph business to the New
England Telegraph company, which ha
continued the business In the name of
Uu PwstiUV
All Refined Sugar Grades Advanced
^Associated Press Report.:
NEW YORK, January 14.—All grades of
refined sugar were advanced 10 cents a
hundred today.
HE MARRIED FIFTY WOMEN.
Such Is Allegation Against Baron
Charged With Bigamy.
I Associated Press Report, i
NEW YORK, January 14.—Baron Emil
Karl Von Mueller Is declared by the Ho-
boken authorities, who today were noti-
fied of his arrest in Los Angeles on a
charge of bigamy, to have practiced that
crime on a wholesale scale for the pur-
pose of robbing his victims.
The police of the New Jersey city stated
that they had information that Von Muel-
ler, who was also known as Von Don-
liagen, has victimized no less than fifty
women between here and California dur-
ing the last ten years. Von Mueller was
arrested on the complaint of Regina Ver-
holmann of New York, who, according to
the Hoboken records, was married to the
alleged bigamist by a justice of that city.
She told the police thp.t a week after
the ceremony Von Mueller disappeared
with $2700 of her money. Steps-- will be
taken at once to bring Von Mueller East.
(Associated Press Report.)
LOS ANGELES, January 14.—"I mar-
ried my first wife without a marriage li-
cense and on a Sunday, which was no
marriage under the laws of New Jer-
sey," said Emil Karl Von Mueller in the
city prison today.
Von Mueller was arrested on a fugitive
warrant from Hoboken, N. J., charging
bigamy. He arrived in Los Angeles some
months ago. posing as a German count
and engaged in a real estate business. In
November he was married to a Los An-
geles woman.
(Associated Press Report.)
NEW YORK, January 14.—One of tha
men "higher up" has at last been named
by the Federal grand jury investigating
the sugar frauds. Charles R. Heike. sec-
retary and treasurer of the American
Sugar Refining company, was indicted to-
day on charges of conspiracy to defraud
and of making false entries.
Harry W. Walker, assistant superin-
tendent of the Williamsburg docks of the
American Sugar Refining company, was
also indicted together with other em-
ployes of the company against whom in-
dictments have previously been found.
In the new indictments Heike and
Walker are accused with Earnest Ger-
bracht, former general superintendent of
the Williamsburg refinery; James F. Ben-
dernagel, former cashier; John M. Voel-
ker and James F. Halligen, checkers, of
making false entries * regarding four
cargoes of sugar at the customs house.
The defendants are further accused of
having conspired with Oliver Spitzer and
the four checkers recently sentenced to
Blackwells island to defraud the govern-
ment by the underweighlng of sugar.
When the indictments were handed up
to Judge Hough in the United States cir-
cuit court, Special Prosecutor Felix
Frankfurter stated that the issuance of
bench warrants was not necessary, as all
the defendants, excepting Secretary
Heike and Walker, Vere at present under
bail on similar charges.
It is expected that Heike and Walker
will surrender themselves to the court to-
morrow.
The indictment contains six counts—four
of effecting false entries and two of con-
spiracy. Under the first conspiracy count,
eighteen overt acts are charged against
the various defendants.
Henry A. Wise, United States district
attorney, said tonight that the govern-
ment had no present intention of institut-
ing any proceedings against the American
Sugar Refining company under the Sher-
man anti-trust law.
THE CAUCUS UPSET BY GIBBS.
Vardaman Gained Five Votes on
Only Ballot at Jackson.
(Associated Press Report.)
JACKSON, Miss., January 14.—There
was only one ballot for United States
senator today, and on that former Gov-
ernor Vardaman scored 74 votes instead
of the 69 he had received the day before,
and his friends and supporters were In
high feather.
Immediately after the ballot Senator
Gibbs of Yazoo introduced a resolution,
which was adopted, requiring that in
the event of no nomination by the time
fixed by law each membe' of the
ture be instructed to vote on each roll
call for a democrat from among tha
voters' congressional district, oeing m
man not heretofore voted tor, tins uo co.i-
tinue until a nomination has been made
by this caucus.
This resolution brought out the fire-
works and pandemonium broke loose.
There were jeers and hurrahs from every
part of the house. Senator Gibbs declared
he had the floor and that he was going
to be heard if "it took all summer.'
Quiet was finally restored and Senator
Gibbs contended that his resolution was
In line with democratic precedent, and
stuck to it. the caucus adjourning after
a lively discussion until Monday night
deadlock In the senatorial caucus
seems unbroken. The first ballot today,
the seventeenth to be taken since the
caucus convened, resulted as follows:
Vardaman 74. Percy 23, Anderson 20.
Alexander 21, Byrd 16. Kyle 12. Critz 3.
scattering 2. Total 171. Necessary to
choice. S6.
(Associated Press Report.)
LONDON, January 14.—Tonight wit-
nessed the close of the parliamentary
election campaign. It has been fought
on an Issue entirely novel to the peoT
pie of these times, an issue that has not
been raised before for 300 years and it
has been fought with an intensity of
conviction, ene-gy and bitterness unparal-
leled in Great Britain in the present gen-
eration. Even the Gladstonian home rule
campaign which came near destroying tha
liberal party fai'ed to arouse the political
factions to anything like their present
vehemence. "Vote to protect the vote"
is the exhortation addressed to the peo-
ple tonight by the leading liberal or-
gan. On the opposing side is ranged ev-
ery possible influence in support of tha
privileged classes.
As ample proof that the struggle Is
concentrated in the demand of the housa
of commons for a limitation of the pow-
ers of the peers may be found in tha
fact that all attempts to make home
rule and the danger of the dissolution of
the union a factor in the contest have
proved unavailing. The British elector,
so far as at present may be judged, de-
clines to greatly concern himself with
home rule and its alleged dangers.
PEERS WERE STORM CENTER.
The Weekly Spectator, a free tnade or-
gan representative of moderate men of
both parties, makes a last despairing ap-
peal tonight to the. unionist free traders
to vote against the government ana risk
a return of the protectionist party rather
than to endanger the Integrity of the
kingdom.
The two outstanding features of tha
campaign have been the determination of
the liberals to concentrate the attention
of the people on the continual attempt
by the peers to control the public purse.
Every effort was made by the opposi-
tion to change the. issue and this is seen
in the introduction into the campaign of
new issues of a weak navy and the dan-
ger of a German Invasion, which led the
unionists into the doubtful policy of em-
ploying the prominent socialist, Robert
Blatchford, to help in their attack on the
liberals.
Under the influence of Joseph Chamber-
lain, the tariff reform question was
urged forward as the unionists' leading
plank. On this question the party pre-
sents a very divided front, Austin Cham-
berlain and various unofficial influences
in the party going boldly out for the tax-
ation of food while Mr. Balfour declined
to commit himself beyond the vague
pledge that tariff reform should not have
the effect of enhancing the cost of living
to the working classes.
UTILIZED POLITICAL DEVICES.
The campaign has been notable beyond
all previous elections in Epgland in the
enormous use of picture posters and sim-
ilar devices. The tarff reformers even
opened shops in order to display sam-
ples of foreign imports "dumped" into
England. This led to amusing incidents,
among them being the discovery in one
case that an alleged American chair had
really been made in London.
The question of the cost of food in tha
United States and Germany also was il-
lustrated in a similar manner. There
were displays made of British and Ger-
man bread as object lessons.
The opposition had few effective speak-
ers and the peers who for the first time
broke the tradition not to participate in
an election struggle rather hindei ed than
advanced their cause by their tactless
manner in dealing with audiences.
Neither aide overlooked any possible de-
(Contlnued on Pago Five.)
CONSPIRACY CASES
Arguments Begun in Court at Galveston and
Jury May Be Charged Today.
SCALES HARD HIT
$10,000,000 PAPER PROFITS
WERE WIPED OUT.
Big Bull Campaign in Cotton Defi-
nitely Collapsed With Spectac-
ular Decline at New York.
(Associated Press Report.)
NEW YORK, January 14.—The big bull
campaign in cotton definitely collapsed
today with the most spectacular decline
seen in a week of erratic recessions. Re-
ports freely circulated after the close of
the market that the position of a leading
Southern bull had been undermined by
the continued liquidation which has been
in progress since early in the year.
At the low point New York contracts
today showed a decline of from $5.20 to
$5.60 from the close of the previous night,
which was a break of from $6.10 to $6.50 a
bale from the high prices of the day and
of $13.35 to $14.25 a bale from the high
point of the season.
The bull market has lasted for over a
year. At the height of the campaign it
was estimated that E. G. Scales of Texas,
the leader, had accumulated paper profits
of $10,000,000 for the season. As a Christ-
mas gift he is said to have given $10,000
to one of his favorite brokers, and another
story had it that he had made over a
million in cash to one of his brothers.
His heaviest dealings was in May cot-
ton, and he and his friends were gen-
erally believed a long time ago to control
contracts calling for the delivery of fully
one million bales during that month.
SCALES LOST FORTUNE.
The situation had developed before the
beginning of the decline into a threat of
the greatest squeeze of shorts ever re-
corded in the history of the trade, but
other bulls who had followed Mr. Scales'
lead without enlisting in his party decided
that the time was ripe for a bear raid.
One after another the big< accounts began
to come into the market. The Scales
party was said to have its cotton mar-
gined down to 10 cents. The facts have
proved, however, that the continued pres-
sure was too heavy.
Today it was announced that Mr. Scales
had transferred his holdings to the lead-
ing bear interest. Small operators were
hard hit, but it is believed the larger bulls
liquidated above their average buying
price.
A much better feeling prevails In the
trade tonight, and it is thought a quieter
market may be expected for the coming
day with prices more generally influenced
by legitimate demand and supply.
After the official close, May contracts
changed hands at 14.10, compared with
13.70, the low point of the day. The mark
at which the bears are said to have taken
over the bull holdings is 13Va cents for
May.
BULLS MET THEIR SEDAN.
The bull cotton speculation during the
past week has met with a sort of Sedan.
The Debacte was brought about by over-
speculation. An advance of about 7 cents
in a year with little reaction evidently
called for a setback. Having reached the
neighborhood of 16^ cents, the price has
swung back nearly 2 cents, which is less
than one-third of the rise within twelve
months. However this may be, the mar-
ket had got to a point where prices re-
quired constant support from big men.
When they withdrew the prices came
down with a crash. The decline was
brought about, too, not only by selling
by small traders all over the country,
but also by the liquidation of men who
had been prominent on the bull side for a
year past. Curtailment of production has
been widespread. Finally the outside
public became nervous over the inability
of bull leaders to force prices higher and
it was this outside selling which started
the decline.
GINNERS' FIGURES BULLISH.
The ginners' figures published during
the week were generally regarded as bull-
ish, as ihe advocates of higher prices sti'.l
contended that there Is a great gulf be-
tween the size of the actual crop this
year and the probable consumption, the
disparity between the two is being esti-
mated at 3,000,COO bales.
Latterly spot colton markets have
shown greater strength than has been ex-
pected. Reports would seem to indicate
that the cotton goods market is gradually
improving. The talk is growing louder
about a big acreage with a record-breai-
ing crop during the coming season.
SOLD MARCH TO 33.50.
Sensational previous breaks have been
occurring since the downward movement
in the cotton market commenced about
ten days ago, but the most spectacular
developments occurred during today a late
trading when it was reported that part
of the big concentrated line that has been
carried by one of the largest of the
Southern bulls came on the market, driv-
ing March down to 13.50 and May to 13.70.
There was a recovery of from 20 to 34
points in the last few minutes, and while
the market was very excited and Irregu-
lar, the closing was steady at a decline
of 5 to S7 points generally, 77 to 87 points
lower on active months. After the close
it was reported that- all the holding of
the big leader referred to, which had not
been liquidated, had been taken over by
a syndicate of large spot Interests who
had been short of May
JANUARY OPENED HIGHER.
The market opened weak at an ad-
vance of 17 points on January at. a result
of covering and steady cables, but gen-
erally 8 ®18 roints lower. Active months
made new records on the call as a result
of heavy overnight selling orders. As
was the case yesterday right after these
had l»een executed, prices firmed up on
covering and buying by Liverpool, March
advancing to 14.74 and May 14.92 during
the middle of the day.
There was plenty of cotton for sale on
the improvement and in the afternoon a
renewal of bear pressure precipitated the
heaviest liquidation of the bear move-
ment under which March sold at 13.50,
May at 13.70 and July at 13.89, or 122@130
points below the high level of the day
and at a net decline of from 104 to 113
jioiuts. At the low point of the day
prices showed a loss of over $13 per bala
from the high point of the season.
[HE LAW DEFINED
By Federal Attorney in Open-
ing Address.
BRINGING IN OF CHINESE
Allen Declared, Not Necessary to
Prove a Smuggling Plot,
MANY WITNESSES FOR H0LAUN
Testified as to His Character Fol-
lowing Examination of the
Immigration Officer on
the Stand.
(Houston Post Special.)
GALVESTON, Texas. January 14.—Tha
case of the United States vs. seventeen
defendants charged with conspiracy tc»
smuggle Chinese fs now ended, all but
portion of the arguments and the Charge
of the court. The greater part of tna
day was taken up with the Introduction
of testimony on behalf of the defendants,
the last witness being placed on the stand
at 3:15 o'clock this afternoon. This was
followed by a recess of twenty minutes
then the arguments of the attorneys were
taken up.
FEDERAL LAW'~ON CONSPIRACY.
The opening argument by Judge Noalt
Allen, assistant United States attorney,
was a review of the chain of evidence
introduced summed up in the attempt to
show that a conspiracy, as alleged by tha
L'nlted States, had existed. He also
claimed that the evidence presented tend-
ed to show that a majority of the de-
fendants w-ere involved.
Taking up the various incidents and
statements of the witnesses he wove them
together in a chain and then taking u >
the fact that the actual smuggling of
Chinese was not shown and that all the
defendants had not been arrested he de-
fined what he termed the conspiracy.
His explanation of the Federal law was
that it did not require the actual bring-
ing in of the Chinese, but defined the
law as meaning that two or more per-
sons had agreed amongst themselves ti»
engage in the business, and that act of
agreement constituted a conspiracy. Ha
also made the point that even though one
or more of the alleged conspirators had
not been arrested that did not lessen tha
alleged guilt of those who were In cus-
tody.
Judge Allen talked for forty minutes.
WITNESSES FOR HOLMAN.
A feature of the day was the rallying
of witnesses to the defense of E. B.
Holman, one of the defendants, men from
every walk of life appearing before tha
bar and testifying as to the sterling char-
acter and worth of Mr. Holman during
his many years of residence in this city,
and of his reputation as a government of-
ficial. Many of these witnesses who had
volunteered in Mr. Holman's behalf wera
not called.
Mr. Holman himself took the stand at
the opening of the court at 9 o'clock, re-
maining and subjecting himself to a fira
of cross-examination for over one hour.
His appearance on the stand was self-
possessed and at all times he was ready
with his answer.
Following the opening of the court all
jurors not engaged were excused by hia
honor until Monday morning. f
By closing the testimony and the ren-
dering of a portion of the arguments this
evening it is believed that the case will
be given to the jury before noon Satur-
day.
HOLMAN ON THE STAND.
Edward B. Holman, Immigration In-
spector at Galveston, testified In sub-
stance: "I am under suspension by the
department. Been in the service seven-
teen years, at New York, New Orleans
and at Galveston In charge since March
31, 1903. Never received a reprimand
from the department and only one deci-
sion ever reversed. Never engaged in
smuggling or even considered such a
proposition. Daughdrill was not at my f
house on September 26, as I had no house
then, but waa boarding. He called about -
October 29. He came and represented
himself as going to engage In the fisli
and oyster business and to use Chinesa
crews. I asked why Chinese, and he said
because of cheapness of labor. He said
he expected to get them in Galveston. I
told him the Chinese here had a right to
accept work, but this was dangerous
business and would entail a great deal
of trouble and labor for the immigra-
tion office checking the Chinese every
time they came In on the boats. I ad-
vised him not to use them and warned
him not to attempt any 'monkeydoodle'
business with these Chinese, and if ha
did I would arrest him. He said: 'If
I can't 1 can't.' He gave no Indication
that he waa not going to follow my ad-
vice. 1 never saw him on any other
time. Never talked with him on any other
time. Never talked with him over the
phone nor with Jim Lee over the phone.
My office Is always open. Lee came
there several times on business. Lea
never made appointment with me for
Daughdrill. None of the men under
Taylor ever told me they were here ^
investigating Chinese smuggling or
asked my advice or assistance. When
Brough showed me the telegram that
boat had been seized and Daughdrill
escaped I told him my force was at his
disposal to assist- Brough told me ha
never saw Taylor and did not know
him. Inspector Brough told mo he was
looking for Daughdrill. I have been at
Jim Lee's place on many ocaslons.
My business took me there, have to
keep In touch with them in line of my
duty. I was there la*#t time to deliver
a letter from the Chinese Inspector in
chief pertaining to application of a
certain Chinaman for whom Lee was
acting. Not one scintilla of evidence
was ever brought to me that an at-
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The Houston Post. (Houston, Tex.), Vol. 25TH YEAR, Ed. 1 Saturday, January 15, 1910, newspaper, January 15, 1910; Houston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth443355/m1/1/?q=Flat: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Abilene Library Consortium.