Daily globe., 1882-09-29

Aaii OooI value VI tuo STduc VI Wuodb on
| the last day of July. The rules required
| that those who had defaulted or refused
| to settle should settle their contracts
| at prices found by this committee, or they
should be suspended from the board. A
| large number of the shorts refused to set
tie on the basis fixed by the committee be-
cause it did not recognize the fact that the
| market was manipulated and cornered, and
! applied to the courts for injunctions to re-
strain the board from expelling them.
Temporary injunctons were issued.
Hessrs. Armour, Kershaw, and others were
charged to have confederated together, and
to have bought all the No. 2 spring wheat
in the market, and to have shipped it out,
and also to have bought 100000 bushels
for July delivery in excess of all of the
! wheat that was in the market, their object
being to extort unjustly high prices from
all who had sold to them.
There were over thirty-fve firms on
the board who appealed to the court for
protection against this alleged extortion
The amount of wheat defaulted in by
these firms amounted to 100000 bvshels.
Among those present in court to-day
wore A. M. Wright, A. w. Green, of Irwin,
Orr 81 Co.; Mr.. Bell, of Randall, Bell, &
Co.; G. H. Adams of Mccormack, Adams
& Co.; Charles Counselman. Lyman Blair.
George Z. Brine, of Armour & Co., Presi-
dent R. w. Dunham, Mr.. w. G. Goudy,
representing the board of trade, entered
fO-. ,,oJ
for want of equity. and then read the A.
M. Wright bill. The complainant in this
case charged a conspiracy to make
eXtortionate prices; that the settling price
committee refused to allow him to
be represented before the committee by
the person he wished that it excluded
evidence relating to the price of other
grades and varieties of wheat in this and
other markets, and refused to allow the
proving of corner; and that there was
manipulation of the market in April and
May; thai it admitted the afidavits were
the oaths administered according to the
rule of the board; that the price of $1.35
was fully 80 cents above what the proof
showed the wheat to be worth.
All of the other bills were substantially
the same, the Testers bill only alleging a
tender on part of their contracts, and
asking in the prayer a restraining of the
signing of margins.
Mr.. Goudy said that all the bills pro-
ceeded upon the same theory. The board
of trade was incorporated for carrying on
trade. Certain necessary rules were made,
and on the payment of a certain sum
memberships in the organization were
sold. Complainants we're members in this
organization, and had agreed to be bound
by its rules. These rules were for the pur-
pose of enforcing speedy and honest set
| tlement of all contracts and disputes. In
stead of abiding by their own tribunal, the
shorts appealed to the courts against the
officers whom they had agreed to submit
to. The question was, could properly
made contract be repudiated and the act
be sustained by court of law or equity
Referring to the point in the Lester bill
that tender of grain had been made, Mr.
Goudy said that no grain had been ten
dered as required by the rule. An offer of
| red winter had been made when the con-
tracts called for spring. If the rules of
the board allowed such fulfilling of con-
tracts it would be legal. But in any event
it was not the duty of the court to investi-
gate the matter.
Mr.. John E. Burk, of counsel for the
complainants, made lengthy argument.
Most of his time was spent in reading
from decisions of the supreme court in
| this and other states to show that volun-
tary organization like the board of trade,
| when incorporated under state laws,
was subject to the jurisdiction
of the courts, and that the regularity of
their acts could be inquired into.
| THE END OF SUIT.
A short time ago warrant was sworn
out for the arrest of Geo. Arbuckle, an old
| and prominent member of the board of
trade. The complainant was g. w. Swartz,
of Wenona, ILL.,, who alleged that he had
been swindled out of $356.25 by Mr.. Ar
buckle, and at the time he stated that it
was his intention to prosecute that gentle
man for embezzlement. Swartz had been
specializing on the board of trade and Ar
buckle was his agent, and Swartz claimed
that the grain which he ordered Arbuckle
to buy had not been bought. The case was
to have come up last week, but when
it was called Swartz did not
appear to prosecute, and at the request of
the defendant the case was continued in
order to give Swartz time to appear to
prosecute. When the case was called Ar
buckle, and his attorney, Walter N. Smith,
appeared to stand trial, but Swartz was no
| where to be found. After submitting the
telegraphic correspondence which passed
between Arbuckle and Swartz, the case
was closed by Attorney Smith, and Justice
Woodman gave Mr.. Arbuckle an honorable
| discharge. Mr.. Arbuckle had made no
compromise with Swartz, and he will at
once bring trial suit against Swartz for
damages. 1t is also probable that a war
rant will be sworn out against him for ma
licious prosecution.
| WHEAT COMING IN,
| News is received of five special trains
loaded with wheat on the way here from