Omaha daily bee., 1902-07-31
BAN OF COURT ON CORNER
Judge Of Illinois Tribunal Grants Injuno-
ton to Prevent Oats Deal.
cunnrr iiMAnIr 70 nEI NEE CEREAL
SHORTS UNABLE TO DELIVER CEREAL
First Time in History of Board OF
Trade that Dealers Who Are
Short Have ResOrted
to the Courts.

CHICAGO, July 3o.-The ban Of the courts
has been placed on the corner in July oats.
On the application Of Waite. Thorburn &
Co., one Of the firms heavily short in the
July option, a temporary restraining order
was granted by Judge Chytraue in the su-
perior court, prohibiting James A. Patten
and associates from continuing a corner In
new July oats and from bidding up the
price OF the cereal or calling for further
margins.
This is the FIRST time in the history OF
the Chicago Board Of Trade that dealers
who are short have resorted to the courts
to assist them in a dilemma like the pres
emit and the injunction came as a decided
surprise, although drastic measures had
been threatened to prevent heavy loss. The
injunction runs against Darlington, Patten
& Co., PatteE Bros. & Bartlett. Frazier &
Co. Default on 5000. 900 bushels Of short
new July oats, lawsuits and action by the
Board OF Trade are seemingly the Inevitable
results OF the granting Of the restraining
order. Cornered and unable to secure new
July oats wherewith to meet their con-
tracts, the dealers who are short, appear to
have practically thrown up their hands.
1--WE have nothing left to do but to de-
fault" said one of the unfortunates to-
day. ''Those In control Of the corner will
not sell, but tell US to go into the pit and
buy. II we should do that the prices would
20 up into the clouds A dollar a bushel
could easily be exacted. as the receipts
Of standard new oats will not I'LL our con-
tracts."
Statement of Case.
Waite 8 Thorburn. tho firm that re-
quested the injunction. issued the follow
ing statement tonight in explanation OF the
course they have taken:
For a year OF two there has been a reg
uiar epidemic of manipulation and at
cage Board OF Trade, which nave inflicted
Immense injury on the legitimate grain IN
terests OF this city and in the country trib-
squeeze the trade have now become so ex-
treme and INSCRIPTIONS that It has become
nnd out where ~the trade stands and
whether II Is to be for all time possible for
Inc EraiHn Business Of the country and in
hict heavy losses on the trade: We have
decided TO make a test and hnd out where
Frank P. Frazier of Bartlett, Frasier &
Co. was inclined to treat lightly the I'M
precedented court action. He said:
There Is an erroneous opinion current
that Mr., Patten and myself. who each has
q fair line OF July, have been bidding this
market up with the intention Of squeezing
the shorts. This is not the case at all. The
have themseISes to blame for putting Inc
price up. We are simply waiting for the
delivery OF oats we have contracted for
and W. expect their delivery. Recourse 70
the courts to abrogate a bona fide contract
Of this kind f. unheard OF; IL Is impossible
70 forecast the effect of the injunction.
Three million bushels Is said to be the
shortage In July oats. The greatest part
OF this amount was sold. II Is said. to those
In control Of the market at between 80 and
IS cents. so that there is more than 20