The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-01
CHICAGO JUDGE MODIFIES THE
INJUNCTION ISSUED AGAINST
PATTEN
ARGUMENTS ON BOTH
SIDES ARE HEARD
Effort of the Courts Latest Action Is
to Temporarily Protect the Com
plainants Against Any Alleged Cor
ner-Opinion Expressed That the
Court Has Established a Bad Prec-
edent.

C1I1SAGo, July 0I.-JuQS0 GnyGrduS
today modified the injunction issued
yesterday restraining the Chicago
Bord of Trade and the Board of Trade
operators, James A. Patten, Caring
ton, Patten & Co., and Bartlett, Fra
zler & Co., from conducting a corner
in July standard oats by restraining
the defendants from asking the presi-
dent Of the Board of Trade to indorse
| down margins deposited by the COM
plainants, Waite, Thorburn & Co., to
secure $4,000 bushels of short sales.
The court held a session before the
opening hour of the Board of Trade in
order that decision might be arrived
at before business was begun. So i'm
portant, however, did the court consid-
er the precedent of the case that mo-
tion for a dissolution of the temporary
injunction was not considered and the
case will come up for further adjudica-
tion next week.
The effect of the action of the court
is for the time to protect the COM
plainants against any alleged corner,
| and is construed as working against
the bull clique of operators on the
board.
Argument was brought to bear by
the attorneys for the board and for the
defendant operators, that inaSmuch as
both the complainants and the defend
ants were members of tribunal that
adJudicated controversies between it's
| members, the injunction should be dis
solved on the ground of want of juris-
dlction. 1t was argued that the COM
plainants were premature in asking for
an injunction against a corner when
| no such corner was in effect and when
| the Board of Trade rules specifically
prohibited corners.
The defendant members Of the Board
of Trade, in answer to the injunction,
! denied the affirmation that July stand
ard oats were worth not in excess of
| 80 cents bushel, and said they were
| worth more than that price.
Conspiracy Denied.
They also denied any conspiracy
| among themselves or with Joseph Bid
| Will, the grain inspector, to corner July
| oats, forestall the market in that COM
! modify or raise the price of July oats.
! They denied that they had given a
| fictitious value to the article and that
they had made any purchases for July
delivery since July 1. 1t was set forth
| that the elevator accommodation and
railway facilities of Chicago were such
| of fifteen times the amount of oats
| bought of Waite, Thorburn &, Co. by
! the defendants, and that frequently the
defendants had bought ten times as
much as their total purchases in this
delivery. Following are the purchases
made in July standard oats by the bull
| clique as set forth in their affidavit:
Bartlett, Frazier & Co., 100000
! bushels; Darlington, Patten & Co.,
100000 bushels; James A. Patten,
| 100000 bushels.
Attorney j. H. Monroe, for the de-
PENDANTS, in addressing the court
| made sharp alluSions to the complain
ants having been of speculative turn
| Of mind and sold something they did
not have and which they did not have
the means of obtaining for delivery.
| He said it looked as if the complain
ants were trying to make money by
| buying in property at a less price than
that for which it had been sold.
Judge Chytraus, before modifying
the order, told the attorneys he did
| not consider the Injunction restrained
| the defendants from bidding, buying or
selling or refusing to buy or sell July
oats in the pit or from any of their
| accustomed business operations aside
from those in connection with the COM
| plainants.
In the Pit.
There was practically no effect from
| the injunction in the business in the
oats pit today. The assurance by Judge
| ChytrauS that ordinary business could
| be done by the defendants and other
| members of the Board of TradN acted
as a check against any early violent
| fluctuations. A notice was posted on
| change interpreting the court action
| as dismissal of the injunction against
| the Board of Trade, and stating that
| all business could proceed as usual,
| save in the matter of closing out deals
with Thorburn, Waite & Co. The mat
ter was considered held in allegiance.
July standard oats opened 1c higher at
| 81 cents. and sold at 65 cents early.
| James Patten sent brokers into the pit
| to sell indiscriminately, and about
| 100000 bushels were covered early by
| shorts. This tended to weaken the
price, and July dipped to 63% cents.
Spectators on the board were all
| inclined to comment unfavorably upon
| the appeal to the courts. The big bulls
| said if such a precedent were estab-
| blished there would be nothing but
| short selling. If prices went down de-
| liveries would be made, but if the price
went against the sellers there would
| be nothing to prevent them default
| ing on their contracts.
| Apparently intimidated by the pos
| sibilities of having to answer to the
| court if fictitious prices were pumped
| into July oats, all spectators allowed
! the manipulated July options in all
| grains to die with a flash in the pan.
| July oats were sold freely by the bulls
| and many of the shorts covered, bring
ing a closing price 1 cent up at Ga