The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-07-31
COURT STEPS IN.
Attempts to Protect the Gam
blers Who Stand to Lose
In the Oats Deal on the Chicago
Board of Trade.
Men Who Sold Grain They Did
Not Have in a Bad Fix.

Chicago, July 31.-The ban Of the courts
has been placed on the corner in July oats.
On the application Of Waite, Thoburn and
Co., one of the firms heavily short in the
July option, a mpOrary restraining order
was granted by Judge Chytraus in the
perior court prohibiting James A. Patton
and associates from continuing corner
in new July oats and from bidding up the
price of the cereal calling for further
margins. This is the first time in the his
tory of the Chicago Board of Trade that
dealers who are short have resorted to
the courts to assist them in dilemma like
the present and the injunction came as a
decided surprise, although drastic meas
ures have been threatened to prevent heavy
loss. The injunction runs against Carry
ington. Patten & Company; Patten Bros.
& Bartlett; Frazier & Company, default
on 5000, 900, bushels Of short new July oats;
lawsuits and action by the Board of
Trade seemingly the inevitable results
of the granting of the restraining order.
Unable to secure new July oats where
with to meet their contracts, the dealers.
who are short appear to have practically
thrown up their hands.
I'VE have nothing left to do but to de-
fault said of the unfortunates to-
day. ''Those in control of the corner will
not sell but tell us to go into the pit and
buy. If we should do that the prices
would go up into the clouds. o...1ar a
bushel could easily be exacted the re-
CSlPtS u SldIQdIQ lew OdbS WILL uoL ALI
our contracts
Waite, Thoburn- & Company, the firm
that requests the injunction, issued the
following statement last night, in explana-
ton Of the course they have taken:
For year or two there has been a
regular epidemic of manipulation and at
tempted corners in the market the
Chicago board of trade which have in
fiicted immense injury on the legitimate
grain interests of this city and in the
1 ,fv-xr i1,ftfo IN hi f.
tempts to squeeze the trade have now be-
come so. extreme and so INSCRIPTIONS,
that 1t has become high time for some one
to make a fight and find out where the
trade stands, and whether it is to be for
all time possible for groups of million
aires to turn upside down the grain bust
ness of the country and inflict heavy loss
es the trade. We have decided to
make test and find out where the trade
stands"
Frank P. Frazier, of Bartlett, Frazier &
Company, was inclined to treat lightly
the unprecedented court action. He said
There is erroneous opinion current
that Mr. Patton and myself. who each
has fair line Of July, have been bidding
the market up with the intention of
squeezing the shorts. This is not the case
at all. The shorts In every instance of
high prices have themselves to blame for
| waiting for the delivery of oats we have
contracted for and we expect their deliv-
cry. Recourse to the courts to abrogate a
bona fide contract of this kind is unheard
of. 1t is impossible to forecast the eff
feet of the Injunction"
Three million bushels is said to be the
shortage in July oats The greater part
of this amount was sold. it is said, to
those in control of the market at be-
| tween 80 and IS cents. that there is
| more than 25 cents bushel profit in the
deal for those on the long side.
Injunction is Clinched.
Chicago. July 31-Judge Chytraus to-
day modified the injunction restraining
the Chicago board of trade and the
board of trade operators, James A. Pat
ten, Darlington, Patten & Co. and Bart
lett, Frazier & Co., from conducting a
corner in July standard oats, by re-
straining the defendants from asking
the president of the board of trade to
endorse down margins deposited by the
compliments, Waite, Thorburn & Co., to
secure $1,000 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