The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-09-14
CORNERS" NO MORE
poDY BLOW GIVEN BY JUDGE CITY
TRAUS IN CHICAGO.
HIS gully OATS" DECISION
ONLY COURTS CAN AWARD MONEY
HELD IN ESCROW.

Tine Eject of the Decision Is to Pro-
hibit Entirely the Directors of the
Hoard of Trade From Passing
Tuon the Ownership of Money De-
nestled on These Contracts and
Practically Paralyxes the Board
shin of Margins May Have to Be
Decided by Courts, Hereafter.
chicago, Sept. 13.-A most important
decision against the Chicago Board of
Trade was rendered to-day by Judge
Cbvtraus, in the July oats corner"
Injunction cases. Not only does the
oninion of the court, if sustained by
higher tribunals, put an end to all cor
1,ars in commodities on this exchange,
hut it strikes at the very life of the
institution as now organized. The di-
rectors for all time have had their
mowers so curtailed that they cannot
longer adjudicate upon property rights
of the members of the association
Judge Chytraus goes even further and
says that under the charter of the
Board of Trade there is no provision
for succession of membership, and he
asks the pertinent question, What
would become of the corporation when
persons now composing the original
board would be dead?"
The case in question was one
brought by the commission firm of
Waite, Thorburn & Co. against the
Chicago Board of Trade, the Bank of
Montreal and several prominent mem
bers of the Board of Trade, in which
a temporary injunction was granted
to prevent margins that were put up
by the compliments from being
handed down to the contracting de-
PENDANTS. The claim was made that
the defendants had run a corner in
July standard" oats. The complain
ants, who had sold short to the de-
PENDANTS, while not denying their con-
tracts, and while declaring their pur-
pose to make good these same con-
tracts, made protest against having
the case adjudicated by the Board sof
Trade as provided in the bylaws of
the association
The gist of the decision is that a
special committee. which, according to
the board rules. should be appointed
ny the president to adjudieate such
differences, has no authority to act in
matters where property rights are in
voved, The rights of the directors of
the board to preserve the integrity of
its rules so far as discip1ining MEM
bers is concerned by fine, suspension
or expulsion, is upheld by thee curt as
or expulsion, is upheld by the court as
against the question that, against the
will of the compliments the power of
disposal over that money which in a
sense has been placed in trust or es-
crow, exists in a select committee of
three disinterested persons, members
Of the association, to be appointed by
the president, i. e., whether that mon
ey can be appropriated by such COM
mittee to the contracting defendants
Regardless of the fact that the COM
plalnants agreed to be bound by the
rules which provide for settlements of
disagreements, the court ruled that
they We're not bound; that the arrogat-
ing OF such power to such body was
against public policy, and that sit
would be introducing sovereignties
within a sovereignty for the function
OF constituting the law"
The general power to pass upon the
right Of property in the margins in
question is held a judicial power,
which never can be considered to have
neen delegated or confirmed by dubious
implication.
Mnst Not Trespass ON Courts.
The ordinary courts of justice, -
SAD the court, Constituting one of the
branches of our government, ought not
70 De and should not submit to being
eAcluded or ousted by jurisdiction by
lhtendment"
win some sarcasm the court adds
me mastery ingenuity of the plan
oolltrlVed to prevent appeal to the
eolLinon law courts of the state COM
llahds our admiration. Think of the
lVhg time of operation that has proved
i llle scheme a successful one. The
user who may feel himself aggrieved,
ana VINO may know himself to have
oeen Wronged by the operation of a
corner or otherwise, at law, can only
sue 10 get his money back
Even that remedy is by the le-
9Hourcetulness of the scheme abridged.
t roi II is possible for him to do even
s sll5t only after he has an award or ad-
f.3e-& L.