New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-31
OATS CORNER BARRED.
BROKERS ENJOINED FROM
BIDDING UP PRICE,.
NEITHER MAY THEY CALL FOR MAR
GINs-CHAOS MAY RESULT
FROM ORDER.

Chicago July 30.-The ban of the courts has
been placed on the corner in July oats. On the
application of Waite, Thorburn & Co, one or
the firms heavily short in the July option tenn
porzry restraining order was granted to-day by
Judge Chytraus i'm the Superior Court, prohipiI-
ing James A Patten and his associates from
continuing corner in new July oats, and from
bidding up the price of the cereal or calling ioi
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 10 assist them in A dilemma like the pres
ent, and the Injunction is decided surprise al
though drastic measures had been threatened 10
prevent heavy losses The injunction runs
against Darlington, Patten Co. Patten
Brothers and Bartlett, Frazier & co.
Default on 100000 bushels of short new July
oats lawsuits and action by the Board OF lrade
are seemingly the inevitable results or the re-
straining order. Cornered and unable 10 secure
new July oats wherewith to meet their contracts
the dealers who are short appear TO nave ~ a''i
cslly thrown UP their hands.
we have nothing left to do but TO defauit.
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 price would go up into the clouds. a doitAr
a bushel could easily be exacted, as the receipts
of standard new oats will not nearly fill our
contracts"
wait. & Thorburn. the firm that obtained the
injunction issued the following statement In
explanation Of the course they have taken;
For year or two there has been regular
epidemic of manipulation and attempted cor
ners in the market the Chicago Board OF
Trade. which have inflicted immense injury on "a
the legitimate grain interests OF this city anu
IN the country tributary to Chicago. These at
tempts to squeeze the trade have now become
SO extreme and INSCRIPTIONS that 1t has become
for n fight
out where the trade stands and whether 1t is
to be for all time possible for groups or mlI-
ionaires to turn upside down the grain business
of the country and infiict heavy losses on the
trade. We have decided to make test ana
find out where the trade stands
Frank P. Frazier. Of Bartlett. Frazier Co.
was Inclined to treat lightly the unprecedented
court action. He said
There is an erroneous opinion current that Mr..
Patten and myself, who have fair line or july
have been bidding the market up with the m
tenuion of squeezing the shorts. This is not the
case at sill. The shorts in every instance OF
high prices have only themselves to blame for
putting the price up. We are simply waiting Tor
the delivery of oats we have contracted for. and
we expect their delivery Recourse to the courts
10 abrogate bona fde contract of this kind is
unheard of. 1t is impossible to forecast the
effect of the action
Three millions of 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 between 30 and 30 cents so
that there is a profit Of more than % cents
bushel in the deal for those on the long side.
Instead Of the market coapsing as result
Of the adoption of a Ascent marginal price yes
terday by the Board Of Trade directors, July oats
advanced 3 cents to-day and closed at o3 cents
Indica tons that the parties in control or
the market had become indignant at the move OF
their opponents and intended to make the bears
settle all obligations in the pit.
Several hours after issuing the injunction the
court made amendment so that the restrain
ing order affects only three deals. comprising
only So 600 bushels of the 3.OO0yO0O bushels
which the dealers who short cannot deliver.
An effort will be MADE have the injunction
dissolved tomorrow morning before the open
ing hour of the Board of Trade.