The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-07-31
CORNER BROKEN
BY THE COURTS
Injunction Issued Against Patten
and His Associates.
SHORTS FORCED TO DEFAULT
MARKET BID UP FOR PURPOSE
OF SQUEEZING BEARS.

~ HICAGO, July 30.-The ban OF the
courts has been put on the cor
ner in July oats On the applica-
ton of Waite, Thoburn & Co., one OF
the firms heavily short in the July OPP
ton, a temporary restraining order was
granted by Judge Chytraus in the su-
perior court. prohibiting James A. Pat
ten and associates from continuing a
corner in July oats and from bidding
up the price of the cereal in calling for
further bargains.
This is the first time In he 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 present, and the Injunction came
as decided surprise, although drastic
measures had been threatened to pre-
vent heavy loss. The Injunction runs
against Darlington, Patten & Co.; Pat
ten Bros and Bartlett. Fraser & 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.
Forced to Give Up.
Unable to secure new July oats
wherewith 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
default said one of the unfortunates
today .'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 away up into the clouds. A
dollar bushel could easily be exacted.
a 10 INT Of -fa - -
will not fill our contracts"
Waite, Thoburn & Co., the firm that
requested the injunction, issued the
following statement tonight in explana-
ton of the course they have taken:
For a year or two there has been a
regular epidemic of manipulation and
attempted corners in the market on
the Chicago board of trade. which have
inflicted immense injury on the legiti-
mate grain interests of this city, and in
the country tributary to Chicago.
These attempts to squeeze the trade
nave now become so extreme and so
inscriptions that it has come high
time for some one to make fight and
find out where the trade stands and
whether it is to be for all time possible
! Tor groups of millionaires to turn up
side down the grain business of the
country and infiict heavy losses on the
4
a test and find out where the trade
| stands
Treats Matter Lightly.
Frank P. Frazier of Bartlett. Frazier
/ & Co. was inclined to treat lightly the
| unprecedented court action. He said
There is an erroneous opinion cur
rent that Mr.. Patten and myself who
] each has fair line of July, have been
bidding up the market with the inten-
! ton of squeezing the sh5r
This is not the case at all The
shorts In every instance of high price
nave themselves to blame for putting
the price up.
We are simply waiting for the deliv-
| cry of the oats we have contracted for
and we expect their delivery Re
course to the courts to abrogate a bona
| fide contract of this kind is unheard of
/ 1t is impossible to forecast the effect
| of the injunction.
Three million bushels is said to be the
| shortage in July oats. The greater part
] of the same amount was sold, it is said
/ to those in control of the market al
! between 81 and So cents. SO that there
/ is more than % cents a bushel profit in
the deal for those on the long side
Instead of the market cOllapsing as q
| result of the adoption of a 45-cent mar
! ginal price yesterday by the board OF
trade directors. July oats advanced
} cents today and closed at IS.
Indications were that the parties il
control of the market had become in
| dignant at the move of their opponents
and intended making the bears settle
all obligations in the pit.
| Several hours after issuing the injunc
ton the court made an amendment $
| that the restraining order affects onll
! three deals. comprising but 5000 bushel
of the 100000 bushels which the dealer
! VINO are short cannot deliver.
| An effort will be made to have the in
| junction dissolved tomorrow morning be
| fore the opening hour of the board o
| trade.