The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-09-14
CHYTRAUS HITS 1T HARD
Strikes at Very Life of Association as
Organized.
WILL HIGHER TRIBUNALS SUSTAIN him
II They Do There Will at Once be an End to All
Corners In Commodities on
The Chicago tx
change.
(By the Associated Press.)

Chicago, Sept. 13-A most important
decision against the Chicago Board of
Trade was rendered today by Judge
Chytraus, in the July Oats Corner In
ion of the court, if sustained by higher
tribunals, put an end to all corners in
commodities on this exchange, but it
strikes at the very life of the institution
as now organized. The directors for all
time have had their powers so curtailed
that they cannot longer adjudicate upon
property rights of the members of the
association. Judge Chytraus goes even
farther and says that under the charter
of the Board of Trade there is no pro-
vision 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, Thor
burn and Company, against the Chicago
Board of Trade, the Bank of Montreal
and several prominent members of the
Board of Trade in which a temporary
injunction was granted to prevent mar
gins that were put up by the complain.
ants from being handed down to the con-
tracing defendants The claim was made
that the defendants had run corner in
July standard" oats. The complain
ants who had sold short" to the defend
ants, while not denying their contracts,
and while declaring their purpose to
make good these same contracts made
protest against having the case adjudi-
Gated by the Board of 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 by the presi-
dent to adjudicate such differences, has
no authority to act in matters where
property rights are involved. The rights
of the directors of the board to preserve
the integrity of it's rules so far as dis
cipling members is concerned by fine,
suspension. or expulsion is upheld by the
court as their proper rights, but he rules
against the question that against the
will of Sthe complainants the power of
disposal over that money which in
sense has been placed in trust or escrow,
exists in a select committee OF three dis
citation to be appointed by the president,
i. e., whether the money can be appro
priated by such committee to the con-
tracing defendants"
Regardless of the fact that the com
plainants agreed to be bound by the
rules which provide for settlements of
disagreements, the court ruled that they
We're not bound, that the arrogating of
such power 10 such a body was against
public policy and that cit would be in
Producing sovereignties within a sover-
eighty for the function of constituting the
law"
The general power to pass upon the
right of property in the margins in
question is held judicial power which
never can be considered to have been
delegated or confirmed by dubious inn
plication.
''The ordinary court of Justice" said
the court, constituting one of the
branches of our government ought not
to be and should not submit to being
excluded or ousted by jurisdiction by in
tendent."
With some sarcasm the court adds:
THE mastery ingenuity of the plan
cOntrived to prevent appeal to the COM
mon law courts of the State commands
our admiration. Think of the long time
of operation that has proved the scheme
a successful one. The loser who may
feel himself aggrieved and who may
knew himself to have been wronged by
the operation of a corner, or otherwise, !
at law, can only sue to get his money
back.
Even that remedy is by the resource
fullness of the scheme abridged. For it
is possible for him to do even that only
after he has an award or adjudication
against him by this Board of Trade COM
mittee or tribunal