Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-07-31
A Squeezed Firm Gets Temporary
Injunction,
FORBIDDEN TO BID UP PRICE
First Time In History Of chicago
Board of Trnde That shorts HaVe
Resorted 60 Courts

Chicago, July 3O.--Thc ban Of the
courts has been placed on the corner In
July oats. on the application Of Waite,
Thoburn N Co., one of the firms heavily
short In the July option, a temporary
restraining order was granted by Judge
Chytraus in the superior court, pro-
hibiting James A, Patten and associ-
atos from continuing corner in July
oats and from bidding up the price
OF the cereal and in calling for further
margins
This is the first tine in the history
oi the Chicago board Of trade that deal
crs who are short have resorted to the
courts to assist them In a dilemma like
the present and the Injunction came as
a decided surprise, although drastic
measures had been threatened to pre-
vent heavy loss, The Injunction runs
against Darlington, Pattcn g. Co., Pat
ten Bros. and Bartlett, Fraser a. Co.
Default on 100000 bushels Of short
new July oats, lawsuits and action by
the board Of trade are seemingly the In
eyitable results Of the granting OF ths'
restraining order. Unable TO secure
Jew 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 10 do but TO
default said one Of the unfortunates
today. "Those I'm control of the corner
will not sell, but tell us to go into the
pit and buy. II we should do that the
PRICES would 90 up into the clouds a
dollar bushel could easily be exactcd,
as the receipts of standard new oats
VIII not I'll our contracts
Waite, rhoburn & CO., the firm that
requested the injunction, issued the fol-
lowing statement tonight I'm explanation
of the course they have taken:
For year or two there has been a
"egular epidemic Of manipulation and
attempted corners In the market on the
Chicago board Of trade, which have in
ficted immense injury on the legitimate
grain interests OF this city and In the
country tributary to Chicago These
attempts 10 squeeze the trade have now
become so extreme and so INSCRIPTIONS
that 1t has come high time for some-
one TO make a fight and find out where
the trade stands and whether II is to
be for all time possible for groups Of
milllonaires 10 turn upside down the
grain business Of the country and in
nict heavy losses on the trade. We
have decided now to make a test and
find out Nhetre the trade stands
Frank p. Frazier of Bartlett, Frazier
& Co. was inclined TO treat lightly the
Unprecedented court action. lie said:
There Is an erroneous opinion cur
rent that Mr.. Patten and myself who
each has a fair line Of July, have been
bidding up the market with the inten-
ton Of squeezing the shorts. This Is not
the case at ALL The shorts In every in
stance of high price have themselves 10
blame for putting the price up. We are
simply waiting for the delivery OF oats
we have contracted for, and we expect
their delivery. Recourse to the courts TO
abrogate a bona fide contract OF this
kind is unheard Of. II 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
at between 80 and IS 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
result Of the adoption Of the Ascent
marginal price yesterday by the board
of trade directors, July oats advanced
3 cents today and closed at g. Indica-
lions We're that the parties in control OF
the market had become indignant at the
move Of their opponents and intended
making he bears settle all obligations
I'm the pit.
Several hours after issuing the in
junction the court made an amendment
so that the restraining order affects
only three deals comprising $4,000 BUSH
els of the 100000 bushels whiChh the
dealers who are short cannot deliver.
An effort viii be made TO have the in
junction dissolved tomorrow morning
before the opening hour Of the board Of
syf 10