The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-07-31
Judge ChiItrus Issues an Order Pro.
hibiting the Continuation of
the Corner
NOTHING LEFT TO DO BUT
DEFAULT" SAY SHORTS
Frazier Denies That He and Patten
Have Bought Oats With the lnten-
tion of Squeezing the Other Side
Profit of Over 25 Cents a Bushel for
Patten Et Al.

CHICAGO, July 30.-Tho ban of the
courts has been placed on the corner
in July oats.
On application of Waite, Thoburn &
Co, one of the firms heavily short in
the July option, temporary restrain
ing order was granted today by Judge
Chiltrus, in the upper court, prohibit
ing James A. Patten and associates
from continuing a corner in new July
oats and from bidding up the price of
the cereal or calling for further mar
gins.
This is the first time in the history
of the Chicago Board of Trade that
dealers who are short have resorted to
the courts to assist them in dilemma
like the present, and the injunction
came as a decided surprise, although
drastic measures had been threatened
to prevent heavy loss. The injunction
runs against Darlington, Patten & Co.,
Patten Bros. Bartlett, Frazier & Co.
Default on 100000 bushels of short
new July oats, law suits and action by
the Board of Trade are evidently the
results of the injunction.
Shorts Throw Up Their Hands.
Cornered and unable to secure new
July oats wherewith to meet their con-
tracts, the dealers who are short ap-
pear to have practically thrown up
their hands.
'We' have nothing left to do but to
default" said one f-the unfortunates
today. '"Those in control of the cor
ner will not sell, but tell Us to go into
the pit and buy. If we should do so
the prices would go up j. b the Clouds
A dollar a bushel could easily be ex-
acted, as the receipts of standard new
oats will not fill our contracts"
Waite, Thoburn & Co., who requested
the injunGtion, issued the following
statement tonight on the course they
have taken:
For a year or more there has been
regular epidemic of manipulations
and attempted corners on the Chicago
Board of Trade which have inflicted
immense injury on the legitimate grain
interests in this city and the country
tributary to Chicago. These attempts
to squeeze the trade have now become
so extreme and INSCRIPTIONS that it
has become high time for some one to
make a fight and find out where the
trade stands and whether it is to he
for all time possible for groups of
millionaires to turn upside down the
grain business of the land and inf1ict
heavy losses on the trade. We have
decided to make a test and find out
where the trade stands"
Denies "Squeezing."
Frank P. Frazier, of Bartlett, Frazier
& Co., was inclined to treat lightly the
unprecedented court action. He said:
'tTThprn ic
rent that Mr.. Patten and myself, who
have each a fair line of oats, have
bought up the cereal with the intention
of squeezing the shorts. This is not
the e. The shorts in every instance
OF high prices have themselves to
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 f1de contract
of this kind is unheard Of 1t is i'm
possible to forecast the effect of the
injunction"
Three million bushels is said to be
the shortage in July oats. The great
est part of this amount was sold, it is
said, to those in control of the market
at between 80 and 43 cents, so there is
the deal for those on the long side.
Instead of the market collapsing as
the result of the adoption of 45-cent
marginal price established by the
Board of Trade, July oats advanced 8
cents today and closed at SO cents. In
dications were that the parties in con-
troll of the market had become indig-
nant at the move of their opponents
and intended making the bears settle
all obligations in the pit
Only Three Deals.
Several hours after issuing, the in
junction the court made an amend
ment so that the restraining order af-
fects only three deals, comprising 55,-
600 bushels of the 100000 bushels of
oats, which the dealers who are short
cannot be delivered. An effort will be
made to dissolve the injunction before
the opening of the Board of Trade to-
morrow.