The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-09-16
CHYTRAUS HTS II HARD
Strikes at Very Life of Association as
Organized.
WILL HIGHER TRIBUNALS SUSTAIN HIM
II They Do There viii at Once be an End 10 All
Corners In Commodities on
the Chicago Ex-
change.
lBy the Associated Prcss.l

l 1887
Chicago, Sept. ia 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 il
strikes at the Very life of the institution
as how 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
further and says that under the charter
CT 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
Durn 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 a corner in
July "standard' oats. The complain
ants who had sold short to the defend
ants, While not denying their contracts.
i and while declaring their purpose to
make good these same contracts made
protest against having the case adjudi-
! aat@I Jr- = h. -
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 prosi-
dent to adjudicatc 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 the cOmplainantS the power OF
disposal over that money which in a
sense has been placed in trust or escrow.
exists in a select committee OF three dis
Interested persons. members of the asso-
citation to be appointed by the president.
i. e, whether the money can be appro-
priatei by such a committee to the con-
t~ractin" defcndants.'
Regardless of the fact that the com
plainants agreed to be bound by the
rules which provide for settlements OF
disagrcemcnts, the court ruled that they
were not bound, that the arrogatinS OF
such power TO such a body was against
! public policy. and that 1T would be in
Producing sovereignties within a soVcr-
sc 1,- 80 u
law
The general power to pass upon the
right of property in the margins il
question is held a judicial power, which
never can be considered to have beer
delegated or confirmed by dubious i'm
plicatiOn.
1.-The ordinary court Of justice" said
the court, constituting one of tho
branches of our government ought no
to be and should not submit to being
excluded or ousted by jurisdiction by in
endent."
With some sarcasm the court adds
The mastery ingenuity of the plal
cOntrived to prevent appeal to the com
mon law courts of the State commands
orr admiration. Think of the long time
of operation that has proved the schem'
a successful one. The loser who ma
feel himself aggricved and who ma
know himself to have been Wronged d.
the operation of a corner, or otherwise
AT law. can only sue to get his money
back.
Gwen that remedy is by the resource
fullncss of the scheme abridged. For !
is possible for him TO do even that ON.
after he has an award or adJudlcatlol
:. against him by his Board Of Trade com
mittec or tribunal