The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-14
II Sustained by the Higher Court 1t
Will Prevent All Future Attempts
to Control Markets.
ALSO HITS BOARD OF TRADE
BY DERIVING 1T OF THE POWERS
1T HAS BEEN EXERCISING.
It's Ingenious Plan for Usurping the
Rights of Civil Courts satiriEed
by the Judge.

CHICAGO, Sept. ia most important
decision against the Chicago Board of
Trade was rendered to-day by Judge Axel
Chytraus in the July oats corner injunc-
tions case. Not only does the opinion Of
the court, If sustained by higher tribunal,
put an end to all corners on this
exchange, but 1T 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 provision for succession of
membership and asks What should be-
come of the corporation when persons now
composing the original board would be
dead?"
The case in point was brought by the
commission firm of Waite, Thoburn & Co.
against the Chicago Board of Trade, the
Bank of Montreal and several prominent
members of the Board of Trade, in which
n temporary injunction was granted to
prevent margains that were put up by the
complainants from being handed down to
the contracting defendants. The claim was
made that the defendants had run a cor
ner In July standard oats. The COM
defendants, while not denying their con-
tracts 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
standard oats in question were of
grade and fineness almost impossible to
obtain in sufficient quantity to fill con-
tracts during July because of delay to
crops by rainy weather. In the pit on
Change highly fictitious prices had been
IN 10 tha
ants asked the court TO say fair price be-
tween which price and the one at which
they had contracted the differences might
be paid. This case was filed July 80, one
day before settlements were required.
Shortly after this twenty-three other cases
were filed by the same complainants against
various defendants; ten cases by Pratt,
Buckley Co. six cases by III. c. Avery
& Co., and one case by j. Henry Norton.
BY common consent all cases are affected
by the same ruling.
the merits of the case were considered. It
did not matter whether there was a corner
for 1t was taken for granted honest
price was intended. This part of the matter
can be decided at further hearing which
will be had. The decision makes the injunc-
tion in force until this hearing of facts is
had. The losing parties have appealed, but
this decision prevents further hearing. The
gist of the decision is that a special COM
mittee which, according to the board rules
should be appointed by the president to adj
act i'm matters where property rights are
involved. The rights of the directors of the
board to preserve the Integrity of its rules
so far as disciplining members is concerned
by fine, suspension or expulsion. is upheld
by the court the boards proper rights
but he rules against the question that when
against the will OF the complainants the
power of disposal over that money which.
in sense, has been placed in trust or es-
crow. exists i'm a select committee of three
disinterested persons. members of the as
sociation. TO be appointed by the president
l. e. whether that money can be appropri-
ated by such a committee to the contract
ing defendants" regardless of the fact that
the complainants agreed TO be bound by the
rules which provide for settlements of dis
agreements. The court ruled that the arro-
eating of such power TO such body was
against public policy and that 1T would be
introducing sovereignties within a soyer-
eighty for the function OF constituting the
law"
The court goes in great detail to learn the
merits OF the case. speaks at some length
of the operations upon the Board OF Trade
of the benefits to the community from the
institution and the great influence 1t exerts
on the commerce Of the world. 1t holds that
- Q corporation not for profit 1t Possesses