Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1902-09-18
BOARD OF TRADE
HIT BY COURT
Judge Chytraus' Decision
Strikes at Very Life of
Institution.
1T PUTS AN END TO CORNERS
Ruling Is Made In the Case of the July
Corner In Oats-Judge Severely Criticises
the Methods of the Board of Trade, and
Says 1t Assumes Too Much Power.

Chicago, Sept. ia most import
ant decision against the Chicago
board Of trade has been rendered by
Judge Axel Chytraus in the July
oats corner" injunction cases. Not
only does the opinion OF the court,
IL sustained by higher tribunals, put
an end to all corners in commodities
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 cur.
tailed that they cannot longer adjudi-
cate upon property rights of the mem
bers of the association. Judge Chy.
traus goes even farther and says that
under the charter of the board of
trade there Is no provision for sue
cession of membership, and he asks
the pertinent question: What should
become of the corporation when per
sons now composing the original
board would be dead"
The case in question was brought
by the commission firm of White,
Thornburg & Company against the
Chicago board of traue, the bank ot
Montreal and several prominent mem
bers of the board of trade, In which
a temporary injunction was granted
to prevent margins that were put up
by the compliments being handed
Gown to the contracting defendants.
The claim was made that the de-
PENDANTS had run a corner In July
standard" oats. The compliments,
while not denying their contracts, ara
while declaring their purpose to make
good these same contracts, made pro-
test against having the case adjudi.
Gated by the board of trade. as pro-
vided in the bylaws of the associa.
ton.
The gist of the decision is that a
special committee, which, according
to the board rules, should be appoint
ed by the president to adjudicate
such differences, has no authority to
act in matters where property rights
are involved. The rights of the al.
rectors of the board to preserve the
integrity of its rules SO far as dis.
ciplining members is concerned by
fine, suspension or expulsion is up.
held by the court as their proper
rights. but he ruled against the ques-
ton that against the will of the com
pioAhoheo tAN Po"Vi Vi uiopoodi oNSt
that money which In a sense has been
placed in trust or escrow, exists In a
select committee of three disinterest.
ed persons, members of the associa.
ton to be appointed by the president,
or whether the money can be appro.
priated by such committee to the con
tracing defendants"
Regardless of the fact that the
m ,f,Ia I'M go ~ hn hxr
the rules which provide for settle.
ments OF dlsagreements, the court
ruled that they were not bound, that
the arogating of such power to such
a body was against public policy, and
that ut would be introducing SOW
ereignties within sovereignty TO:
the function of constituting the law"
The court goes into great detail to
learn the merits of the case, speaks
Mt some length of the operations upon
the board of trade. of the benefits 10
q community from the institution and
the great influence 1t exerts upon the
commerce of the world. 1t holds
that as a corporation not for profit.
1t possesses governmental and disciD-
linary powers over the members that
are not possessed by stock corpora
tiOuS WHtTc uuOHey VI prOpcrty IlSutS
are directly involved. The general
power to pass upon the right of prop.
erty In the margins In question, how.
ever, is held adjudicate power. which
never can be considered to have been
delegated or confirmed by dubious im-
plication. "The ordinary courts of
Justice" said the court, Constituting
one of the branches OF our govern
ment, should not submit to being OK
cluded or ousted out of jurisdiction
by intendment." With some sarcasm
the court adds:
! The mastery ingenuity of the plan
contrived to prevent appeal to the
common law courts Of the state com.
mands our admiration. Think of the
long time of operation that has prov.
ed the scheme a successful one. The
loser who may feel himself aggrieved,
and who may know himself to be
wronged by the operation Of corner.
or otherwise. at law, can only sue TO
get his money back.
Even that remedy is by the re.
sourcefulness of the scheme abridged.
For 1t is possible for him to do even
that only after he has had an award
or adjudication against him by this
board of trade committee or tibunal."
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