The Washington times., 1903-01-09
COURT HOLDS OATS
CORNER" ILLEGAL
Fictitious Price "a Violation
of Criminal Statute.

CHICAGO, Jan. e.-On the ground that
the board IF trade has not the power
by its charter 10 pass upon the property
rights of its members without their con
sent. the appellate court has sffirmed
the decree of the superior court in grant
ing temporary injunction restraining
the Bank of Montreal from paying over
money deposited with il as margins dur
ing the corner" in oats last July.
The injunction orders in eight eases
are affirmed. and the questions involved
are passed upon by the reviewing court
in an opinion delivered in the case ap-
/ peaIed by the Bank of Montreal
In the suit appealed by the Bank OF
Montreal It was alleged by Waite.
Thorburn & Co. that they mad sold TO
c. H Candy & Co %. 900 bushels Of cats
at 81 cents a busheI and 10000 bushels
at 3754 cents busheI. to be delivered
| last July In the month of July, it was
/ set forth. the price of oats was so raised
I by a corner" that the settling price
on July 81 was 81 cents a busha.
In delivering the opinion of the re-
viewing court, Judge Ball says The
real matter mere in dispute is The
ownership of MS fund The bank can
not safely pay cut this fund. which 1t
holds IN escrow. unless. First. boyh
/ parties 10 the certificate indorse il; or.
/ second. the president of the board o.
| trade indorse it; or. third. the hank
pays it out under the decree Of court
having jurisdiction Of the subiect-maJ-
/ ter and OF the persons Interested in the
/ escrow fund
The running of the corner on the
| Board of Trade by which the exorbttant
and fictitious price Of 81 cents per bush
/ ell was 6xed for oats, when the reason
/ able and actual price of that grain was
+ then but IS cents per busAel. was a VIC
/ laUion Of the criminal statute.
/ 1T is a familiar rule that courts OF
/ equity have concurrent jurisdiction with
/ courts of law on questions of fraud We
are of the opinion that the question as
/ in case like the one at bar is settled
/ in this State"
/ Lynden Evans, attorney for Waite &
/ Thorburn. said. The effect of the de-
cision is simply this: That all contracts
made on the board OF trade are to be up
! held, except where there is a corner
and such corner affects the settlement
! under any contract In such case the
settlement price must be the legitimate
and actual value of the article dealt in
and not the fictitious or corner price
'Messrs. Waite & Thorturn and the
other parties who brought bills with
them offered % settle at the legitimate
price, and this was refused and the bills
were hIed TO compel a settlement at the
legitimate price. There is not a case of
'weIching' involved. nor is there any at
! tempt TO get cut Of contract
! The courts have properly ruled that
! future contracts must be madeaysIth a
view of future legitimate values, and not
flIegimate ones, and under the law &
/ corner is not legitimate. There can be
10 appeal from this decision of the ap-
/ peuate court The effect of the decision
/ is beneficial for the legitimate trade and
detrimental 10 the gambling element
/ Mr. Evans said the decision could
have no bearing on stock corners. such.
+ for instance. as the Northern Pacific
( corner Of last May in New York