The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-20
CHARGES 100000 FRAUD.
THEODORE II. PRICE SAYS PAR.
KER e. co. SWINDLED HIM.
Enter Into "Straddle Transactions' and
Alleges They Sold His Contracts and
Closed Out His Margins without
Authority With Fraudulent Intent.

Supreme Court Justice Dckey in Brook
lyn yesterday granted motion TO change
the place Of trial from Kings county to
New York county Of the suit of Theodore
H. Price, the well-known cotton Spectator,
against James II. Parker, Richard A Springs
and William D. Martin. who compose the
firm OF j. H. Parker 4 Co, commission
brokers OF the Cotton Exchange. TO recover
contracts, certain securities and money
deposited with the defen dants.
The plaintiff alleges that between Aug.
10 and Dec. 90 1902, he entered into an
agreement with the defendants to buy and
sell cotton contracts for January delivery
The transactions were 'stradd!e trans
actions" that is. purchases OF contracts
for delivery one month were TO be balanced
by sales for delivery in another month.
a system used to decrease the amount OF
the margins; that the defendants during
the four months referred to held for his
account contracts for the purchase OF
s3s 300 bales for January delivery, that
between Nov. 10 and Dec 20, 1902, the de-
PENDANTS, without his knowledge or au-
thoritv and with fraudulent intent and WITH
out making entries in their books. sold
contracts for 427. 100 bales OF cotton Tor
the January delivery. This. he AYERS,
they charged him With and on Dec ~ theS
rendered to him an account OF the purchase
and sale Of the cotton. which hedeclined 10
receive and demanded the contracts WHICH
they refused to deliver
He also alleges that they converted 10
their own use SSH 100 in cash, POS shares
Of insurance stock worth S4S. los. al OF which
was deposited with them as margins, and
also S42 10 which they claim as commis-
sions When the sales began. the plalntin
alleges, cotton was selling at S7so a num-
dred pounds. and closed ont at ISIS.
The defendants in their answer allege
that the plaintiff represented a syndicate,
and that on Nov. s. 1902, the plaintiff notified
the defenda nts that he was at the end OF
his resources and that those interested
with him refused to put up any more money
and that he had outstanding accounts with
other brokers for l42 OOO bales Of cotton,
and II the defendants did not take over
the contracts there would be panic in the
Cotton Exchange.
The defendants acknowledged that there
would have been panic and the loss would
far exceed the margins and that TO protect
themselves they took the cotton on the
proposal of the plaintiff and were to liouidate
and control it without the interference OF
the plaintiff, On Nov. IL, they allege, the
matter was nearly liouidated only contracts
to purchase q. 800 bales for january delivery
and $500 bales for March delivery ana
4s,loo bales for May delivery remaining.
At the time the defendant company also
had $50 shares OF stock Of the Empire lnsur-
ance Company and 500 shares OF the Eagle
Insurance Company and they turned over
to the plaintiff. they say. who appeared
glad to get it and accepted it, about 500 900
Subsequently. the plaintiff, it is alleged
repudiated the contracts and agreement
and began the present action.