Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-07
HTS BOARD Of TRADE
Judge Adams Refuses Applica-
ton to Enjoin use of the
Quotations
ON GROUNDS OF IMMORTALITY
Dealing in Futures, Says the Court, is
a Purely Gambling Transaction, and
Records of Such Are Not Entitled to
Protection Accorded Property by the
Law.

st. Louis, April fudge Elmer u.
Adams in the United States circuit
court here decided that Chicago board
of trade quotations as sent over the
tickers were records of gambling trans
actions and not entitled to the protec-
ton of the courts.
/ The cases were those of the board of
trade of the city of Chicago, asking
for an injunction against the Celia
Commission Company and the Donovan
| Commission Company of st. Louis to
restrain them from using the "continu-
GUS quotations of the board of trade.
| Judge Adams dismissed the bills in
both cases and said:
Both cases present practically the
same issues.
Court States Nature of Case.
"These are bills for injunction re-.
straining the commission company
from receiving or using certain market
quotations known as continuous, and
claimed to be the property of the COM
iplainant.
The main question argued which
underlies the whole case, is: Whether
the property right the complainant
may have in the continuous quotations
in question is so tainted with immoral
ity as to preclude resort to court of
equity by the complainant for it's pro-
lection.
After careful consideration of the
proof, 1t is found that the continuous
quotations In question result largely
from wagering on the future price of
grain and hog products by members of
the board of trade operating in pits on
the floor of the exchange.
Il am satisfied by the proof that a
large per cent of the so1called sales for
future delivery, which furnish a basis
for the quotations In question are mere
gambling transactions. involving no
purpose on the part of the seller to
deliver, and no purpose on the part OF
the buyer to receive the subject, but
rather involving Il mere purpose of
settling at or BIT. ore the date of the
assumed delivery the difference be-
tween the alleged contract price and
the market price.
1T makes little difference that the
rules of the exchange, subject to which
all transactions are required to be
made, provide that no fictitious sales
shall be made. and that all transactions
must amount to bona fide purchase,
and sale of the property for actual de-
livery.
The proof shows that largely over
80 per cent of all transactions in pits
which alone determine the continuous
quotations which are sent out over the
country, are in fact closed out by a
settlement of the differences and that
the actual deliveries OF the article
bought or sold are rarely eyer made.
This practice relates to transactions
in the pits on the floor of the exchange,
where the trades for alleged future de-
livery are made, and no relevancy to
the cash or zeal transactions in wheat
and provisions for consumption or ex-
part of the exchange.
ut is time honored maxim of law
that every person must be held to have
intended the reasonable and unsual
of his acts. The property
therefore which the complainant asks
this court to protect by its Injunction
process is the right to lnonopolize the
speedy dissemination Of Information in
structing the public what wagers are
being made on the future price of grain
and other commodities by members of
the Chicago board of trade. Informa- /.
tion of the prices made IL other parts OF !
the exchange on grain and other pro- !
visions for actual consumption or ex-
port or even for the purposes of hold
ing for speculative profit N cases where
the grain or other provisions are deliv-
cred in fact, or are intended to be de- I
livered, might and undoubtedly would
be valuable to the public, and such in. (
formation would promote legitimate
trade and commerce; but the other
kind Of information. conveying intelli- I
gence as to the wagers that are made in
pits, in my opinion has no legitimate
tendency to promote the commerce of I
the country, but on the contrary tends
only to excite the gambling propensities
of the public.
such is not a species of property
which appeals to court of conscience
for protection
John Hill. Jr.. one of The most active
members of the committee on market
reports, under whose jurisdiction all of
these bucket shop cases have come. t
said: I'VE are not at all disturbed.
II this particular case, which has been
hanging fire about ydar and half.
and in which we sough. to prevent s.. +
Louis bucket shops from using stolen
Chicago quotations, has gone against
us we will promptly take 1t to the court I
Of appeals. The same points are in
volved as in the Kansas City case,
which was decided in cur favor, and
which the bucket shops appealed"