The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-05-26
(Raleigh POST

oNSAA1S ~
(Raleigh Post)
Mr.. Justice Holmes delivered the opin-
ion of the Court
These are two bills in equity brought
by the Chicago board of trade TO en-
join the principal defendants from US
ing and distributing the continuous
quotations of prices on sales of grain
and provisions for future delivery,
which are collected by the plaintiff and
which cannot be obtained by the de
PENDANTS except. through a known
breach of the confidential terms OH
which the plaintiff communicates
them. 1t is sufficient for the purposes
of decision to state the facts without
reciting the pleadings in detail. The
plaintiff was incorporated by special
charter of the state of Illinois on Feb
ruary Is, 1850. The charter incorpOr-
ated an existing board of trade, and
there seems to be no reason to doubt,
as indeed is alleged by the Christie
Grain and Stock Company, that it then
managed it's chamber of SUD-
stantiaHy as it has since. The main
feature Of it's management is that 1t
maintains an exchange hall for the K
elusive use of its members, which now
has become One of h great grain ana
provision markets of the world. Three
separated portions of this hall are
known respectively as the Wheat Pit,
the Corn Pit, and the Provision Pit.
In these pits the members make sales
and purchases exclusively for future
delivery, the members dealing always
as principals between themselves, and
being bound practically, at least, as
principals to those who employ them
when thy are not acting on their w
behalf.
The quotations of the prices continu-
ously offered and accepted in these pits
during business hours are collected at
plaintiffs expense and handed to the
telegraph companies, which nave their
instruments close at hand, and by the
latter are sent to a great number OF
offices. The telegraph companies all
receive the quotations under a contract
not to furnish them to any bucket shop
or place where they are used as a ba-
sis for bets or illegal contracts. To
that end they agree to submit applica-
tons to the board of trade for investi.
CATION, and to require the applicant,
if satisfactory to make a contract with
the telegraph company and the board
of trade, which, if observed, Confines
the information within a circle of per-
sons all contracting with the board of
trade. The principal defendants get
and publish these quotations in some
way not disclosed. 1t is said not to be
proved that they get them wrongfuiiy
even if the plaintiff has the rights
which it claims. But as the defend
ants do not get them from the tele-
graph companies authorized to dis
tribute them, have declined to sign the
above mentioned contracts, and deny
the plaintiffs rights altogether, it is a
reasonable conclusion that they get,
and intend to get, their knowledge in
a way which is wrongful unless their
contention is maintained.
1t is alleged in the bills that the
principal defendants keep bucket shops
and the plaintiffs proof On that point
fails, except so far as their refusal to
sign the usual contracts may lead tn
an inference, but if the plaintiff has the
rights which it alleges the failure is
immaterial. The main defense is this.
1t is said that the plaintiff itself keeps
the greatest of bucket shops, in the
sense of an Illinois statute of June 6,
1887, that is, places wherein is per-
,s4AoJ Aho r.4o,,1ol I,,x.o oo1 coll
ing of grain, etc., without any inten-
ton of receiving and paying for the
property so bought, Or delivering the
property so sold. On this ground it is
cOntended that if under other circum-
stances there could be property in the
quotations, which hardly is admitted,
the subject matter is SO infected with
the plaintiffs own illegal conduct that
it is caput lupinum, and may be car
ried off by any one at will.
1t appears that in not less than
three-quarters Of the transactions in
the grain pit there is no physical hand
ing over of any grain, but that there
is a settlement, either by the direct
method, so called, or by what is known
as ringing up. The direct method con-
sists simply in setting off contracts to
buy wheat of a certain amount at a
certain time against contracts to sell
a like amount at the same time, and
paying the difference of price cash, at
the end of the business day. The ring
settlement is reached by "a comparison
of books among the clerks Of the mem
bers buying and selling in the pit, and
picking out a series of transactions
which begins and ends with dealings
which a be set against each other
by eliminating those between-as, if
A has sold to B five thousand bushels
of May wheat, and B has sold the same
amount to C. and G. to d, and d to A.
Substituting D for B by novation. AS
sale can be set against his purchase
on simply paying the difference in
price. The circuit court of appeals for
the eighth circuit took the defendants
views of these facts and ordered the
bill to be dismissed. 125 Fed. Rep, 161.
The circuit court of appeals for the