Omaha daily bee., 1906-06-02
MAY CORN DEAL SETTLED
Js0uith Gives His Check to Clearing House
and Accepts Warehouse Receipts
THOUGHT HE WAS UNFAIRLY TREATED
Settlement Comes Day Late, Accord
inG 20 the Rules of the
Exchange and Check
Goes with Protest.

The May corn deal on the Omaha Grain
exchange has been settled. Friday morning
A. B. Jaquith gave his check to the clearing
house for 4ss, O13.74 and accepted warehouse
receipts for so,O2s.52 bushels Of No. corn
in the Updike Grain company's elevator at
South Omaha. That closed the deal, as ia
quith's trades with j. w. Holmqust and
others had been closed out the day before.
The settlement should have been made at
$3.50 Thursday, according to the rules of the
exchange. but Mr.. Jaquith declared he had
been unfairly treated and rendered his
check only with n letter Of protest. which
included the statement that he would hold
the exchange amenable for damages and
which demanded the settlement of untitled
May trades TO the amount of 1900 bushels
at ~ cents a bushel. at which figure the
option closed Thursday.
The disagreement arose over the fact
that the rules of the exchange did not
specify the time when warehouse receipts
shall be registered at the exchange.
Mr.. Jaquith's story runs thus;
II thought receipts should be registered
by 10 o'clock and when / went to see
Secretary McVann was Informed by him
that since the rules did not specify a time,
he would make ruling that the regis
tration must be made by IL o'clock. He
afterwards informed me that he had noti-
ned N b. Updike, who was selling corn,
OF the decision. / told Mr. Updike, and
also Mr.. Babcock of the same firm, that
all trades made after IL were to be I'M
derstood as under Mr. Mcvann's ruling.
Then ] went 70 buying corn and took
about $4,000 bushels from Updike. The
receipts were not registered until the
afternoon.
McVann Declines Check.
70 aP9a Of
2:so bringing me warehouse receipts for
over 5000 bushels Of corn, saying that the
board OF directors had not stood by him
on his ruling and that the receipts would
have to be accepted. / offered him the
check with the letter Of protest, which he
declared he would not take. then sent 1t
down TO the exchange ofnce.
president Wattles, Mr.. Updlke Secre-
tary MoVann and others consulted a law
yer last night. and this morning the board
met at my request. A resolution was
passed to the effect that the secretary did
not possess the right to interpret the rules.
said; All right, gentlemen; now that
we know where we stand, 1 will withdraw
the protest and allow you to keep the
check This was done and took the corn.
Then they wanted to strike from the
minutes the resolution they had passed.
would not consent and they had to let 1t
stand.
81 intend to have fair trading on the
floor OF the exchange and 1 intend to have
explicit rules IL It takes me 1000 years.
That is why I would not take the receipts
until the board defined the secretary $
right to interpret the rules. The board
must now pass rule to the extreme
limit of time for the registration of ware
house receipts. There was no unpleasant
ness between Mr.. McVann and me. nor
between Mr. Updille and me. This little
May deal was only penny ante to what
there viii be the floor some day. and
in the meantime ] want to have the rules
made so there will be no possibility of a
skin game"
It is generally understood that MT
Jaquith came out OF the May deal a little
to the good. for he traded on the Chicago
board as well the Omaha exchange
and made some good trades there.