New-York tribune., 1907-05-23
PRICE SUIT DISMISSED.
Referee Says Equity Can GiJe No
Relief Until Rules 4re InrOked.

The suit brought by Theodore II. Price against
the New York Cotton Exchange and the mem
bers of its classification committee. in which
he charged them with making improper classin-
cations of cotton. dismissed yesterday by
Charles f. Rushmore. the referee appointed by
the Supreme Court 10 hear the evidence in tho
case. Counsel Tor Mr Price asked permission
TO file amended complaint to which the at
torneys for the exchange agreed. and the referee
set Friday morning as the date for the hearing
on that question.
In his report. which volumnous. the ref
cree ruled that the question raised in the appli-
cation for dismissal by Henry W. Taft. counsel
for the exchange based technicali-
ties, but on fundamental principles He said
that in his opinion the New York Cotton Ex-
change not public nor even quasi-pub-
lie corporation, in the contended by coun-
sci for the paintirT. for the reason that it held
franchise which clothed It with the power OF
eminent domain. but was only an association
of merchants dealing in the products of the
country, who solely for their own convenience,
provided a room where they met TO transact
business.
Mr.. Rushmore laid stress on the fact that the
rules OF the exchange provided remedy for
the correction OF errors in the classification OF
cotton. and said that this remedy could be used
by the plaintiff through the brokers who had
executed his contracts and thereby constituted
themselves his agents, and that through them
he could obtain SuCh redress as the Clrculn-
stances justified adding that the inspection
fund" maintained by the exchange for that
purpose.
He said further that in purchasing cotton con-
tracts through brokers the exchange MI.
Price had agreed to the exchanges system of
classification. and that he should have availed
himself of the remedies afforded by the rules OF
the institution before engaging in any legal ac-
ton. Furthermore the referee said. the plain
tiff had shown mo- irreparable damage to him
self IL any because of the alleged acts of the
exchange officials. and he held that an injunc-
ton against the classification committee should
not be granted because of the apprehensions or
any person as what might be done in the
future. No person. he said. purchased cotton
through the exchange OF necessity, but only for
convenience and In all cases with full knoWl-
edge and acceptance of the rules of the institu-
ton and that no conditions existed which would
prevent a purchaser from ignoring the exchange
and purchasing directly from the cotton grower
from any one else.
The allegation in the complaint that members
of the classification committee had been sub
iected TO pressure 10 influence them in over
classifying cotton the referee dismissed with the
statement that there nothing to show that
all the members of the committee were venal or
had Welded pressure, although an injunc-
ton had been sought against all of them. One
point made by the plaintiff was admitted, and
that was that privity Of contract existed be
tween the plaintiT and the Cotton Exchange
In ending his report the referee said: Tho
sole question be considered is: Does the
law or do the rules of the Exchange, provide
adequate remedy? If SO. II must be resorted to
before equity will interfere.