New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-03
COTTON SUIT BROUGHT.
L. III. Price Gets Temporary In
junction against EGchange.

Justice Bischoff, in tho Supreme Court granted
temporary injunction yesterday against the New
York Cotton Exchange and the members of its
classification committee in a suit brought by
Theodore H. Price, restraining them from classi-
flying cotton except in strctest conformity to the
charter and lawful bylaws Of the Cotton Exchange
and to the laws OF New York and the United
States The papers in the case were served on
William V King, the superintendent of the
change. and the members of the classification com
mittee late yesterday afternoon. Mr.. King said
that all they had to say at present that they
had good defence" The fact that this suit would
be brought and statement by Mr. Price regard
ing It printed in The Tribune some weeks ago.
Mr.. Price said yesterday that he had been reuc-
tant to bring the proceedings but after careful con
sideraton he felt that the abuses. so generally
complained Of, in connection with the New York
contract could be remedied only by a suit in
equity, and such a thorough investigation of the
whole subject would enforce the adoption of
much needed reforms. Mr.. Price said further that.
as he not a member of the exchange and
had. before bringing his suit withdrawn from the
firm of Quentell. Coats & Co, who
bers. he felt free from the obligations which he
believed restrained many members of the
change from taking aggressive action for the
remedy of the abuses of which he complained. He
said he believed that unless these abuses
corrected the Cotton Exchange would to
list. The following in brief. his specifications
of and wrongdoing:
/. The samples classified not properly tagged
for Identification.
2. Delay in classification after drawing samples.
3. Committee has not had before it types of the
quarter grades. nor tinged and stained cottons as
required by the exchange
4. 1t does not maintain fixed standard for
classification, but allows the same to vary and de
terorate.
s. The committee yields TO pressure and undue
influence to produce overclassifcatfon.
g. The committee has classified blush tfnged
and stained cotton as white
l. The committee has recassi1ed cotton with
out comparison with its standards but on former
records.
S. The committee fails to inspect cotton and
reject cotton containing sand ard dirt.
Hence he seeks permanent Injunction against
the New York Cotton Exchange its officers agents
and employees ana It's classification committee to
restrain them:
,, From certifying or classifying cotton by sample
ton which IS not identified by a tag: or when not
compared with proper standards; or without first
which must be maintained for all the members Of
ana true standards which the exchange should
maintain. which must be exhibited upon reasonable
ton. Also to prevent the classiacation OF blush.
spotted, tinged or stained cotton white. cot
able in future contracts not so deliverable under
the ruling standards. To make the committee
strain others from exercising undue influence
the committee. Finally. TO enjoin them from pro
formity the charter bylaws and rules Of the
Cotton Exchange and the laws Of the state and
nation.
The complaint and af4davits upon which the tenn
porary injunction was obtained contain over hun
bred printed pages. The affdavits contain nuHer-
Gus allegations tending show that cotton has
been improperly classified by the classification COM
mittee The complaint says, among other things
that lit has long been the opinion not only OF
many members OF the exchange and others dealing
in cotton there. but also Of practically the entire
cotton growing community OF the United States.
that abuses Of the erossest sort have been allowed
TO grow up unchecked IN this department OF the
exchange. and thai the complainant believes that
in many cases these abuses the result OF undue
influence and feTortlsTu."
Further IN his complaint RI. Price avs taat
the charges that nave been made the effeC. that
great amount OF the cotton passed b. The class
hcation committee and made deliverable by IL
the exchange OF Inferior grade and properly
not deliverable believed BY him 20 he lie
says also that "few members OF the New York Cot
ton EXCHANGE realize the effort that is made by a
few persona obi ain improper certifiCstion OF cot
ton. ard that II the government in its investigation
ever goes into this question thsre viii be some
Things dug up that nobody exceFt the government
could or would care 10 bring 10 light
Some az the members OF the exchange yesterday
expressed the opinion that one OF the objects Of
bringing the suit was to bull cotton by preventing
May deiiHer!e. snG thus force a corner in the sta
pie by which MIR. Price would reap tremendous
profit il pointed out that tine agitation caused
was not up 10 the standard from coming 20 this
rket For fear that 81 might not pass the tests
and that this would considerably lessen the supply
Mr.. Price has been bun on cotton Tor some time,
and ia letter dated MAY / he called attention to
the heavy exports OF cotton and said there was
"crop exhaustion