The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-03-12
CITES ALLEGED FIXING
OF BUTTER QUOTATIONS
Assistant District Attorney De
Ford Finds Records OF
Old Action.
PRt SENT HEAD PLAINTIFF
President Martin Of Mercantile Ex-
PR SENT HEAD PLAINTIFF
President Martin of Mercantile Ex-
change in That Case Made
Charges Against Body.

Assistant District Attorney De Ford.
vino il conducting the investigation be-
fore Magistrate Murphy into the methods
Of the New York Mercantile Exchange
in the master Of alleged fixing Of prices
for tltter and eggs, has picked up some
interesting information regarding the
exchange from the records of an action
brought against the exchange by George
W. Martin, George w. Martin. Jr,. and
Edwin +. Martin. forming the commission
firm Of G. W. Martin 4 Bro. in the Kings
County Supreme Court in 1907. Edwin
T.. Martin is now president of the Mercan-
tile Exchange.
The action was brought to obtain dam
ages because of the alleged underquoting
of eggs and butter in the quotations issued
by the exchange. Ii resulted in an in
junction restraining the defendant ex-
change from issuing quotations of the
values in the New York Wholesale market
of any of the grades of butter at other
than the selling values of the same COM
monty obtainable rs indicated by whole
sale transactions from first hands"
In their complaint in this action the
Martins alleged that "the prices for butter
obtainable by the plaintiffs from such
retail dealers has at all such times de-
pended and still depends upon the official
butter quotations of the defendant"
The complaint continues:
That ever since on or about the 10th day
of January. 1909. the defendant has wilfully
and continuously violated tho duty i'm
posed upon IL by its charter, bylaws, rules
and regulations and that IL has in the in
terest of a certain limited class OF its mem
bers wifuly. deliberately. fraudently
dishonesty. maliciously and Systematically
issued and published daily quotations OF
the values in the New York wholesale mar
ket OF the different grades of butter. which
quotations have been false, fraudulent
and not representative OF the selling values
of the same commonly obtsinable, as in
dicated by Wholesale transactions from
first hands. and that the defendant still
continues and threat a. to indefinitely
continue so to do
The plaintiffs brief gives further in
formation from the firm Of which the
present president OF the exchange is a
member.
AT the start" the brief states. @this
,nderquoting was but occasional and
slight, being rarely more than one-uuarter
Of cent per pound, but the discrepancy
has gradually increased 40 that for two
years past the market has been under
quoted about 90 per cent. of the time. and
the official figures frequently vary ar
high as one and one-quarter cents from
actual market values.
The reason for this systematic under.
quoting of the market Is shown the
brief continues. Competition among the
receivers TO get fancy or extra h,itter
finally became SO keen that the custom
sprang up of paying the shipper a pre.
mium over and above the New York
quotation.
application for the minutes in the casa
but that the stenographer 20 far has beer
unable TO furnish them to him