New-York tribune., 1912-02-24
BUTTER INQUIRY HALTED
Mercantile Exchange Gets Order
from Justice v. M. Davis.
MAY ISSUE PROHIBITION
John Doe Proceedings Illegal,
Attorney Says, as to a
CORPORATION.

The butter trust investigation was held
up yesterday by Justice Vernon NJ. Davis
Of the Supreme Court who issued an or
der on Magistrate Murphy TO show cause
why a writ of prohibition should not be
issued to prevent further ex parte pro-
ceedings against the New York Mercantile
Exchange, charged in the information OF
William A. De Ford. Assistant Dlstrlct
Attorney. with a conspiracy to FIX the
prices Of butter and eggs in New YORK
County.
Franklin Taylor. the attorney for the
exchange, who was rebuked by Magistrate
Murphy last Thursday for giving state
ment to the newspapers saying that MS
clients didn't intend 10 be thrown bouno
ard gagged, into the arena for the sport
of a Roman populace" secured the order
after Magistrate Murphy had denied the
lawyers right to cross-examine the oiii'eis
of the exchange. who are voluntary WIZ
nesses, at the public hearings
In his affidavit Mr.. Taylor SAID: Inc
so so-called John Doe proceedings are ne
gal as TO corporation defendants, ana are
only authorized when the defendant Is
natural person The law as to corpora
tions, he said, entitled the defendants
upon the mere naked information 10 oe
brought into courL and to nave All '"o
rights Of an accused person.
The order was served on Mr.. De Ford
at MAGISTRATE Murphy's request and is re-
turnable on Monday before Justice Davis
IN the Supreme Court II did not carry
with II a stay 10 the proceedings, but'
TO give time for arguments. the hearings
were adjourned yesterday until TUESDAY
afternoon at 2 o'clock.
The officers Of the exchange are the only
witnesses Mr.. De Ford will examine at
the hearings. Edward T. Martin tue
president, in his affidavit made to Justlce
Davis, said the exchange would suner IT.
reparable injury through false impress
sions concerning II and its business OH
account Of the testimony Of "biassed or
neriured witnesses" whose testimony
could not be attacked by cross-examins-
ton. He also charged that malicious
motives OF business rivals will be inject
ed" and that business exposures OF the
exchange will work irreparable injury TO
the members
F. @. Henry, superintendent OF the ex-
change. testified yesterday that he couldn
saw how many butter and egg wholesalers
IN New York were not members OF the ex-
change.
After some hesitation Mr.. Henry said
that Swift & Co. and Schwarzschild q
Sulzberger wern't members
They are big packing houses said Mr..
De Ford. How long have schwarzschild
& sulzberger been handling butter and
eggs" he asked.
About six months" the witness replied.
Mr.. Henry explained how the exchange
statisticlan Joseph A. Karl, compiled totals
OF daily butter and egg receipts In New
York and how the prices and receipts in
all the large cities OF the country were put
on the blackboard of the exchange.
DO you have prices wired daily from
Elgtn. III" asked Mr.. De Ford.
NO. sir. We don't know that Elstn Is
on the map" was the rejoinder.
The exchange, he said, knew the names
| OF Is per cent of the conslgnees OF butter
and eggs, but 1t had no statistics of con-
sumption or cold storage of shipments. The
quantities sold "st CALI on the floor Of
the exchange were, he said. negligible COM
pared with the quantities consumed In
recent years there had been falling OF
in the egg business and an increase in the
butter sales.