Evening star., 1923-04-19

Continued from First Pagel
foreign trade and commerce in raw
and refined sugar.
The petition asks also that the de-
PENDANTS be perpetually enjoined
from maintaining and operating the
exchange and clearing house in so far
as they deal in or purport to deal in
sugar, and from establishing. main
tanning. operating or engaging in the
operation of any plan or scheme of
like character or designed or intend
ed to establish artificial prices of
sugar or to substantially affect prices
OF sugar by artificial means. or the
to so establish and affect the price
Of sugar.
Puts Ban on Price Fixing.
Further. the petition asks that de-
PENDANTS be perpetually en1olned from
in any manner publishing or making
public any price or prices of raw or
refined sugar as being. or purporting
to be. the market price of such sugar
as established by. or observed in
transaction on said exchange. and from
attempting to establish the prices
named in transactions on said exchange
as the market price of sugar to be
observed in bone fide transactions
actually involving the purchase, sale
and delivery of sugar.
The petition further asks that the
defendants be perpetually enjoined
from entering into or permitting to be
entered into any transactions on the
exchange or elsewhere involving or
purporting to involve the purchase.
sale and delivery of sugar. unless the
person purporting to make such sale
has in his possession or under his con-
troll a supply of sugar adequate to meet
the requirements of such transaction.
and the person purchasing or purport-
ing TO purchase. shall in good faith
intend to buy and pay for such sugar
and accept delivery as soon as same
can be made.
The COURT is told that the New York
Coffee and Sugar Exchange, Inc, and
the New York Coffee and Sugar Clear
ing Association. Inc, served no legi-
innate or useful purpose in the mar
keting in Interstate and foreign COM
merce of the United States Of raw and
refined sugar.
For Purpose OF Manipulation.
They exist only as a means of con-
tracing and speculating with refer
ence to supplies OF sugar. which, in
many cases, do not exist and for the
purpose Of manipulating the price Of
raw and refined sugar without regard
to conditions actually obtaining In
the industry and regardless of the
law of supply and demand and solely
IOr lileSltlrndte gam mpllnS, speculative
profits and the enrichment of the
parties to such operations and fire.
quently to the injury and detriment
of those actually engaged in the
business of producing and refining
sugar and at all times to the serious
injury of the consuming public"
The maintenance and operation of
the Exchange and Clearing Associa-
tion. II is averred, Inevitably result
in the establishment of prices for raw
q n IN u
speculative and artificial. without
proper regard for the conditions
which but for said unlawful and un-
economic operations would control
said prices"
Situation More Favorable.
During the period from February /,
to date. the situation Of the United
States and of the world in the matter
Of available stocks Of raw sugar was
more favorable than at any time
within the last three years. the petit
ton states. adding that production
was approximately 100000 tons
greater than in the preceding year
and the estimated production for 1922
1923 is $4,000 tons more than for
1s21-1s22." The United States De
partment of Commerc estimates the
1s22-1s23 world production Of sugar
/, 500, 900 over 1921. the petition states.
Explaining further that "the situa-
ton in the principal ports of the
United States and the United States
as whole, on April I'll. 1929. was
much more favorable than in April,
1922, There existed during
this period no economic Justification
for a sudden or appreciable increase
in the price Of raw or refined sugar.
or for any increase"
Finds Orgy OF Speculation
Since February Z, 1928, the petition
alleges, IAN orgy Of speculation In
raw sugar has been indulged in
through the instrumentality OF the
exchange and clearing association.
Enormous quantities of raw sugar,
e-reatiy in excess of the quantities
customarily dealt In and more than
the total stock of raw sugar then in
existence, have been the subject of
fictitious paper sales The transac-
tions on the exchange during Febru-
ary. 1928 "a short month with two
hoiidays) aggregated 1,515,050 tons,
az compared with 362,S50 tons in jan
uary. During that month only 800
tons were actually delivered as q re-
sult of transactions on the exchange.
During March, 1922. transactions