The Monmouth inquirer., 1923-04-26
TO END GAMBLE
ON SUGAR PRICES
Injunction Asked by Government
Against Exchanges Operating
in Restraint of Trade.
CRIMINAL ACTION POSSIBLE
Concerns Accused by Dausherty Of,
Existing Only for "Fictitious Trans
Acknowledgement Chance OF
Making Political Capital.

MISUNDERSTANDING OF a far
reaching character instituted by the
Department Of Justice against those
alleged to be responsible for the
boosting of sugar prices are likely to
be followed by further legal action.
Acting Attorney Genera A. T. Sey-
mour. after making public the petition
in equity filed in the United States
Court in New York for an in
junction against sugar dealings by
the New York Coffee and Sugar Elk
change, Inc. and the New York COT
fee and Sugar Clearing Association,
Inc, their officers. directors and man
ayers. stated that the department has
under consideration and investigation
possible criminal proceedings. 1t is
understood that this action may be
commenced next week.
Mr.. Seymour further announced
that in the light of the decision of the
Supreme Court of the United States
handed down last Monday in the
grain futures case it is probable that
the petition filed may be broad
ened to ask the annulment of all 'fic-
titious" sugar contracts where no de-
liveries are intended and the issuance
of an order prohibiting and payments
or settlements to be made under such
contacts.
Today's action was taken with the
approval of President Harding and
his Cabinet and constitutes the off,
ciaI administration program il deal
ing with the sugar situation. The
President,at was stated, regards the
suit as OF vast Importance, involving
the question as it does whether unre-
stricted speculation in a commodity
of prime necessity can be curbed I'M
der present laws.
The administration attack hinges on
the theory that speculation in the New
York sugar market is solely respon-
sible for increases in prices to the
which have taken place
during the past few weeks. It is de-
clared that during February and
March only one t~housandth of l per
cent of the number of contracts clear
ed through the New York Coffee and
Sugar Exchange was actually con-
'summated by deliveries. Transac-
tons resulting in the fixing of market
prices, it is asserted, were purely fic-
%titious, and carried on for the pur-
pose of upduly enchancing the price
of both raw and refined sugar. Each
increase of l per cent per pound in
the price of refined sugar, it is pointed
out, costs the consumers of the Unit
ed States approximately $2,000,000 per
week.
The government alleges that. the
speculative operations in sugar consti
tute an unlawful combination and con-
spiracy in restraint Of interstate and
foreign Such combination
and conspiracy are held to be in VIOLA
ton of the Sherman antitrust law Of
1890 and of the Wilson Tariff Act of
1894, as amended by the act of 1913.
The far reaching character of the
proceedings is indicated by the fol-
lowing demands set forth in the petit
ton filed in THE New York court:
That a preliminary injunction ie
issued restraining the defendants
from further operating the New York
Coffee and Sugar Exchange, Inc, and
the New York Coffee and Sugar Asso-
citation. Inc, insofar as they relate to
sugar.
That after a final hearing it be adj
judged and decreed that the laws and
rules and regulations of the exchange
and clearing house insofar as they
relate to sugar and the consolidated
action of the defendants in carrying
them out constitute a combination
and conspiracy in restraint of inter-
state and foreign trade and commerce
and are contrary to public policy and
detrimental to the people of the
United States and in derogation of
their common right.