Evening star., 1923-04-19


purporting to involve the purchase
and sale Of raw sugar were had on
the exchange to the extent of $4,000
tons.
Heavy Commissions Cited.
Brokers' commissions resulting
from transactions on the exchange in
February amounted to approximately
100000, an average OF more than
$4,000 each trading day, the bill
states. and "the stamp taxes paid the
United States government on those
transactions amounted to s35.711."
THE feverish speculation giving
rise to the abnormal and unwarranted
increases in the prices Of raw and
refined sugar" is set forth by the
petition in statement included there
IN, contrasting operations on the Ex-
change and Clearing Association dur
ing March and April, 1929, with the
preceding three months.
still Carrying Out Practice.
The defendants, by the methods
and means described In the petition
II is alleged. ARE still engaged in
carrying out their unlawful combina-
ton and conspiracy unlawfully and
unreasonably to enhance the prices
and to prevent the lowering of prices
or raw and refined sugar, and are
pursuing their operations with un-
abated zeal" Unless the court shall
promptly issue its injunction restrain
ing the defendants from carrying out
by means described or otherwise. their
said unlawful combination and con-
spiracy, the petition AYERS, the fur
ther unlawful maintenance and on
hancement OF the present abnormalIy
high prices of raw and refined sugar
VIII constitute an frreparable public
INJURY in that such exorbitant prices
VIII be extorted from your petitioner
ana from the public without Dos
sibility Of restitution, and especially
IN that numerous essential Industries
having to do with the Canning and
preservation of fruits and the manu-
lac.ure or CONNECTIONS and other food
ingredient. will be compelled by such
abnormally high prices TO largely
restrict their purchases of sugar in
interstate and foreign commerce and
mus largely curtail production of
such commodities and foodstuffs en-
tering into interstate and foreign
trade and commerce to the irrepar-
| aoie injury of all such Industries and
OF all the people Of the United states :"
bought and Sold Contracts.
The petition included in its aIIega-
tlons a table concerning Contracts
bought and sold (number)." as fol-
lows: November. 1922, s,Ie2: Decem-
Der. 1922. 6.229; January. 1929. 7.4s7.
19.4l2 $780,
The bill, in addition, states ,ba,
i ins petltloner is not now complain
and through said clearing associs-
ton relating to other commodities
tnan raw and refined sugar. said
T,Ier ~ ier operations not now being put
be without prejudice to the right OF
petitioner in any other proceeding to
seek RELIEF against dealings in said
otner commodities" The New York
unde tered al ana sugar Exchange was char
lsiature June 2. 1885, and operations
on the exchange were Confined to
transactions relating to coffee untii
december. december. 1914, when the scope of its
operations was enlarged to fncIude
transactions relating to sugar.
Quit Operation in 1917.
IN August. 1917. the exchange in
sesponse 70 the request of the United
onara,, orares 1000 aaministrator, suspended
the petition AYERS. During the entirs
history of the United States trade
ana commerce in raw and refined
sugar was conducted without the in =
servention OF said exchange and
Enarnla-
tion and manipulation which The a~
cnange and the Allied Clearing Asso-
Grafton arord. except for the three
years preceding and the three wears
following the world war"
Every advance of 1 cent per Mound
In the price of refined sugar costs the
consumers in the United States an
proximately $2.000.000 a week. the
Dill states. adding that ''any artificial
manlpulation of the price Of sugar
interferes with. burdens and restraints
the Interstate and foreign commercs
or the United States"
more than two months ago. when
the price Of sugar began to fiuctuafe
Attorney General Daugherty fiirected
that careful investigation be made
by department Of Justice agents with
view TO liking the responsibility for
what then appeared to be an un-
justified manipulation of the suear
market. Acting Attorney General
Seymour. who has prosecuted the in
quiry from the start, not only caused
the investigation to be made i'm the
United States. but had government
agents visit Cuba, where important
cured. When evidence of a conclusiye
nature was in hand, Mr.. Seymour Iaid
the matter before Attorney General
Daugherty, who. after studying the
situation. directed that the whole
matter be laid before the President.
Mr.. Seymour. therefore. was present
at the cabinet meeting last Friday
lined the results of the investigation
and suggested the course deemed ad-
visable by the Attorney General and
himself to meet the issue. Mr.
Daugherty, who Is In Asheville, N. c..
gave careful study to the drafting Of