Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-04-21

ly points from their early high.
WASHINGTON, April 19.-(By
the Associated Press.)-Injunction
proceedings to completely shut off
trading in sugar futures, unless
backed by actual ownership or con.
troll of sugar, were instituted in
New York today by the federal gov
eminent.
The governments bill, prepared
under the personal direction Of At.
torney General Daughtery after con-
sultation with President Harding,
asks the court to permanently pre-;
vent the New York Coffee and
Sugar exchange from entering into
or permitting any transactions in
sugar unless the person, purporting
to make such sale has in his possess
sion or under his control supply
Of sugar adequate to meet the re-
quirements of such transaction"
The hearing on the governments
application for a temporary injunc-
ton will be held April 80, unless
a postponement is granted by the
court.
The action is requested, the gov
eminent says, as a result of AN
orgy, of speculation" which has driv-
en- up the price Of sugar to the con-
sumner and which, during February.
enriched the pocketbooks of brokers
by 5000 900.
The. proceedings are the most
sweeping ever instituted by the fed
eral government in its efforts to
curb speculation in the necessities
of life. The injunction petition was
decided on after the whole subject.
including evidence gathered in New
York and elsewhere by department
of justice agents, had been discussed
in detail by President Harding and
his cabinet, and after Attorney Gen.
eral Daugherty, who is i'll at Ashe'
vile, N. c., had revised and approx
ed the bill of complaint.
Criminal Action Possible
Although the action today was a
civil suit, Assistant Attorney Gen.
eral Seymour announced that the
government also was considering
criminal proceedings under the
Sherman law and was pursuing an
investigation along that line.
Mr.. Seymour said further that
the government probably would re-
quest the courts to, declare invalid
the individual contracts involved III
the speculation complained of and
issue an order preventing settle
ments between traders.
In the course of the government
investigation, it became known to-
day, President Harding and Assist
ant Attorney General Seymour have
been in repeated telephone conversa-
ion with Mr.. Daugherty at Ashe.
Vile.
To Protect Public
officials here would not discuss in
detail the possibility of criminal ac-
IlOH against IIlOoS llClu ICoJOI0lOAO
for the presnet price levels, but it
was said that close contact would
be maintained with the court pro-
ceedings in New York and every eff
fort made to protect the interest of
the public.
The attorney generals bill de.
clares that as a result Of fictitious
transactions the price Of raw sugar
and the price of refined sugar TO
the consumer has been increased
since February on an average of
more than So per hundred weight;
that these operations were carried
on for the purpose and with the in
tent of unduly enhancing prices, and
that unless the court intervenes new
fictitious levels will be forced in the
future.
The alleged conspiracy was de.
clared in violation of the Sherman
antitrust law and other statutes of
the federal government and con.
trary to the public policy Of the
United States as we'll as harmful to
the interest of the people.
The full list of those against
which the injunction was requested,
in addition to the exchange and tha
clearing house association are T. S.
B. Nelson, Manuel E. Rionda, Frank
G. Russell. G. II. Middendorf. J. H.
Walter Lenkau, Justus Ruhrti,
Louis V. Sterling. William S. Scott,
C. H. Stoffregen. August Schieren'
berg. 3. r. Peabody, E. E. Lueber.
G. II. Finlay. Franklin w. Hopkins,
John w. Windelys, c. B. Stroud,
John A. Dunn, Hugh S. Carney, Will
liam Dayne, Edward F. Diercks.
Leon Israel, Arthur H. Lambern,
Lewis w. Milford, in their own right
and as representatives Of the mem
bers Of the exchange and the asso-
citation.
Every increase Of one cent in
the price OF sugar, artifcally stimu-
lated by these defendants in their
speculations, has cost and is cost
ing the American people $4,000 900
a week." Mr.. Hayward asserted.
1.-THE theory of the government in
this suit is the logical development
Of the Sherman law, the Wilson act
and the decisions the United States
supreme court handed down Monday
in the Totten corner case and the
grain futures case"