Evening star., 1923-04-19
Injunction Sought
Will Put Ban ON
:. ALI Trading.
SPECTACULAR RISE
CITED IN PETITION
Criminal Suits Still Under
Consideration by At
torney General.

The government moved To-Day 10
wipe out gambling in sugar in the
United States.
An injunction against the New
York Coffee and Sugar Exchange,
Inc, and the New York Coffee and
Sugar Clearing Association, Inc,
and their officers and directors, to
prevent their further trading i'll
sugar was asked in a petition filed
by direction of Attorney General
Daugherty in the United States
court in New York.
Conspiracy Is Charged.
The government charges that
combination and conspiracy III re-
straint of trade in raw and rehned
sugar has existed and does exist on
the part of the defendants. Violations
of the Sherman antitrust act and the
Wilson tariff act are alleged.
The recent decision of the United
States Supreme Court in the grain
future case-the Board of Trade of
Chicago versus Clyne-is relied upon
by the government to strengthen its
prevent speculation in sugar.
"Orsy OF Speculation"
Tho petition alleges that IAN orgy
of speculation in raw sugar has been
tndulged in through the instrumen-
tality of the exchange and clearing 6
association" since February T. 1928.
1t asserts that the exchange and the
clearing association perform no good
or valuable functions in the inter
state and foreign trade in sugar.
During February and March, 1t was
pointed out by Acting Attorney Cen
eral Seymour at the Department of
Justice today, only one-thousandth Of
] per cent of the number OF CONTRACTS
cleared through the New York Coffee
and Sugar Exchange, Inc, were con-
summated by deliveries
The petition filed by the government
today is petition in equity.
Criminal Action Not Decided.
Whether the government Will bring
criminal suits against the alleged
sugar SPECTATORS is now under con-
sideration by the officials of the De-
partment of Justice, it was said.
The government now has under con-
sideration a request to the court ito
annul all Of these fictitious contracts
and prohibit any payments or settle,
ments" In the contra cts cleared
through the coffee and sugar ex-
change during February and March.
I'VE believe" said Acting Attorney
General Seymour, that the court has
the power to grant this relief. and
when we are sure that a such re-
quest Is justified we will ask that
additional relief"
Prices Forced Up
The government, In it's petition. as
serts that as a result of fictitious
transactions carried out by the de-
PENDANTS, the price of raw sugar and
the price of refined sugar in this
country has been increased since
February on an average of more than
50 per hundredweight. The charge
is made that the alleged conspiracy
to boost the price Of sugar will con-
tinue. unless the court acts to malt
it, and that the prices of sugar will
be forced much higher than they are
today
Defendants Named.
The defendants named in the suit
brought by the government today are.
specifically. the New York Coffee and
Sugar Exchange, Inc; New York
Coffee and Sugar Clearing Associa
ton, Inc: T. S. B. Nelson, Manual Z.
Rionda, Frank c. Russell, c. II. Mid
dendorf, J. II. Walter Lenkau, Justus
Ruperti, Louis V. Sterling, William S.
Scott, c. H. Stoffregen, August Schier-
enberg, B. B. Peabody. Z. l.. Lueber,
G. H. Finlay, Franklin w. Hopkins,
John w. WindelS, c. B. Stroud, John
A. S. Dunn, Hugh S. Carney, William
Dayne. Edward F. Diercks, Leon Is
~ hyfh htrr orr,h
Minford. in their own right and as
representatives of all the members
Of the exchange and association.
The petition was signed by Attor
ney General Daugherty, Solicitor
General Beck, Assistant to the Attor-
ney General Seymour and Special As
sistants to the Attorney General J.
A. Fowler. Roger Shale and A F..
Myers. 1t was filed by United States
Attorney for the Southern District of
New York William Hayward.
Action Follows Conferences.
The governments action today fol-
lows several conferences between At
now in Asheville. NJ c., and Acting
Attorney General Seymour, and after
the entire matter had been considered
by the President and his cabinet. The
petition has been prepared for a
week, 1t was said.
The petition asks that writs OF sub
poena be issued directed to each of
the defendants commanding them to
appear and answer for themselves and
for those whom they represent, but
not under oath. the allegations con-
tained in the petition. It asks that
the court order this cause to be heard
on application for a preliminary in
junction within ten days after the
service OF notice on defendants. and
that the court upon such applica ton
enjoin defendants from sfurther en-
gaging in unlawful combinati ton and
conspiracy as described and from fur
ther operating the New York Coffee
and Sugar Exchange, Inc, and the New
York Coffee and Sugar Clearing As
ISOLATION. Inc. in SO far as they relate
to sugar.
Conspiracy Is Charged.
The petition further asks the court
that upon final hearing 1t be adjudged
and decreed that bylaws, rules and
regulations OF defendant corpora
tions, in 30 far as they relate to sugar.
their adoption by said corporations
and individual defendants. and the
concerted action of defendants in car
rying out said rules -dnd regulations
constitute a combination and con-
epiracy In restraint of interstate and
1Continued On Fage .. Column q