The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-04-19
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TRUST
LAW
Government Seeks to Enjoin
Operation of New York
Sugar Exchange.

The first legal move of the
United States Government to
find out who is responsible for
present high sugar prices was
taken today, when the Depart
ment of Justice filed q suit in
New York to enjoin the New
York Sugar Exchange from deal
ing in sugar.
Names Two Associations.
Announcement of the filing Of the
suit in the district court at New
York was made here BY Acting At
torney General Augustus e. Sey-
nour. who il directing the Govern
ment's sugar probe under instruc-
tons from President. Harding:
Two organizations-tne New York
Sugar and Coffee Exchange and the
New York Sugar and Coffee Clear.
ing Association-wefe named, to-
sether with all their officers, di-
rectors and managers.
Inyokes Antitrust Law.
: The court was asked to enjoin
the defandants from further en-.
gaging in and carrying out in the
United States combination and
conspiracy in restraint Of trade and
commerce in raw and refined sugar
among the several States and with
foreign nations
The complaint was drawn under
the Sherman antitrust law.
In announcing the details of the
Governments legal campaign
against the persons and organiza-
tions accused OF manipulating the
market to boost sugar prices, At
torney General Seymour said that
the Department of Justice now has
under consideration the question of
beginning criminal proceedings
against the directors of the sugar
exchange in addition to the equity
suits filed today. .
Charges Fictitious Sales.
The petition filed at New York
by District Attorney Hayward
charges that fictitious transactions
carried on by the defendants have
caused an increase in the price Of
refined sugar in the United States,
and increases in price of refined
sugar to the consumer since Feb
ruary z, on an average of more than
81. per hundred pounds. The Gov
eminent alleges that these specu-
lative operations have been carried
on for the purpose and with the In
tent of unduly enhancing the price
OF both raw and refined sugar,
thereby causing unlawful combina-
ton and conspiracy in restraint of
foreign trade and commerce.
The court Is informed that unless
the defendants are restrained, the
sugar market operations will con.
tinue to result not only In the con-
ttnued enhancement of the price Of
raw and refined sugar, but also in
q diminished demand, thereby les.
senfng the traffic in these cornno-
6ities.
Conspiracy Alleged.
The Government said the combin.
alton and conspiracy alleged to
exist are in violation both of the
Sherman antitrust law and the WI.
son tariff act and Operate to the
detriment and hurt Of the people
of the United States. and In deroga.
ton OF their common rights, and
contrary to the public policy of the
United States
Seymour said that the pleadinge
In the case filed today have had
deliberate and thorough consider.
@tlon, and that Attorney General
Daugherty has urged this form OF
action. Seymour said the opinion
OF the Supreme Court on Monday
In the grain futures case contains
many features which are applicable
In the sugar case.
seymour said he made a careful
ANALYSIS OF the grain future case
decision. "In that case" he said, -
the bill filed to contest the validity
OF the act of Congress was based
on the contention that the Boards
OF Trade permitting dealings in
grain futures should not be inter
Tered with because a large part of
the future trading is done by specu.
Iators who make a study of market
conditions affecting prices and trade
70 profit by their Judgment m IN