The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-14
Spsi III: Gou i.
The Answer Of the Defendants in the Wall
Street Gaid C6-as.
The following Ia the answer OF the defcndanta in

The Answer Of the Deicnsen;s in the Wal
Street toid Ce-es.
The following ia the answer OF the defendants ii
the ''gold cases" fled yes.erday:-
Edpdrd G.. Wiuard rs. Y0trpsep., COR rs y,test
dent or 0te Nen Fork COR Errloags ofll I4airfoL
uaUy, and Otheys--And now come tie defendants
Townsend Cox, who is sued herein individually ana
"a President OF the New York Gold Exchange:
Thomas A. Hoyr, George II. Bend, Thomas p. Akers
and George fhlpps, who are sued herein as officers
ford, Seward, Criswold ana ia Costa their attorneys
answer the complaint herein aud alege:-
Frst-The New YORK Gold Exchange is not
joint stock association II is voluntary association
under that name, OF persons who. Tor convenience
In the prosecution OF business with each other have
associated themselves tcg ether 10 provide common
place for the transaction OF such business and have
agreed among themselves TO pay tic eXljenses inc
dent to the support Of room therefor Each of the
associates has the right OF stated hours OF the day
and for his individual! profit, TO prosecute therein
the business OF buying and selling and loaning and
borrowing gold, and may enter INTO separate
engagements with his coassociates for that
purpose. me association does not share in
docs 1t participate in their gains The associates
have not contributed any money to a common fund
Tor the purpose OF the transaction OF business by the
ation TO any OF the associates. The associa ton IL
not engaged as an association ia any business aud
does not devote FUNDS to the prosecution of auy
undertaking for the profit o. the associates THE
association makes no profits nor has 1t any losses
Inc association was organized for the purpose OF
iiting necessity for new and larger facilities for
transactions In gold. For the purpose OF conducting
such business with facility constitution with by.
laws thereto appended, was adopted at the forn,a.
ton OF the association for tue goyernance AMI rew
lation OF the association and of the associates IN
snslr connection Herewith. Such constitution and
bylaws contain all the stipuatons OF the asso-
clates In reference TO the association, and
form the organic law by which alone the
organization either has existence or Is TO
be governed. Each associate on his admission TO
ile association ie required TO sign constitution
Of such association suescrped to Saa eoaimep
andAylaws In his own proper handwriting and
was the one hundred ana seventy-tnird person VINO
did 80. such constitution and bylaws constitute a
contract by which the members OF the ASSOCIATION
are bound TO the ISOLATION and 10 aud WITH each
other.
Annexed hereto and made part thereof ia a copy
OF the said constitution ana bylaws tue same were
last printed by the association
SSCOnd-The provision IN rule three OF the bylaws
that "unless otherwise expressed all contracts Tor
gold shall be settled through the New York Gold
Exchange Bank constitutes no portion OF any
contract which any meiaoer Of said association
may make, as between himself and any other
member OF said assoc atlon for the purchase or
sale or borrowing or lending Of gold. SUCH rule
applies solely TO contract complete IN Itself, and
10 not in any respect part OF portion Of such
tract IL presupposes the existence OF a contrac,
OF sale or loan and then pgeselIs method for the
more easy fulment OF such contract. There u
no obligation on the part OF any associate TO avail
claim the power TO conIpe! the associates u
make their contracts so ilat they must be
settled through the Cold Exchange Bank. Tue asso
cation has never attempted to compel TIE Associates
10 avail themselves OF such method so presented
IN Sdtd ARTICLES, DuI mas ttit ~ plUOllil Win Tue
associates to make their contracts without
reference to said rule since the ASSOCIATION
has been In existence, contracts for The sale or gold
have been made under sucsrue, and have also been
made under rule four Ia the manner there desg.
mated as EEK Clearing House;' and IN such latter
contracts the association never assumed TO require
the parties thereto TO have their contracts fulfilled
or Settled through the New OK Gold Exchange
Bank.
The said Gold Exchange Bank was used as a clear.
ing mousse lof the settling Of contracts entered into
by the individual members OF the New York Gold
Exchonge when some other mode OF settlement was
nov expressed. oucn use OF the New York Gold
Exchange Bank did not relate back to the original
contract ior Inc purchase or sale lending or
r0Wing did not enter into such contract, nor was
the awaiting thereof necessary TO the completion OF
the contract. The sole use or tile said bang was to
an0rd as Is hereinbeioie alleged, an easy and con.
venicnt method OF setting balances due from mem.
bers OF the association upon god transactions but
eald bank did not III any way become Responsible
fgf the payment oil such balances,
Ttfu-These DEFENDANTS do not nor does etther
OF them, know the amount OF the TRANSACTIONS In
gold ut the New YORK Gold Exchange on FRIDAY
September "a 1860; but these defendants seyeraliv
aver upon Information and belief thai neither ina
plaintiff nor any other member OF tho SAID association
ever entertained the belief that the said rule with
regard to the settlement OF balances through tue
Gold Exchange pank constituted any part or portion
OF his contract for the sale or loan OF gold until such
member found himself embarrassed by his indlvd.
usl contracts, and then sought Tor soue nretondvd