The New York herald., 1869-09-30


referred to the committee by the adoption OF the
following resolution, offered by Mr.. Grinneli:--
Resolved That this matter be referred to the com.
mttce OF twenty, with the request That they snouo
advise us what in their opinion IL our best course
to pursue IN respect to Smith, Gould, Martin Co.
The board then took another recess, subject to
the call OF the president The proceedings OF this
meeting were attended with great confusion. Every
aluslon to Smith, Gould, Martin & Co. elicIted yehe-
ment expressions Of disapprobaton, aud bitter
dcnunciatons OF the 1rm were uttered in all parts
OF the Gold Room.
INJUNCTION UPON THE GOLD BOARD.
Immediately upon adjournment and before the
president had left his seat the following Injunction
was served:-
Martin, Jay GOud ana James b. Bdohe, Ptdttt1s
os. 7olDnsead Con, Thomas A. Hoyt, George H. Eeild
send cor, as Pressdent Of ne Ne,o York cold Err
change, DeIe,ada,ts. -Summons.-For relief. tCom-
TO the DErEsDANrs:-You are hereby summoned
and required 10 answer the complaint in this action,
a copy whereof Is herewith served upon you, and TO
serve copy Of your answer TO the said complaint on
the subscribers al their ONCE, No. Pine street. IN
the cty OF New York, within twenty days aIter tne
and il yor iall to answer the complaint within the
time aforesaid, me paintiiis In this action w Apply
to the court Tor the reei demanded ~ the COMPLIANT
Dated NEW YORK Sept. 2s, 1869.
SUPREME CoUnr--Ctty ana county or Ne,c Yorf.-
Henry ". SD,,tl, Henry n. Martin, joy Gont0 and
Thomas 4. Hog, George X. Bond, Thomas z. 46erS
ana george Phipps, ana To,onsoud coz as P,est-
I'he plaintiffs complain and anege:-
ruTt-That they are copal tners, doing business as
nroEers ana oanSers M ~ te ey & % Hew forK uhoer
.SecoRd-That the New YORK Gold Exchange Is
joint stock association OF more than 200 persons as
Socated together for the purpose oI transactng bs
ness III gold, and almost II not qui,c the whole or
the purchases and sales OF gold N the city OF
New York are made In the rooms OF the
said ASSOCIATION. where only Its members are allowed
to transact business and 1t is practically Impossible
for any to transact business at wholesale III the
purchase or sale OF gold as broker IN the said CITY
unless he is a member OF the SAID asociation that
the above named Henry n. Smith Is q member OF the
said association acting therein as the representative
OF the paintils who nave continually large dealings
az wholesale in the purchase and sale OF gold as
brokers the city Of New York, and the plaintiffs
have paid 10 the sad association, IN the name OF the
said Henry N smith, an imitation ice OF one thou,
association from each OF Its members as the coudi
ton OF their privileges therein.
Tnlr'd-Tbat the aelendant Cox is the president of
the SAID association the defendants Hoyt ana Bend
nre the vice presidents, the defendant Akers Is Its
secretary aud the defendant Phpps Its treasurer.
IOui1h-That by the rules adopted by the said
association, ali contracts made by its members for
the purchase sale Of gold to be settled through
the Few York Gold Exchange Bank, unless other
wise expressed in the contracts themselves.
FJti1-fhat The said bank Is q clearing house, to
which all the members OF the said ASSOCIATION have
been accustomed to send daily statements OF their
transactions in gold, ana The said bank has been
accustomed to make up IRON such statements gen.
era account and strike a balance to the debt or
credit Of each OF the dealers. showing the net
amount OF gold and currency which will be due TO
or from him, from or to all other members of the
case but very small in proportion to the whole
amount OF each Dealers transactions, the pro-
portion or ratio OF such balance to the
whole amount diminishing greatly as the
transactions increases go that where q broker has
purchased ten millions Of dollars OF gold from other
brokers' and sold ten millions one hundred thou
sand dollars Of gold to different set OF brokers on
Aforesaid rule have to provide only one hunared
thousand dollars Of gold to fulfil all his contracts
that day; whereas, II NO such practice existed 1t
would be necessary for blm in order to carry out
his contracts to provide himself with ten millions Of
dollars 0f gold to deliver and ten millions one hun
tired thousand dollars in currency, in addition to any
premium on the gold to pay for the coin which ne
sistt~Ihat on Friday, the 25th day of septem-
made for the account OF the paintif1s In
the room OF the said association. and under
saa ras OF os the aSns ronsscons OF tSe
members Of the said association IN gold haa, in the
same manner, on that day, amounted. as the PLAIN.
hundred millions OF dollars.
,Sere,dh-That the said Gold Exchange Bank has
transactions in gold had, as aforesaid, on the said
| Friday, and wholly refuses to make up any state.
ment OF such transactions or to strike any balance
therefor; and, as the plalntilis are informed and
believe, it has suspended payment upon its current
made or attempseG {" make any or
such transactions, nor as the plaintiffs informed
| and believe, 1t is impossible 10 do 30.
Eighh-Ihat the plaintiffs, and oil other
parties to contracts Tor the purchase or sale
Of gold Oh the occasion aforesaid with
the exception Of few contracts involving o COM
paratively small sum In a contemplated the SETTLE
men, OF all such &c contracts through the said bank
anu would never have entered into contracts OF such
magnitude had they supposed that they would be
required 10 settle them without the Intervention OF
clearing house; that upon any other plan the said
contracts could only be carried out, according TO
these terms, by the parties raising and rendering to
each other In one day the sum Of three hundred
millions OF doals in gold coin OF the United States
or eermnca.Gs tnefe9T @ on Tue one hand ana aoou.
currency OF the united States on the other hand
which would be an absolute mpossiblity there not
being as tue plaintiffs, are informed and
believe, haf the said amount OF gold
coin OF the United States upon this Continent, and
not more than twenty-five million dollars thereof IN
the state OF New York, except what is held by the
feGeral government, nor so much legal currency IN
exlstence, ana it would be absolutely impossible
that the contracts aforesaid should be fuldlled
without the intervention oil some species OF clearing
house.
members OF the SAID association acting with them,
without any lawful authority, have assumed to
clear the said transactions ana strike balance of
iae accounts ,n,d ana, as ,ne plaintiffs are
large number Of the sad transactions in gold,
in ny the plaintiffs, would be TO subject them to
very great loss and to compel them to pay much
larger sum as balances than would be Just.
2eatt-That by another rule OF the said association
IL is provided that when any OF irs members fail to
perform their contracts IN respect OF gold the pres
deat OF the said association shall buy sell gold,
tile case may be- publicly, for the account OF such
member and OF his principals; and that unless snch
member make gooa any loss thus incurred he shall
be deprived of the privileges OF membership.
EIecenth-TEat, as the plaintiffs are informed and
believe, the defendants VIII be called upon to make
large sales Of gold for account OF the plaintiffs under
the said rule, and Will do under the pretencc that
the plaintiffs are in default upon their contracts
aforesaid, IN failing 10 pay balances adjusted IN
the unlawful manner aforesaid or TO fulfil particular
contracts on demand without the intery OF
shs namiiir to nav tho ao,nt ~ Ihrs % ,,pin, ",
estimated to be due from them, 10 deprive the said
Hcncy NJ smith OF his privileges in the said aesocia-
ton and TO expel him therefrom
Tcelth-Ihat the injury which would be caused
to the pianiiIs by carrying ont the said schemes
would be very great, amounting TO destruction OF
their business as gold brokers; and 1t would be
impossible to ascertain even approximately the