The New York herald., 1870-03-26
LIFE IN YHs GOLD ROOM.
the pERMs Of TRADING ON NERVE"
A Broker Found Guilty Of Fictitious sals-Ths
Board Talk Over the Matter and Impose
Fine Upon the Aurifsrous Dealer in
Fiction-A Great Moral Wrong NWf
and Gentle RsprooE

Many people come to New York. and they travel
about and see goO1 deal and retire to their rura
a6Odes and boast OF having seen the metropolis.
Not one In hundred OF these nave ever been inside
the "0old Room" and consequently have failed 70
one Of the most important phases OF our modern
metropolitan life For that matter very few living In
the city have ever visited this great maesrom OF our
money market, and therefore are as profoundly
ignorant OF this great mystery OF mysteries OF the
city. But we will not describe the place now, the
narrow and dark aud sinuous approach to the room
ITSELF the singular gathering OF singular looking men
In the room and the babel confusion of talking ana
shrieks and howls and stunning feet during business
hours amid an atmosphere blue with tobacco smoke.
There ia system In IL all. bus It looks bewlderingty
otherwise to q stranger. Ths noise means business
underlying this bedlam confusion. There ID cool
method, and these myriad voices shrieking 0ut In
high key words. uninteligible to the stranger pro-
claim transactions In gold to the amount OF milons.
They have constitution. though one would think
they paid but little attention to 1t from the furious
way they all smoke, and bylaws, though the prevail
ing disorder would seem proof positive 70 the con-
trary. In reference to this constitution and bylaws
special meeting was called FOR three T. N. yester-
day. Two members Of the Board had been charged.
to borrow the technical phraseooyy Of the Board:
with q Fictitious transaction" or q wash" a. Is
Is otherwise called and & was Proposed proposed 70 take
tOnh simply meant that gold had been sold by them
below the market price. 10 was spasm OF virtue.
Precisely at the hour specified Mr.. ]. Underhiu.
the president. raped loudly with ms gave on the
the disposition 70 make noise grown into . nablt.
took another direction, In shouting "Cear the gal
vocciiferations. Tne gallery was cleared, but hass
were not taken OF, and the sitting room being very
limited, nearly all had to stand: ,,s xo ,,n..w
heard above the preliminary tumult, announced thas
the meeting was private one ana that all reporters
A mn uhorp uiua II.
or the reporters and moved that they be allowed to
remain, which motion was &C once put ana carried.
tled Mr. Akers the secretary read the report OF the
special committee on the subject OF the charges, ~
TO TIE orrIorns AND MHMnERs OF THE NEW YosK
GoLp ExonAnaK-Your commistee. appointed 70 n,e:si-
rm q 9. McDousal Co. and Nc john Finctea ot The
q % hs o hS %
70 4 S as
cG
that the action Of Mr. Loansberry was influenced by ths A.
after hours of the . gem
board act with proper leqisncy towards him. Respect
fully submitted sv$$aE5$ i $SHSzS : SSEiaBg
NEW YORK. March Is, 1870
Mr.. KEpLER moved to lay the report on the table:
Two other motions quickly followed, one TO accept
and the other to adopt the report
Mr.. WALLER, chairman OF the committee making
the report, said that after fully investigating the
facts laid before them they had been compelled to
declare worthy young member OF the board guilty
of a fctitions TRANSACTION Still, SO lax were the
rules OF the board and the members 80 frivolous OF
observing them, that they felt II would be unjust 70
impose In the present case the rule and therefore
had recommended an exercise OF leniency. AS the
motion to table the report had not been seconded no
Mr. HoYT Vice President, insisted that the report
should be first adopted and that on the question or
Its acceptance the merits OF tne case couid oe ais
cussed. The report on his motion was accordingly
adopted.
port which was seconded BY Mr.. Hodgkns In quito
o speech. He claimed that great moral wrong had
been committed, an act OF clear and unmistakable
fraud, and as such meritlng not only their dlsap-
proval but punishment 1t was no shadow OF ex-
Cuse that the rules were lax
Colonel TUCKER said he was satisfied that Mr..
LounsDury actuated by no wrong motive and he
trusted the board would be enient
Mr.. HODGE moved that MIR. Lounsbury be fined
Mr.. WALLER urged that they could not impose
fine, but must either suspend the rule alleged to
have been violated OF expel Mr.. LOunsbury.
The reading Of this rule was called for. and was
read by the secretary. as foows-
ARTICLE Is No fictitious sales shall be made at this
poard Any member conravenng this article shall,
viction thereof be expelled.
Mr.. ELLIS said the transaction in question was
wards said the same thing.
Mr. HoYT again urged the suspension OF the rule
In question: and insisted that otherwise they would
| be at sea and never know the price OF gold.
Mr. WALLER submitted resolution directing the
Executive Committee to amend the rule, making
first fictitious TRANSACTION punishable with fine and
| the second with expulsion.
Mr. GIBSON said II they surpended one rule they
might TO suit the convenience OF cases, suspend any
| and Gil rules II need be.
! Mr.. HoDGgINs appealed TO Mr.. Lounsbury II ne did
| not know he had committed great moral wrong
aud ought to pay the penalty; but Mr.. LounSbury
made no response.
Mr.. CROSS moved to amend the motion as to the
| fine, and make it 500. The motion was lost
The vote was now taken on the motion to impose
| nne OF $500, and the result being uncertain.
division was called which resulted In forty -four
| ayes to tnirty-slx noes.
There being no further business the meeting ad-
jOurned. AS the proceedings progressed the noise
Gained down and Q very dignlned quiet character
fzed its continuance and close. few minutes
afterwards everybody again busily immersed
In buying and selling gold, and Babel confusion
once more reigned in the Gold Room.
DEATH OF GEORGE r. ]. BGWD0iN.