New-York tribune., 1873-01-21
A RENARKABLE Id WSUIT.
THE SALE OF STOCKS AND GOLD on MARGINS
PROMINENT BROKERS MULCTED FOR EIGHT

THE SALE OF STOCKS AND GOLD ON MARGINS
PROMINENT BROKERS MULCTED FOR EIGHT
TIMES THEIR ORIGINAL CLAIM.
A remarkable lawsuit-Henry Clews and
others agt. Bainbridge-came up before Judge Bar
rett at Chambers, Jan. 6, upon motion OF the de-
fendants counsel for extra allowance The Court
granted an allowance OF three per cent The is pc
culiar not only because OF the involved and s
remarkable results also because Of the pecuaries
deyeoped in the business transactions OF prominent
brokers.
The suit was brought to $4,000 and the plain
tifs are adjudged TO pay TO the defendant damages
amounting TO $4,000. This action has been pending
since 1868, and was brought at that time by Henry
Clews and Others representing the firm OF Liyermore
Clews Co.. to recover from Richard Banbridge $4,000
on an account stated" The plaintiff claimed that Mr..
Bainbridge was large operator in stocks, and that
undertaking tOact ash hisi broker in the transactions
whereby Bainbridgewas bound at all times TO maintain
his 10 per cent margin. IN default OF which
the the stocks which they held on his account
without notice 1t was alleged that tney sold various
stocks gOld that the day OF the sale the de-
fendant authorized them to sell and sanctioned all their
proceedings and that subsequently he accepted their
statement of sales which thereupon became an &C
count stated and upon the account he was Indebted TO
them for the amount claimed. .,.,
In defense Mr. Banbridge denied that he ever entered
into any special agreement; or that he authorized the
sales of stock and gold and alleged that he had refused
accept the statement sent TO HIM by the plant but
had disputed IL asierrOneous
The case was referred 10 John p Crosby, and after
numerous hearings facts were developed which induced
Messs obert Sewell and John Hewitt the counsel for
Mr. Bainbridge 10 begin crossacton In his behalf TO
recover from Hvermore Clews Co $4,000 for losses
and damages sustained by him in the sale OF the stocks
and gold When this action was placed upon the calen-
dar, counsel for Cews Co. applied to the Court for
stay of proceedings, alleging In the afi-
davits IN support OF their motion that
preceding action. The stay granted, and gave a
new prospect of relief for the defendant Bainbrdge,
whose counsel at once, upon the showing OF the plain
tins ahdavits, asked leave to amend the answer
order to nterpose q counter claim Tor the highest
mentioned This application was tgranted, and the
answer was accordingly amended. The tables were
completely turned % upon the plaintiffs tin a., The case
more than sttings beog had for that purpose The
6 Sse n pSsS g siSs e @ % Sy
them TO the defendant had been accepted by him and
mao nd an t are it ss %
fendant proving that he had accepted their account
correct aud showing that he had not authorized the
The books OF Iivermore Clews & Co. were then pro-
duced, and numerous errors and alterations In various
of Bainbridges account disclosed. Inter.
lneatons had been made and figures changed. These
discrepancies were noticeable beneting the brokers
dence finally concluded. and the counsel began TO
up but before they had concluded. Mr. cambridge
met with an accident which resulted fatally. His
sought to revive the action but were opposed
by the plaintiffs, who would have been glad to
close the case and waive their entire claim. The
tion TO renew the action opposed the ground
that could not be done in opposition TO the wishes OF
General Tern aud finally 10 the Court OF Appeals was
affirmed, the Courts holding that the defendant by
OF his counter claim stood In the position OF
plaintiff in the action The proceedings this motion
and appeal consumed year. The final summing up was
resumed, and the referee December made his report
He decided that there not such statement made
as alleged by the plaintiffs and accepted by the de-
fendant 10 amount " account stated" He found
that there special agreement relative TO keeping
up the 10 per cent margin, as claimed by Liyermore,
Clews Co.. and that the defendant, as proved by his
statements and by the letters OF the plaintiffs had
authorized the sale Of the stocks and gold He
also found that there entries and alter
ations the plaintiffs books OF account but based his
decision in favor OF the defendant not so much on
these alterations and errors upon the failure OF
the plaintiffs to prove the allegations OF their
complaint, which fully dspr0ved by the defendant
the trial OF the action He therefore awarded the de-
fendant bis s2e0 the damage sustained
In the sale OF the stocks and god being the difference
between tho price at which the stocks and gold
sold and their highest market value while the proceed
Ings pending The ruling Of the Court OF Appeals
the Of Markham agt Jaudon recurring notice to
DE given of the time and place OF sale In similar transao
tions governs the referee in his decision.
The plaintiffs, sorely discounted are OF course, AZ
liberty appeal and IL IL reported that Mr. Cews has
asserted Intention TO fight 70 the bitter end II Ia
moi Thought probable that the result will be changed
by the court OF last resort and II has been suggested
that cooler moments may lead 10 propositions oom
promise.