, 1873-07-24
TRUMAN v. BOARD OF TRADE.
Respondents Answer to the
Petition for Man
damus.
The Board Of Directors Power to
Suspend Strongly
Urged.
Tho "Proviso" Fully Considered,

-
bIossrs. Don't d Black for tho Respondents.
.0led In tho Circuit COURT, yesterday their answer
TO the petition OF. Augustus e. Truman against
the Board Of Trade, praying for q mandnmuB,
which has oroated 80 much interest In that por-
elon Of tho mercantile community which centres
round tho Chamber Of Commerce. Aftor tho
usual formal dontn1, respondent acknowledges
that at tho time tho petitioner bocAmc member
of the Board Of Trade, thoro Was in force 4 rule
of said Board, ono section OF which required tho
Board Of Directors to oxArnine charges Of u,is-
conduct In business natters, whom preforred
against mombor Of tho Association, but that
Baid section as 1t stood when: tho petitioner
6ocano Auch member was not as quoted In tho
petition, but was as follows:
Stxhnn bo tho duty Of tho Board Of Directors to
s.spano charge, Of misconduct IN in eusiness n.,ora
taobel Of the Association, and Il ahall bo found
ass e ritz fs 4 ns' a.ns.s to aatm
Nom d. privilege. q urnpesship ii tho Association,
ranged Or ssstiod. when be nay b. restored to mem-
bership. II tho party charged sla 10 found gully
q MAKING ,e q
1edtious reports Of sales or purchase; Of violation
:b7 nj sny other - acs s Contrary ~ to the principles
.Waieh should govern al commercial transactions,
sy sha report TIE sa,a to o q hsr At
ehat puEposc and the member ehall 10 expelled L 80
tsteimined by jorty Of tho menbers present tho
or, shall b. a,spende Or expelled Without having IN
opportunity Of being heard IN his own defense and
%a%ns e
;Ss his s9D II 70 :o+ All votes on expulsion OF NOM
Respondents claim that tho above Ia d Hub-
sstanta1 transcript Of tho section as # stood
when petitioner bocano naombpr, and that 1t
continued in forco in that form until tho 10Th
Boptomhor, 1871 at which date tho said section
wa8 80 amended aa to read substantially as
quoted In said petition, In the quotation therein
first mado beginning with tho words: " It ehall
bo tho duty Of the Board of Dircotors,'' and
ending with tho words !" AL votes On expulsion
OF members shall DO by ballot" In which form
the SAID section continued In forco as part OF
tho general 1nlsa Of the Board OF Trade until
80 amended % to read substantially according to
tho ne1t subsequent quotation, In which last
mentioned form said section Is still in fo1co
+ m asks aa,6 tha aof greater Certainty
oa%ao and uss ,s;n4, j. ode. tho bearing of their
ulations and bylaws Of the Association as they
have boon in forco, at respective dltcs, from tho
commencement Of petitionor'a membership until
the prosont time. Respondent admits tho maxi
ing Of tho contract by petitioner with Nichols
'and He1mor, the subsequent advance in price Of
his contract; TINT be notified Nichols and Holmor
of his inability to fulfill tho contract, and that
ithe1eafter Nichols and Helmor rendered petl-
tioner q bill for moneys which became due to
such contract BY petitioner, such moneys being
tho difference between tho contract price Of tho
wheat md tho current market price; that
tho respondent is not advised, say.e by
:turea on tho 9th Of January, 1s72 but admits
that tho time OF rendering said bill WAS the real
aate Of tho maturity, or closing up Of the trans-
.9n between the parthog hoponas1t adma
petitioner, and the bringing. Of tho complaint
sngainst him, before tho Board, by Nichols, hut
respondent denies that tho potioner protested
against any action Of tho Board Of Directors III
the matter, on the ground that ho had not yio:
lated any rule Of tho Board of Trade, and
eays that in point Of :. fact. petitioner
admitted that ho, owod tho balance SO
did not know the exact smount, and 10 &urthor
said TINT lie had heon and was unable to pay the
claim and called attention to the fact that tho
claim arose moro than gear before tho hearing
or before the proferring Of aaid complaint and
at time when there was q rule Of The Board
providing that complaints for violation Of con-
Tracts SHOULD be entered only within ono year
from tho maturity ot such contract ; that the
petitioner made no other dofouae, and attor tho
usual consideration the Board Of Trade decided
comply with said contract, md tho Secretary
no'd s;on 3ne the psqnSf nn9 Of such
lnrrod petitioner from tho privileges OF mombor
OF tho Board Respondents says that tho said
proceedings Of the Board OF Directors In tho
matter wore regular md in accoedance with, its
General Rules, and wero authorized by the char
ter Of tho corporation and such General nulea;
that tho petitioner, when ho became q member
BY md respect the rules Of tho game, as they
then existed or might subsequently, bo amended,
aud signed In book kopt by said Doard Of
Trade for signatures by mombers thereof, 3
memorandum ~ followB:
We tho undersigned mctnbers Of tho Board OF Trade
of the City Of Chicago, Do by respective sigma turos
aud by virtue Of membership III said corporation,
and sh ho sa seorporaoD, a W. w in
action md dealings with each other aud the said corpo-
rules regulations, and by-Iawa Of laid corporation a.
they now ezist Or as they may 10 hereafter modified
nltored, Or amended.
fully bound by tho rules OF the Board Of Trade
ma they existed at tho time Of the making Of tho
complaint, and were authorized to proceed in tho
.matter, under such rules aa thon existed, and
that 1t is not tho fact that Hail section quoted,
being Sec. OF Rule Of said Board Of Trade,
rs 1t was in force at tho time Of tho making and
hearing Of said complaint, Was inapptlca61o to
the case, nor that the Board Of Directors could
1Ot TlE0Lluuy ADt uuubI NIu Ill MCttEQhftE9 WIN
such section aa thon existing; that tho Board OF
Directors had power to suspend a member under
such rule; tint tho making Of said rulo confor-
ring such power on thom was not an improper
exercise on tile part Of the Board of Trado
OF ita power to establish rules, regulations,
and bylaws for tho management Of its
business; that tho petitioner became member
Of the Board OF Trade uuder rule OF tho Board
which assigned to the Board Of Directors the
duty Of passing upon applications for 1nombor-
ship, and dcvo1yod upon said Board Of Directors
sho solo po#er OF approving Of such applica-
plino, 40 far az temporary suspension Of mon-
ber Ii concerned, o. In tile case now undor con-
sidoration, could not with any advantage, ro-
main wholly with tho Board OF Trade, composed,
as 1t Ia, Of over 400 members, attending but q
short and busy period during each business day the
general 1noetIng on Change, but It would 10 o
Brost injury, and provo practically inoxpediont
and impossible to have ss!oh matters attended 10