, 1874-05-12
JOHN B. LYON,
he Wants to Get Back Into tho Board
Of Trade.
,As Do Also Messrs. G. !. Brine
and T, B. Rice.
Points Wherein They Believe the Board
Of Directors at Fault.


An Injunction Granted.
Tho nneubors Of ite old firm Of j. 3. Lyon d
Co., who we1o recently suspended from tho
board of Trado for failure to perform cortnn con-
traots growing out Of their "corner" in 1879,
6'od bilIs III tho Superior Court, asking injnuc-
tiopa 10 restrain tho Doatd Of Trado OF the Doard
Of Directors from Interfering with thor rights
and nrivilegos Oh former mombers Of tho Board.
John b. Lyon and George J. Brine each fled
bill in cancory, whlle Thonaa 3: Rico chose to
pursue Ills remedy by lling petition for Writ
Of nandanus.
JOHN D. LYON.
Lyon, IN his bill, covering 125 pages Of legal
ca2, first sets out thai lio has boon for moro thai
fifteen ycars engaged fu. tie bl1RineBs OF buying
and selling erain md other coreals IN the city.
s,otno time III 1850 ho bccarne nle1nbor OF tho
]lonra Of Tradc, about tie time of its organiza-
tion.
The bill thon states tho provisions Of tho lsH
under which tho Board Of Trade WIS organized,
tho terms Of it's charter, and lts poworB III admit
thug or expolng. 1ncmoorr. At tle presont time
owns nea.l7 82O9, 200 In stocks and Government
bonds No considerable amount OF bllsnesa caa
be done in doAling i'll grain except through tue
Bonrd or itB melnbera. The amount of wheat
bought md eold there during the yesr o. aSS
QUO bushels; oats, 1s,00o,0 900 bunhels, md tho
number Of hogs bought aud sold amounted to
about i SOC, 900.
Tie rnles Of lhe Board provide that nll nnan-
accordance with tho charter and rules Of the as-
sociation, by and undor the direction OF the
Board Of Directors. It aball also be the duty Of
tho Bonrd ot Directors to examine chargeh OF
misconduct IN business mnttors, or of failure to
perform business obligations. aud On failure to
1-rc trnciu {ha ur{tu nnrfY ahhlt hh
peuaed. -.....
In November 1871, complainant entered into
D cupartnesslp with George ]. Brino and Thom-
Fob. 6, 1874 each Of tho above nnmod parties
:aro served with a notice by the Secretary Of
tie Board OF Trade to tho effect that Dugan,
Caso e. Co. Ind hed complaint ngainne them
OF an unpaid balance for whoat sold on Jan. 9,
1872, amounting TO- sl,o8A.41, which would 10
tricd Oh tho 9th OF February. Tho complaint
wa. dated May "a, 1873, but wnH uot filol until
Oct. 0, 1878, nor acted on until February, 1874.
/. Is claimed that tho power Of suspension Or
expulsion resides only IN tho body Of tho cor
such power toEa Board Of Direotora. The power
involves discretion, aud can only be exercised
nhon tho esaontiat forms Of o legal proceeding
are observed, Tue charter allows Committees Of
1sofercnco and Arbitration and Committees Of
Appeals. Undor such permission, Boards Of
Arbitration aud Appeals woro organized, with
rover only, as complainant claims, to boar
olkeB voluntarily submitted to them.
Gnaor tho oharter, the only power to determine
asseas, damages, or fix liabilitlos, is the Board
of Arbitrations and Appeals, and they only, ex-
orcisa the power when voluntarily conferred by
PARTIES. The liability for breach OF contract etc..
il Il 1cgnl question, aud only 70 be determined
by the courts. The Chairman Of tho Committee
ot,Achutation or Appeals only has power to al-
p,iaislsr oat,s or bbt,e procesy md no such pow
ors are vested in the Board Of Directors
TUE CONTRACT.
Complainant also insiAts thRt tho contract on
which complaint was nude WAS ontered inso
mora than a year before the filing Of s,'ch COM
plant, aud, therefore, was void undor rule Of
tho Bonrd outiawing such claims. The roll Of
the mambcrs ot the Bourd Haa lost
III the, great fire; A second book was
Which was d condition which tho members sub
scribed to, when they signed, plodging them to
submit to all tho rules ot tha Board
then existing, or thoroaftor to be adopted. but
nccordanco with its charter, and such d
heading to the roll amounts IN law
to "a obligation, wen al ho claims, 1t is only
agreement, which would not bind him to any
construction tue Board might: chooae to Put on
tho rules mud by-taws. Such q submission #
wEs possible to revoke ut any time before final
action BY the Doard.
ALWAYS DISPUTED.
The claim Of Dngan, Case t. Co. has always
heen ilispulel, aud conp!ainant claims that it is
tont authority before the Board Of Dt.,
rectors can net. The complainant Refused
to acknowledge tho Jurisdiction OF the Doard,
The validity Of the alleged contract, or the form
OF the complaint and asked to have counsel
present at tlo trial. which Was refuAed. Tho
trial thou proceeded without him. The COM
plant was dismissed, but u rehearing wns after
wards had, tho contract found to have been
broken, aud complainant, therefore, ind his
partnerH, we're suspended. Lyon charges thAs
HE HAD AGREED
to submit TO the dsusion Of the Board ail dis
rutes on contracts where the complaints had
been filed within. THO prescribed year. He alAo
agreed to submit tho matters to tic
dared against tho firm. 1t should be paid i'm
1nediatey. Tho vote Of suspension was yeas
TO nays.
ANOTHER CLAIM.
:. On the Sd Of April, and before the suspension,
T. II. Seymour Is Co. filed d complaint alleging
balance due Of s21G250 ou another deaI IN
August, 1872. To this claim complainant also
alleges uis firm has good defellBe, and TINT
Seymour u Go. hnye mover taken my loyal steps
to oBtabllsh their debit either in court Or before
complainnnt'a Arm fod objections 10 tho jnris-
d,rtion. aa thoy had to the first but the Board
went on with the evidence, and passed vote Of
Bnepension.
NO TENDER NApE
Lyon alleges that tho evidence taken in tho
case, copy Of Which is filed with the bill, shows
that tAe contracts complained Of were all
time contructs, either "Eolor August" "solor
September" or 'Holler tho year." In accord
Anco with tho rules Of tho Board, he had put up
margins. Dut ha claims the pretended liabilities
are IN tie nature Of forfeituros, and he denies
that Dugan. Caso l. Co. or Seymour l. Co. have
compl1ol with tho requirements necessary
to f1 tho liability Of Lis firm. It u n'ho
saimed TINT the party not In default
sau only seli out after q tender Of tho grain,
ind tlo falluro Of tho purchaser to receive 1t
when teudored. Margins, Lyon hays, deposited
ny the buyer, arc only security that he would
tnke aua ply for the grain when properly
tonderod, and q failurs to put up additional
margins is no oi1ense under thu rulos, but only
gives the seller The right to close tho contracts
and Dngau i Co. and Seymour Il Go. wore re-
qu.rol to toudcr boforo selling. There is liz
evidence to support thu, nor to show that oitho,
of tho firms n had II, any nyy,,o, grain o;ao1 thai
to cotnplainant's firm Of tho eleutior
to close up to contract as should havs hoeI
IL y0jd {tou,nlanpnt 1onioS TINT any notice