New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-08-05
THE COURTS.
PROPERTY IN A STOCK BROKERS SEAT.
INTEREST OF CREDITORS IN THE SEAT OF MEMBER
or THE STOCK FXCUlNGE

PROPERTY IN A STOCK BROKERS SEAT.
INTEREST OF CREDITORS IN THE SEAT OF A MEMBER
OF THE STOCK EXCHANGE.
Judge Sawyer of the United States Court at
San Francisco has rendered decision OF interest 10
members Of the Stock Exchange. Henry c. Hyde, as
sgnee bankruptcy OF Thomas W. Fem, sued Woods
Freeborn to proceeds OF the sale Of the seat Of
Fem in the San Francisco Stock and Exchange Board
which received by defendants within four months
before the filing Of the petition in bankruptcy. Thomas
W. Fem became member OF the San Francisco STOCK
and Exchange Board subject to the Constitution and
Bylaws adopted for the government of all who should
become members. Under these rules the number OF
members was limited, and the privileges granted to a
member we're not assignabe transferable. except
provided in the Constitution and Bylaws lt was also
provided that "any member who fails TO comply with
his contracts or nsoyent shall be suspended
until he has settled with his creditors" And
tina. Gin case OF suspension Of any member by
failure to fulfill his contracts or by insolvency. the
Board will exercise generous discretion guided by the
circumstances Of each case In dspspg OF the seat for
the benefit OF the party suspended " and that IN sales
OF account OF delinquent members the proceeds
shall be applied the benefit OF the members OF the
Board exclusive OF outside creditors unless there sha
be balance after payment OF the claims OF members 10
full" Fem became delinquent in the Board by failure
to fulfill his mace with the members thefeOi
he made al, assignment TO Woods e. Freeborn, and
authorized them to sell his seat and apply the proceeds
10
BOARD Subsequently W. b. ana J. ThornDurgh were
elected as members Of the Board and the seat vacated
by Fem was transferred to them by woods ffeeD0rn
for a consideration vi $4,000. This divided
among Fenn creditors in the Board before the
i'm bankruptcy commenced proceedings. Judge
SAWYER took the ground that member cannot
dispose OF seat to another unless the Association
shall accept that other in ITS stead In the node ana
mon the terms prescribed. His general creditors can
obtain through him no greater rights OF property than
he himself possesses His privileges as MEMBER coulu
NOT he and sold on execution, and transferred to
another in violation OF the rights secured by the con-
tract OF the association could acourt OF bankruptcy
override the rights of the association or its members.
secured to them by the terms OF the contract under
when rights AT all as MEMBER oy dis
posing OF greater interest thaa he himself possesses
the only property OF pecuniary nature III Fem after
his default IN the Board would be the residue lott AFTER
of his by the Board in accordance with its
prescribed usage vita the assent OF the Board ana
Iaymeut OF his Indebtedness to the members OF the
Board incurred In the transaction OF It's business nus
is all that under circumstances, would De available
10 the general creditor with which the Court OF
bankruptcy has any concern The is TIE property
of tie BUald aud Its members, not Fcnns.