New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-01-30
INTEREST ON BALANCES.

AN INrpRFFRENCE WITH WALL STREET MHIhopS'
On Dec. 10 a suit was begun by Maurice
Cuyiilier against Albert A. Drake and WIiaa 7"so
to N5,5e6 Is alleged TO nave oeeh pau 10 "
Gus interest on balances stock transactions Inc
painti6 alleges in his complaint that prior to Dec TO-
1877 and from that date until May L. 1873 the paintn
through Francis and Edward Bond composing the nrn
Of Bond Brothers of Montreal Canada, who aced ~ ms
agent and at his risk. although In their own hame' Gun
poyed the defendants to purchase SELL and carry for
his account various kinds OF stocks then ON inc
market for sale as the Stock Exchange In this
utv. and that the defendants. within the
time and dates aforesaid, did purchase, carry, and
se such stocks and did wrongfully exact and receive
from the plaintiff through his agents. the Bond Broth-
ers u.s. as excessive and interest over
and above the of interest allowed by the laws OF
New-York The complainant further states that the
plaintiff has demanded the sum above named from the
dcendans but they have refused to refund IT, Inc an
swer of the defendants s general denial.
This Is the first OF large number OF suits which are
being brought against brokers to recover interest PAID
balances stock transactions Much interest Ia fe
IN the result and have been discussed oy
members Of the Stock Exchange to protect themselves
against outside speculators. Who'll thus interfere with
their regular and recognized manner OF doing business
pursuance Of order granted by Justice Lawrence
on Jan. IA, WIN. T. Drake was yesterday examined In
the case preliminary to the trial The purpose OF 'he
examination to show that the interest charged by
the firm their own money, and was not charged
for the purpose OF rembursing themselves for money
paid ont AZ interest borrowed enable them
to carry their customers stocks Daniel g. Brdsall OF
the firm OF BirsalI Friend appeared for tho plaintiff
and Daniel W. Glet and Ira shaer for the defendants
Mr. Drake testified that he OF the firm Of
Drake Brothers. and that he had done business IN tie
purchase and the Bond Brothers, but
did know the plaintiff IN the business; they had
business relations which compelled them u tdke
out q license as bankers, but their principal business
that of stock brokers they were bankers only Oh
cOmpulsi0n.
Mr.. Brrdsall-what amount Of capital do you employ
in your business !
Mr.. Drake-I decline to answer the ground that u
may appear fully hereafter than could state u
now aud that 1t may link IN the clalE Oh EVIL
dence which might establish usury.
Mr.. Birdsall-I VIII have to go before the Court
Mr.. Shafer-Ths is the ground that VIII be assumed
whenever you approach this question OF interest.
portion OF your business to buy aud sell stock
marginsl A. Yes, and anything else We bought
real estate only little while ago.
q. What margins do you require your customers TO
put your hands the purchase and sale OF stocks
help and carry stocks for customers for certain
time
go What is that certain time : A. As long as We cnn
money by IL.
Q. How do you carry themi BY loaning the stocks
and obtaining money themi A. We obtain money on
the stock 10y borrowing on IL wherever We eau.
q. And you charge your customers interest on the
money borrowed the stock a. decline answering
The ground named above.
Mr.. Brdsa-1 see by the course OF this examination
that Will have 10 before the Court. Questions Will
constantly arise which the Judge will have 10 decide
An adjournment agreed by counsel in order
that the should decide whether defendant should
be compelled to answer the questions.