, 1874-04-10
Judge Dlodgott's Decision on Those Bought
Of Chandler, Pomcroy & Go.
he Holds that They Are Simply
Gambling Contracts.
Ono Side Did Not IntOnd TO Deliver
tho Grain, or tho Ot1icr to
Receive II.
They Are Contracts Contrary to Public
Policy. -
M 4 cir ARd0h nf1n fnr What 0oot.
To Ask $500, 900 for What Cost
$4,000 Is Monstrous.
The Claimants Allowed Only What
They Paid.

Donsley l. Wagner, O. A. Main Il Co.,
Davis, Pope l. Co., and Alexander aoddis
ngninst tho bankrupt Ar1uH Of Chandler, pomoroy
Il Co. and Peyton II. Chandler. Tho Judge de-
cidod that "pnts" were nothing mora than
wagers. and excluded tho claims, but allowed tho
parties to flo claims for the amount actually
paid on their "puts," boing hnlf-cent por
buahol on tho amount offered. We giyo in full
The opinion, which is ono Of tho olearost aud
best ever 1nado by Judge Blodgott.
The question III this case arisos on tho report
Of II. N. Hibbard, Esq, ono of the HeGistora of
this Court, on an application by tho Assignoo Of
of the parties named, aR vol al Il lnrgo number
Of other claims depending Oh substantially the
samo facta%
TIE TESTIMONY.
Il appears from tho testimony submitted with
tho Registers report TINT in the month of NTay,
1879, aud for several years prior thereto, Tic
bankrupta, Peyton r. Chandler and The firm
Of Chuntllor, pomoroy & Co. wero ongagoa in
tlo businoss Of buying and selling gain on the
Of Trade Of this city. That Chandler, pomoroy
l. Co. wore brokers' and commission merchants,
md Poyton II. Chandler dealt mainly on bis owl
account as capitalist through Chandler, P9mo-
about tho middle of Alay pcyton Il. Chandler
conceived tho idea of making
CORNER IN OATS
m 3$ .1T7t,n fknt "
t1,.t INV o ,,,tr,,,aaI III H. ,. oa u M'+n ~.
tta ttun , 10 op'..enneou ". tno I..ea o"tn "e
";,.nna ofaro w a,,e ~ "'1 1oTn ~ @ iio
n,,rnso 1,onr In n,rn III the n"ta ~ to IN
.ud compel those who had sold :. options y for
Juno to pay his .prico; or, in othora words, to
,nnd n~at hotweo, II n;cos a. ,sIoh Ia 1,,rs az
shnaod tha nnt;ona anI 9ho ,srco ~ l,a san as.
abliBh for cash oats on the last day OF Jtine,
,his Man ho ,m,rehaaod botwoon tj,a 15sh nf Srnv
ND tx 1aIt ~ In.o I IN mn ,us1,o1o ~ - ensT
,ata he;n~ M m a,,bsto III tl'a caa cata
N iho ,nnrltat an1 nian honni,'t :1rna !. nv.
:;nrs - te' o,I,n,,,st ~" - . sean ton h,o,,o,
thie c;ty m tho 18th of T1,ue WA on1r . I'M o{f
hnsfnls from which il viii he sec,, tLat Ghnudtor
prnoically controlled thn mnrkot No tn TINT tina
autl tho fatal amo1nt tocoiyod til,rng lho re,
As incidental to nm mart Of Tie iuaohinory OF
Ills oornor. Chandler iiao sold what nro calied
N1r,Ts i
mr. pr;v;]eces nj dollyorg to him oata ur;nfr Tim
month of June for 1t ceufa hnshoi Thsso
0ult contracls aro alike in form and ropsl M
foilowa. I'''>' "'
naa.,',s, an =. .u,,.u.ua.,
cys lin or thc os ts snmtract tc ~ rysua Ms ~ "f
5cyertny u ~ Or not prior 10 ocioeS p H. 81 Jnno
50, lS73 Iy notification or delivery l0OQo bushels No,
aoats, regniar receipts, al IL cents PER bnshc IL
store: aud If toverod, we agree to receive aud uay
tor c,ils tao same an Ia at mo anoye 3sse price,
+AAANAoU3 "ANu ASt.s
GH4HpLEn, poMERoY l. Co.
r,, ~ ~ =. T.. ouASnAEN'
:, The amount paid by Tue purchasers Of these
"puta was 14 cent per DlsAol Tor whatever
quantity was named IN tho cohtracts. The
hckots or contracts, woro all signed BY Chand-
ter, pomeroy y Eo., aud part OF them were also
s6uSu sa; ~ ~ " t nra,a S.tS ~ = 6an3
lor, and tler contract was his.. The total guam
tity Of oats called for by these "puta amounted
TO about 8, ZOO, 600 bushels.
FAILURE.
When Chandler commenced to buy oata with q
view to the corner the price in this u,arket was
about 80 cents buaho1 After ho took POSSESS
lon Of tic market he put the price to il conss
ard upwards, mud hold it therro till tho 18th Of
June In the meantime the price lad declined
In New York aud othor markets, so that cats to
ship were not worth over % to 3j coutp, aud
July options for this market wore not worth oyor
81 cor.ts. On the 1Sth OF Juue ?. R. Chandler
and Chandler, Pomoroy l. CO, failed, aud tho
pricc declined before tho close of busincsa that
day from ii to 50 cents, and continued to d.
rline during tie remainder Of tho month, so that
at ono tino thoy wore as low M 20 cents nor
buslol Detycou the time OF tho future nnl 8
o'clock on tho 90th OF Juno tho holders OF