, 1875-10-10
COMMERCIAL HONOR.
Judge Rogers Decision In the
Fol1ansbee Board OF
Trade Case.
The Power Of the Board Of Directors to
Suspend Is Maintained.
4 Discharge In Bankruptcy Does Not
Satisfy the Rules OF the
Board.
Therefore the Defendants Answer Ia
Sustained.

Therefore the Defendants Answer Is
Sustained.
The Circuit Court yesterday decided the de-
murrer OF Frank II. Follansbee to tho answer OF
the Board of Trade to the bill recently fled By
him for writ OF mandhmus oonstraining the
Board Of Directors to restore him to the privi-
leges OF membership. The decision, which Was
delivered By Judge Rogers, is as follows:
The petition in this acts forth that H. Fo]-
lansbce became member Of the Board OF Trade OF
Chicago in 1862 aud was such uemher when. on the
l1th Of June, 1874 he became financially embarrassed
and iusoiveut, by misfortune aud not By fraud Or
fault On his part; that he was unable to pay all his
debts and keep and perform ali his contracts one Of
which was contract existing between him and J. 9.
Myers e. who Eefe sso o. sa,a s
under Sec. Of Ruls Of the Bylaws Of the Board,
for failure upon his part t. comply with and fulhA
Board Of Directors Of eaid Board of Trade upon said
charge that he wis. the 18th Of July suspend
ed from ~ pEtRt,eges Of membership IN satd boafa
continuing insoYent and unable to pay his debts-
fled his petition in bankruptcy on the Sd day Of May
c. was included that thsy and ali others Of his cred
itors had notice OF the proceeding; aud that on the
1st doy Of sepember 1875 he obtained By the order
deb eba-netther Myers Co., any other Of hta cred
itors obecng to opposing hts discharge; and that
Direcors Of he satd Board Of Trade for re!!et from
the pretended suspension nnd TO be renssaed 70 the
rights and privileges Of szid Board presenting as the
time his discharge in bankruptcy, but that his
application refused. Hence he fled bis petition in
this case. praying for writ Of nandamus command
the rooms Of the Board and to exercise and enjoy Ill
the privileges thereof and that he be restored to me-
be1shp in the said Board Of Trade. This relief Is
F'r.That the Board of Directors Of the corpora
ton had no power to suspend him, such power, II
existing at all being in tho corporation itself acting
stco.d-That The discharge from all bis debts and
obligatory contracts BY cree u bankrnptcy =
as entities him to reinstatement under Sec: Of Rule
Of the general rules or bylaws ot tho saad Board OF
Trade.
THE ANSWER OF THE BOARD or TRADE
to this petition admits many Of the allegations Of fact
made by petitioner but denies that bis failure to comply
with tie terms Of his contracts with other
e10er' faem anaae tn.sy or m ]
Ind avera that the charge preferred by Myers Co:
egsinst petitioner vas e1s.ntped hJ the Board , 1f
with the ternR Of said contract that he had notice
Of the charge aud opportunity to be heard in biz own
defense and that the proceedings in Ill things
regular and in accordance with the rules and regua
lions Of Of said Bo and that the Board Of Directors
had full power and lawful authority to auspend pett-
It IL also denied In the answer that the Board u
Directors required as condition to the restoration
Of The t9st he Isl sh1nd sers tae t
ed that said Board refuses to reinstate him, acting
under and With the discretion vested in them BY tho
TO this answer the petitioner by ha attorneys, hss
fled
GENERAL. AND SPECIAL DEMURRER;
and by the demurrer, the facts alleged in the an
swer admitted to be true, the questions Of law
directly presented and they hre substantially only
two:
scribed required by the chArtex Of tho oorpara.
tion7
RESTORATION to his privileges b reason Of lis discharge
from al his debts and contracts by the decree in bank
lis counsel insists that
THE CORPORATION ALONE,
acing by and through vote Of ts members, has tho
TO s Of cites ss
for that position state eL raj Graham va. Tbs
Chamber Of Commerce Of the City Of Milwaukee, 20
their decision however pnt upon the ground that
the charter Of tho Milwaukee Chamber Of Com
meree provided that the corporation "sha havs
ht" and that the power was thus condded to tbs
body f the corporators and could not b. delegated to
The provisions Of the charter Of the Board Of Trade
Of Chicago materially and essentially d1ferent
from those Of the chartsr Of the Milwaukee, Board.
the persons composing the Board to make such rules
regulations, and bylaws from time to time as they
think Or 70. hs a
corporation shall have the right to admit e1e such
persons they may it, IN manner to be prescribed
tie si !: sEen to e1pa IN such as might
! ssa % syiszs :, he sorgssstioa; M IL ~ CO..;
in Sec. 9 Of Rule g. under which petitioner sus-
pended. This rule provides for charges against
.he md as pss 80
charged has failed to equitaby adjust Or comply
promptly with tho terms Of any business obligation
hat rtaA
neges Of membership in the Association until the mat
ter complained Of has been equitaby Or satisfactorily
to iaa dree.y x3thin he power eontsrzed upon DE
corporation BY It's charter and this similar rule
was held by the supssms Court Of this State to be
". Tie Chicago Board Of Trade, Is I'll, is; and IL
that case ths Court cay that without an
e ss 5ey Would " r. s. aensd to hold
prompt performance by tbs members Of their con-
tracts with each other was so important to the we'll
failing in this regard was guilty Of breach Of ha
duty IN corporator, and if the corporation thought
to Dyw 49, s , Of ay vt
sustained exercise OF its Inherent power, under
the rules Of the common law"
Petitioner having been suspended under this rule,-
valid under the chatter, and eren under the rules Of
tho common law without IN express grant,-and his
suspension having been until the matter complained
tied" 1t remains to inquire whether
HIS DIscHARoE IN BANKRUPTCY
from his dobtu {Myers Co. tncluded) waa such an
arrangement settlement IN required by the rulea
under which he was suspended.
There il question but that the legal obligation to
comply with bis contract with Myers Co. WIS dis
charged by the decree in bankruptcy but Is 1t qnite
correct to say that the matter in controversy was
thereby "equtably satisfactorily arranged or SET
tied '2
There is something in the purposes, objects,
and nature Of this corporation than tho submission to
the ega1 nats OF the courts. It not infreauenty
happens thht men have technical legal defenses to
causes Of action, when good morals and com.
merc1h honor require that they should not
take such advantages. young man Of
20 years Of age may engage in trade,
buy and sell and contract debts and by oyer-trading
and bud Judgment become involved that be finds
quite to hia interest to rely upon his homage and by
pleas Of infancy defeat suits upon debts contracted
for valuable considerations received by him. He would
be discharged from the legal certainly not from the
moral, obligation It would hardly be considered
equitable satisfactory arrangement settlement Of
his debts. Another nay avai himself Of the statute Of
limitations; and, by pleading it. get clear Of the pay
ment Of debt, never paid, and against which he had
just defense. These illustrations Of legal dis
charges, when good noraa and sound commercial
honor would have required more equttsba and sat-
isfactory arrangement settlement Of the debt. Some
OF the objects Of the Board of Trads, ~
found In the preamble to its ru1es
or bylaws, are, to advance commercial
character by ineucatng just aud equitsbe principles
in trade well to 'tpronpta the mercantile in