The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-05-21
WHO WILL BUY THE SEAT?
4 CHANCE FOR INVESTING IN An ANON
ALOUS SORT OF ASSET.
Property OF Members of the stock Exchange
which IL Said to Vanish when the Law
Puts q Finger On It-Periis OF the Buyer.

which IL Said to Vanish when the Law
Puts q Finger On It-Periis OF the Buyer.
In accordance with ON order granted by
Judge Donhoue Henry d. Van Orden. as re-
ceiver. has advertised that he will sell by public
auction on next Saturday. in the Exchange
Salesroom. the seat of Robert A. Kane in the
New York Stock Exchange. The receiver was
appointed under a judgment Of about 5000 OBJ
tanned by Morgan l.. Mott in the Supreme Court
OF Duchess County.
This effort to sell seat In the Stock Ex-
change at public sale and without the consent
OF the owner Is the second that has occurred
since the seats In that body obtained what may
be considered commercial or transferable
value. Some fifteen years ago Pine street
auctioneer attempted to sell a seat at auction
in front of tho Stock Exchange. He did not sell
IL. but after making an effort to do 30 offered
reward OF 500 for the Identification Of the per-
son or persons who had assaulted him. The
question suggested by the announcement that
Mr.. kane's seat is to be sold in the manner de-
scrlbed is the ability q ne purchaser t9 OBJ
recognize any such sale as Receiver Van Qrden
proposes to make. and II the purchaser should
attempt to 60 upon the floor OF the Exchange
in business hours upon whatever title the re-
ceiver could give him he would be elected by
the police at the entrances. or = he eluded them
I tSrast out By The q bro Dc
The legal status OF seat In the New York
mined iH BY the Courts ' The stock EIckanss is
in many things law unto itself, and its or
ganization is unique. When a member sells
his seat TO person who has been elected to
membership BY the Governing Committee of
the Exchange. he receives consideration for
| cordin to the condition OF the Stock broker
age bushes so sS sgo the
when all the country was booming" and
speculation in the Stock Exchange reached its
zenith both in the volume OF business ri and tas
TO $32, 1000. Influenced by the dulness and de-
preston which have prevailed Of late. the price
to a seat is peculiar. in that n member cannot
dispose of It while any other member holds
any one OF whom his associates do not approve.
1t can be sold by the officers OF the Exchange to
satisfy any claims which his brother members
member the officers sell it for his estate. all
claims in the Board being a first lien upon the
facts. the Exchange claims that the seats are
not a commodity. are. not tangible. property
| but are equivalent to membership in a club.
| The Exchange has no charter and doesn't
want one; is not Incorporated. but is an asso-
| citation claiming to be Of the nature OF part
nership and as such claims to be free from the
operation OF laws relating TO corporations:
the Stock Exchange by Offering it one Of the
most liberal charters ever granted by legisln.
Exchange persisted in refusing the charter the
| price was gradually reduced 70 nothing at all.
but without avail In their efforts to MAINTAIN Rr
professional skill Of some Of the best lawyers Of
upon the legal profession. for the law business
| coming from the Exchange Is very small All
disputes between members are settled by arb-
trailing, among themselves. and counsel are not
SEss to aPBes5 Ut sS ss F.
tions TO his fellow members. no Judgment
IladA of dAa1
he is tried by the Governing Committee upon
charges, as is to be the case with William j;
ceases TO exist. Different phases OF the nature
the courts from time to time but without abso;;
lutte results , The most noteworthy case. , and
The proceedings were begun by the same Hen
ry d. Van !Orden who has been appointed re-
He then sued rs receiver OF the defunct Gro
GERS Bank. He obtained a Judgment against
Richard G. Murphy. a member OF the Stock Ex:
change. upon his enlargement O. the notes Of
| his father. ex-Collector Thomas Murphy, The
alp ses n ss socs
which Receiver Van Orden endeayored to at
tach. The case was argued before Judge Van
decided in accordance with the Stock Exchange
view that the seat was not property. and could
taken to the General Term Of the SAME SAME court;
The decision OF the lower COURT 3GI was reversed
| by Chiet Justice Z. T. DAILY ana Judge
Beach. the latter writing an opinion. in
| which the former concurred TO the
| effect that the seat was tangible property.
| Judge Van Brunt wrote a dissenting opinion.
sustaining the decision Of the Trial Term An
appeal was taken to the Court Of Appeals where
despite the unsatisfed judgment which ia
| technically regarded rs insolvency. Murphy re-
| tains his seat in the Stock Exchange. and is an
active member. He is prevented from selling
| or otherwise transferring his seat by an injunc-
| ton and so is the Stock Exchange. The same
| is true in Mr.. kane's case.