The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-08-20
MILLIONAIRE GOLDSMITH
SUSPENDED FROM THE EXCHANGE Br
4 UNANIMOUS TOT..

The Charge 4. that lie Refused 10 Keep n
Verbal Contract Made with Charles r.
sumner 81 Co.'s Brok err, j. II. s',nuli-The
Latter Also May He DIscipiined-A Sen.
sntion In the Produce Exchange.
The Board OF Managers OF tho Produce Tx.
change. with President Evan Thomas at their
head. Mt n special meeting yesterday. lasting
until late in tho R'terL Don. unanim ously suS-
pended Mayer Goldsmith. the millionaire OK
porter OF cattle. whose hcnd quarters are ut 1877
East SiN,y-iifth street. Mr.. Goldsmith. with u.
c. Eastman. was pioneer OF tho business OF
exporting live cattle to the United Kingdom.
He hns been one Of tho most prominent men,
hers OF the Exchange. and the action OF tho
managers in suspending him indefinitely from
his privileges OF the Exchange caused wide
spread comment.
Tho action OF the managers was the result
o! complaint Of Charles L. Sumner. the senior
member OF Charles I. sumner 4 Co.. steam.
ship owners and agents. with Offices 1T
Beaver street. The firm also has Offices In
Boston and is considered one OF tho most in
i,uen'ial in the business. The lircct claim o.
the firm against Mr.. Goldsmith Is for s25,010.
According to the testimony given before the
complaint committee. |: appears that Mr.. Gold
smith rofusos to recognize n verbal contract.
cause millions OF dollars In business are an
nually done on tho Produce Exchange by
word OF mouth. The contracts nre nitorward
drawn up and signed. The testimony is that
on July lG last j. 3. Snuli, one 81 the Oldest
freight brokers on tho floor, whose oiGce Is
at 80 State street. ing for the firm Of Charles
p. Sumner IL Co.. chartered by verbal contract
to Mr.. Goldsmith two steamships. the st.
Pancfas and another OF the Sumner line.
These are cattle steamships II Ia insisted
that whom tho time came to draw IN tho char
ter parties for the two steamships. Mr.. God
smith refused to recognize the transaction. 1t
is asserted hat he put in certain trivial OBJ
jections which could not have weight in the
matter. Tho two steamships by the verbal
contract between Mr. Smull and Mr.. Gold
smith. 1t is said were chartered at the rate OF
80 shllings ton. At that time live cattle in
England were scarce. but before the time
came to draw I'D and sign the charter parties
for tho two steamships the supply Of 1.-Two cat
tie in the United Kingdom was greatly in
crensed so much SO that the rate for charter.
declined rom to 90 to 20 shillings II ton.
Mr. sumner told the committee that he bad
smith keen his btrE.in. but ,hat all efforts had
fai ed, Mr.. Sumners testimony IS that lie
tons Of e r GoSSmith and ven eIs, Submit aft the
case to Mr.. Goldsmilh's own 'awJ err, promising
to abiGe by that LAWYERS ecison. Mr.. G Id
smith refused ali associations Of any CHAR
ter. and finally on Aug. 4 Inst he repudtatsd
absolutely the We p" contract no had entered
tonat negotiations. it Is asserted. with Mr..
Goldsmith. but they we're al! Of no avail; and on
and Mr.. Smwll tefor. the conf ala COMMITTEES.
He then laid his claim Tor damages OF $4,000
Bas At this meeting Of the committee there
there as a witness ior Mr.. sumner. AS already
a h.Ah md n. Mr 81 q ,fnfiy IA
in ihs transnc,i"n:, ,bui Mr. smull aston ished
the comm y e.. and Mr. sumner by refusing to
Mr.. sumner underwood t, change his mind.
but Mr.. Smull was ohdur.te and dc lined 20
c cTs his in s a II Wis: % e o
against Mr.. Gold sm! h. VINO had been a valu.
able business friend q him, NJ. Goldsmith
circumstances would lie nrh trate the case.
The compliant emmmit,ee then rerorted the
fused 70 Al bitrate. and that Mr. ,smui had VIC
when he refused TO give his testimony In the
n,isnHte. on Monday IRIt At the regular meet.
Wer o. again present Mr Goldsmith i" again res re
fused to arhitrare the claims OF, Mr.. sumner.
,s s S%s o ann Of he to
directions for President Thomas. On their
authority he was 70 consult with the LAWYERS
consulted with the LAWYERS on ,Tpcsday ami:
on tEelr iuSlt6, no called special meeting OF
the managers for yesterday afternoon. The
LAWYERS for the Exchange agreed that MIR.
smull had acted in II manner unbecoming
gers conld. under the charter OF the EXCHANGE.
take summary proceedings against Mr. Gold
smith.
The managers then issued their ultimatum
euspendng Mr. Goldsmith They also directed
MIR. Smull 10 appear before them to-day and IL
he remains obdura,e and refuses again to give
his testimony the managers will act in his
case also.
Mr.. Smull explained later in the afternoon
why he had refused TO give his testimony. lie
said:
Mr.. Goldsmith had refused to arbitrnte tho
case. therefore ] refused to give my iestimo nv
rs it might prejudice n case for civil nr,i..n.
which undoubtedly would bs brought by Mr.
Sumner against Mr.. Goldsmith. have no in
tention OF disregardinG The shes OF the man
highest resrect for Ihsm and my action, he.
ileve. WAS tased On honorable business prin-
ciples."
MIS-. AIHEHION lGALE dRSENT