The San Francisco call., 1904-07-26
SUITS FOLLOW
MARGIN DEALS
Leidesdorff Street Institu-
tions Are Defendants in
Actions to Recover Gold
J. FARE is PLAINTIFF
InyOkes the Constitutional
Provision That Makes
Speculative Contracts Void

There is trouble among those that
buy and sell stocks on margin" ].
Fare, we'll learned as an operator in
the ways of the margin" dealers. is
the latest soeculator in the Institutions
on Leidesdorff street to voice a protest
ir the courts against the methods that
lost him his gold
Fare filed two complaints yesterday
against the quoters of longs" and
shorts" In the first suit he seeks to
recover from the Central Grain and
Stock Exchange S2661 10 lost through
margin" deals, and in the second he
prays. as assignee of Mrs. G. A. Ste
phen, for judgment against w. c. Car
penter and w. F. James for $1,000 on
stock transactions which he claims are
not sanctioned by law.
H. w. Hutton, Fares attorney, says
that while his client was not ignorant
in the ways of the margin dealers, he
was deceived as to the profit that was
promised him in the transactions at is
sue in the first suit filed. Taking ad-
vantage of a constitutional provision
he seeks by means of the court to re-
cover the gold he parted with. The
provision referred to is article 4, sec
ton 26, of the State constitution, and
is as follows:
"AIl contracts for the sale of shares
of the capital stock of any corporation
or association on margin or to be de-
livered at a future date shall be null
and void. and any money paid on such
contracts may be recovered by the par
ty paying it by suit in any court Of
competent jurisdiction"
Fare has found the court Of compe
tent Jurisdiction. and by his testimony
and that of the woman who placed in
his hands the material for the second
suit he promises to add another chap
ter to the history of the institutions the
legitimacy of whose operations he at
tacks. Regarding the suit Mr.. Hutton,
Fares attorney, said:
My client, although we'll aware of
the nature of the business carried on
by the defendants, was deceived as to
conditions Of the market, hence de-
mands his money back. That he can re-
cover it there can be no doubt, as the
soundness of the constitutional provi-
sion covering the case has been passed
upon many times. The defendants in
these cases are prOprietors of bucket
shops, and / hardly think they will
have the temerity to deny the truth of
our allegations. All we can do is to re-
cover the money lost by my client and
his assignor. The police have attempt
ed many times to close these bucket
shops, but without success. If all their
victims would follow in the footsteps of
my client, however these illegal insti-
tutions would soon cease to exist"
Yesterday afternoon the Offices of the
defendants were vacant. The crowds
that gather each morning to watch the
rise and fall of the markets of the world
had departed TO ponder on the fortunes
of the day. Figures on the blackboard
told of the fluctuations of the market,
that meant gain and loss to the specu-
lators; the worlds visible supply of
grain was set forth in imposing figures.
and the millions involved in railroad
bond issues were posted to dazzle those
that would win their fortunes easily.
These are the places ]. Fare attacks in
his suit. What their defense will be is
a nut TO crack.