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TABLE OF STATUTES

CITED IN OPINIONS.

(A.) STATUTES OF THE UNITED STATES.

PAGE

PAGE

1789, Sept. 24, 1 Stat. 73, c. 20, 465, 466 1875, March 3, 18 Stat. 477, c. 141, 659 1792, May 8, 1 Stat. 275, c. 36. 41 | 1875, March 3, 18 Stat. 506, c. 166, 1836, July 4, 5 Stat. 107, c. 352.. 179

277, 279, 280 1811, Aug. 19, 5 Stat. 445, c. 9.. 383 1876, July 12, 19 Stat. 78, c. 179.. 619 1811, Sept. 4, 5 Stat. 453, c. 16, 1877, March 1, 19 Stat. 267, c. 81, 595

533, 590, 591, 593, 597 1879, Dec. 20, 21 Stat. 59, c. 1... 478 1814, May 23, 5 Stat. 657, c. 17, 1880, May 28, 21 Stat. 145, c. 108, 123, 126

474, 475 1849, March 3, 9 Stat. 395, c. 108, 179 1882, July 12, 22 Stat. 162, c. 290, 1850, Sept. 28, 9 Stat. 519, c. 81, 213

648, 619, 651 1851, March 3, 9 Stat. 633, c. 41, 202 1882, Aug. 3, 22 Stat. 214, c. 376, 1853, March 3, 10 Stat. 214, c. 115,

659, 660, 661 590, 594 1887, Feb. 4, 24 Stat. 382, c. 104.. 561 1856, June 3, 11 Stat. 17, c. 41... 619 1887, Feb. 23, 24 Stat. 414, c. 220, 659 1856, Aug. 11, 11 Stat. 30, c. 83., 619 1887, March 3, 24 Stat. 552, c. 373, 1862, July 1, 12 Stat. 489, c. 120,

467, 468, 469, 470, 649, 650, 651

245, 246, 253 1888, Aug. 13, 25 Stat. 433, c. 866, 1862, July 2, 12 Stat. 503, c. 130,

467, 649 590, 599, 000, 601 1888, Oct. 19, 25 Stat. 566, c. 1210, 660 1863, Feb. 25, 12 Stat. 665, c. bv, 647 1889, Feb. 22, 25 Stat. 682, c. 180, 509 1861, May 28, 13 Stat. 94, c. 99, 1889, March 2, 25 Stat. 857, c. 382, 561

123, 126, 127 1890, June 10, 26 Stat. 131, c. 407, 1864, June 3, 13 Stat. 99, c. 106, 617

483, 486, 487 1864, July 2, 13 Stat. 356, c. 216, 1891, March 3, 26 Stat. 826, c. 517, 245, 247, 253

140, 148, 659 1866, July 23, 14 Stat. 218, c. 219, 1891, March 3, 26 Stat. 1085, c. 551, 596, 598, 601

661, 662, 663, 664 1866, July 27, 14 Stat. 306, c. 288, 1891, March 3, 26 Stat. 1115 (Joint 465, 466, 467

Resolution), 140, 659 1867, March 2, 14 Stat. 558, c. 196, Revised Statutes. 466, 467 S$ 441, 453..

177, 181 1868, Feb. 25, 15 Stat. 37, c. 13, 560

§ 463

182 1868, June 8, 15 Stat. 67, c. 55... 600

§ 471

181 1871, March 3, 16 Stat. 581, c. 126, 600

$ 563

484 1872, March 5, 17 Stat. 37, c. 39, 180

$ 629

648 1874, June 22, 18 Stat. 179, c. 390,

639

.465, 466, 467, 468 383, 384 709

88 1874, June 22, 18 Stat. 187, c. 391, 582

860 .560, 564, 565, 585, 586 1875, Feb. 18, 18 Stat. 316, c. 80, 647

934.

.485, 486 1875, March 3, 18 Stat. 339, c. 127, 474

$ 2478.

177, 181 1875, March 3, 18 Stat. 470, c. 137,

$ 2785 .

485 466, 467, 468, 470, 648 SS 2963, 2964, 2973.

485 xxi

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(B.) STATUTES OF THE STATES AND TERRITORIES.

c. 91

c. 91

California.

| Maine. 1-868, March 30, Laws of

1871, Laws of 1871, c. 204... 504 1867-68, c. 543

197 1881, March 17, Laws of 1881, Colorado.

.217 n. 1864, March 11, Sess. Laws, Massachusetts,

1864, pp. 139, 149 .....123, 124 1871, March 8, Acts of 1871, 1877, Gen. Laws, 1877, c. 19,

....571, 575 $ 111..

501 Minnesota. 1881, Laws of 1881, p. 85..359 n. Rev. Stats. of Territory of

Rev. Stats. 1868, pp. 619, 629, 123 Minn. 1851, p. 94, c. 12, Dakota.

SS 1, 7.

285 1862, May 15, Laws of 1862,

Stats. 1878, 4th ed. c. 11, Vol. I, p. 419, c. 69....308, 311,

SS 1, 6.

285 312 Stats. 1891, SS 1382, 1428. 285 Comp. Laws of 1887,

Mississippi. $ 1593.

311 Rev. Code, 1880, $ 2878..... 23 $ 1629, p. 362 .306, 307, 308 · Missouri. Political Code, c. 28,

Wagner's Stats. 1872, p. 214, $ 37.

311
99 1-5..

119 $ 40

310 1 Rev. Stats. ed. 1879, p. 84; $ 56

311

ed. 1889, p. 253, $$ 719, 723, $ 62 310, 311, 312

119, 120 $ 73

.311, 312 New Hampshire.

305, 307, 308, 309, 312 Gen. Stats, c. 99, § 20....... 677 Florida.

New York. 1869, Laws of 1869, c. 1713,

1853, Laws of 1853, c. 539... 569 S$ 6, 7...

669 1857, Laws of 1857, c. 446... 670

668, 669 Code Crim. Proc. 1890,
$$ 19, 20

669
$ 491

157

$ 78

§ 17...

. 157, 158 Illinois.

$ 528

160 Rev. Stats. 1874,

Penal Code, Tit. 8, c. 1, $ 79, 583
c. 38, pp. 372, 373.. .34, 35, 36 Rev. Stats. Part 4, Tit. 4, c. 1,
c. 47, p. 475.

674
Art. 2

570 c. 74, p. 615

112 North Dakota. Indiana.

Laws of 1890, c. 132, $ 84, 1 Rev. Stats. 345, $ 8 ...... 569

307, 308 Rev. Stats. of 1881, § 1800.. 583 Washington Territory. Iowa.

Code of 1881, 1872, Laws of 1872, c. 174... 377 $$ 103, 240, 242, 691, 694, 696, 506 1880, Laws of 18th Gen. Ass.

$ 2171

508 p. 127, c. 132....

371 West rginia. Code of 1851, $ 977

627 Code, Warth's ed. of 1884, $ 1202

529
p. 639, c. 105...

446 $ 1232

529 Wisconsin. Revision of 1860, $ 1826. 627 1848, Aug. 8, Laws of 1848, Rev. Stats. p. 569, § 2115, 626, 627 No. 2, p. 58 ... 269, 271, 272, 277

§ 492

CASES ADJUDGED

IN THE

SUPREME COURT OF THE UNITED STATES,

AT

OCTOBER TERM, 1891.

SPARHAWK v. YERKES.

SPARHAWK v. ACKLEY.

APPEALS FROM THE CIRCUIT COURT OF THE UNITED STATES FOR

THE EASTERN DISTRICT OF PENNSYLVANIA.

Nos. 56, 57. Argued October 28, 1891. – Decided December 7, 1891.

In December, 1871, Y., who was a member of the stock exchanges in New

York and in Philadelphia, was declared to be a bankrupt. At that time his seat in the New York Exchange was worth about $4000, and the other about $2000. By the rules of each, membership, in case of failure, was suspended until settlement with its members who were creditors, and the seat in each was liable to be sold and the proceeds applied to the payment of the debts of such of its members. At the time of his failure the indebtedness of Y. to members of the New York Exchange amounted to about $8500, and to members of the Philadelphia Exchange to nearly $22,000. The assignees notified each exchange of their appointment, but took no steps to adjust the debts or to acquire the seats, which were appraised as of no value. Within two years Y. notified them that assessments on the seats were overdue. They told him he was the proper party to pay them, and that what he might pay would be recognized as properly to be refunded, in case the seats should be sold by them. Y. was discharged in bankruptcy in 1873. From his private means he paid all assessments overdue and from time to time maturing, and eventually settled with all the creditor members. Such members had proved their VOL. CXLII-1

1

Statement of the Case.

debts against his estate in bankruptcy, and in the several settlements he had the benefit of the dividends (28 per cent) paid by the assignees. Having thus settled all such debts he was, in June, 1883, reinstated in his membership in the Philadelphia board, and in December, 1883, in his membership in the New York board. At that time the value of the Philadelphia seat was about $6000, and of the New York seat about $20,000. In November, 1885, the assignees filed bills against Y. and each board, to have these memberships decreed to be assets of the bankrupt's estate. Held, (1) That the assignees must be deemed to have elected not to accept

these rights as property of the estate; (2) That Y. was not their trustee in expending his own money to give

value to a property which was worthless and abandoned; (3) That the assignees could not be permitted to avail themselves of the

result of his action, or to take the property to work out a return of the dividends paid to these particular creditors.

The court stated the case as follows:

Charles T. Yerkes, Jr., made a voluntary assignment for the benefit of creditors to Joseph M. Pile, October 21, 1871. On December 13, 1871, he was adjudicated a bankrupt in the District Court of the United States for the Eastern District of Pennsylvania, on a creditors' petition, filed Novenber 10, 1871, and appellants were appointed his assignees, January 12, and the assignment of the bankrupt estate was duly made to them, January 24, 1872. In February, 1872, the bankruptcy court directed a transfer by Pile of the estate unadministered by him to the bankrupt's assignees, and this was subsequently executed and delivered.

Ninety-nine creditors proved debts in the aggregate sum of $829,198.45, upon which dividends were declared and paid as follows: July 19, 1872, ten per cent; May 12, 1873, nine per cent; April 5, 1878, eight per cent; and January 30, 1880, one per cent.

At the time of the adjudication Yerkes was a member of the New York and Philadelphia Stock Exchanges, which, it is conceded, were unincorporated associations. These memberships were included in the schedules filed in the bankruptcy proceedings, and therein stated to be “ of no specific value," and in the inventory and appraisment of the estate subsequently made they were appraised as of no value. The

Statement of the Case.

Philadelphia membership was then worth not over $2000 and the New York membership about $4000, but the bankrupt was indebted to members of the Philadelphia Stock Exchange in the sum of $21,842.11, and to members of the New York Stock Exchange in the sum of $8522.99, and under the rules of both associations membership was suspended until settlement with creditors, and, unless settlements were made as provided, the seats were to be sold and the proceeds divided among the creditor members. The assignees sent to the associations notice of their appointment, in January, 1872, and an additional notice to the New York Exchange, in May, 1873, stating that it was their duty to realize the value of the seat, and asking the president to indicate what form, if any, was prescribed by the rules for transfer or sale. They also addressed a communication to the Pbiladelphia board, and perhaps to both, in November, 1883.

At some time within two years after the assignment, Yerkes brought to the assignees a notice of an assessment or charge due to one of the associations on account of the membership, and asked them what they were going to do about its payment; they answered that as the claim had been made upon him, they thought he was the proper party to pay it, and that anything he paid would be recognized as properly to be refunded out of anything the assignees might realize for the seats.

On October 3, 1873, the bankrupt was discharged. In 1876 Hyde v. Woods, 94 U. S. 523, was decided, sustaining the validity of rules of stock exchanges providing for the application of the proceeds of sales of memberships to the debts due by members, which the assignees in these cases had previously been advised by counsel was the law. As testified by one of the assignees, they had not the slighest expectation of paying dividends aggregating over thirty-five per cent, and did not suppose that they could realize anything from the Philadelphia seat, because the indebtedness of the bankrupt to its members was largely in excess of its value, and of any dividend they expected his estate would pay (which was also true of the New York seat); they supposed Hyde v. Woods ruled the New York as well as the Philadelphia case, and

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