Weare Commission Co. v. People

70 N.E. 1076, 209 Ill. 528, 1904 Ill. LEXIS 3018
Illinois Supreme Court·Decided April 20, 1904·Published·Cited by 15 cases

Opinion

Mr. Justice Magruder

delivered the opinion of the court:

The questions of- law, presented by this record, are substantially the same questions, which were decided by this court in the case of Soby v. People, 134 Ill. 66. But it is stated by the learned counsel for the plaintiff in error, that the object in presenting the present case to this court is to bring the construction of the act of 1887 again to the attention of the court “in the hope that the decision in the Soby case may be more accurately confined to its facts,, and a further construction of the statute may be had, which, while not impairing at all its efficacy to accomplish the purposes sought in its enactment, will not work * * * unjust consequences to legitimate traders.”

First—Section 1 of the act of 1887, referred to in the statement preceding this opinion, provides “that it shall be unlawful for any corporation * * * or person to keep or cause to be kept within this State any bucket-shop, office, store or other place, wherein is conducted or permitted the pretended buying or selling of * * * grain, provisions or other produce, either on margins or otherwise, without any intention of receiving and paying for the property so bought, or of delivering the property so sold; or wherein is conducted or permitted the pretended buying or selling of such property on margins; or when the party buying any of such property, or offering" to buy the same, does not intend actually to receive the same if purchased, or to deliver the same if sold; and the keeping of all such places is hereby prohibited.” (1 Starr & Curt. Ann. Stat.—2d ed.—p. 1304).

By the fifth count in the indictment, under which the conviction, here sought to be reviewed, was 'secured, it is charged against the plaintiff in error that, on September 20, 1901, and on divers other dates and times between that day and the finding of this indictment, in the city of Princeton in Bureau county, it “did unlawfully keep an, office wherein there was then and there permitted the pretended buying of grain on margins without any intention of receiving the grain so bought.”

As explained in the statement of the facts preceding this opinion, and'as set forth in paragraph 5 of the written stipulation between the parties as to the facts, plaintiff in error kept a branch office in the city of Princeton, and employed one F. E. Flower there as its agent. When a customer wished to buy grain for future delivery, he would give his order for such purchase, either in writing or orally or by telephone, to Flower, and would deposit with Flower, as the agent of plaintiff in error, a margin of not less than two cents per bushel on the grain, so desired to be bought, to secure plaintiff in error against loss by reason of the execution of the order. Flower would thereupon send an order by telegraph to plaintiff in error at Chicago, and thereupon the plaintiff in error would buy on the Chicago Board of Trade the amount of grain, so ordered to be bought by such customer. The purchase would always be made in the name of the plaintiff in error in accordance with the rules and regulations of the board of trade, and plaintiff in error would enter the transaction in the account kept by it with such customer. Additional margins would from time to time be required from the customer by plaintiff in error in case, by reason of the fall in the market price of the grain bought, such additional margins were necessary to protect plaintiff in error against loss by reason of the execution of the order, but otherwise additional margins would not be required. All purchases of grain, made by plaintiff in error for its customers, were reported by it to its agent in Princeton by telegraph, and he reported the transactions verbally to the customers. Plaintiff in error also reported all such purchases from its Chicago office directly to its customers upon printed blanks showing the quantity, the date, the time of delivery, the commodity purchased, the price, the name of the seller, and the name and address of the customer. At the bottom of these blanks was a notice, that the plaintiff in error reserved the right, without further notice, to close the above contracts at any time, when in its judgment funds on hand were not sufficient for marginal purposes. Paragraph 5 of the written stipulation in regard to the facts also provided as follows: “The customer also had the right at any time to order any property which had been purchased or sold on his account to be sold or purchased, in which case, if the purchase and sale or sale and purchase resulted in a loss, he would be charged with the loss, but if it resulted in a profit, he would be credited with the profit in his account with the defendant.” The charge, here made against the plaintiff in error, related to the buying of grain, but the same method, under the stipulation and the rules and the evidence, would apply in case the transaction was a selling, instead of a buying, of grain.

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Weare Commission Co. v. People, 70 N.E. 1076, 209 Ill. 528, 1904 Ill. LEXIS 3018 (Ill. 1904).

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