654 
APPENDIX 
numerous decisions of the courts, including the highest court of the 
State. If it were found that any one of these requirements had not 
been observed, the expulsion would be held to be illegal and a 
restoration to membership would follow. . . . 
“There have been numerous cases of this kind during all the years 
past, and the board of governors has been sustained in every case. 
That is a very remarkable record of ability, fair play and justice.” 
‘Regulation of the Stock Exchange, p. 350.) 
(XVId) The single instance where the action of the Governing 
Committee has been in any important degree modified by the courts 
occurred in 1882 in the Hutchinson case. At that time seats on the 
Stock Exchange were nothing like as valuable as today, being worth 
only a few thousand dollars, and their status as a property right was 
not legally established. In consequence, when the Governing Com- 
mittee expelled Hutchinson from the Stock Exchange his seat was 
leclared confiscated by way of fine. But the courts, although com- 
pletely upholding the main action of expulsion, declared that a Stock 
Exchange seat constituted a property right, and therefore upon its 
nwner’s expulsion from the Exchange did not escheat to the Exchange. 
(XVIe) The following excerpts from “Delivery of Securities,” 
an official pamphlet issued by the Committee on Securities of the 
New York Stock Exchange (June 1, 1929) give a general idea of 
the delivery rules and practices in vogue in the New York Stock 
Exchange system. 
New York Stock Exchange 
COMMITTEE ON SECURITIES 
The Committee on Securiti®s has adopted the following Rules, Regula- 
tions and Reauirements : 
I. Certificates of Stock, Voting Trust Certificates, Certificates of 
Deposit for Stock and similar Certificates, to be a delivery must 
comply with the following Rules for Delivery: 
1. Certificates delivered in settlement of contracts shall be for the exact 
amount of the trading unit or for lesser amounts aggregating the trading 
unit, except as herein otherwise provided. 
2. A contract in an odd lot shall be settled by the delivery of a certifi- 
cate for the exact amount of the odd lot or certificates for lesser amounts 
aggregating the amount of the odd lot. 
3. When more than one trading unit is to be delivered, certificates may 
be tendered in lots of one or more trading units and must be accepted and 
paid for as delivered, without affecting the right of the receiver to buy in 
the undelivered portion as provided in Chanter IV of the rules adopted by 
the Governing Committee.