Page:Federal Reporter, 1st Series, Volume 6.djvu/594

 582 FEDERAL REPORTER. �1879, covered these outstanding contracts by the purcliase, from two memberS of the cotton exchange, of the same amount of cotton, and same delivery, June and July. The cotton thus purchased cbst more than the price for which the cotton was sold in March. The difference was settled as of the fif- teenth of April, and the contracts which were entered into April 15th substituted for the March contracts, and thus the transaction was closed, and plaintiffs released from any fur- ther liability. The loss on the contract for the Jnne delivery was $679.25, and on the contract for the July delivery was $578.25. These sums, together with the plaintiffs' commis- sion, after deducting the margin in their hands, made the balance of $687.19 sued for. �The defendant admits the employment of plaintiffs and the sending of the margins to them, but puts in issue every other material allegation of the petition. He denies that there was a sale in March of the cotton, as alleged, or that there was a purchase in April. He denies ail knowledge of the rules, regulations, or customs of the New York cotton exchange. He also alleges that any contract or contracts which plaintiffs entered into were with the express under- standing that only the difference should be paid, and that they were really only wagers upon the rise and fall of the market, and void. �I have carefully read the evidence, and need only consider whether or not plaintiffs had the right to close out the June and July deliveries on the fifteenth of April, because defendant failed to put in their hands the margins required by them of him. �There is no evidence proving or tending to prove that there was a special agreement between the parties which authorized the plaintiffs to close out these contracts in advance of their maturity, because of the failure of defendant to put up mar- gins to cover the fluctuations of the cotton market in New York. ihis right is sought to be derived from the rules and regulations of the New York cotton exchange, and the eustom prevailing in the New York cotton market. AU knowledge or notice of the rules and regulations of the New York cotton ��� �