183 N.Y. 190 | NY | 1905
This action was brought under the statute by plaintiff in his own right and as assignee of others to recover moneys lost on wagers. The defendants were engaged in conducting that kind of gambling business denominated by the referee and popularly known as a "bucket shop;" that is to say, ostensibly they were carrying on business as stockbrokers, but, in reality, while they accepted orders of customers they neither bought nor sold stocks in compliance therewith, but when the transaction was closed they either paid to or received from their customers gains or losses as determined by the fluctuation in prices on the stock exchange in the city of New York. To use the euphemism of one of the defendants on the witness stand, they "stood on their trades," taking, however, from the amount due their customers one-quarter of one per cent as a so-called commission. Of course, these contracts between the defendants and their customers were mere wagers. (Hurd v. Taylor,
The principal place of business of the defendants was in the city of Buffalo, but they had a number of branch offices at various points in the western part of the state, among them the city of Auburn, where the transactions which are the subject of this suit took place. There one Taylor was their manager or agent, who was compensated by permitting him to retain one-half of the so-called commissions that were received at the place, Taylor paying out of such compensation the rent and expenses of the office, including the wages of a telegraph operator, who transmitted the orders received in Auburn to the office in Buffalo. This operator, Mooney, was hired by Taylor and subject to his direction. One of the claims assigned to the plaintiff is that of Taylor, who alleged that the lost and paid to the defendant several sums of money in speculation on his own account. In the course of business Mooney would telegraph to the Buffalo office the various orders received in Auburn, when, if they were accepted by the defendants, he would give the customer a statement showing the nature of the transaction and the margin paid thereon. During the trial of the action these statements, given to the plaintiff and to his assignors, were identified by the persons to whom they had been given and received in evidence over the objection and exception of the defendants. As far as the statements related to transactions with others than Taylor, they were unquestionably properly received. They were not only declarations made by the defendants' agents in the course of the agency, but were the very contracts under which the money was paid to the defendants. So far, however, as they related to the transactions of Taylor a different question is presented. When Mooney telegraphed orders to the Buffalo office he did not give the names of the customers, but the orders were identified simply by numbers. The defendants could not tell in any particular case who was the person who had given the order. Taylor testified that the defendants said that he might speculate himself, but this gave Mooney, who was Taylor's employee, no power to contract on the defendants' behalf with Taylor. Doubtless, Taylor could recover any moneys he had *193
lost to the defendants in his speculations. That, however, is not the question here, which is whether the statements made by Mooney to his immediate employer, Taylor, were original evidence against the defendants. If Mooney had no power to bind the defendants by any contract with Taylor, then the statements given Taylor neither constituted contracts nor were declarations made in the course of the agency. Hence, they were not evidence, nor were they competent to supply the defect in the recollection of Taylor or of Mooney, the rule as to which is clearly stated in Howard
v. McDonough (
The judgment should be reversed and a new trial granted, costs to abide the event, unless the plaintiff elects to abandon his third cause of action, which is for the moneys lost by Taylor, and to deduct from the judgment recovered by him the sum of $1,995, with interest from August 29, 1902, in which case the judgment as reduced is affirmed, without costs in this court to either party.
GRAY, BARTLETT, HAIGHT, VANN and WERNER, JJ., concur; O'BRIEN, J., absent.
Judgment accordingly.