Morning herald., 1839-08-27

Tge p,opis cr rsi the Attorney General rs. "a
East River Fire Insurance Company-by me corrf,
(o,rcn I'll mformatonin question was endorsed
as allowed by the Chief justice at Chambers, on an
xparte apple ion in the third week oi TINS term'
but afterward, "A doubt being started whether 'he
statute. q n. :. ist, End ed te)does not demand
the action o the Court where the application Is IN
term time We Welded that its true construction con-
fires the giartng of leave to this Court when IN ses'
sion and tha' single justice o. the Court Snan
bers has no jurisdiction except in vacation. Inc de
Pendants having also requested leave to snow cause
agreed to- remain, after the close ot me caienoar
arguments for the purpose OF hearing Wns. mgn, "
urged by either side upon the question whether ,ne
information should be received. The case was isiy
argued by counsel the admitted fact, that instead
Of The new subscribers to stock paying the whole
amount in cash, securing u by stocks AZ required
by the acts os 1893 and 1896 more than Si9oW were
secured by bonds and mortgages. In regard 70 tnat
amount, the defendants admit that they took cheeks
from the several subsc with the understanding
that they should not be paid, presented but
be returned for bonds and mortgages, which trans.
action was then called loan under the 7th section Of
the original Charter. IL was upon such proceeding
tbat the depostions Of compliance with the actwere
fled The President and Secretary now swear that
their former de positions were made IN good faith; and
wac more IN insnuated in argument that the re-
auisitions Of the Charter were complied with The
second section of the orignal Charter declares that
shall NOT be lawful for the said Corporation to
commence any business whatever un,,i ,ne wno'e
amount of the capital stsck shall be subscribed ana
maid in spec IL or current bank bills o this state, or
secured by the public stocks created by 'h's or ANY
other State, or by the United States or an ncorpe
rated city bank Of this STATE when sh We AZ tne
time at or above par value in market. (Session OF
Ss3 y. Wl) The 9TH section respects the business oi
the Corporation after il should hare been brought
into efficient existence. by the filling up ~ ts lmho
in the manner presc ribed by the End section. Then
the ast says ut shall be lawful for the said Corpora.
tion to make loans upon bond and mortgages, &c,
for the purposes Of investment IL is enough 70 say
that the legislature very carefully defined the funds
upon " which alone the company could commence bu-
siness: one branch of which business tho makug
OF loans. These funds were to be cash or stocks.
To allow substitnte of what Com ssioners might
choose equivalent, would open door to rsat
sbnses Mttgages, personal property, chooses in
action or evca the hypothecation Of fancy stocks,
n,yement: hut shall Commissioners therefore be en-.
titled 10 receive therl The answer Is that such a
latitude might and commonly would result in the
creation Of fictitious capital whenever demands for
the stock should happen to be slow, or the Cemuis-
soners easy or the subscribers able 20 impose upon
them There is, in few articles, greater chance