The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-11-30

issued TO the abores who thus swindled of their
hard earnings The bank Mauch Chunk agent in
this matter and pays these things for its labl
ties We have seen poor lsborer, who had made de-
poste OF $50, good money, in the Msuch Chunk Bank
and received these Coal Company promises in payment
trying to sell them in Wall street. utterly without
and they were his only resource. Why does the Penn
syvana Legislature permit its citizens DO made the
victims of these fraudulent corporations
When the occasion of the reputation by Boorman,
Johnston Co of their debt to Jacob Little Co.. and the
approval Of that course by the President of the
Bank Of America, we augured serious consequent
ces TO the reputation of the country we'll the
city, did not expect to have record SINH
lar instance of attempted reputation the part of
New York banking institution. Such, however, is the
1t will be remembered that short time since
published list of assignments by the American Life and
Trus, Company its creditors. Among those
signments made to Morrison Sons of London,
of the bonds of the New York Dry Dock Company,
amounting to Ell 500 $4,000. bill has now been
filed in chancery by the New York Dry Dock Company,
to show why the bonds issued the American Life
and Trust should not be paid The plea usury the
ground that the real estate of the Dry Dock Bank
male to the American Life and Trust Company for
its bonds par with the interest but that the Dry Dock
Bank sold those bonds for less than their face On this
slight ground has New York banking institution, whose
shaken public confidence attempted repudiate debt
which acknowledges be just Such the rapid pro-
gress Of that reputation set foot by Boorman John
ston and countenanced by the Bank of America Support
ed by those proceedings the directors Of the Dry Dock
Back have unblushingly attempted to invalidate jus
debt We believe this is the first instance upon record
where Bank in the United States has set up plea of
usury avoid its liabilities The capital of the Dry Dock
Bank is think $4,000 and the stock is after paying
its debts worth perhaps 10 per cent This liability
to the Trust Company amounts to per of the capt.
ta and it could be repudated the property of the d.
rectors who take this course would be in much
fitted Now who are those directors Does Russell steb
bins Esq the worthy President of the company
this proceeding Does Mr.. George Law an influential
director of the Bank, President of the Harlem Railroad
Company, and contractor for the high bridge over the
Harlem river sign this precious Chancery bill The pub
lie must know who the regulators
The bearing Of tn case upon the reputation of the
country obvious. Through all the disastrous panics
which have taken place since 1867 the high character
Of American merchants has hitherto been sustained.
They have discharged commercial debts with prompti-
ude and aiacry under the disadvantages Of decay
paper SYSTEM that the admiration of the world The
failure of banking institutions showing willingness to
pay overlooked misortunes Dishonor indeed at
ached to those sovereign which did not pay be
inability is clearly established their case
The reputation of commercial men remained sound
until Boorman, Johnston Co., leading house of the CT
ty of New York. repudated debt for the alledged nabi
lily OF their creditor to collect legally That ransac
ton has been before the public The present still
more glazing, but the in principle The house OF
Morrison Sons, bankers in London loaned large sum
Of money to the American Life and Trust Company on its
bonds through the agency of its President John Duer
Esq. Having thus obtained the money, the company is
applied to by the Dry Dock Bank for loan of part of Il
their real estate and they obtained it, they allege in
their BILL through the influence of John Duer ESQ., for
consideration That money is then lent by the Dry
Dock company to many Spectators who lose it, and the
Bank fails. The American Trust Company also fails
The Morrisons apply to the American Life and Trust Co
for their money. The Trust Company them over
to the Dry Dock Bank. The Dry Dock Bank say it is
just debt and they have the of paying but will not
pay pleading the usury laws of the State New York
and the alledged misconduct OF the officers of the Trust
Company, well as the example of Boorman Johnston
Co. and the countehance of Geo. Newbold and Daniel
Lord jr. Can merchants bankers politicians in the
face Of such transactions pretend talk restoration
| OF American credit