The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-05-02
The United States Bank Affair, and the
CHARGES against Mr.. Biddle, sc.

Il
Charges against Mr.. Biddle, SC.
| We mentioned on Saturday that Judge Barton
had discharged Mr.. Biddle, Mr. Cowperthwaite, and
Mr.. Andrews, and decided that there was not suf-
icien cause TO require them to give bail In the
charge against Andrews and Cowperthwaite for
not paying certain loans Judge Barton said that the
loans were obtained in the usual way, and the Sc
curlty was good at the time 1t given.
The first charge against Mr. Bidde and Mr..
Cowperthwate was that they conspired to cheat
and defraud the bank by obtaining therefrom large
advances upon shipments Of cotton to Europe OF
the fortunate sales of which they retained the sur
plus proceeds profits, while the losses were sus-
tanned by the bank. In relation to this, the Judge
decided that the Bank had no interest in this cotton
that these advances were made to the parties as to
ordinary individuals that the transaction was open,
known to the officers of the Bank and within the
reach of the knowledge of all the directors. That
these operations in cotton were rendered ndispen-
sable by the liabilities of the Bank in Europe and
the failure of the directors 10 meet their foreign
gagements; that these operations were not only
lawful in themselves, but eminently useful to the
bank, and originally profitable to it,
The third and last charge was that all three con-
splred TO cheat the bank by taking large sums OF
money, and making an entry of it on the books.
On this point the Judge decided that there was no
evidence before the Court of the misappicaton Of
these sums by any person. The only charge OF
fraud is that the application does not appear on the
books but this is shown TO be in accordance with
the routine of business and general usages of the
Bank-aways prescribed or sanctioned by the d.
rectors.
The concluding remarks Of the Judge takes the
same ground that we have repeatedly taken in this
matter in relation TO the directors Hear what he
says -
In all that has been said il has been assumed that the
directors represented the corporation and authorized
to manage its affairs. Their authority for this purpose
under the charter was limited by no express restrictions
and the only implied was, that they would trans
cend the fundamental articles conditions charter
or violate the declared will of the stockholders convened
at general meetings, duly assembled Within these limits
the acts omissions of the directors them and
the officers appointed employed by them had precisely
the same effect and operation the acts omissions of
vate affairs.
The powers of the directors being thus obvious and ex
tensive IT. from the origin of these transactions
their various proceedings down to the correcting
made on the Goth June ls40 and find where the
books during the long period gilmore than four years
SPECIFIC entry applicable TO these very expenses which
they the drecors knew to have been incurred prior
the LIST of March 1885, comparing this striking negative
evidence as to the least tact acquescence of omission
with the positive evidence of the entry made in S40 and
with that as to the large expenditures ntermediaely in
CURED under the head OF permanent expenses it would
be unjust in the extreme to seek to visit upon the head
Of solitary subordinate officer of the institution the
penal consequences could such aach) OF there
any in which the directors and uncomfortable
portion Of the stockholders have participated during
the season of the supposed prosperity of this unfortunate
institution That the officers, who depended upon this
prosperity for their support should have combined with
the intention of destroying it. it is difficult credit
The counsel for the prosecution have undertaken
imputc to the directors the guilt Of treacherous combi
nation with the officers to plumber the stockholders OF
whom they were the representatives Yet il would be
next impossible this
grounds which would thus impute participation
the guilt REALTORS TO the directors who their
superiors or such fraudulent coalition between the d
rectos and the officers there is nothing in the evidence
TO justify even reasonable suspicion"
On these grounds he would not hold the parties to
bail, and discharged them all Now, we trust, some
will go to work and do away with all those par
tial assignments