The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-12-05
Csc, 900 at S. the e, equal to $3.50 900.

t5oOoo at 80 the t., equal to S25OOOO
These bonds were issued to the order of John Duer,
vice president bearing six per cent annum payable
half yearly in London. Instead of the Dry Dock Com
pany paying their bonds and the interest upon them IT.
SELF in London it agreed that the company should
pay their bonds New York, to the American Life and
Trust the e. and per cent interest," and each
payment be made 40 days before fell due in Lon
dan. This simply an agreement of the Dry Dock
Company to give its bonds to the American Life and
Trust Company in New York. for $250000, at seven per
cent per annum For these bonds, SO issued the Dry
Dock Company received from the American Life and
Trust money but trust certificates, amounting to
GA O00 bearing FIVE per cent interest payable in London
in Oct 1899 and f24oOO five per interest pay
in London in ls4O, amounting to f4s,000 $4,000
The market value Of these certificates 80 per cent,
and they would not realize than S22s,O00. This
loan secured upon the real estate of the Dry Dock
Company, situated between Avenue and Tompkns
street, sh 7h sth 9h 10th and 18th streets valued
$5OOOOO The result of all this was that the Dry Dock
Bank gave its Liabilities for S25O,Oo0, at seven per cent
in four fve six and years. and received for
it the credits of the Trust Company for which it realized
$22sOO0 Now, 1t further appears, that this loan
not obtained from the American Life and Trust like that
of Daniel Webster by making speeches the board Of
directors like that OF Governor Seward pledge Of
patriotism and the welfare of the southern of
ties, but by pipe laying whJohn Duer Esq II agreed
by the Dry Dock Company that for the procurement
the loan there to be deducted per cent
which, expressed in the BILL nure to the pri
vate benefit of the said John Duer" also appears that
this loan to assist the Dry Dock Bank in resuming
specie payments, an event which would doubtless
prove the value of its stocks among the flats" This
fact John Duer Esq intended should also nure to his
private benefit consequently he spulaed that in
sdeaon for his services the Dry Dock Company should
guarantee him. the purchase of 1000 shares of the stock
alto per that him against the probable
rise, which large a purchase of the stock would
occasion in the market. This the bill states
might produce loss to the company of $4,000,
and profit to the said John Duer Of $4,000" These
sums being deducted from the $02s,O0O, left to $780,
0oO the proceeds Of the s25OO00, for which the Dry
Dock Bank is liable. The bill then states that "n order
more securely to avoid the appearance of usury" it
agreed that instead Of giving mortgage the real estate
of the company collateral security they should
cute deed ofrust TO John Duer Morris Robinson and
Abraham Crist, which accordingly aone and the Dry
Dock Bank "dd grant, bargain, SELL alien, release
vey and confirm to the said parties a their real estate,
in rstor the purpose opaying the bills Of credit issued
by the Dry Dock Bank. All this fair and voluntary
bargain The Dry Dock Bank failed and pursuance
this deed ftrust Messrs Duer Robinson Cris entered
upon possession Of the property in April last The Dry
Dock Bank now petition the Chancellor in the words of
the bl:--
ITO charge them to dcsis from intereriag with ,o,r
Aforesaid and claim the rig 1T and ;s;s,
that the said Trustees entitled to require the
Of your orator attorn to them all which actinrs and do
ngs contrary sqy ond good conscience and tend
to manifest wrong and injury Of your orator in the pre-
misses"
This s evidence of the manner in which robbery il
done under the sanction Of usury laws The Dry Dock
Bank voluntarily bagained with the Trust Company to
obtain money the best terms whichcould be done The
Dry Dock Company gave their promises for which
they have paid and received 1928 Of the com
pany. The private bargain which they made with John
Duer Esq nothing to the Trust Company; although
officer ofthe American Life Trust Co.. which loaned
the money, he the suborned agent OF the Dry Dock
Company which borrowed it, The real estate Of fhe Dry
Dock Company would probably not sell for the s22s
600 which they have had and spent. They now plead
their own voluntary unprincpled transactions with cor
rupt men, as constituting usury which should release
them from paying just debt Because they defrauded
their stockholders out of $780, given TO John Ducr
ESQ., they make that plea why they should deraud the
Trust Company out of $4,000, whatever the real
will sell for The transaction completed while
Obadiah Holmes President ofthe Dry Dock Company
This present plea Of usury made by other parties who
have come into the control Of the bank.
In the latter part OF 1910 the Fund Commissioner of the
State Of Indiana appears by his report entrusted Mr.
M Sherwood with Ia 20 amount Of the bonds OF that