The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-07-30

French, Latin and Music His conduct during the ex-
common spirit is to be hoped that the rest OF the gang
will be traced to heir hiding places and the community
relieved OF such imrudent scoundrels.
Vice Chanceilor's Court.
Vice Chancellor McCoUN has been engaged with the
argument IN the case OF Dard Leao Receiver, &c ps
Lewis Curtis, John Graham, and Richard Biachford,
Trustee, &c for the last few days. II is case of conside
rahle importsnce-and in order that readers may
have correct account of its merits and the points in
ISSUE have procured the following version from lie.
gal gentleman tho is with in all its bear
ings tan action in relation to the North Ameri an
Trust and Banking Company-the facts calculated in
which show the causes which led to the destruction of
that Inflated institution and the ruin of many of its
50 900 worth Of bonds and mortgages given by
e on their real estate for stock Of the company the
whole of which, and mach more has been lost
The bill in the present has been filed by Mr.. Lea.
WITT receiver behalf OF the general creditors to set
asidetwo assignments for securing bonds amounting
million and half million OF dollars, and for which the
bonds and mortgages already alluded to were placed in
the hands of defendants trustees for the security and
payment, when due. of the bonds Of the company.
associate counsel behalf of complainant that the North
American Trust and Banking Company commenced epe-
capital Of 50 OO0 and early as August OF that
year began general speculation in State Stocks
the close OF 1889 had SUCH on credit 70 the
fcates of deposte although deposes for the purpose
had been made with them) pay able on time.
OF the stocks thus bought besides Illinois, &c was OF
Arkansas in August 1885, 81 O0O $780, 900 of which
was wholly on speculstionJ in jan 1882 ST. 200 900 OF
ndians in August 1889 100000 Ohio and in the latter
part OF 1882 commencement Of 640, 600 moro
Indiana.
At this time the bank owed according the
turn to the Comptroller the 4h JAM l640 to the city
banks, demand, $751; 066; to the country banks SAL
900 AL to deposors and State stock time
sb,s n ssO s sters
50 ESQ., to its circulation to individual deposi
tors, sos, 4sa 4o-makpg, in all S. O6l $40 81.
The assets Of the bank according to the sworn return
in Jan 1889 were 50 so0 in July 1882 So 9O0 in
jan 1910. 50 $50 900; and in July 1870, So 2la
to defendants wers made by cers Of the
and the bonds and mortgages placed In their hands
trustees 1t was commended BY Mr. Titus, that the COM
pany being at the time insolvent, had right, agreea
bly, to the provisions OF the statute to make such special
trusts.
further commended that when the officers made their
sworn return in July ls4O which was the succeeding
the trusts being effected they say their assets
49, but make mention whatever Of the bonds
having been assigned to Messrs Curtis Batchord and
Graham; also that the bonds for million and half
Million which intended to he secured by these bends
and mortgages were not included the return made
the Comptroller in July ls40 forming part OF the in
debtedness of the bank nor were the one and half mil
lion Of bonds ever entered in the books Of the bank till
after May, s+l, than year after their execution
and further that Mr. Graham of the trustees tho
counsel OF the Board OF directors member of the finance
committee aud of the directors of the company du
facts. 80 ''''' '' y ''''' - ''- = '-'' WON "
The history ofthe transaction as shown by the argu
men of counsel this The million and the "frst" half
million trusts ESQ that there appear have been more OF
hem) executed the first to secure the payment Of
900 bonds Of f225 sterling EACH payable at the house OF
Messrs Pamers, Mackillop, Dent Co., London the
LIST February ls5 and also dated that day. to
blank before they were delivered There was ne consi
ration between Mr. Mead and the bank for the bonds For
the half million trust 45O bonds for f25o sterling each,
were issued in the manner able in the ls4
The million bonds were sent to Palmers Mackillop,
Dent Co.. to be sold and negotiated in Europe at dis
and August is4o The half million bonds were also sent
to the same house. and they remained in their hands till
the close OF the year In the meantime Messrs Curtis
Graham and Blachord had behalf OF the bank
here loan from the United States and Grard Banks for
$4l $50 for which the bank gave negotiable certificates
of deposit for s25o0OO payable at average credit of 81
months from the st July s4O and in order the
payment Of the certificates 27o Of the half million bonds
were by direction OF the officers OF the bank delivered BY
Pslmers Mackillop, Dent Co. to Mr. Jaudon agent of
the United States Bank then in England. The balance
Of the unsod bonds the two trusts, Messrs NJ. D.
Co. hold and claim that they had been specially pledged
to them.
appeared ALSO from the statements of Mr. Titus that
addition issued by officers of the company. in
London which greatly tended to the destruction which
The trustees say that an arrangement made be.
tween Pamers, Mackop Dent Co. and the officers of
the bank in September 1885, by which the latter should
raw bills OF exchange the former sell negotiate
Co. were TO accept and pay the officers of the bank to
NIT funds in season to take them up The stocks pur
chased here credit and for which the certificates OF de
post s6oat in the Market nearly all sent to
London to meet the bills of exchange The price Of the
mercy Of the London house in relation to their indebted
here In about two months after the arrangement
as to the bills, further arrangement was made by
which the officers of tha bank were permitted to issue
negotiable certificates Of deposit, payable to p M d.
Co. in London they were drawn to the order of
Of the officers directors OF the bank in round
of $50 f0OO stg eachhey engraved certificates
and evidently intended for circulation. The issues Of
this character payable to The house in London during
the years 1885, 1889 and S40 exceeded 50 The
bills, it is said principally accommodation bills, and
the certificates issued without any money being de-
post made here Under these 1t Is alleged
by the defendants that Indebtedness was created
against the bank in favor Of Palmers, Mackiop, Dent&
Co up to the of 1910, to the amount Of
$647, i7s.
To show the the bank of the various ope.
ratons about this time was stated that the loss sus
tanned by on stocks speculation in cotton other bu
siness connected with banking, was between Janua
ry and October 1910. 500, 6lb s.
The Trustees alege that the two trusts were created
for the purpose providing to the debt due the
London house 1t is denied the part Of the receiver
for the purpose Of providing for the payment of
the debts by them in the purchase stocks
The alleges that the officers had departed from
their business they had right to purchase the state
stocks on speculation and at time too, when they did
not have dollar on hand but purchased them with cred.
it, and gave certificates pay able the average in IL
months some OF them being due in months, when they
were presented for payment, and the bank commenced
being pressed, their difficulties increasing, and that in
the winter of ls0 the time OF the being made
the association was totally nsovent and the Trusts
against the provision OF the statute also that the
tcaes were intended TO circulate in violation Of the re.
straining laws
Mr. Titus also contended that the Trusts ought to be
broken account Of the business footing of the Trus
tees, Mr. Graham being knowlcdged nsolv ent Mr..
Curtis son-inaw OF Mr. Beers, late President OF the
sociaon) admitting tibet he embarrassed though not
enough he to eudanger the and Mr. Elatch-
lord, being the legal attorney of Palmers Mackillop,
Dent Co., will take other interests in preference
to others The gentlemen. he said, had given no secur-
ty and the creditors without thathe money
ssej and that Mr. Batchford has in his hands as
sets Of the association connected with other gentlemen
in the Trusts bonds and mortgages and other properyo
the amount OF three and hall millions Of dollars
The Vice Chancellor remarked that the present appli.
cation connected with the legality OF the trusts ana
the counsel intend mpeseh the trustees he could 40
so afterwards Mr.. Titus replied that he thought both
could be included in the same charge.
IL also contended that usury exercised. Tnese
are but the points Of the argument. Mr. Titus was oi
lowed on the other side by Mr. Noyes and Mr. B. But
ler
Messrs. j. Cleveland Geo. Wood, Bidwell, Foot, &C.
KIM alao apraaa al i.,th caaa