The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-03-04

purpose OF providing the payment of debts justly
the company and Of raising monies for its use and
that both were justifabie and laudabe objects
feel liberty to invite reference to those gentlemen
for the confirmation OF this statement
Mr. Leav upon the subject Of the obligations of the
company on time (Which he denominaies post notes, "
has deemed proper obtain and publish the opinions
counsel order to establish that the greater
sage the of May H. ls4o and he copies the 4h
ton of that act which imposes severe penalties upon
officers and members Of banking association for viola
that section He also publishes the opinion oil the
counsel given upon imperfect statement OF facts at
time all other questions involved in these
controversies under the Court Of Chan
Gerry having been previously argued by the counsel OF
the respective parties who are anxiousy waiting dec
Mr. Leavitt ha wing thus by his publication presented
officers and directors Of the company to
the public having violated this statute and incurred It's
penalty constrained in self defence to state the facts
in connection with it, although conscious OF the mpro
prety Of drawing into discussion in the public journals
which have been deliberately discussed and before the
courts for elaboration and decision
The directors after the passage OF the act OF May H.
desired the views of counsel upon the construction
of it in reference to their right to create obligations on
cas obsr vit mc Samuel Foot William
Curtis Noyes and David b. Ogden. Esqs. united with
me in the opinion that the company had he right to make
notes upon time In the and for the purpose propo
sed These opinions now publish in vindcaion OF the
Board OF Directors who acted in full confidence OF their
soundness.
II proper to add that the results Of these opinions
have sustained by late decision of the Court for the
Correction of Errors-the highest judicial tribunal
state 1t having at the time been intmaed that the at
orney general and bank commissioners intended TO inter
letters be addressed those officers ncosng
each copies OF the opinions already mentioned asserting
the right Of the company to create notes on time inform
Offering to meet any proceeding instituted for the ur
pose of testing the question As no reply was received to
those the right considered acqui
esced and the company proceeded to create the obga
ons in the manner pointed out by their legal
ask the perusa Of the opinions IA will tend to dspel
some Of the mist which surrounds this question: and will
satisfy the innocent holders of the obligations of the com
pany that the directors acted in good faith and with
per reg ard to the interests OF all concerned
Mr.. Leavit comments at length upon the contents OF
the official returns made semiannuay by the president
and cashier to the comptroller required by law and
fers to their details lie thus connects name with
| them:"It must have been known to Mr.. Graham, as
trustee that the bonds aud mortgages embraced in the
trust deeds included among the assets Of the
pany in the returns to the comptroller made in July 1870
and in January ls4I and that both of said omitted
include the sOO bonds post notes among the debts
and made mention OF, or reference to- any trusts what
| ever"
The reply to this statement shall be brief and conclu
sve have the deposition of the accountant Of the
pany. establishing the following facts:-
/. That the returns to the comptroller were made by
the president cashier and HIMSELF that the counsel Of
the company not consulted and did not participate in
their preparation; that it duty which properly and
exclusively devOlved upon tho financial officers of the
bank and that they alone responsible for its
and truth having sworn to the same as required by
| law.
. That point of fact the returns made in July, lsio
and in January s4l In all respects accurate that
he prepared the details of them from the books himself
and that all the debts and assets Of the bank truly exh
bted in these That although it DO true that the
themselves specifically mentioned in these
returns yet the debts Of the company which they repre-
sented and of which they the evidence were in each
instsnce truly stated That the requirements of the law
were literally and truly complied with In every particu
To which add that never saw the returns referred
to- knew their contents until read them in the news
i. papers 80 ,,,- c.,
Novtin tba hncn
be confined TO law and chsncery practice was als
partner with William q, Wood and William p. Powers
Esqures whose business exclusively related to convey
ancng and other tsrsc onnected with real estate.
The firms entirely distinct, and occupied separate
she be eouaw between its members
In respect to the first item of $4,000. mentioned by Mr.
Leavitt as received by said firms deem
repeat the statements made by Mr. Noyes respecting
his reply to Mr. Leav published in the Commercial Ad
verser of the 2ad nst and other snrnals Of the mex
day-and which have suboinedhe has given full and
trust satisfactory explanation OF that matter sha
Il only add that received but third of the amount
that CHARGE the residue divided among my four par
ners in the manner stated by Mr. Noycs. The charg
i maurely considered by committee and the service
rendered carefully investigated; was passed upon an
audited by directors who among the largest soc
d holders in the company.
In respect the other charges of the two firms, the
made out in every instance by partners, givn
full statement in detail Of all the services rendered an
|. the bills uniformly examined and audited nj
, It is quite impossible to mpart knowledge oil the e.
Of labor and business performed by myself and par
for this company unless reference be had to tn
Or vOlmnOus and vouchers on Win receive
2 IL il practicable exhibit detail the numeror
sms which constitute the charges for the professions
services of my four partners and myself, embracing
period Of three years. deductDg therefrom the di
bursements which included in the accounts, any
the least conversant with legal proceedings would PR
l. nounce the charges Just and moderate.
Is well known that my extensive and prosperous La
and chancery practice, which yielded individually
large income and which had fostered for 10 year
was seriously impaired and finally destroyed by my CO
nection with the all absorbing business Of this compan
II Of constant complaint by my law parne
Messrs Noyes and Martin, end the issue fully sustain,
their predictions that my attention to the concerns OF
company would ultimately supersede and destroy my 9th
. business.
Mr. Leav states that my partners and myself receive
900 for professional services. Assuming that th
was eved there should be deducted for actu
cash disbursement included in that amount about - on
Is the nett of $4,000 My proportion of III
II sum, allowing my partners participation In the salar
would for my three years services to the institution
deducting ratable proportion of Office rent, Gle
y hire sc the two firms, amounting to upward Of SAC
y per annum) amount to 81 800 per annum sum whic
~ will be considered exorbitdnt for the labors
&c formed
In order that the expenses Of professional sstabi,
may be understood it Is proper to state that duri
the three years referred to partners and paid
In For rem ist YEAR,. .'''.....' $l,lo0 90
!" I'd do 800 200 90
M So
We TO three Clerks 81 800 per ann, for Jeus 100
We One clerk at $500 for year. 800
re- syess.. :. 80. 49,. :. 80. 2,soo
~ One cjers at S2s0 per ann, for 3 wears. $50