The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-11-29

Wis should give his bond for 0O0 which should
stute part of the securities to be assigned and that
he should be released by Pamers, Mackillop, Dent
Co. In pursuance of this arrangement mt, and on the
30th November, 1870 Q resolution passed by the
committee of investments and finance, approving of
the form Of the proposed and authorizing the
proper officers of the company to execute and deliver
It, together with the rtcates Of deposte therein
ferred to- and to assign the securities mentioned In
the schedule thereto anpexed and to do all other acts
necessary to carry into effect the provisions Of the
agreement. In pursuance of this resolution, and on
the day ofts passage the was executed
delivered to Blatchford and Murray. 1t appears how
that instead of certificates of deposte being deli
vered agreed upon promssory notes were Issued to
the amount Of the the company signed
by the president and cashier payable to the order of
Cooke in twelve months after date, and endorsed by
him. and it does not appear that certificates Of depo
1t is contended by the plaintiff tina. the agreement
or trust deed thus executed is illegal and void.
The first objection which Is made is to its
ton 1t has already appeared that it approved by
the committee of Investments and finance, and that
its execution authorized by them 1t also appears,
by reference to the ITSELF that was signed
by the president and cashier pursuant to the prov
eons for the general banking law The question then
finance had the power to authorize its execution The
powers of This committee have already been examined
and 1t seems to clear that in the delegation Of the
powers Of the directors to the two committees this
power was conferred upon the committee which autho-
rized the execution Of the agreements.
1t Is evident that the directors themselves supposed
So for there s proof that doubt dissent
ever expressed by any one
The next objections made by the plaintiff are to the
agreement or rust deed itself In the FIRST place It is
commended that the promssory notes given by the
pany being payable after date, illegal and void By
the act Of May IA 1870 it is provided that
association shall issue put in circulation any bill or
note of such association unless the shall be paya
BILE on demand without interest laws 1s4O p 1857
1t seems to me that the notes in question clearly
void by the provisions of this statute II
ed on the the part Of the that
the only refers to notes to be put in cir
CuJation as mi nd
that the fact that these notes we're drawn in large
amounts. and made payable in London,sin sterling
could be no such effect in this case The answer to
this is that there Is no such qualification in the
uDquestionaby was to prevent the circulation
ney OF notes not payable demand; but the method
Of eecsing that object to prevent the issuing Of
such notes absolutely, without reference the nten-
tion or effect of such issue But If the quaica-
ton commended for should be adopted 1t hardly be
said with certainty that commercial ingenuity could
not have devised some scheme by which the notes in
question might have entered into the circulation of
this State In the of Swift vs. Beers g DEMO- 7O
the qualification which has been suggested was ex-
pressly repudated See also, Ontario Bank Seher-
merhorn, 10 Paige, 112)
But it farther commended the part of the de-
PENDANTS that if the statute does not apply to
the notes in question, still the company is liable upon
them, and the only effect OF their to subject
the tosrs Of The company to the penalty prescribed
which penalty Ia imposed for doing act where the
act itself Is not void. These however cases where
WIG 10 imposea merely LOT tne purpose OF reve-
lie policy bartlett .. Vinor, Carthew, 252. De Beg
MS o. Armistead, IL Bing lo7. Foster y Taylor,
Norman s Bling N G. rs. Hallett Novion ii johns.
r. geo Cope D.. Rowiands Mees. s. Welsh 149.
Griht tn. o. Wells; De MO, 226)
IN tns case tne miscnief Intended to be prevented
was the circulation of the notes Of banking sssocia
tons not payable on demand: The person who
receiving and aiding in the circulation he becomes
parileePs crimtn.s. =,
reference to the agreement or trust deed it will
notes. were to have been given by the company, aud
bietohiord the attorney OF Pamers Mackillop, Dent
that an hs tnss ne mad ths
.nae tney haa oeen gwen untli long Time AFTER the
executon OF tne agreement. VIII suppose however,
ler lns tnss sne pssnlsso1y notes weresub'
IN tns PLACE certinceeee OF deposit oy con-
sent Of all the parties or other words that the notes
even sIe wnas ~ wss intenoed SHOULD DC gwen, but
tnat tney are mscslied IN tne agreement The cues.
render. q. tras. deed void It well settled prn
upderta kings in the "a M cont.s.x sorn. - 49, 80
legal and some illegal The law vim snsts,n ths 1ood
hke nursing father and Eskes oniv void ths n.rt
vbora the =. riti. ~ nrss.r--. ~ % ~
statute declares the nstrumes itsef vod ths rms 10
otherwise Nov in this oase the indshtednass vb;ch
the Agreement vas intendsd En- sscurs os not ,atsS
Nv tie nromisrorv notesWit sirsaav s%;stsd tn
notas are neral Audiences of ~ 'A''N A0
The ob;act ~ tho srrosmart ,.. 20 ..,r-o N. &,
dehtsd mass and not r. sacnrs The rarsorraca Of a.
illegal ontraot The notes sxtsndsd the time sor the
ma Ynpn IA III M fhn and al
father for its bensAt than for ths %.r.Tt ~ pIsr
MackiIop. Dent q Co n the notss had hesn A.
.;roved IL indshtoSna.. .,oniS 49,. ...a;S ~
Of The evidenced of inSsbtsdns.s vonS %s 49," Oa
that Ia ali mt sunnose ths rrcr;ssorr rnt go, 81.
secnritv a tbev vars caTsd an the .r wus e.
conaecne ~. than wonld ho ~ a. h.;r~ pi.ssr
psimers MscIilon liant 70 wnrIa hss sao VIII,
r;tv Isse ~ L. vsfI .attIsa thet wh.-. 49," =,
r;ty given tor tha n.vwart - Iht ~ =. e' ~
secur;tv ma no iIleroI and vo;d vat IL - AZ sSo
instrnmant tbsra a. cnrtrsot ~ ~. ~. Az. *S
nsslumen. mere Is contract 70 pay the DEBT, the
All. Een;soy Cois q Fat oa1 Es.cna NJ ~,
man 8 Ring N q ri. Utica Insur.nas Comnarwr
Kin q Coven NN Ana n neco.ssriiv So,iows IT. ~
otbsr a. not sTsctsd Rmt a. 90 "a th ote ue
ment In this casa a. That ths nsooa &c .S $50
t;es ..,nad shu 80 ~ ;s peo a., " sue seou,I-
fan,t in fhs ravmsrt ~ tba ~. ss, S o'S ue
Dire and That thew being void 81 800; "a .ha,asen
not canshIa ~ hscnr,;nS A. ~. , ,; u uo,o.o1o
wbic Hfhs trustess r;ii Sa hound e. Upon
ceeds a. the secnr;taa viI1 nsvs, oc 0'o WIG p'o
~, ~ u 1850
Inere are Two elementary prtncipes applicable to
all contracts nrst tnst tney mnst be construed ao-