The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-11-10

air. and 1t will return with awful retrbution on the
heads Of those violaors OF national law
justice. Great enthusiasm cannot say when, or
in what form but depend upon it. that II such act
take place the thrones and princpahties ard powers
must look out for the consequences. (Overpowering
sppause) And now, gentlemen, let us do part
let us understand the position in which stand as
the great republic Of the world at the most
Of the world. Let consider the mission and the
destiny which Providence seems to have designed US
for and let take of conduct that with
irreproachabe hands and with hearts void of offence,
may stand up whenever and wherever called upon,
and with voice not to BIO disregardad say this shall
not be done-at least not without our protest.
Morris state Bank.
[From the Newark Daily Advertiser.1
ANOTHER SHAMEFUL BANK FRAUD.
The Morris State Bank proves to be the result
of another swindliDg operation by Wall street stock
gamblers as will be seen by the following exposition
furnished to the Jerseyman by Mr. Norton the Pres-
dent UDsuspicous or deception, several Of citi-
Gems have thus innocently been made instrumental in
sending forth a considerable amount OF paper of .
worthless institution purchased by sharpers from other
States under pretencs Of establishing old bank
which had fallen into imbecty The public will be
the guilty to justice. The Somerve Protection In
surance Company, whose obligations said to have
been protested in New York, and the broken Susque
hanna Bank 1t will be observed implicated in the
statement
This institution resumed its operation on the 18th
October last giving the promise and inspiring the hope
that would contribute to aid in supporting the
mercial and manufacturing interests of this comna-
nifty, and thereby advance its prosperity But this
hope has proved q delusion for after few weeks of
labored sxsItions, it has been compelled to suspend
payment The character of its operations, together
with the causes Of its failure We understand are fol-
lows
Wilism Earl of New York city, together with Egg
bert A. Thompson, Of Cincinnati were the principal
negotiators. and purchased the principal part Of the
stock OF the bank. The stock was paid In part by
deposit of $40 COO In bills Of the Susuehanna County
Bank, Pennsylvania, and received a, funds by the
former officers of the bank, Judge Condet President
and H. Dayton Cashier The plan Of operation formed
and adopted by Earl and Thompson secured to the
Protection Insurance Company, of New Jersey at So
meryile loan s25 OoO be secured by stock scrip
and stock bonds Of the company; and Thompson was
TO use the bills for the purpose of discount and ex-
change at Cincinnati which, with the facilities he
claimed To possess presented very atterinp prospect
Under this and previous to the 18th Sep
TENDER w. Earl Treasurer and Assistant Secretary
security of the drafts OF the President of tina. company
accepted by Earl Assistant for $4,000
and another for SIS 600 secured by stock bonds amount
ing to about $4,000 Some trsDsac lions Of character
unexplained. appeared between Earl and Thompson,
which excited the dstrnst and suspicion Of the resi
dent L. Norton, and d. Sanderson when they resolved
that Earl should have no money unless security
OF an unquestonsble character was given
The money obtained by the Protection Company was
dstinguis he'd by being made payable to ~ Smith, and
to be redeemed by them through the agency Of A.
Nichols, ~ Wall street, New York on his receiving
5000 of the notes Of the State Bank. And when Earl
told 10y Norton and Sanderson that be could have
money he assured them that the of S3 600
was absolutely necessary to seeure the redemption Of
TO him the bank would have to deem its issues to the
company. At the tame time the company offered to
transfer $40 0O0 worth OF stock scrip OF the Hamilton
Bank tf Rhode Island security, with the
that it worth par value. On these assurances the
bank advanced the money and received the transfer Of
said stock which they have since learned Is worthless
On the oath September, the Protection Company re-
ceved the additional sum Of s2oo on the security Of
q mortgage on New York city property, for S60O0-
which mskes the entire amount received by the Protec
tion Insurance. Company $4,000, Of which 81 900 has
been returned TO the bank.
The liabilities OF the Protection Company are as fol-
lows w lillian Thompson, President, draft on w.
Earl assistant SECRETARY discounted $40 40 for which
amount 800 shares o the stock of tho bank belonging
to T.. A. Thompson, held as security by William
Thompson and ID. sanderson, Directors. wilsm
EaTl's account as Assistant Secretary, shows q
balance against the Protection Company, for bank
notes, Of SIS Sej for which sum the following Sc
eur,ties have been siven to the bank; two several
eurities. follows :-Protestion Company's stock
scrip 50 COO ditto stock bonds SIS 0Oo stock scrip OF
Hamilton Bank d II. Island $4,000, aud mortgage on
real estate eco n. Thompson had $4,000, for
which he gave the acceptance OF j. r.. tirmsn, dated
August "a, pay able November -, $4,000 and l.. 4.
Bradley, Cashier IL FhWnix Bank Cincinnati sccept
anoe, due January 2, 1850, $4,000. On the 9th OF
October be had the additional sum Of sass; on the
18th the further Of $4,000, for which he drafts
on L. A. Bradley, cashier, which both have been pro-
tested for non payments 22d Of October, the further
sum Of 81 2D7 for which sum he promised TO deliver
to d. sanderson n draft on the 10th In New York but
which promife he never fuhlled On the 10th. tns
OF $40 eco delivered to him by the PRESIDENT
for ditcount and exchange AZ Director With the con-
sent Of Of the Directors for which he gave NJ A.
Bradley Co pianco, OF Cincinnati for $40 900,
counted, draft for the balance should bs given.
s1sss5 Of the sutqushauna Bank remains on hand
Tor the fonowing causes -. a fhompson proposed
that the Sutquehanna bills should not es used here,
but cent TO him at Cincinnati and on the l5th sept
wrote to the PRECEDENT 20 tend him part OF IL, with
the assurance that lie would exchange ~ for other
funds This MIR Norton refused 10 do aud the 3sth
September A. thompson wrote him rs follows !"
new want fair und.rstAnding before we 20 further
All do, expect 20 do for the best interest OF myself
and the credit Of the bank and when write for money,
! DO not expect to be told that ] caunot have IL.
ls.ls a.. 90
Rave them turn round snd tie my hands that can't
nske anything 10 pay them. IL you don't know me,
ccbhdence IN have desire that you should hold
your position and feel that your character Is TO
be tsfnished have some character at stake myself
Ny relations In Conncctctt are tolersby well con.
ptstsd aud t will not be my purpose TO Disgrace myself
mortify them"
ON the receipt Of this letter Mr. Norton supposed
a Thompson de,ensd 10 withdraw the Susqushanna
oBey by the proceeds 81 the bill. q the State Bank
At Morris which he had received, he therefore in
ftructtd the ts'hisr that when Thompson should ar
rive from Cincinnati and brig funds into the Bank,
Immediately TO credit Ihomrsons account With the
tame, but rot TO pay him any % the Suequehanns.
Prem the eth q 5. the funds had been raised
TO- the OF the Pank 90 Tedeeuris Iyper BY hypo
were subsequently, taken Up and this was In compliance
with the repeated and urgent request Of Thompson IN
his correspondence. An extract nom letter Of w.
hail dated at Albany, Sept, mber 10Th will show his
feelings toward Norton and also T. intimidsts him,
IT he might terve Esfles purposes II recsivsd let
ter from a friend last evening lie appears 20 think
one thing would refer you 70 and that In your re-
marks TO me In these words; u pledged nyelf To SAN
dstson that snotber dollar should not out u this
Bank by the way of d. count without hts consent or
q that eject. Gu know that this Ian agreed TO
BY the Beard d Directors. aud IL was not for you TO
sy u nust be stepped any other directors and N
y'u bad reflected, instead Of taking, you would,
tfink view u IN the same light. DO net think the
tttckhtders expected that when ycu was put In tnet
fituatItn Jou ~as to be all supremo-n0r do expect
they viii permit II iong" Thompscn, on the 2Gth uit
srTsng.ments TO take up at the money loaned TO
the IrOttcti,n co. the II $4,000 and In eec
this. lad 20 Nicholas broker, 81 Wau street, who
tenipg said notes. 20 200 SusquehanDa money
his UcrtJ vas to BE- circulated by Nicholas and when
tnectd lie vas TO tetrFn tBc moDey of the state Bahs
o. that institution But the following DAY, the
sgebt Of tie SugUthDnus bsuk refused o. redeen any
Lon ger end this dsit s.ed he an aud ~ the same time
put oUt Of the Ufhe state BANK % redeem its
Isp.r 10 hss asO heeh sscertaDed IRON the agent OF
The susquthehhs touaty Bank IN New YORK. city that
lbt mpsvn. last Spring, bought the majority OF the
stock Il that Bsps that he Jay precious 20 the agent
soTiirg. ihomsftn promised that the next day he
Ntuls put Lila VA fuEOsinstesd OF which, ne bas abb
a urt q q