The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-06-23

the other for six One for $4,000 and the other for
$4,000; amounting together TO $4,000. The name OF
David Sanderson crossed from these drafts by the
the evening Of the 10th Of October uader
such circumstances have doubt Of their intention
TO defaud the shareholders Of the bank David Sander
son and Lambert Norton were In New York the day
in question They heard intelligence there in reference
bank which induced them to proceed ut TO
Morrtow n and such their haste that they did not
wait for the regular train but hired an express WI
liam Thompson was also In New York on the same DAY
and returned by the evening train hasty meeting u
the directors called at night Six were present
less than quorum for the transaction of business At
that meeting would appear by their own minutes,
their only business to pass certain resolution
leasing David Sanderson from his endorsements They
resolved to release upon the condition of Thompson,
the drawer Of the notes. assigning the bank eight
hundred shares Of his stock, he and they knowing
at the time that 1t worthless This the conspiracy
charged A conspiracy means an agreement 10 DO
unlawful act; and to constitute the offence, IL
is necessary that at least two should be guilty.
of it, One cannot commit the crime alone at least two
therefore, must be convicted all must be acquitted
We shall satisfy you that two more did agree about
the the only question therefore, will have to
try the lawulnes Of the act f the act unlawful
it a conspiracy We maintain that the act was unaw-
full the transferred stock consideration for
good securities the bank having failed or being known
to the defendants be the brink of the precipce
which it must pass Acting therefore, as directors
they had no right cancel these securities for any
other than good consideration The State will satisfy
you that they knew the consideration was not good by
what place in New York There Is another circum
which proves that they conscious the bank
defunct At the close OF the 30th day OF October
lS4s there were So 600 specie in the bank At the
close following day the 3lst of October there was
$40 The rest drawn out by the defendants them
selves, showing that they knew the bank had
The vaults The act unlawful in the first place be-
quorum of required to transact business.
unlawful because no consideration was received
by shareholders for the erasure OF the endorsements
Though the does not in law release Sanderson
the agree ment to do it constitutes crime An act OF
this State page 27 revised Of New Jersey
declares that, " If any person shall wully unlawfully
and malciousy tear cut burn or in any way whatever
stroy any endorsement assignment OF any bill OF
exchange promisory note for the payment OF money
any acceptance Of any bill Of exchange with intent
TO deraud person or persons body polite or cor
porate shall deemed guilty of msdemeanor and on
conviction shall be punished by dne not exceeding $780,
or Imprisonment hard labor not exceeding two years,
or both IT, therefore, the endorsement of David San
derson been erased without good consideration IL
is unlawful and fraud under the statute 1t is also
unlawful law because il is matter Of puoc
interest independent Of the statute as the Supreme
Court has held, tending to the manifest injury OF the
community The question for you. gentlemen to deter
mine IL with what intention the act done Mr. Lit
tie concluded his statement by reading the several counts
o the IL dictment
Edward T Thompson-Was cashier Of State Bank at
Morris when the bank failed the 3ls Of OCTOBER we
redeem the bills when the bank opsned IN
the morning. the book produced is the boob OF minutes
there twelve directors but not sure whether
this number includes the president; the bills OF pava
entered in the discount book discounted
the Of the directors the 10Th OF October were
Lambert Norton, Edwasd 5. Thompson, Jacob NJ King,
Col Joseph Cutler DR. samuel ;. Doty, VIM Thompson,
David sanderson. Thomas L. King, Mahlon Dickinson;
meeting of the directors the 3oth OF Oct
there present Lambert Nc rton, William Thompson
David Sander l. Samuel s. Doty Joseph Cutler, Jacob
NJ King: Mr. Sander went after Doty, Norton went
after Jacob King and went myself after Colonel Caer
David Sanderson first to the bank the evening
of the 30th 1t ut half past hye o'clock hrst saw
him in the street; him in the bank at o'clock in
the evening; met Norton at same time met Sander.
SON. it was at half past O'Clock; met Col Thompson
afterwards the former said they had been at New
York, and came by express, and Mr.. thompson
said be had also been at New York; the directors had
stated days Of meeting; the previous meeting held
the 18th October adjourned to meet on the 10TH OF
November; present the meeting Of the 30th OF
October statement was made Colonel Thomp-
had not arrived at the beginning; the presi.
dent stated to the board that Mr. sanderson and
himself had come from New York by express
for the purpose calling meeting Of the board to lay
before the directors reports that they had heard at New
York concerning bank, and to take some action
It; Of the reports that the Susquehanuah Bank
had failed the failure the report OF it,
likely to cause the Bank Morris trouble they
had $4,000 of its bills in their vault; he stated
that he did not know what suquehannah monsy
worth but proposed TO make preparation IN
there should be any our bank; several OF the
directors aid they thought there would be no run or
difficulty; they all talking about it, cannot dis
tinyuish which them said so Norton the president
informed the directors that he had $4,000 draft on
the Phunix Bank Of Cincinnati, and proposed that
committee appointed go the city in the morning,
and get that draft discounted; Mr. sanderson said in
order make IL IL would be better that all the d
rectors endorse IT, as there would then be difficulty
in getting the money while they talking the mat
all over, Col Thompson came in, and Mr. sandcrson
said Colonel what Is the news!-he Colonel replied,
Good news-on my way to the boat, Mr.. VIM Norton,
Of the president, came TO me and said Ihomp-
had arrived in town and that he bad not heard
thing the failure Of the Susquehannah Bank before
his arrival in the city, that he sent up aud that he
would remain in New York to arrange matters, and
would up Morristown next day; that he would
make all things straight and that there would b. no
difficulty from the susquehannah Bank stopping
The directors then seemed satisfied that there
need Of making any preparation. as y A.
Thompson, the principal stockholder had arrived and
said he would make all things straight director In
the concurrcd in that opinion they all expressed
themselves satisfied that the bank safe; Norton
stated that there matter Of Mr.. sanderons to be
laid before the board in regard TO his being
endorser Of Z. A. Thompson for which,
collateral security MIR ssnderon held SIS shares Of the
stock the bank; that arrangemeu had been made
days previous, between the President, b fhomp
ssnderson to have this stock transferred TO
the baak instead Of SGndersons name AMI he wishsdtD
lay the before the board for their considerations
they said they considered the stock Of the btnk good
security Sandersons endorsement; the question Wa
put. and the resolution passed without dissent The
resolution Is az follows -
-Tue.day JOth october 1912 the Ioardmat Present
Messrs King. Cutler. Norton Doty Wm ThOmp-on
and b sanderson. Resolved it appearing 70 the board
that u sanderson Is surety on two notes, given by A.
thompson to the bank. u Is now proposed by u san.
derson the bank Sl3 shares Of the stock
collateral Gry for the payment 81 said notes; Il
appearing that the proposition u reasonable the bank
does accept the said proposition that upon the transfer
Of his stock D. saLdrson be released from his security
On said notes. (ssned) THOMPSON Cashier
The original resolution destroyed, made the
foregoing cory a X clerk 81 the Board; after II
parsed Colou, Thompson said he considered the stock
Of the bank safer security than that a sanderson
stage proprietor the meeting then br0ss up, that
the onls busin'Es that done; heard no stattment
that the r,deeminr agent in New York bad that day
fu "a to redeem the bills note q Daniel Budd, f1r
81 20 wa In the bank, u there before came;
sav the note Ia the bank by the direction u r Norton
enclosed it C. sanersou 70 get II discounted 1t tn
someryilc Bank; Norton ted me that Y Ihcmgs0n
desired t. have ~ done the money was returned au1
the presdei took L t. the North River or American
Exchange To redeem bills; this, think occurred
thrt, or four weeks before III failure " The bank
erased the maine % audsrsa from the note ~ order =
the president shic the Board scre al there aal inn'
dstsly after the resolution passed the uoxt u.ng
IT tho Board was on the 3ls of October between 40 AM
~ clock about the ususl time for The opening = ~
lie
specie To ray them that expected T. A. IhoLPs0n
a gentleman from The city. that day 8leu ~ would
meet I'LL our engagements h. dii not CONE
the btard seemed be- waiting expecting hm - come
the cars camc about ten O'Clock Ia the m,rnRg bu
the Directors remained TIL fur o'clock expecting n
mip nj crme by his conveyance, the Board ID nj
cootuue In session longer than twelve, though they
mantd there during the day. there were three res9
buttons passed the entry made on the alst.
The Court here adjourned FIR dinner aud cautioned