The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-07-21
WHOLE NO. 6S44.
Moro Ban king and Finn.ci., Operations.

would turn TO be a profitable one. The Legislature
in order TO the company to indemnify them
from loss, gave them banking privilege About three
years the bank went down and the pub suf
>Drers to Il considerable amount
Under statute Of New Jersey IN prevent frauds by
orporated companies the complainant filed bill against
the defendants to restrain them from the exercise of
Sheir franchise OF banking and also for the ppontnent
of receivers The order granted winter by the
chancellor enj lining the company from exercising the
.ers John Runk John W. wsSeteld A O. Davis and
phiness jerks. The complainant puts hi case for re-
LEI on the ground that he was he holder of mort
gaze upon the bridge owned by the company
Thomas Coleman, a broker ia Wall street, among
other creditors presented claim to the Receivers, he
being hoder Of the notes OF the company to the amount
OF S2oJW0 The complainant resists Colemau's claim,
pon the grnd that the notes of the company held by
him (Coemapl, is ued under .pecal contract By
which the Columbus Insurance Company and others
were 10 redcem those notes. The company having vio
lated their contract the Receivers are called upon by
the complainant not TO grant certificates for which
were TO be redeemed by the Columbus Insurance Com
psny.
wide field 1t is al eyed the part OF Coleman that
the mortgage given by the company to Holdcombe is
roid-the same having been given after the company
ground Of usury
During the days an nvesti alton was held be-
Tore the Receivers at New jersey Messrs Scudder
and Gilchs, appeared for aud the brokers Of
Wall street, and Mr. ilastead the part of uodcombe
me oggee to resis the admission If he SO COO worth
OF notes Witnesses were examined follows and it
viii be seen that some curious Developments
sPired -
Ansei st. John examined by Mr. aalstead-I am ac-
quai1ted with Thomas J. Coleman: I have been ac-
quainted with him or six years or moro
since tho failure of the New Hope Bank he has not pur
chased any CT the New money from me- he has not
purchased any at my office thar or from my clerks
or any person concerned with Just before after
the failure Of the bank Coleman Mitchell kept at &c
WAL street; David A. Mitchell is his full name had
conversation with Coleman before failure Of the bank
an reiaion 10 notes that hai mark IN them; don't
know that state specifically at the time those notes
were issued to the Columbus Insurance Company they
were marked by Warren jenkins who had his office with
MIR Coleman; he had his desk in Coleman, Office Mr..
coleman redeemed tbe notes for Mr. Jenkins; mean
The New Hope Delaware Bridge bills, particularly
sho-e marked "W;" have seen Jenkins mark large
portion Of those bs IN Coem.ns office with the letter
"W;" Coleman there some Of the times; when
sev jenkins mark those bill. with tho Letter Vs. Mr.
Coleman understood what this mark WAS; this mark W
designated the bull that the Columbus Insure Com
IHny we-r to redeem an project afterw ards Warren
yeukins wns to protect them; another contract
afterwards entered into 18th Jekus by which the bills
WE'RE to be redeemed by hun and returned to the New
Hope Delaware Bridge Company; this contract wa con-
sinuod with N. Is Curtis and David A Mitchell after
Jenkins went away Curtis Mitchell. kept their Office in
the same room with Colonian Coleman ,ntuucd t.
deem the notes as heretofore; short time after the
bank failed Coleman tod me he had bills Curtis aud
hnchel told me they hai 50 u o. and showed me par
ctk of money in tin box; dJut know but Coe;nan
was by when thcy showed these oils. mai very
long conversation In Curtis Mitchell with Cur
It's Mitchell and Coleman the rgit before they stopped
redecming the New Hope bills. a Judsou'e Hotel; the
object of the meeting was 10 zee her they could 20
on with the redemption Coen proposed seemed to
be wiling to do what he could to help Curtis 4
Mitchell 10 keep on with the redemption; told him
10 take car Il our circulation hone tuis interview
ended with the understanding thu, they would some
friends in the morning from VIII III they expected or
hoped 20 set aid; In the ornns about nine or ten
o'clock thy gave to under tani that they would
deem no longer, Curtis Mitchell aud Coleman being
present bad conversation. after tho failure Of the
bank, with Cocman II one or two mustes after The
f.ilure Il the bank.
Counsel fer MIR Coleman demsniad the production Of
the ements referred to in the examination Of the
wtnefs, that be might have an opportunity to cross
examine with reference to them.
or rpuli hat
IN the hands Of the Receivers and that counsel for Mr.
Coleman vas bound to give notice to produce them.
Exsmined by Mr. Scudcef. on behalf " Colemsn--
have been connected with this bank since 1910 ~
president most of the time and cashier for short
time but In no other capacity: bur most Of the time
since 1870 have had charge OF the Affairs Of the instr
suton.
Q-You stated, In Your cirect examination, that you
would do ~hst you could 10 hFp them to redeem the
notes yGu bad funds to AXE Of tie circulation
al homc What funds had you ut home a: that time!
Al don't Tecolrct the amount.
State 10 the best Of your recollection.
At ~Scd be quit, ind anto Il stated e tss best
GLOW long after that tune did the bank fair
Alvey econ.
Q-Iinw soon
York and few days after 80 far as the
bank concerned; old business the bank after
Q--Wha! Jusiness
Amy ordinary busiress &c the Office
Q-N .-I DO ,ou call the ordinary business Of the
A-reyipg checks rodecmins money, collecting
o-Wba, money did you redeem, and wha, debts did
you collect
Al don't rcoolloct.
Q-WLon was the mortgage made by the New Hope
Company to iloldcombei
Al don't rrcoect the date
QWas " before after the REDEEM pton Of tbs bills
IN New YoJk atOpptd'
A.-After the redemption Of the bills In New York
stopped, Tut before W. stopped r'dsenins them.
Was tbe mortgage m ids At The time when you
know ne bids in New i'rk were not rejes med
AYES, f,hey could colloc, tneir debts
Q-Wss IL made when they had failed 10 pay their
A-leannot say it was.
Q-Wly was II made
AItvas made to John Holde irnbc, ia accord
sLce with previous agro, ment with him
Q--What was that sgr, emopsi
A.-rbe agreement thst he should have . mort
asge for tie amount the company wed him
Q-Mhea was the az rrennrnt madol
CIV did ,he company become indebted to him
--ih,S JorrJw,d about eight thousand dol.
lars T.. him. for the Of The company; Il may be
more on u may be lees; don't rrn,rbrr drew the
origHge or ~ho executed IL; psy have igned 1t, or
the lrstsurtr Of the cuiapauy may nave sigued IL.
Q-Wcrc ycu present when sSncd'
Al cannot say that was cannot recolloct that
Figt I'd ~ may have been pe-r
Q-Nas any resolution II the board passed authoriE-
arg the ssniug Of this niurtgagei
Al think there was
Al think was
Q.-Whc siae was present.
Al don't rtcolect distinctly bit suppose judge
Corycil Emos WHOM Elijah Wilson, and James NJ
I,obinson. probably.
Q-Who called them together
Al preeuuc the Tr, ssurer
Q.-ht whosc request
Alt may b. at my request, Of the other directors
In the village.
o-Did yuu at that time state 10 thoae persons thst
Che bs Of the company not redeemed la the city Of
New YORK;
II pr baby advised them ~ the fact that Curtis
mitcfel had stopped rrdc' ming them
Q-Dd they thercupon execute the mortgage
A-Tbcy parsed resolution directing murtage to be
executed they may have directed the President the
Treasurer To- execute IT,
Q-Whst b. came Of the $4,000 that Fas in the bank
Nhen they stopped redeo ming the notes In the city Of
New Yorkf
All was paid mostly to depositors
Q.-What depoeitort'
Al don { recocct the rnmee
Q-wss any paid TO Goddard & 50 John. or NJ.
Bates, their agent
A.--Nono that think o.
Q.-Afer tho notes were not redeemed In Now YORK.