The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-21
Supreme COurt-CircuIt.
Before Hon. judge Roosevelt.

OPERATIONS OF THE LATE BI6HTH AVENUE BANK.
JAM 2o-E r. Coules, Receiver of Eighth Avenue Bank.
Joseph Po-Ths controversy arises out Of the ope
ratons Of the htc Eighth Avenue Bank now tn course Of
liquidation TIE nominal capital Of the institution, ap.
pean was Sloo o0o Is certificate OF formation, under
the general banking law, was signed by . very limited
number Of associates, Who together took the whole
stock with understanding alleged that others were
Afterwards 10 be brought in by subdivision and ansfer.
Among these others was the defendant Potter Seventy
shares OF 500 eech appears transferred to
the books and certificate made out 10 his He paid
for them BY note n six months discounted the bank
due he paid the interest and ga for the prin
oipsl at elk months more, incld the six months Int
The defendant then refused TO pay, alleging that the d.
rectors Got whom he himself one) vscated the law
CURE cash down and As he and his associate directors
had no right 10 give him credit therefore . legal
sequence, having obtained credit he not bound pay
after the period Of credit has en- pred. Had the
stock, according 10 this doctrine, turned ont va
liable, the profit, will be scen, would havo
ROD surned out to be worthless De loss must be bsrs,
by the small savings depositors Spch, think, 10 not ~
certainly Ought 1o 10 BE- the !a. p0''sT ..'
therefore was proper suoec. OF discount; and IS Dies
not lie in hi. mouth 10 say that the discount
made In good hnn. Deposiors relied and had right 80
rely, upon bis name IS An actual and not nomiaa
uibutoi 70 the stock In the annual sworn statement
bound sFecy this stock n paid in or invested &C.
cording 70 Mw."-Aot Of My 70, ls4L Re wa. ais,
W tnkt tue fTeeluent ana Cnner Ire Pre-
sdent himself fJr seventeen months, and csaims or
set OF 5000 FOR his servoes) kept "st eli times true
and correct list OF the names OF all the
public inspection, and died copy every six months In
the ofhoe OF the Clerk cfeeounty aud Comptroller
OF the State-Genera Bsnkine Act, sec 80 We ave 70
presume, IN the absence OF either proof sugEstoo 70
the copPsy that these requirements Of Law were duly
complied wen. And shall director president be nov
permitted W say thai, although seemingly complied WITH
we complknce vas merely formal and deceptive Tue
DEFENDANT, In DIS answer says he indsced TO
sign the noss under false He does not
nor dQoa he DraVa snor, M
that he received no consideration for hs signature yet
the note on Us face contain by MIN
OF "vaue received and hesdee H appears q Already
stated thai the stock actually transferred 10 hIs
name on tho books under hts supervision he being
director a the time and that the Certificate although
actually hed up was only not Ont out and delivered TO
TO him beooise II was understood. we have perfect
right 10 infer, that 10 q byyolhccAtion
I'LL the payMeft Of the note In Judgment OF law N ere
fore, he did receive the stock AZ sig months
with full opportunity Tor reflection he again affirmed the
subscription transfer by paying interest on the puv
SIX months Tor the principal 80 for the defence
As 70 The alleged Offset appears by the own
testimony, Introduced TO show his liability &c be imposed
uptn In such matters, that he bad little or no financial
knowledge and that durrg the raentbs Of his
presidency, which may properly be termed expiring
gle deposit and tsde single discount Tue savings
doposi,or were doubt impctunaie and their visits
frequent as they must have beeu dsgbt pstutuI
u the feelings OF honest and kind hearted man I'm.
der the Circumstances, also the rcsponsi
biy Incurred axd that The defendants estate was SUN.
Gent 10 meet Is sn disposed 10 allow con psnss,on
Tor his services president a. the rate Of o. 600 year
according 10 the Variation Of Two Witnesses IN his
favor. Judgment accordingly for plaintiff for a. 100 40
with costa and my dollars allow