The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-04-22
Superior Court.
Before Hon. Judge Hoffman.
re PHOENIX BANK AND THE NICHIG

Before Hon. Judge Holman.
THE PHOENIX BANK AND THE MICHIGAN STATE
Arm ls-Tle Pcaplc Of tie Saie cf Aich9dn rs. Tie
Phonir Bank Of Nee Tmk-The plaintiffs, in the year
1857 authorized Steven T. Mason Governor Of that State,
issue State bonds aud negotiate their sale. Governor
Mason engaged Mr. John Dcadcld Of New York agent
for their sale but failing 10 dsposc Of them he (eahe
advanced 10 the State Of Michigan the sum OF sl5o,0o0
and Governor Mason drew drafts him 10 that amount
In the course Of the same year these drafts were dsho
nored and John Norton, Jr Cashier Of the Michigan state
Bank Detroit, who held Of the drafts, repaired
10 New York Ia obtain payment. He brought
with him private letter from Governor Mason,
dated the 9th of February, 1893, addressed to
Mr. Dclahed, In which the writer says that Nor
ton Is his particular friend, fiscal agen, OF the
State, and Cashier OF the Michigan State Bauk: that
he h anxious b. command funds 10 redeem Michigan
notes the New York market, and remarks io Mr.. Dr,
eld that lac has received funds ON the state bonds in
his possession, he may transfer 10 Norton sJo.Oo or
100000, taking Nortons certificate of deposit rs cashier
of the Michigan state Bank.
Mr. Dcacld had received nothing upon the bonds, AMI
was induced deliver Norton drafts foe The above
purpose for - 800 the Farmers and Mechanics
BANK a, Detrot, and The other for $3.50 on The Bhk 81
Phunx Bank Norton received these drafts took them Ia
Detroit and in the following september and October col
eced the larger one, but the smaller never cot
ccicd IN March $780, the Phoenix Bank counicrmanded
the smaller draft, that the Bank e the River Raj
sin by letter ~ H. cashier. In the or the
same year, the Hhonix Bank empowered an agent to
settle both branches of the claim, either with The State
any other party. The agent, In the fall II that
which the dram for g. 200 drawn by taking a..
signments az various descriptions of property from
the Bank of the River Rasin and the full amount Of The
draft Tor $500, (Which had been collected from The
drawee by Norton Cashier of tho state Bank by ac
ccptng from the State Rank deed of about 500 acres ~
land living In Saginaw county Mich This deed was given
10 the agent trust for the State Of Michigan or the Gnix
Bank, "whcbcvcr should assume the debt thereby set
,lcdS In 1850 tho Phunx Bank demanded Of is agent
quit claim deed 81 the lands given him in trust which ne
accordingly made aud delivered. When the agrnt settled
the two branches Of the claim he gave receipts ~ m zoe
each or them. In the spring of 1854 the PhoniN Bank
through H. attorney NJ Detroit presented 70 the th I"
state Auditors Of Michigan claim, w which rayment
in cash was demanded from the state ~ uhe Whole
amount u the two drafts and interest thcrcou The
bank represented 30 the board that the clam was
wholly unpaid aud that had never been settled IN
whole or IN part by any party In December, 1881, a
few days before the Board of state Auditors went out ~
ofncc they allowed this claim 10 the Phoenix Rank the
whole amounting 10 s35,6o8 ~
The facts OF the above settlements did not become known
10 the state authorities until the spring ~ 1873, after
administration had entered upon Us duties The present
Attorney General of the state felt hts duty 10 bring this
suit against the bank 70 compel TO refund the amount
which Il had thus obtained from the state Treasury.
The case has been only partly heard before the Iudg,
without Jury. The defence set up isFrst that the pre-
sent phnnix Bank although admitted to be the assignee
the claim and to have received the money IT, Is h'
same corporation the old Phoenix Bank, with whom h
claim originated the charter cf the former hank havn.
vxpred and the present becoming H. undo
the general banking law Sccond, that the attorney an,
council of the bank who made the settlement with M
River Raisin and Michigan Ranks was either no, full
authorized 50 TO do in the mode In which donc
that " so authorized his acts ratified The facts wcr
known tc the State when the money paid and tina
was therefore voluntary payment which concluded th
State.