Litchfield enquirer., 1858-11-25

having thoroughly investigateo tne anaifs o' 'nS m stitution. applied to Judge ELLSWORTH on the 18th inst. for permanent injunction. The petition was read by Lucius G. Peck Esq, attorney for the Com nissioners, follows:
 Ix THE MATTER OF THE BANK COMMISSIONERS
 vs. TIE LITcHFIELD BANK.
 7o Me Ho.. W5linm ". EUsoorth, Judge
 ef tae Supreme Court cf Errors:
 Ihe further petition and complaint of the Bank Commissioners of the State of Connectl- cut. respectfully shows that since the ord'r an'i decree of this Honorable Court, passed on the sd day of September last, the Bank aCom'nls- sioners have pursued their investigations Of the affairs and doings of the Ltchfcd Bank
 That it was averred by the officers of said Litchfield Bank, at the former hearing and trial before the Honorable Court, that ti.' whole amount of the circulating notes of bills of said Litchfield Bank, which could or would fall into the hands of the public, did not exceed the sun of S2, 300, unless portions or all ot the circulating notes which were in the hands ol oarties in New York and elsewhere, for loans, should be put into circulation contrary to then seyeral agreements with said Bank.
 Tint so fur from said statencnt being true. the Commissioners find that at the tnAe of sahl hearing. ail of said circulating notes, amoaAt- ing to $32, 900, were out for circulation. as tot lows, to wit:
 The amount averfed to be in the haaets of J. H. Burton, New Yosk. for d foaa of $o.eOo -$I ,O00 The amount ayeffed to he in the hands of A.. J. Brown, New York, for a loan of $5 oeO-$l9,000. The amount averred to he in the hands of Spoiford, Clark < Co, llll- nois. for a loan of St (-$l5,00o ali of said bills were put into circulation, and were ii, eirtulatiou before the forGer hearing, except sn,h portions as were returned by SpoHofd, Clark X Co. to the agents of said Bank in New Yonk
 .I It was also averred by the officers of said Bank that $l5, 900 of their notes were hypoth- coated with the Hurlhurt Bank, of Connectl- cut for loan of $S,000, while, ill fact, only ksO. 900 of said notes were so left with and held by said Hurlburt Bank. Tine remaining $5,O09 are traced by your petitioners to one Geo. w. McCuona, broker in New York, who had alseadg but said bills in circulation, a~d wflo for long period, had been receiving large amounts of the bills of said Ltchfeld Bank for circulation, all of which were marked, and were to be protected by him, the said Me Cullom. That said transactions were with the knowledge of the officers of said Bank, while the books of said Bank contained no entries re- lating thereto, and the other directors of said Bank wcte ignorantof such transactions. That said Litchfeld Bank did not possess any secn- ri,y, or even voucher, for these and maly other transactions of similar character, nor have they, the said Bank, so far as yoar petitioners are able to learn, ever received any interest or other consideration for these large loans of its currency.
 The following is one of the agreements which said Ltchfield Bank resorted to, to get its bills in circulation
 Articles of Agreement, made this 24th day of
 July, 1888, between the Litchfeld Bank,
 and Augustus J Brown, of the city of New
 York
 Wituesseth, That the said Litchfeld Bank have this day delivered to the said Brown, ten ,thousand ,llars of the notes of said Bank, flor which said Brown has paid $5, 900 in cash, and given his notes for the sum of $5 900. One snote for $l, 300 at 60 days $2000 at 75 days, and $l, 800 at 90 days, which notes, when they become due, are to be renewed without interest until the expiration of six mouths from date, and A. J. Brown is to re- .ccive 5000 more in the Litchfeld Bank notes, for which he is to give cash in six days
 Now l, the said Brown, agree to keep all of said bills in circulation, by taking them up at all times when presented, and pay cash there flor on demand. Said agreement is to continue fer the time of months.
 Signed J. G. BECKwITH, Pres.
 AUGUSTUS J. BROWN
 That it was averrcd by said Litchfeld Bank at the forEer hearing before your honor, that said Ltclield Bank was able to take care of and redeem all its circulating notes, and could pay fer the same as demand therefor should be made at their counter But your petition .ers find said Bank unable to make good their said declarations, aud the Bank cannot in any manner satisfy the demand made at their coull- ter or elsewhere.
 That it was stated in behalf of said Bank, at the former hearing, that out of $l00,000 of it's subscribed capital, $89,750 of the same had been either paid to said Bank in full, or had been fdlly secured and held by do'm Jfde stockholders, and that the assets of said Bank were all good and available, and would be col lec.ed. That so far from said declarations be- ing true, your petitioners 6ud upon careful in- ycstgatiou, that at the time of said hearing but 89 shares of the capital stock of said Litch6eld Bank, amounting to $s,9OO, had been paid in full to said Bunk in cash. That 5lO shares of stock, which was a majority of said stock, was substantially in the hands of k. H. Hazleton X Go. and Daniel Ball, both of Michigan. all of which said shares had beer. purchased by them, and for which they paid in cash $l0,OO0, and for the remainder had given said Bank their promissory notes. That 2l2 shares of said stock was held by l9 per sous, upon which they had paid $lO 220 eav- ing lS9 shares of said stock standing in the name of l3 persons, upon which DO payment in money had been made, but for portions of which the parties in whose names said stock is distributed, had either given their notes,