The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-11-02

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AFpIDAyrrs or THE TRUsrEEs-rHEY ADMIT THAT
pkCKrrIos WAS PRAcrrsEp BY EDWIN Q. LUDLOW
Prom The Cincinnati Gazette, Oct. Isl
The case Of Bell Grant and others against the Ohio
Life Insurance and Trust Company (beng an application
for the appointment Of receiver) which was taken up
on Monday OF last week and postponed until SATURDAY,
last was taken up in the United States Circuit Court
Judge Leavitt presiding
Mr. Mathews presented the adavi,s Of six Of the assign
ees q the Trust Company from which the following alb
AFFIDAVIT OF CHARLES srErsos.
harles Stetson one OF the said defendants being duly
sworn, deposee and saysThat he and Is one OF the
trustees Of the Ohio Life Insurance and Trust Company
thai he one OF the assgnees OF said company that he
in the city OF New York when the said company
pended and did Cincinnati for three months
aiterward that he accepted the trust bat would not
have done so had he been IN Cincinnati; that he did
not believe until after the assignment was made that
the company would be able TO all claims against
il, and in this belief he sustained by Messrs W. w.
Scarborough and Vim. Hooper, who were committee
New York aid him the investigation OF the af
fairs OF the company These gentlemen urged upon the
trustees not TO make an assignment but that they should
go all just claims against the company in
payment Of claims held against It's debtors. This ai
ants Indebtedness TO the company paid or pre-
the assignment, by claims against the company
q portion purchased par and a portion small dis
These claims, the aant insists valid Offsets
in his hands against any demands the company had
against him This aiant states that al ali times as trus
tee and President Of the said company and assignee
he has acted good faith, ana TO the best Of his ability
and knowledge 10 promote the welfare Of SAID company
aud all parties interested He admits that the said plaintiffs
obtained their said Judgment charged and states that
thcir clAim out TRANSACTIONS between ana
the New York Office OF the said company, Of which
he had no knowledge until after the suspension
Of said company in New York and Cincinnati.
He admits also the assignment in trust, and is
advised The lawful, and the grantees competent
the He denies all fraud in making the
charged implied, and insists the is valid. He
also admits said signment that
SAID company and then nsolvent and though
nsovent he believes that the said trustee Of said
pany who ordered the SAID assignment The being
OF them), acted good faith and without fraud as
charged in any respect but to promote the best interests
OF oil concerned He also states that 1t delayed from
day to day under the hope and belief thai the company
could weather the storm, and that IT could better wind
its Affairs than IL could be done otherwise bat
last harrassed and oppressed by suits and litigation,
abroad and at home, that assignment Inevitable
and that calamity the trustees home, good faith
postponed TO the last moment. Afiant denies that the
said company sustained any by reason OF the
want OF proper the part of said trustees and
ssts that they always exercised more care than
denies that they were guilty of any breach
OF duty, charged in said position, and sspe-
cally that they did not make all the cxamna
required by law the condition said
company. He also denies that improvdent loans
made To railroad companies and individuals without ade
quate security the time In declaring dividends the
proper examinations always made in good faith and
the trustees believed this aiiant certainly did that
said dividends declared only from prohts after
leaving a sufficient surplus for all contingencies The
trustees daily and al all times had the affairs of the
company before them Aiant denies that Edwin C. Lud-
low allowed by the trustees knowingly he
DID, charged said petition; but the contrary,
his acts and dongs not disclosed to tn trustees but
York established many years since and kept up for
specific purposes and the agents instructions were in
writing and his line Of duties well defined and this aant
had knowledge Of his violation OF sail Instructions
until after his arrival in New York August, 1857,
the time OF the suspension Of said company in that
city, nor had lac any information until "A very short
time previous, which made II necessary for him to
60 10 New York. where nc found the company over
wheimed in rum by the acts Of the cashier, but 10
what extent impossible for him tell The charges
in said petition relation the connivances said
tees, their compcIty with said Ludlow, untrue
in .h1N.. EaI .t
oath. Whatever Ludlow did under the order OF said
Board Of Trustees he insists viii be found have been
ordered good h and intended for the benefit Of said
company and in the main had that effect The trustees
IN good faith exercised such supervision and control
Ludlow aud the Office in New York they believed
and proper e. promote and advance the
nys interest. Ludlow had long been in the office New
York and the trustees believed him honest aud capable:
but they admit they were deceived, and not adj
vlsed Of his acts however well Intended until after the
suspension. very short time before the suspension Of
the company the New York office was examined by two
Of the trustees resident there and found
tory, they doubtless imposed upon, aud. suspcctrg
wrong, may not have been vgilant they other
might have been, but that they acted good
faith this anani verify believes The atanl denies that
after the suspension the trustees violation of their
duties and trusts proceeded To pay certain creditors ue
the company charged m the petition on tn contrary
the trustees advised by then counsel that all debtor
OF the company could meet their debts with claims against
the company and could not resist such offsets he L.
informed and believes The trustees could prevent
avoid this state Of the nythng IN said petition 10
the contrary Notwithstanding At first no creditor was
paid nothing done but permit debtors sy their
debts When the company besct by suits and attach
ments o all sorts upon due consideration believing the
company u be able 70 all u IL debts nj least did
agree pay the branches OF the State Bank Of Oao and
independent banks in assets and did and AFTER wards
settled with others. In this there preferences
many willing to take what the compan! bad TO give.
and got IT, while others refused what the company bad TO
give The amount thus settled was very considerable,
and greatly beneficial 10 the company aud the com.
munity, "a he verify believed Afaant denies
that the trustees could hold the assets FOR equal
Distribution upon the suspension of the com.
mani theF VA ID d enc he
asslgnees refused u pcrm, the piars counsel To
mine the books and papers q the company, having no
protection against abuses well know ng that all examna
tons authorized by Law would be granted by the Court in
such manner 20 protect the parties and without this
there has been refusal The ssgnees have not been
able yet 10 render account at al satisfactory 20 Them
selves and "a cannot BE- done until further progress
made in disentangine The Affairs Of the company not IN
Cincinnati, hut IN New York aud a. that eud time and
patience necessary. The ahant dcnis that the
sgnecs have, IN any compromises which they have made
allowed preferences any creditor debtor of sad
psny that thcy have greatly all wasted the
II aid company, misappicd the the
uoy,ncnt az counsel or agcn,s a. charged In said on
ucr have they into extravaganza executing the
same. Will fully appear II the future progress 81 this
cause. Afhaut also denies that the lssguees have
stated M the petition and without the shadow ~
foundation III afant hnaiy dcuic alt fraud charged
o. Implied 20 lin a. assignee, and as y all matter
u0 -g ally hereby tnNcrted aud denied ana material 10
b. answered ~ ihi Ume, b. dcuios the s,nc. Anlalt
further says tai tpon petition hct the superior Court
81 O,nCisfai ny spinning x Brown. against the aguces
before pla ntiF petition Nlct thr uNl4nf ana other
assEnccs nalrf thtt ! mqtan wog. he ma D. for
TIE appointment a recover III sail Court h. aid cause
Muudnt OFT IS 1855. and also before plaintiffs pcv.
ton hcd and pfoegs. served ot him. p" sabpp
81 A. Wins 90 saa motion, ~ ~hcl he appeared,
aud befort advised IL any action ol fAC Court The
cal.a be- bottled sad superior Court that b. ready
a. rxetue said trrtts under the supervision 0f salA
Court render The same, being recyad from al ~.
ture responsibility by thereof ana therefore ai4
Court appointed the sheriff - Hamilton county receiver,
AMI he ts8A POSSESSION 3. such
NJ Charles fu8ck afirms c truth ~ Mr - siscr ar
hIavt partly on Information and partly from actual
knowledge Mr trustee. 81 thr pany FOR twenty
wears ana was 1ctug A. President tseteuf during
Nj stgtsin ahScmCW az The tue ~ tAe suspension.
NJ tetcFralhca q sfaui from New York 90 the after
81 August 20. that the company aad suspended
greatly A. aiants SURPRISE ~ du uut thcu believe the
company usUycnt ur n tho tme y The anal oxccu
rs the trustees.
Abraham Taylor believes NJ stc'sou a1iJayt 70 be
true statement ~ thc facts VI Ras a trustee 81
the COMPANY flr many years H. wa depo-tor. and