Litchfield enquirer., 1859-09-01
.dBe &itt9feh Gnquirer .
THURSDAY. SEPT. l, ls5e.

THURSDAY, SEPT. l, 185o
 L1rcHrlELD BANK At an adjourned term of the decision the severalpoints raised in relation to the Report of the Receivers of the Ltchfeld Bank, From tl,is decision which is somewhat lengthy we copy the following:
 alp therefore of the opinion, and do ad- wise aud order, that the Receivers allow the claim of the Hurlbut Bank to dividend up- on the Bills presented, slch dividend not to exceed the principal and interest of the loan but that no such dividend be paid in the event the bank shall obtain payment from the other collateral in their possession, nor be paid till they surrender such other collateral.
 As to the Bridgeport City Bank, l cannot therefore under the circumstances hold this Ii. e. the sale of $500 of the bills of the Litch6eld Bank, to have been a legal sale to Midilcbrook, nor is it for the interest of the Bank, or the parties that should do 50. It teuGs to complicate the matter without bene- fitting either If sI,onld hold this sale valid should held the Bank thereby had cancelled their indebtedness. and were bound to return the other colaterals in their possession. l should hold that if the Receivers were com pclled to pay to Midtllcbrook, as dividend an amount exceeding the indebtedness for which the bills were pledged and the interest there on, that they would be entitled to recover the excess from the Bridgeport City Bank. therefore am of the opinion that the prctended sale to Mhdlcbrook was not actual, or, with out notice, legal that the Bank are still the holders in law of the bills and that they are entitled to the benefit of the presentation made by Midd,chrook, and to a dividend npon them, not exceeding the amount of their debt and in- terest but that the Receivers should not pay such dividend in the event satisfaction should be obtained from the collateral in their hands, nor until collateral, if uucollec:cd shall be sur rendered.
 .The conduct of the Connecticut Bank was illegal. Upon the principles herein before al- Iuded to- they were entitled to put the bills in circulation, if they elected to do so, to the nominal amount of their debt and interest 1; but were accountable for them at their fixed nominal value For the excess, over and above the amount of their debt and interest they will be liable to the R ceiv"r<, if the Re- ceivcrs shon'd be obliged to pay and should pay a sun exceeding such debt and interest, UuG WlIHOuG SuCH lityHthI, oi Ho "doV h->S" obligation to pay, by the declaration ofa divi- deed, do not think the Receivers have any claim, inasmuch as the bills are surrendered to them by the holders who purchased them. but for such surrender they thereby would have an immediate right of action for tie tortions dis position of the excess In my judgment having disposed of their bills at their fix d nominal val ue, exccedug the amount O. the indebtedness of the Bank, that indebted sis thereby carc lied. Their claim upon the other collatcrals iu their hands, with the exception of so much of the Van Clecf & Smith notes as were discounted and credited before the sale of the bills, is gone, and that collateral with the exception as aforc- said, should be given up and it is the dnty of the Receivers to recover it. And the Bank will be liable to the Receivers for the excess of the bills so tortously disposed of; and if the Receivers shall be compelled to pay Morse. Thompson and others, now holding the bills, an amount exceeding the debt of the Litch- field Bank to the Connecticut Bank and inter- est, less the paper discounted and credited on the notes, and the Receivers will have right, and it will be their duty, to recover such ex' cess of dividend from the Connecticut Bank by proper action instituted therefor.