The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1859-01-24
The Bank Case.
The following are the material portions


of the published opinion Of the Supreme
Court in the case of the State Bank.
The complaint being en- information
in the nature of a qaso toasTante, alleges that
the Bank claims to be lawful corporation
under a pretended law Of this State, en-
titled g an act to establish a bank with
branches" and that they have assumed to
act and are acting as such, exercising the
powers and franchises attempted to be con-
ferred by the provisions cf said pretended
act, but all without authority of law: that
the pretended act was and is null and void;
that the passage thereof was by fraud and
bribery of several of the members who
voted for the same; that it was passed in
both houses without a constitutional ma
jority of either house, and by other uncon-
stitrtional and illegal means; and that the
association and its branches were organized
and put in operation by irregular, illegal,
and FRAUDULENT practices
The complaint charges that the persons
named in the act as Commissioners, met at
Indianapolis within the time prescribed,
&C.; divided the State into seventeen bank
districts; pretended to locate each district;
and appointed two sub-commissioners for
each, to receive subscriptions to the capital
stock in the several branches; that under
their management, stock to the required
amount in each branch was subscribed; and
that, thereupon, delegates were appointed
by the several branches, who met at Indian
apolis, and pretended to organize the "Bank
of the State of Indiana elected a presi-
dent and cashier-formed board of direct
ors, consisting of a delegate from and of
each branch--and filed in the Office of the
Secretary of State, a paper purporting to be
a statement of the proceedings in the Or
ganization of the bank sand branches; by
virtue of all which they claim to be law
full corporation, and are acting as such !; but
it is averred that the proceedings of the
commissioners were and are void, because
!. The ub-commissioners so acted in and
conducted the opening and closing Of the
books for subscription, as to prevent and
exclude many persons from subscribing to
the capital stock in each and all of the branch
es, who desired to do so, and who were en-
titled to subscribe. - i,ggg a
2. That they secretly and privately OPEN
ed and closed the subscription books so as
to enable only those persons to subscribe
who had been previously named and fixed
upon by the persons who had procured the
passage of the pretended act of the Legis-
lature, and their confederates.
3. That the sub-commissioners, and each
Of them fraudulently kept away from the
places appointed for subscribing, and kept
the subscription books also away, and out
of the view of all persons desirous to sub
scribe, except the favored persons, till five
or ten minutes before the hour of IL o'clock
NJ, the hour tor closing the books, and al
lowed no one to subscribe till all the stock
had been taken by and in the name of the
defendants and their confederates; and then
instantly closed the books, whereby large
numbers of citizens of the State, at each of
the branches axcI,,5-I -----
stock to defendants and their confederates,
the sub-commissioners, fraudulently, and
in contravention of the meaning and intent
of the act, permitted the defendants and their
| confederates, to take all the stock in tte
several branches excluding all others, they,
| the commissioners and sub-commissioners,
declaring and giving out speeches before
hand that none but them, and those who had
taken an interest in the passage of the act,
would be permitted to subscribe; that thus
the defendants and their confederates, mo-
nopolized all the stock in the several
branches; and that the persons claiming to
have been elected directors in the several
branches, and in the pretended bank, hac
full knowledge of all the frauds &c, here.
in charged at and before their several elec.
tiens, and their organization as branch
boards and bank boards.
This paragraph, in effect, comedies in vii
idity of the act Incorporating the bank, anc
directly admits that the required amount o
stock was taken; but complains that many
citizens who desired to subscribe to stocl
were, by the fraudulent conduct of Others
namely, the officers appointed to open the
books, and those who were instrumental il
procuring the passage of the act, prevente'
from making subscriptions. The act itsel
appoints FIVE commissioners, who are direct
ed to meet at Indianapolis within ninet,
days after its passage, and divide the Stat
into not less than fifteen nor NOR
than twenty bank districts, to locate branc
in each district, and appoint two sub-com
missioners for each district, to receive sub
; scriptions for stock, &c. The sub-commi'
sioners are required to open books betwee
the hours of nine o'clock and twelve O'Clock
A. NJ, on the days and at the place specific
&C.. and if the requisite amount Of stoc
shall not sooner be subscribed, said book
y may uC hOPt OpOA OCbuCCn thC ce-AaC AOoi
each day, for the space of thirty days.
more than the requisite amount shall be sui
scribed while the books are open for an
branch, the excess shall be taken, in pre-
portion, from subscribers over 1000 dollar
until all are reduced to the amount, an
i then from all equally, &c.
These sections allow the books to
closed when the requisite amount of stoc
. shall be subscribed; but they evidently il
tend that all who are present at the plat
= designated, between the hours prescribed,
!; desirous of subscribing, shall be allowed
do SO. And here, the sub-commissioner
having Intentionally prevented the persol
s named, and others, from making su
i scriptions, acted not only without the il
tent of the law, but committed direct fra,
= upon all who were thus deprived of Il
right of subscribing. They did not, no,
ever, commit fraud upon the State.
far as she was concerned, they were guilty
mere irregularity. The required amour
of stock was taken. That requirement
the act has been substantially complied wit
And such being the case, the persons d
frauded, and not the State, have the rig
to complain; because the bank, because b
g, stock was in the first instance, irregular
subscribed, is moi, for that reason, less al