Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1862-07-10

Company of Allegany County, to avoid said
sale and transportation contract. That on
September 30th, 1857, the day said deed OF
trust was made said Sherman, on q fair set
Element of accounts between complainant and
himself, was actually its debtor to an amount
exceeding two thousand dollars. on an ac-
count called Loan Account, while the Sched-
ule attached to said deed of trust, includes
him rs II preferred creditor of. complainant,
under said deed, to an amount exceeding
| SIG $500 that the Indebtedness, in said sched-
| ule stated to some other parties was only APP
parent and not real and much Of it amply
secured by colaterals, before the execution o I
said deed, which latter was unnecessary for the
| purpose.
The Bill then states, that said deed of trust
was unnecessary for the protection of com
plainants creditors, and fraud upon their
| rights; and mainly resolved upon By the
| Board OF Directors at the instance of Sher-
man, Mehaffey and Bloodgood, apparently for
the benefit of creditors, as well as OF the Com
pany, but really, in order to continue the
! power and control OF tomplainant's funds and
business involved and diminished by their
fraudulent misconduct and detention of its
money and property, in their hands that said
| Sherman, Mehafley and Boodgood, by their
injudicous, unauthorized and improper ex-
penditures OF its means to Il large amount had
caused serious embarrassment in the prosecd-
ton of its business, and II failure to meet
promptly its liabilities that they were pre-
sent at n special meeting OF the Directors OF
complainant at its office in New Yerk, on Sep
TENDER 18th, 1857, and at an adjourned meet
ing OF same Mt same place next day, partci-
pating in all the proceedings, at which the
preparation and execution of this deed OF
trust was directed and resolved on, and it was
so resolved on, proiessedly, by said Mehaffey,
Bloodgood and Sherman, as the best mode OF
protecting compliments property during its
then financial difficulties, from sale and sacr-
fee, until its liabilities could be deferred and
arranged, without the necessity of any sale OF
any of its valuable property. That with this
view extraordinary powers were conferred on
said Trustees and Mehaffey, Bloodgood and
Sherman were selected as such Trustees, be-
cause they offered to act without any addi-
, tional charge for their services, or compensa-
ton, other than what they might receive as
officers of said Company in the positions they
= then held. That said deed OF trust was made
TO them the next day, TO wit: September Goth,
1857, on account OF embarrassment in its cir
cumstances, conveying to said Trustees all its
real and personal property wherever situated
and which had not been previously conveyed
in trust, that said Trustees should sell and
disposc thereof or so much as was necessary
for the purposes of the trust, ETC., and after
paving expenses, etc, and satisfying liens, il
any, ttc, apply proceeds TO payment of com
plainants debts, etc, copy OF which deed Is
| filed with the bill, marked Exhibit No. /, as q
e part thereof.
! The Bill further states that all complain
} ants liabilities, payment of which was secured
8 by this deed of trust, have been fully paid aud
satisfied by it, and none OF item by said Trus,
q tees, except perhaps nine per cent. upon
8 Sl9,5OO, claimed by the Trustees of the Mineral
s Bank, rs damages upon protested bills OF ex-
e change, (since the bill was filed this has been
compromised and settled by complainant it
: SELF which complainant by advice OF counsel
, contested legality of, and filed copy of docket
| entries of this suit with the bill, as Exhibit
No. 2; and that complainant is nj all times
( ready to pay above nine per cent damages, il
Q obliged SO to do and that said Trustees, Me-
, hufTey, Bloodgood and Sherman have now in
, their hands monies of complainant more than
: sufli rient to pay same; that each of said Trus-
/ tees Mehaiey, Bloodgood and Sherman is
largely indebted 10 it; and that all of them,
o ntly, are heavily indebted unto it on several
different acco, nts, and in sundry large sums,
over aud above all claims, they or any one ot,or
q, any two of them may respectively have against
3 it, said complainant.
| The Bill further states, that after said deed
, was made, the property conveyed by it re-
!, manned in compliments exclusive custody
2 possession and control, and that said Trustees
a did no act in virtue of said deed; that all the
= property covered by it, which was disposed
of, was sold by the Company itself and pro-
ceeds of sales received by it; that all debts due
2 it were collected by it, and that the whole in
debtedncss due from it, which was sid, was
/ paid by itself, through its own officers and
: agents aud it proceeded in its regular bust
Y ness sxcept perhaps the Krebs debt, hereafter
/ mentioned. That neither said Trustees, MOI
4 any of them, did any act, in virtue OF said
, trust, until it had become apparent that such
action was unnecessary but when they found
Z they were to be ousted from the power and
-, control, which, as chief officers and agents o
: complainant, they had so long enjoyed, tEey
4 then sought to avail themselves OF the POWER:
, they supposed, or claimed, to be vested II
, them by said deed, in order to obtain anc
/ keep possession aud control OF complainant!
{ business and some of its property, not for thu
r benefit of the ccstu que trust, whose Interests
g they had wholly neglected hitherto, and which
8 then required no action OH fheir part, but a
| u means, solely, of protecting themselves iron
, the consequences of their previous mlsman
3 agement OF, and fraudulent dealings with, thi
Company's property and effects, and for thei
own ends exclusively, regardless of their dut,
{ to Others That with these views they flsd I
, bond as Trustees, to the State OF Maryland, !
COPY of which is exhibited with the bill mark
e ed Exhibit No. 8" which if in other respects
, coniormable TO law, should have been Ion.
before filed as required by the laws of Mary
land and the sureties upon which they mis-
represented 10 the clerk of the circuit Cour
s to be adequate sureties for amount of sait
t bond, when they knew, according TO complain
1 ants belief and inform alton, that each and al
). I OF said surcties were worthless, pecuniarily
and that they could not give the requisite bond
| The i'll further states, that one Charles W
= krebs, who was formerly an agent of com
= plaiuant, ut Baltimore. and who was on Ma,
, 30lh, 1853 and still is indebted to it i'll sun
4 exceeding $4,000, has hitherto wholly refused
T. to pay any part OF same, or to account will
| complainant for the same. That complainant
= is casually informed and believes, but does no
G know, and has not been advised by either
1 Krebs or said Trustees, that they have received
G from said Krebs at least $4,000, If not more o
= said $1,000, which is now in their hands, anc
l the only debt that said Trustees ever claimed
, to collect for this complainant. if they have
1 collected any of it; that said krebs and SAID
Mehaffey, Bloodgood and Sherman, coludet
| together when they were satisfied that sale
Trustees would be deprived of their custody
: and control as officers and agents of complain
, ants property and business, and said krebs o
4 his agency and without any intention of, OF
necessity Tor acting bona 6de under said deco
. of trust, to this effect that s,ii krebs should
~. sal ,rfn nt - nr a n