Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1862-06-05


been instituted against sherman and Dean,
ana their assignees, The Hoffman Steam Coal
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 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 MS preferred creditor OF complainant,
under said deed, 10 an amount exceeding
$4,000: that the indebtedness, in satu sched-
ule stated to some other parties was only ap-
parent and not real; and much OF 1t amply
secured by collaterals, before the execution OF
said deed, which latter was unnecessary Tor the
purpose.
The Bill then states, that said deed Of trust
was unnecessary for the protection OF com
plaiuants creditors, and fraud upon their
rights: and mainly resolved upon by the
Board OF Directors at the instance of Sher-
man, Mehaffry and Bloodgood, apparently for
the benefit OF creditors, as well MS OF the Com
panv, but really, in order TO continue the
mower and Contlol Of compliments funds and
business involved and diminished by their
fraudulent misconduct and detention Of its
money and property, in their hands; that said
Sherman, Mehalgcy and Bloodgood, by their
uiudicious. uuau thorized and improper cX-
pcuditurcs OF its means to large amount had
caused serious embarrassment in the prosecu"
ton Of its business, and Il failure to meet
promptly its liabilities; that they were pre-
sent ut special meeting of the Directors of
comulainant at its Office in New \ ERIK, on Sep
tcmbcr 18th, 1857, and ut an adjourned meet
ing OF same at same place next day, partcl-
pating in all the proceedings, at which the
preparation and execution of this deed of
trust was directed and resolved on, and was
SO resolved on, prote5sedly, by sand Mehauey,
BlQodgood and sherman, us the best mode OF
protecting companant's property during Its
then financial difficulties, from sale and sacri-
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 Mehahey, Bloodgood and
Sherman were selected ms such Trustees, be-
cause they offered to act without any addi-
tonai charge for their services, or compcnsa-
ton other than what they might receive rs
officers OF said Company in the positions they
then held. That said deed OF trust was made
10 them the next day, to wit September 30th,
| 1857. on account OF embarrassment III It's 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 50 much MS was necessary
Tor the purposes Of the trust, ETC., and after
paving expenses, etc, and satisfying liens II
any, ,t,, apply proceeds 10 payment OF COM
claimants debts etc, a copy OF winch deed lS
h't" -. -" ~ "''''
l'"II ~ i.,,. ..,.,, ,Lo. oil .or,,1.,;r.
ne H'I ."l'.'ei . " ,I "oi.,,rsi
AM p ina hon f. rai1 A.
"9 '','S rICN ~ ,,ro ~, tIor, Inv said Trus
s'''e''o" ~ :, ant',ns ri,,o nor ccnt uno,
tlo 90 az i,,lj t,,.the Trustees Of rho Nirrru
~ w. ,,,es ,',,,, nr"testcd Hills IF rx
- 49,, H., hiII ,,1s fiaJ tb,s Los hear
and srt,lod lv ro,nnIoinant il
o CeIt III ron,I,sinnnt hy advice of counse
Set,j va i',,oii,r ~ and GIaI ronv Of Gnckr,
~ ~ ~, LII tho hi IA Eyiihi,
NJ ava ,b,t romulainnnt is at MI lime,
., ,,o,. oIo,o ,,ina mar cont DAMAGES
,iri5 " 81 -, and that soid Trustres Me
49,, pIoodanna nnl sherman have now il
,J ,,t,,,i,s of ,o,n,,lainort MOI. thar
s,li ;anI In nav same. thnt each of said Trus
,o, NaLa,,, EIoodaond and sherman i
ISra,,l,. ;ndahJnd IN If and That nil Of them
; 80 alao,if,. ;rdoi,ted rnto II on severn
49, 49, nts onG i; snndry LARGE sums
,',a'd t,oroaII elaine ,hov oronvone of o
,i,,,, ,, :. ros,,r,ive,y hn oa.ins
!saiI co,,,Jaironf
- 49,, r...:, J..
ne Din ltr'"'l Sl'.eS' wa. ~ 49, 49,, -,
was mace 'ns PIGpet'5 'onI.y w. ~ ~ ~
, maine" III FU"P'o'"""' 'Ho'"S' 49,.
c possession ana eo"Io, ".u VA. s"'n -,
| d!' no ACT III virtue .! S"G uttu t"'t az :"
roFcity CG'eF'u W II, "i'cl VIZ 49,
OF was so!a ny 'i' C1'lPa"! l'ssIii IIu r. r.
cteds OF safes leC'iNe" - ~
: II were coiT''tU .! 1t! ""I 80 81. ~ 49,,
uenteEHesS u"c ,Ioni ~ nN'(n 40 rinon'
pau ~ "Sc'i 'nIo"s' ~" w. - L,'r;
agents anu IL Pio'Veueu !" n' i1s VIZ 90.
ness except n"rn"Ps !.e MD uTD., uole'','o
! Hieh''o"vo' ia, "e''''i :"u
any OF 'e''' u'G HnS mC III 49, H., y, So
! trus', uhtil II hao pcco'iie w" s",
actioh was unnecessary 9u' WY" 'ies ioun
z they were 10 Dc ous'eo tr u, Wv Ponet ~,
, coh'r"'! "h!eI; us I"'g' "',G =,
{ coHp'"'"Ih', lhey n"u 30 innE e.JI9 eu, 49,,
i l4eh sought 10 "'"'' lllen'Sr',eS VI 'm' ton
( they supPosto' o[ l''n'Vu, 10 w ,'.'Nu
) mem py sa'a ueeui III oru,l W oo, ,.. ~.
= IA ,o,ne or is nronnrtv nof ror Il,
y InnaG, If ti'n cn,,ni ana trust xidse interes
,t,a,, Lod ,yLnIiv rsrIartcI hitherto and wbir
= t%e', rcnuiraG ny lion on fhcir BART Init ,
= ,neaui SAIL, oC nrotectiur thehsrlres ,ror
thn co'rsnr,no,,c., nf their nrevious r,isnor
u sg,e,nemI ~ and fraudulent DEALINGS with IN
: G1,"nan,, nrnnertv and crnr,s and for The
o,i,,n.;,.aY,, .n,,ordIcs, nf t;c; du,