Civilian & telegraph. [volume] (Cumberland, Md.) 1859-1875, 1862-06-26

company or Allegany county, 10 aVolu sac
sale and transportation contract That oil
September Goth, 1857, the day said deed o
trust WAS made said Sherman on fair set
tlenent of accounts between complainant nnt
himself was actually its debtor to an amount
exceeding two thousand dollars. on an nc
count called Loan Account, while the SEIZED
ule attached TO said deed of trust, include!
him as n preferred creditor of complainant
under said deed, TO an amount exc edinl
SIC, 500 that the indebtedness, in said seized
ule stated TO some other parties WAS only ap'
parent and not real and much of 1t amply
secured by cOllaterals, before the execution Vi
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.
! p!ainants creditors, and a fraud upon their
/ rights; and mainly resolved upon by the
! Board OF Directors at the instance of Sher-
man, Mehaliey and Bloodgood, apparently for
the benefit OF creditors, as well rs OF the Com
| pany, but really, in order to continue the
| power and control of ompanants funds and
business involved and diminished by their
! fraudulent misconduct and detention OF its
money and property, in their hands that said
Sherman, Mehaiiey and Bloodgood, by their
iujudicious, unauthorized and improper ex-
peuditures of its means to u large amount had
]
ton Of its business, and failure to meet
promptly its liabilities; that they were pre-
sent Mt 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 at same place next day, particle
pating in all the proceedings, Mt which the
preparation and execution of this deed of
trust was directed and resolved on, and ii was
so resolved on, protessedly, by said Mehatfey,
Bloodgood and Sherman, as the best mode OF
protecting compliments property during its
then financial difficulties, from sale and sncri-
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 Mehaifcy, Bloodgood and
Sherman were selected rs such Trustees be-
cause they offered to act without any addi-
tiona 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 3Oth,
1851, on account OF embarrassment in lis cir
cumstnnces 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
disuose thereof, or so much rs was necessary
Tor the purposes of the trust, etc, and after
having expenses, etc. and satisfying liens, it
any, IT., apply proceeds 10 payment OF COM
plainanls debts, etc, a copy OF which deed is
flied with the BILL marked Exhibit No. as II
part thereof.
The Bill further states, that all complain
ants liabilities, payment o! which was secured
by this deed of trust, have been fully paid and
satisfied by it, md none OF item by said Trus-
tees. except perhaps nine per cent. upon
$40 Inn cl,ip,.j u the Trusicps nt Tho Ninoro1
Bank, as damages upon protested bills Of ex
change, (since the hill was filed tins has been
comp omstd and settled by complainant it.
self which complainant by ndvice OF counsel
contested legality OF, and filed copy OF docket
entries of this suit with the bill rs Exhibit
No. 2; and that complainant is ut all times
rcaGy to pay above nine per cent. damages il
Obliged so to do; and that said Trustees, Ne
haliey, Bloodgood and Sherman have now in
their hands monies of complainant more than
suft lent to pay same that each Of said Trus
Ices, Mehaiiry, Bloodgood and Sherman is
largely indebted 10 it; and that NIL of them,
ioi atty, are heavily indebted unto it on several
different ncco, nrs, and in sundty large sums,
over and above Ill claims, they or any one Of or
any two of them may respectively have against
it, said complainant.
The Bill further states, that after said deed
was made, the property conveyed by it re-
manned in compartments exclusive custody,
uossrsyion and central. and that said Trustees
did no ACT in y;r,uc of said deed; that all the
ro,rrtv covcr,d by il. which WAS disposed
Of was sold by the COMPANY itself and pro.
cceds of sales received by it; that all debts due
il wore collected hy it. and tina, the whole in
debtedurss due from il. viii, II WAS nnid. was
paid by itself through its own officers and
accents and i, proceeded in lis REGULAR bnsi
ness, except perhaps the Krchs debt, hereafter
mentioned. That neither said Trustees nor
trust, until il had become apparent that such
action was unnecessary but when they found
they were to be oustei from the mower and
control. which. MS chic. officers and AGENTS of
complainant, they had so long enjoyed, tlcy
then sought TO avail themselves OF the overs
they supposed, or claimed, to he vested IN
them by said decd, in order to obtain and
keep pos. session ,ud control OF complainant's
business ana 'ome OF lis properly, not Tor tie
cement OF me c,''u' que u u.s. whose interests
,hry h"u Wholly neglected hiihrr'o,"n when
the" required no acl'oh on 'ne'r part, Dut as
+" means, SoIe'yi Of protecting themselves rom
the consequences OF tne'r previous mismnn-
'ee'heh' OF, ana "nu"n'eht ueal'hes WIN, ms
company properly ana enec's ma 'or the'r
own rhds exclusively, regardless OF ihcir DUTY
70 DINERS. lha' "ith these views they hiou a
coma as rnstecs' 10 me 9'",e OF Maryland,
cory o, whi.h Is exh'bi'ed WIN the biiI mark
ca EAn''it NO ., "hich u III olher r'spec's