The New York herald., 1866-07-11
ms AND OUTS OF WALL STREET.

IUS ANU UUIS " WALL SthesIs
How Some National Banks DO Busiuess-
Curious Developments in Respect to
Overdrawn Accounts.
COURT OF COMMON PLEAs-cHAMBERs.
Before Judge Brady.
Jury TO- Henry X Leonard aNd WIKoN p. Wads-
sor,h vs D. s. Scofeid s. n Sccadd and j. NJ Moor
hsad-Ths was motion to vacste order Of arrest.
which elected some curious developments In relation TO
the In which business Is daily transacted In Wall
street. Tho defendants appeared on the Sth Of April
last, purchased OF the plaintiffs $l,2lb worth Of petro
leum stock In exchange for which they gave check on
the Croton National Bank, which was dshonorod on the
ground that there funds in the bank 70 meet
H. In addition TO this tho plaintins allege
that tho defendants imposed on number Of
Amounting in the aggregate about 600 were ssned
which never had been paid Upon tne strength o. tne
The defendants were held ball 10 answer the result Of
the suit Tho defendants now. through Their counsei
tnat no fraud was Intended and that mono had been
proved Il was the intention Of the defendants At the
with they hs ban. and in overrawng ther account they
had ony done what they had frequently been permitted
M. Vandsrpoei in moving for the discharge Of the
defendants snbm tied the afdavit Of Mr. scoheld who
testified tna. the defendants ws,s brokers' * doing large
500 600 daily in the bank In question. aud drawing
uron the bank for equal amount; that they had
almost daily previous TO the 9Th Of April boon In
tho habit II overdrawng their account bnt the teller OF
the bank nvar ably paid their checks and the defend
c'ock each da, that this is tho custom Of banks with
large dealers good standng that on the 4th OF April
before mentioned The deicndants expected 70 DC 10 ro.
TO the amount O. $62,0 900 had been day drawn
largely in excess OF their depcsts: and checks the
paid by tho teller without there being any funds to
m ct tho same; that owing to the failure Of certain
make good III II account with tho bank and the teller
refused to ray check given to the paintis depo-
further stated that there was no intention % de
fraud tNe plaintiffs but tho contrary that the oheck
was given with tho full expectation that u would DO
paid on presentation at the bank; that the petroleum
stock in question transferred 70 other parties soon
a,er il came into the defendants possession that 1t
impossible tor them 10 r'tnrn II 10 the plaintiffs
when they demanded H. In conclusion dcpohen, sti ed
that since the 4 Of April last they had mahe good
their with the bank and are now aDie 70 pay al
checks which they have ssued
Mr. Hawkins. IN reply, sad II WAS unnecessary TO read
the adavits upon VIII ch tho order OF arrest had beon
granted suffice II 10 that they show That an tina
4h OF April lat tho defendants gave the p'a ntlus IN
payment for some petroleum stock, check on the
Croton National Bank for 81 ,2l5 which check ap'n
pro entaton tn bank was dshonorcd on ls ground
hat thcro funds there TO meet IL In addition
to this testimony the paints had the anday u OF the
occrs Of the bank 10 SHOW that before tie check was
,ssned the defendants notified that they had over
drawn thor account That the notice In esti was
sent to The defendants before twelve O'Clock, and tha
notwithsandng such notification they, tho If
the aft rnocn issued this check. well knowing tbnt
there money In tho bank to meet IT, all y which
dopo with n.cniion 10 deaud the plaintiffs The ev
denco OF tho officers OF the bank also went to show That
tho deposits OF the defendants only amounted 70
about not 500 was alleged by the de-
tho crcgate to SO 900 or $40 900 by the defend
ants on said 4 o. April, we're also dishonorcd fbaa
it was concerted plan On the part Of hs 40 endns y
these false ctecea hey so had n their possession an
affidavit deny g thni 1t was tho custom Of banks to pay
checks VIII &c PARTIES had been notified Of thor accounts
hay Dg been unless toy made tho same gpods
upon The receipt OF such notice. The counsel thcn te
the affidavit OF W. II Peterson, the effect that he de-
ye ed to the defendants $i470 worth Of stocks on the
4h Of April last Tor which he received cheek on the
tho aifdavir OF u u. Rourke who sufferer In ilo
TO the tune OF Ss2o Also the alfiavit of
IT, W. Mitchell, The firm or " y. KIN 20 who
claimed 10 have los 81 ,235 In similar manner aso
the affidavit Of Lloyd L. Britton to tho same effect
MI. Hawkins also read tho AFFIDAVIT Charles Fiddler,
who testified that the A.. Of April last he npilicd
Me- srs scoel Go. that they had ovrrirawn their
count, and rcqu ed them TO nd up deposit to tho
bank immed ately This notice was doiyor,d " the
del adanis before twelve O'Clock.
Mr. Hedden ca her Of tbs Croon National Bank
tcs sod thai he cage daily dopos u tile der-n,t 8
from November 10 A. rl amounted 10 between $4,000
and $40 600 He also testified to settlement made ny
th, defendants with the bank ancc their fa.inre rnd
said that they paid bird cash and tn manning
twohrs OF itcr Indebtedness in the notes OF the nffn
These aoes ran from hirty days 10 twelve monlhs..
Witness was the abit OF notifying the d'fenInnts
when ticy had oscrdnswn their account; never "a. e
them a, ronson pos, that their checks w0ud DO
paid af er tney had received notes to make good Their
acconnt
Il ci,ard w. Raymond, paying teller OF the G oton Ma
,onal bank, testified thnt the daily avcrnge deposits OF
tn defendants amounted to about $50 00o Ia the
habit of noti yns ro DESCENDANTS when t,ey iad over
dawn their ,cconni and they In the haidt II
making good tie omit Immediately ON the rece,lt
uttCiS. on !, ~
Ged tho dcen,ants before twelve O'clock tisir
conn, was over farni at q arter or hal pas twelve
win Is sent stcaSd message TO tho de!cndaass in
eo,ncwhai sri'ger 'erms telling thom 70 hurry up
with Their deprsts
Mr. Nandcilo in reviewing tho I stimony Will h
had bern ntr'uu e,t iy tho plaintiffs claimed that he
Gndavi's only confirmed ta statements q. Lis trnts
throughout e wto,e transaction II was ev,den that
-, dricndanu csocied aid had every to sup
p"s' !, at the check question would be paid and the
."v' "a. lne Iiaiutirs ster hearing that tn paving
'ee, o 'is Cu,on National Bank refused csriTs g.
s'n - 70 .sew bank for collection showed that they
SsPeoeu ts de endrnts would mako their good
DO pa d. - ~ ~ - T "
mr hawkins, in opposing tho motion 10 vacste tho
o,"c' o Mesi triibisrd verely the conduct of the
o"iueis o ,he Cr"io, National bank In rtifyng tho
,bpeehs oi the de rndanis when there was no money
an,s o me ttbem. y was for the dcieud.
~, q, ~ - iliat Ia expected 10 mako cord these
,hcv h,d aver, ~ hey after having been non that
dliars cou,i,ue ,o - 1c account by several Tho sand
chockss II VIVA ad,,ed stock upon thes' Worthless
s02 900 had bepn pa bJ the haxrN /" .no "nu"nt o
Iosls Why oid net tho dccndsnts sis sss oi the de-
Of issuing TO the plaintiffs aud oihos chectso, h.eaa
In the aggregate several tho 1sand dollars whS,hshg
knew could not be hunoied Tho evidence howcd Tx.
IL was gigantic aci enc t. deraad tho plaintiffs and
others and he ped The Court would ssnction Gu
rascaty by granting tho motion asked for by THO de-
fendants' counsel
Ihe Judge took tho papers and reserved his decision