Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1866-09-08
Circuit Court of the United States.
IN EQUITY.


Circuit Court of the United States.
IN EQUITY.
Hugh Mcltca, James Bankhcnd, and George
lcaright. ctizeus of Nashville, Tennessee
vs.. Bank of Charleston, South Carolina
Charles Il. Ilnwndes, George a. Trenholm
Henry Gourdin, Alexander Robertson ant
Wm. Thaycr, citizens of Charleston, Soutl
Carolina Bill for Injunction, Discover,
and Relief. Brewster mid Spratt, Solicit
ors for Complainants.
The above Bill has been filed in behalf o
Comploinants and, all others not citizcns O
South Carolina who arc creditors of the Banl
of Charleston.
The Bill alleges that the Bank of Charles
ton WAS incorporated with capital Of two nil
lion dollars, with leave to increase the sam,
two millions more, and afterwards modified b,
an Act ratified ou the goth December, 1858
to be continued until the year 1877. Th,
bank, it is alleged, has currency out to til,
| amount of two million dollars and two millior
more on deposit for which certificates of dc
p,st have boon given. The Bank suspended
payment of gold and silver on said notes ant
bills issued in accordance with its charter OF
the 10th of April, 1861, and since have re
fused to pay specie for said currency and de
posits. The Bill further says that the purpos,
OF South Carolina in granting the charter wal
to furnish to tho citizens Of the State its prom
issory notes and bills of credit in the natur,
of circulating medium, and its certificate
for funds deposited arc the representatives O
gold and silvor current coin, and that the 40
complishmcnt of this policy and public pur
pose constituted the trust and condition of tn,
| charter; that the Bank having failcd to re
s1n 10 $1,n ~ L
| of the officers and directors rs trust fund
Various other allegations are mnde of brcacl
Of charter, and that the officers have continued
to keep up the scmblnnce of banking corpo
ration. 1t is further alleged that they cxtcnc
to the stockholders information us to tho con
dition of their assets, which they carefully cx
clude from the complainants.
1t is further alleged that these parties hold
what remained of the assets consisting of coil,
to the value Of thirty thousand dollars, rca
estate, notes, bonds, stock and domestic and
foreign exchange, to the valu. of seven hun
drcd thousand dollars, which assets, it is al
legged, are withheld from the creditors, and ap
piled to tho uses Of the stockholders.
Another allegation in the Bill is, that tn,
stockholders at the date of the failure, and
those who were SO within twelve months prior
thereto, are liable to the creditors, by the pro.
visions of the charter, for sum not exceed
ing twice the amount of their shares. The
Bill! alleges that many of the Stockholders
have transferred their shares to irresponsible
persons, and hope, through such transfer, to
escape liability. Tho Bul Graves relief, and
also the appointment of receivers, also to make
tho stockholders liable.
as this is matter Of great public interest
bal ,ltah ~f ~
Governor Orr has convened special meeting
of tho Legislature, and it may be important
that that body should take action on the sub.
ject. 1t is believed by our ablest LAWYERS that
the clause of the charter making stockholders
liable is penalty, and does not create labili-
ty to creditors. For the support of this posi-
ton the fact is relied upon that the clause
above alluded to does not say expressly to
whom the stockholders are liable in case Of
failure.
At the last session of the Legislature Bill
for the relief of stockholders was brought for.
ward in tho Senate BY Henry BUST. 1t
was then thought by tho stockholders the
bill would have been passed, and ought to
have been passed, as it was evidently the de-
sign of the Act of Incorporation to make stock.
holders liable only III case of improper conduct
on the part of the directors.
If the Legislature docs not Interfere and re.
peal the penalty, or tho Court should dc.
eide that the clause is not penalty, but in
tho nature of q contract with billholders and
dopositors, the change of property consequent
in either of such cases will be such as to in
volvc in ruin those who have saved some rom.
nant of property from the devastation of the
civil war and oonvulsion through which the
State has passed since 1890
We understand that this :ase cannot bc
heard until the fourth Monday in November
next at Columbia, s. O., unless special Cir
Quit Court shall be convened to hear equity
cascs. If the case is no. heard in November