The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-01-21
LOCAL MATTERS.

The BANK OF VIRGINIA IN THE UNITED
STATES CoURTs-HIsToRY OF TIE Pro-
! CEEDINGs IN THE CAsE,-In the United
States Circuit Court (Judge Underwood)
yesterday an important motion was made
in the case of McIlwainc s. Co. Us. The
Bank of Virginia, whose assets are in the
hands Of S. {. Tardy and D. J. Saunders as
trustees and receivers. The motion was
made by counsel of Morrison & Oaks and
Parker Campbell & Co. to file petition, in
the nature Of q bill of review, calling for a
full disclosure and account of their trans
actions, by the trustees and receivers. The
plaintiffs in this bill of review are citizens
of Charleston, Kanawha county, West Va,
Capital of the State,) and their claim is
founded upon notes Of the Bank of Virginia
to tie amount Of S3S,906.
This case is exceedingly interesting, espe-
cially to the large number of persons who
are concerned in the distribution of the as
sets of the late Bank of Virginia. A brief
history OF it may therefore be appropriately
given.
Under thestatute of the Legislature of Vir
gina in February 1866 requiring the State
banks to 60 into liquidation Of their in
dcbtcdncss the Bank of Virginia con-
yeycd 10 Mcssrs. Samuel G. Tardy and Da
vid j. Saunders, as trustees, all of the pro-
perty of the bank for that purpose. A bill
was afterwards filed in the circuit court of
the United States by creditor of the bank,
alleging the insolvency of the bank,
and praying for the appointment OF O re-
ccivcr; whcreupon, by decree of court,
the original trustees were appointed re-
cciycrs, and directed to convey and pass
over to themselves, as receivers, all the pro-
perry heretofore held by them as trustees :;
which was made O matter Of report by
the master, and thereport was confirmed by
another decree.
Numerous DEGREES have from time to time
been entered in the cause, and reports
been made by the master in further
ance of the objects of the original bill
that sought q speedy settlement Of the
affairs of the bank.
Suits were instituted in the United States
courts against all the resident debtors Of the
bank with Il view to the collection Of its
assets by process said to be hitherto un-
known to our courts, by which a debtor
was sued, as it we're, in foreign tribunal,
upon o rule to show cause why
decree should not be entered against
him for the amount of his alleged indcbt-
edness, which proceeding required him to
appear within specified time and put in
his defence, or the decree would be entered
against him at all events. This notice or
rule in many instanccs-we may say in
most all Of them-did not bear the sigma
ture or attest of the clerk Or any official.
TO what extent judgments have been OBJ
tanned upon these perfunctory proceedings
we ore not informed.
The next matter of interest that trans
pired in the history of this case was the
filing of petition by certain creditors Of
the bank praying to be made parties to
the suit, and when SO made parties they
moved to refer the accounts of these re-
cciyers to the master for settlement, and
leave was given to the parties to surcharge
and falsfy the accounts of the receivers,
and one item in particular, which upon its
face showed q payment of some Sill 900
20 a certain party; and leave was also
given to the parties to examine the receivers
touching their accounts and this item, and
to introduce other testimony in furtherance
of the purposes of recommitment.
The parties to this proceeding appeared
before the master for the purpose of inves-
tigating these accounts, and the receivers
each in turn were asked to be sworn, in Or
der that they might be examined as to their
transactions pursuant to the decree under
which the examination was sought to be
had. Each in turn refused to be sworn,
and therefore to testify, under instructions
of their counsel, who objected to the mode
Of proceeding. The receivers we're then
proceeded against for contempt, but an or
der from Judge Underwood temporarily
suspended proceeding under the decree
until the preliminary questions could be de-
termincd. Since that time no proceedings
have been had under that decree, and it is
rumored that the matter has been settled
out Of court.
The case is now depending before Com
missioner Chahoon for the purpose of ex-
amining the accounts of the receivers that
have been rendered to and reported upon
by the master in chancery for the United
States court.
A large number of able lawyers, repre-
senting various parties in interest, are en-
gagged in the case, and serious charges of
mismanagement of the fund have been
freely made.
1t is proper to state that the receivers are
gentlemen of the highest standing in cur
community, and claim that they have acted
in strict conformity with the law.