The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-05-10
THE BANK OF TIE STATE.
An Important Decision.

On Saturday Judge Carpenter rendered his
decision In the case OF Dabney, Morgan Co. VS..
the President and Directors of the Bank OF the
State Barring Bros. ct 81. This was an action
brought on behalf of the holders Of the bills is
sued by the bank to be preferred in the distrbu-
tion OF its assets. The question at issue was the
force and effect of the charter of the bank ratified
in 1872 and the force and eject OF the act OF 1888,
being an act to rebuild the City OF Charleston, un-
der which So o00 900 of bonds and stocks were Is
sued by the State and guaranteed by the bank,
part OF which was negotiated In England, and the
remainder in this country. ltwas contended that
whatever prior lien billholders may have had
under the charter, the act OF 1888 gave specific
lien to the holders OF the Fire Loan bonds and
stocks In preference to oil other creditors: by the
counsel for Barring Brothers 1t was claimed that
the bondholders were preferred over the stock
holders. The case was argued bf A. c. Magrath,
Esu.,.e the part Of the blllholders, by Messrs.
Hayne Campbell on the part OF the Fire Loan
bondholders and by Messrs. 81. Bust and T. Y.
simons on behalf of the Fire Loan stockholders.
Hon. D. e. Chamberlain, attorney: general, repre-.
sented the lntereseof the State.
Judge Carpenters opinion in the case Is very
lengthy and elaborate. In 1t he holds that the
Fire Loan bondholders and stockholders are on
an equality In respect to thelr +.rights, and that
they have prior lien upon the assets Of the
bank; that the billh0ders and other creditors oil
the bank are entitled share rateabv In the resi-
due: and that for any deficiency, the creditors
have an equitable claim against tile State. That
the State, as sole stockhoider, having Withdrawn
from thebank more than the principal and In
terest OF the entire amount Of the oan s In equl-
ty. bound to secure the unsecured creditors from
loss. The following Is the Judges decree:
Ordered. That this case be referred to the Hon.
r. +. Dupkin, as special referee, and that he call
In the two classes Of depositors represented IN
this case, by those who deposlted before sne wur a
advertisement in THE CHARLESTON NEWS, Charles
ton Courier and Columbia Phoenix Tor slX weeks,
on or before - day OF - to prove their claims,
barred from oil participation in the assets OF said
bank or claims upon the State; and 1t Is further
ordered that said special referee take PROOF Us 10
the character OF the Indebtedness Oh saIu two
classes OF depositors, as to whether the trarsac-
tions were with reference to lawful money 81 the
United States or Confederate currency aud sucn
of them as he finds to have been In confederate
currency he will ascertain the value OF eacn clain
In the lawful currency OF the United states; ana
il is further ordered that the said speeial
referee also ascertain what portion Of the olils
already proved were issued WIN reference 70
Confederate currency, and to value OF such bills
in lawful money Of the United States. ;He VIII
also ascertain what portion OF tue otner ae1ts az
readr nroyed were contracted In Confederate
currency and as to such debts he will ascertain
the value In lawful money OF the United States az
the date OF the contract. ..
n Is further ordered, That the said special rel
eraa sacertain the amount OF the Indebtedness OF
the e bank upon the principle of this decree giving
TO the state credit for the amount OF stocks anu
other securities left with the bank as collaterals
and giving to the State also credit for tne amount
OF the bills redeemed by the issue OF bonds. Anu
II is further ordered that the said special referee
tax the costs Of this suit and report to TINS court
on the first day OF its next November term.
(Signed) IL. b. CAffEHIhH'