The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-09-23

$780,. .......... S13,9l9 S2,51S Sl1,596
165l... I6,9SI 56,OS1 6l,2O3
lS52.... ........ 294,67S 173,946 034
1Sb3............. S05,119 525 4s7 451, ,666
1854. 1,269,906 l,292,si0 462.493
1885,. 429,522 1,20l,s2l 200, 1872
1856. 233S,576 1,954,405 1,0S4363
1851. .2201,091 2,42l,221 s79,233
1885,. 1S04,077 1,410,366 163,94
1882 S9sd94S 1s42'l6s 1,O93dia
ls60' .........., .2S62ll0 H644493 l,3l3819
The acts. by which the defendants were said to
have made themselves liable were as folows:-
They paid up their stock subscriptions by giving
notes, which were suffered to lie over without re-
newals for many years, and that some of them were
never paid bona fde in cash.
Some of them borrowed money from the company
on collaterals, in violation OF their own repeated
resolutions, and In some instances took away por-
tons Of their collaterals without returning the
money borrowed.
The principal dealings with and dispositions of the
money OF depoSitors were Illegal.
The expenses OF the company were wastefu and
Many Of the investments forbidden by the charter,
and illegal, and others apparently legal negligently
and hastily made, or grew out of transactions not
Dividends declared and paid when no profits were
earned, and Over-valuations were made upon the
books to give an appearance Of profit
Directors failed to call in balance of stock subscrp-
uons. Received deposits after the company was
tisements up to the time Of the assignment Did
not make an assignment until thousands of dollars
Of the assets were wasted and little or nothing
maned to be assigned.
A confusion in the books and accounts was allowed
to prevail during the entire history of the company
That the transactions were so involved and con-
nected that statement of facts throwing light upon
some of them often shows the existence of others.
The company commenced business in 1885, with
$3.50 600 capita5000 shares at $50 per share Nomi-
nally, the stock all subscribed for, but soon
transferred to the company. At date of assignment
the company held 964 shares. September 20, 1850,
surance loss was made, and In October 1856, fur
tner assessment OF $3.50 per share payable In cash
ceived. The first dividends were applied to the pay
ment of these 'stock notes." $22 90 was paid
the c6 X OF tine up to
account, and plaintiff cannot learn when they were
The company's statements usually represent the
stock unpaid at $20o,0oo bat as the company held
nearly one thousand shares, the amount unpaid did
not much exceed $3.50 900.
On January 2, 1854, the Finance Committee re-
solved to buy all the stock offered at $780, for $40 paid
Unable to say how far this resolution was carried
The rate of interest to depostors was per cent.
until December, 1851, when 1t was raised to per
cent If all the loans to the company after that date
had been at per cent, and there had been no
losses, its profits would have been per cent.
Prior to December, 1854, the books were badly
The oficers and directors soon began to discount
and purchase bills at usurious rates. On December
J. 1860, such bills bore the following proportion to
their entire assGts:-
Real estate te................... $50
mortgages. 46654
Srounu rents. 90 2Og
PiiS rocoivahia 1a, o.
blIs feceiVdoie' VlSH
loansi upon bills, was nominally under the control
OF finance committee, who met almost daily; but
their minutes do not correspond with the bll-book
at certain times, and are unreliable. These loans
are nOminaly made to Stephen Coulter called in
said books Captain Coulter.
They thus interpOsed between the persons with
whom they dealt and themselves an agent who
made these transactions in his own name and
turned memoranda for the books, which told but
Stephen Coulter is brother-in-law of the defend
ant Ashton. His dealings with the company
at first SMALL but in December 1885, $4,000 OF the
bills receivable were his After this time he was
employed, without restraint responsibility, to use
the moneys OF the company to carry on the business
OF discountng bills at illegal rates. Entries OF his
transactions in the books differed in different years,
etc. In the cash-book Couters note appears as the
note discounted while In the bnl-book his note some
times appears at other times the note Of some
discount on account OF Coulter. From
January l. 1855, to September, 1851 the mum.
Der Of Coulters notes increased. from that
time to July, 1858, they decreased and then gradu-
ally increased again, until December, 1860 After
none Of which We're couIters. When the run com.
| menced in ls6e the bills receivable were mainly
of his notes appear in the inventory. large num-
Der OF old and overdue notes appeared in the inyen-
peared in the books before or were entered as col
laterals Said inventory was prepared while Coul-
ter was assignee, probably by him or the officers of
The memoranda of Coulter, in and after 1855,
show only legal rate of interest. But at long in
tervas he rendered other me noianda admitting re-
ceipts OF extra interest
On December j, lS0o Sl2,2Sl'ZS was added TO bills
| receivable account and credited to profits. This
entry was either fictitious, made TO produce an APP
parent profit OF IL loose estimate OF interest
due on overdue bhls-results OF Coulters transac-
/ tions.
And so on follow other charges of fraud and de-
ceptioD.
| By November 2s 1860, the company became so
embarrassed that iG cOuli not meet depositOrs
drafts and required two weeks notice. January 2S,
1861, It extended such notice to one month. Suits
| were brought by the depOsit0rs judgments recov-
cred, and executions issued-whch were compro-
missed stay ed, the sureties being indemnihed by
eoaterals Large quantities OF real estate and other
assets transferred 10 Coulter and one II not more
directors, security for pretended claims. Some
OF the assets disappeared, and worthless ones put
| forward.
The company made an assignment, April Is, 1881,
| 10 Henry L. Benners, Stephen Coulter, and Johd
| Derbyshire The latter declined, and the others
| were dismissed, and the plantn appointed by the
| Court. Al this date, the company should have had
| the following askets:-
| Cash........... e2,979 81 Stocks $40 4ss.73
Bills receivable 21T,4l6 OF Real estate . Il2Os073
| Ground rents. 4T,1592l
Mortgages. 46,634 80 Total. $500, III 65
The answers to all these accusations are numerous
and varied, but amount IN substance to a denial of
any deception, negligence or wilful misconduct of
any kind the part OF the directors, and set forth
| war, defendants believed the trouble would be tenn
poIary, and endeavored under advice OF counsel TO
preserve the existence Of the institution In order TO
protect the interests cofnded to their care. They
acted under great diniculty, at period when ordl-
| nary experience was at fault. II 1t had been pos
sibe 10 preserve the assess they would ultimately
have paid the debts. lnstalments on stock were not