, 1872-12-20

IN bankruptcy, had the same power IS the United
6t1tes Court eitting in equity, to command tho
production Of books, OF to give poRer to its
officers to compel their production. # the books
tended to provo anything material to tho con-
troverby, they we're essenticl to the case, and
should be used in evidence He believed the
books contained evidence necessary for q fair
tia OF the Cause. Those books should, In tho
ordinary courEe Of business, Bhow whether tho
claims purchased On behalf OF the bank were
chars ID against tie deposit Of s216,00o belong
ing to the insurance company Anything thst
tended to prove that the officers Of the bank,
who we're at the eane timo officers Of tho State
Insurance Company, bought the claims on their
Individual account, and not for the bank, was
essential and relevant; for if they were bought
Is individual Investments the claims
were c1tioguished. Counsel reviewed tho
testimony already published in support Of
his 1iewB~: The books could be examined after
the business hours Of the bank, and need not in
tcrfere with the business Of the bank. he be-
Ievcd the officers OF the Insurance Company not
only tried to swindle the Insurance Company,
but afterwards turned round and tried to sTindle
the bank.
Who appeared for the bank, said he had not pro-
posed to follow Of reply to tho tirade OF Mr.
Cooper against the National Loan and Trust
Company and its officers. There wsa very little
in wlat Mr. Cooper said taat had any reference
to the question at issue before luis Eonor. Ger
tain directions were given by Judge Blodgett as
to the conduct Of the examination. lie
directed the evidence should be
confined to certain points. It
Was certain the books of tho bank contained
nothing bearing upon any question before the
Register, except as to with whose money the
claims we're purchased, aad there was eTidenco
ha11 "a Of Taay%
and Trust Company. They were willing to pro-
duce . copy OF that account The order VI
Court specified what inquiries should be gone
into. The petition had been presented behind
saw Of it Was wnen t'wns referred By the Judge
to the Register. It WAS q most singular pro-
ccoding far counsel to present petition with
out giving him an opportunity to reply. The
t&e 00Rs Hs2ne1 G1 rhsS neoss sass
should be conducted before = Court
Tho only ground on which ho claimed the right
to examine the books was his belief that tho
bank never purchased the claims as bank, but
we're the individual Investments Of officers Of
the State Insurance Company. The books were
no: The best evidence. Ihe officers themselves
we-e the best evidence, and they testilied that
they had no individual interest in the Claims,
but tl1at they were the property Of the bank:
The petitioner asked thai all t!so books should
be submitted to the inspection Of three account-
ants, who Should report and certify to the Reg-
lister, thereby taking the case out OF the hands
of His Honor. Such 8 proceeding was unprece-
denteJ. bank that would disclose to the public
hertyats and dconfdentaa1 transactions Of its Gus
tones, would tie guilty ofa base aud dlshonocab1o
act There had been persistent, and he would
sav necrupnlous attempt on the part Of tho
crsdors to impeach the credit Of the bank be-
forebe public. When Mr. Cooper announced
fhaMr. Amberg would swear that quire of
nar YVES taken out Of the book, and another
aus inserted. he did SO late in the afternoon,
rr1h1iahad tha tn the
pu1ic, end the bank had no opportunity to reply
nnhat occasion. 1Ir. Cooper must Anye known
Wit Amberg could prove, aud knowing it, should
No hare recklessly made any such statement to
II injury Of the bank.
III. Cooper held that ho had given sufficient
II. Aver believed it vas mnliciouEly done; and
oppose they had access to the books Of the
Ink. they would not scruple to stop 1T anything
lat would subserve their purpose to injure the
anE. Counsel then adduced long array of
authorities on the construction OF the
ytatute, contendine that the aopl-
existed, that it was pertinent to the ISSUE and
that the case should be such that the Court Of
Equity would compel the production Of the
document be con! ended that Court OF Equity
you'd never order the production Of the books.
Counsel announced his Willingness to produce
cophs Of any accounts that mere essential, but
proteted against oIder for tho wholesale
production OF tho books.
lib. VAN AR1lA1
raid,e had but recentiy been engaged in tho
case and il he thought the question 60 learn
edlynd elaborately argued by counsel Tas the
realuestion at Bsue, lie would decline to go
on whout further preparation. The question,
hover, was not whether the Court had power
to cupel the production Of books, as that WIS
sottn by the Court, Judge Drmnond having
said that the usual course was to pro-
cure certificate from the Registcr to the effect
thathe books contained evidence necessary
that ear4i EAn+n &ta
Won is4ue en- order. The Register had no
righ5hatcyer to adjudicato On that question.
Tne1estion before him was il the books con-
tain material evidence in the case.
MCooper explained that he asked Mr. Aver
to pduce the books, and warIed him that il he
did it he would obtain an order from Judge
Drunond. NIr. Aver declined to produce the
boo] and he Cooper vent to Judge Drum
: Register eaid that, according, to Mr:
Cooer. Judgs Drummond st. ted that the
proar place 10 present the petition was before
{he negstss Tsa Snt nes esue an Ssioro r The
Retster; in the ordinary course OF ouslness. ast
vas prepared to hear arguaent As to tho
necessity q producing the books. ooEs.,., :.
Hr. S1irh stated the case as be uaderstood IT,
snGthe Register agreed with him.
1r. Tan Arman proceeded He Understood
tbs til, creditors represented by the assignee
made 70 objection to these caims .;l but ne o and
!tn,swhose S clsims bad been allowed under the
BANKRUPT law, on the principle that Iuch credit
nrs .ere entitled to contest otner clams against
the sstate. They held that Whatever vas Inc
the preceding lie other calIed
McMullen, and J. B. Smith, wer' engaged In =
fraudulent conspiracy.
T7ao Register here stated hc1 the caee was re-
1erred to him, and how it stoad. Iho ieieEenes
hear any amount Of argument touching the ne-