New-York tribune., 1874-11-24
THE COURTS.
PERSONAL LIABILITY OF STOCKHOLDERS
a NATIONAL BANK HAS NO RIGHT TO BUY ITS OWN
grOCK.

PERSONAL LIABILITY OF SIOCkHOi'DEho'
4 NATIONAL BANK HAS NO RIGHT TO BUY IT'S OWN
STOCK.
Another of the Eighth National Bank cases
IN which action was brought TO enforce the personal
liability of stockholders came on for trial yesterday ~
the u g. District Court before Judge Biatchroro.
That bank failed Dec ls 1871, and the Conroer Oh
the Currency appointed Albion Mani Its receiver Inc
assets OF the bank being sufficient to pay s oeo's
the Controller also its stockholders "a per cent
nm ,he par value Of the stock held by then In tne
eases tried last week, which we're reported In The
rRIRyF and in which verdicts were ordered ior tne
plaintiffs the defense was that the Conroher apPointeu
Mr. Man as receiver OF the bank without its oeine
required TO show cause why receiver should not oe
no,red. that he assessed the stockholders without
ootifvne 10 them that such an assessment wouid DC
and that all Of the Controllers acts in the matter
ere vithout iurisdictop and consequently null ana
voa The case which came yesterday was that OF
Albon Man as receiver of the Eighth Nationa' Bank
aDt Dr. Timothy NJ Cheesman, an alleged stoekhoder
,n the bank and action in 1t brought to recover
aoo the amount of the CONTROLLERS assessment on, as
is claimed, Dr. Cheeseman's 50 shares OF STOCK IN Tue
hank In addition to the defenses set up IN the cases
referred to- the defendant pleaded that ne was no.
sockboder bank when IL failed During the 'rsi
an interesting and very important .quesuon was raseo
as TO what constitutes legal transfer OF STOCK MI
Chttenden counsel for the defendant Tor the purpose
OF sho~ that the latter not stoekbolder in the
Eighth National Bank when 1t failed, offered In ev-
dence his certificate OF stock in that bank Upon the
backs OF the certificates were transfers. signed IN oS %
In respect and the Of the transerees Tue
powers of attorney on the backs OF inc rhit. SJt
fiiicates were also signed IN blank. MI. Chit
tenden argued, nevertheless. that. in executing
the transfers DIR. Cheesman parted with his interest
in the stock of the bank. AT this point Judge Batcn
ford asked the question, "WhO took Dr. Cheeseman's
place as a stock6oder 2" and the answer was, 1.-THE
ibaus" "But" replied the Judge. there is law
which SAYS that National banks shall not purchase their
own stock" Mr.. Man OF counsel for the palntin tnen
claimed that DIR. Cheesman could only get rld OF MS
stock. consequently of his personal haoily as
stockholder selling the former TO some one VINO hau
legal right 70 take his place as stockholder. .,
After further discussion, Judge Biatcb1ofd sald
that before deciding upon the question OF law which
had been raised he would hear evidence concerning the
transfers stock After the evidence Dad Deen re-
csyed Mr. Man asked the Court TO direct verdict or
the plaintiff Mr.. Chiitenden also asked IL to do the
same thing for the defendant. Judge Batchford SAID
that the only question in the case was whether or not
the defendant was a stockholder in the bank. " The
continued tho Judge has never been transferred
Oh the books OF the bank it appears on them IN the
OF DIR. Cheesman. 1t was appears purchased
bank, and tho law does not allow National Dank
10 purchase its stock. Had Dr. Cheesman directed
the stock TO be transferred some particular person,
the case would assume different aspect Although he
undoubtedly acted good faith he must be regarded as
stoc khOder and the law holds him responsible Tor the
amount assessed on the stock In question:"
In conclusion the Judge directed tue jury 10 nnd
verdict for the plaintiff. They so found, ana Mr. emit
tenden excepted the verdict and said he should take
an appeal.