The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-03-26
THE DOLLAE SAVIxGS BANK N
TEE BANKRUPT COURT.


THE RANKRUPTC COUNT.
/ The case Of A. Cappel & Co. rs. Tho Masn1 !
Building Fund and Dollar Savings Bank Wss
chilled on yesterday In the United Ststss Dis.
trict Court. Judge Hughes presidlgg.
Messrs. Morton, Lewis, and J..A. Smith
for the plaintiff, and Messrs. Howard, Wlss
and Jackson for The respondents.
The defence, through their counsel. moved
to dismiss the petition on the ground tnatis
was not signed BY the petisionfng credttor,
citing decisions In cases which .wens 10 the.
point that petitions OF the kind 0ugb 70 %
so signed, and must be sworn TO, and TIE he
tidayit must be signed by the petiaoniDS
creditors. s4ssss sd
10 this case, though the petition Itself WAS
not signed, yet 1t was sworn to, and the. an.
davit was signed by the petitioners; and tho .
tafidavit alleged that the petition itself was
signed by the petitioners. The courtaheld
that this was sufficient in substance, but re-
quired the petitioners to sign the petition i.
self, which was done on the spot.
tpying the allegations OF the petition, and de.
| msnding Jury in writing; and Q jury Of
merchants was at once ordered, to be In court
at O'Clock. .D.ie.sg,,
At that hour the jury was called and en-
panelled, and the trial proceeded, the fo!.
lowing gentlemen composing the 5ury:J.
M. Skinner, G. f. Johuston, SsS. Carter,
Robert Wendenburg, w. A. Spots, E. Cur.
rant, Thomas Nowan, j. j. Anderson, ".
| e. Burton, C. q. Baldwin, a. W. Galloway,
and John j. Stephenson.
The petition Of A. Cappel e Co. charged
and set forth four distinct acts Of bank
ruptcy:
1t charged, under the 9Th clause of the
39,h article OF the bankrupt law, that the
trust deed made by the bank, dated the 9Th
day Of January, 1874, was deed giving pre-
ference with intent to hinder, delay, ana De.
fraudits creditors. i, s,......s-,,.
l 1t charged. under the stb clause Of the
39th article, that this trust deed was a deedof
: preference made by the bank as = bankrupt
and iusolyent, In contemplation Of bankrupt
cy and insolvency, with intent TO prefer, &e7
&c. 81 a-sza
1t charged, also, under the same clause,
that the deed was made By the bank, being
; bankrupt and insolvent, with intent to de-
lay and defeat the operation OF the bankrupt
act. et&.
And 1t charged under the 9th clause
that this bank bad stopped and suspended
!, payment Of Its commercial paper for moro
= than fourteen dnys. - t3s-a&l
The issues for trial before the jury are
- any one of them be sustained by verdict Of
e the jury the prayer of the petition will bs
: granted and the bank declared 10 be bank
= rupt. 1t will then be for the creditors 10 de-
~ termine whether they will let the, sffairs ;of
!, the bank be administered by an assignee, or
by trustees, under the 43d section of the
= bankrupt act.
u A. CappeI was the first witness exam.
{ ined. He said that A., Gppel u Co. were
= creditors of the Dollar Savings Bank In the
u sum of about two thousand dollars. This
n amount bad never been paid by the bank,
:. but the firm had given checks, which were
certified by the bank, and with these We had
!, paid various parties. Had sent Dix u Steiner,
D Of Baltimore, a certified check: for $500,
81 which had been returned to them as noe
u good. Did not know whether payment OF
|, it had been demanded of the bank.
> MIR. Thomas S. Armistead was next ex.
:. amined. Was formerly cashier Of the Dol.
o lar Savings Bank. Resigned the position v
' short time after the suspension Of the bank.
:, Recognized the check given to a.. CaPpel q
u CO. identified the word "good," with. bis
= signature written across the face. It was the
~ lhabit of cashiers to keep o memorandum OF
~ =, checks certified, but not to charge them up,
:. as when they were paid. Was shown tho
v ledger of the bank, and stated that the books
= showed (not including certified checks) q
. credit of S935.95 to the account Of A. Cap
a, pei & Co. at this date. p
I'll On the question of fraud, as alleged In tha
petition of A. Cappel & Co., counsel intro.
tuccd the trust deed, aud required the Wit
- ness TO turn TO certain accounts IN tho ledger
ck in order to show TO the jury that since the
D. deed of trust was giyer, preference in pay
er ments had been given to certain creditors.
r. Witness stated that he had made transactions
q. with some of the depositors, letting them
OF have assets OF the bank In liquida-
u, ton of part payment Of their accounts.
De For Defence: Bank suspended In Octo.
&c. ber, 1873. Did not recolIect the date Of his
u resignation. As officer OF the bank had
al- ample authority to make these negotiations.
Had no other authority than that. DID not
), remember The amount of Indebtedness at the
~ ~ time of suspension Had made statement
NY to the Finance Committee, and they made
~ Ie one to the stockholders. He thought the
.. bank was solvent, and had sufficient assets
no to pay creditors and stockholders. and 80 re-
-, presented to the Board of Directors. dc
' "a then thought that if the bank could raise
;s &c q small sum OF money 1t could 60 on.
i'' His statements had been. The, basis
of the reports Of the Finance CommlNee'
10, In his estimation, the good assets OF the oanE
-, on the ISL OF january Wei0 au!pi0 w Rsy 81.
10 its indebtedness, and he considered that iha
y; payment of these claims would not interfere
" with the ultimate settlement OF ell claims
Z, L against the bank, or prejudice the claims OF
~ others. eass.. h ;,
By the Court: The bank was chartered ID
May, 1867, and has been doing business ever
IS since. Il could not meet It's obligations III
y January, 1874. His opinisn at toat 9me
u was that if properly managed, the asses o'
"a the bank would pay all demands upon It.
20 BY Ar. Smith: Have the: assets OF, TIT
le bank since the 9Th day OF January been pro
le perly managed, so as to yield the largcs
amount Of revenue -ets: T. .sgyeg
% Ans,cer: I haye no knowledge OF the man
agement Of the affairs Of the bank since re-
signed. s4gz- Il s--yt
"a At 6:30P. M. the court adjourned, until II
% A. 81. this morning, when 1t will hear thu
y argument Of counsel on certain points OF Ia n
u raised during the examination Of witnesses
" The Jurors and witnesses were adjourned
It until II o'clock H., the judge remarkins
that he did not care to require them % rc.
main in court an hour or two listening to
q an argument on points Of law. .sy1,4,
UNITED STATES DISTRICT CoURr, YRsrEs.
: DAY.-In this court yesterday an order was
J made In the case Of Z. p. Wood, bankrupt,
J 20