The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-19

| laterais; have got all the collaterals MI Caen,
bond OF The Portage Lake and Lake superior Ship
description came into my hands as security for the
alleged loan by the bank to Charles Calender; Mr.
his his coliatersls; the bond is the fourth
series OF bonds: $4,000 OF the bonds are
alleged sy sgss Sss, y Mr.
Nanonai Bank; have Investigated into the value
OF those bonds. and IN my Judgment they were
Calender; they are worth something now. Uhe
bond was offered IN eyidence.} There were among
and Illinois Southern railroad and OF the Decatur,
sullivan and Matoon RaIlroad the bond produced
pufportea 20 be lien on 100000 acres or 2nd IN
Michigan and canal twenty-five miles long.
Mr. Purdy said the bond was fraud, that u pur-
ported 70 us en on eana tnat ala NOES mo-.
as security were not paid; he had the notes IN
Court.
To Mr.. Pullerton--I believe Mr.. d. R. Martin
was sued one OF those notes last week; be-
heve Mr.. Martin 20 be insovent by the act OF
Providence; I have heard that he has had
wndlall latteriy and wanted to get at 1t; knew
what the pecuniary condition OF Mr.. Martin was
mary condinon OF Aired Wd Ayeri W.
L. Avery and J. +. Conant was at that time,
except that they were largely indebted, but
know nothing OF their resources; these gentle
men were concerned in those notes; had no
dinculty with Mr. Calender; these men owe the
bank nall q million OF dollars. ana they are trying
10 remove me from the Office OF receiver OF the
bank because was trying TO collect their debt;
attempt; have not been charged with fraud IN
connection with these securities; there is not an
investigating committee inquring into the matter.
Mr. Fullerton said ne wanted to show that The
witness and others mad formed syndicate to pur-
chase in those bonds; that there was concerted
action on their part to depress the bonds in the
market, and purchase them In to their own per-
sonal advantage.
Judge Benedict-The Court will not 90 into that
The market value OF the bonds Is tue question
that the jury has TO determine.
Mr.. Fullerton-l will snow that all this thing
W(nl no q N nha n
man has thrown IN our way.
Witness to Mr. Fulerton--l dare say have been
say positively whether have or not; believe
there Is q canal as described IN the bond. The
has the a. Msps apa he
after advertisement In the public papers, and by
public auction at No. III broadway, lot
Ship Canal bonds as security for Callenders loan,
at nine and half cents on the dollar; lot OF the
bonds OF the Chicago and Illinois southern Rail-
road at three cents the dollar and lot
OF the Decatur, Sullivan and Matoon bonds at ten
cents on the dollar; the Canal Company was
Mr.. ID. r. Martin could not be sued except through
his wife; that an execution against him could only
be collected through his wlie; he Cwitnessl knew
the length OF the canal from the engineers re.
port; there IS canal there undoubtedly; some Of
the bonds were bought IN tor the benefit OF the
bank by Mr.. Cox at the suggestion OF witness;
from the statement of ConaDt. Wild and Avery he
believed at the time that the security given by MI.
Calender was good had heard that wiId was a
wealthy man.
To Mr.. Purdy-Mr. Calender told me that ne
thought the bonds good security lor the loans; |
knew at the time that he was connected with the
Canal Company; cannot say that he went into
details at that time. He told me what he thought
the bonds were worth; he said ne had been about
year or eighteen months connected with the
enterprise.
To Mr.. Fullerton-I think l stated on the pre-
imnary examination that the bonds were worth
fifty cents on the dollar; tnat was upon inorma-
ton received.
TESTIMONY OF CHARLES L. FROST.
c. L. Frost gentleman connected with railway
matters Tor hfteen years, said that bonds like the
one produced-the Portage Lake and Canal bonds
had no market value in October 1871; he bought
five OF the fourth series OF bonds; he saw them
sold at auction by the ocean Bank; he never sold
them at any time he bought three bonds just
after the failure or the ocean Bank; the bonds
were offered to him IN october, 1871; nobody
wanted them; Mr.. COnant offered them to MIN;
he declined to buy them or lend on them; those
bonds were an over issue; he did not think they
were ever dealt in.
Crosse Xamined-I bought those five bonds at
auctlon just after the failure OF the Ocean Bank;
they had been hypothecated as security Tor loan;
they brought ten cents on the dolar-more than
they were worth; | knew they were an Overssue,
yet gave ten cents Tor them; the bond produced
Is the KIND OF bond bought; thought knew all
about them, but was deceived.
TESTIMONY OF CHARLES A. MEIGs.
Charles A. Meigs, national bank examiner,
deposed that ne mad made an examination OF the
Ocean National Bank, having spent several weeks
going over the books: he confined MS Investigation
TO the condition OF the bank on the 12tn OF Decem-
OF the bank on the 2d OF October 1871; could not
tell how long II would take MN to make such eX-
ANIMATION; II he could get the statement book he
thought he could tell what the bank books showed
the condition oil the bank to be on that day.
rhe Court directed the witness to LOOK into the
book ano come prepared Win a statement next
morning
The Court then adjourned till to-day.