The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-25
THE OCEAN BANK CASE.
Trial OF Calender Continued-The Pros
ecution Rested and the Defence

Opened.
The trial or Charles Calender, who is indicted
for having accepted a bride OF $4,000 rom the
Ocean National Bank. of this city, TO 1nnuence ms
action oank examiner, was resumed yesterday
IN the United states Circult Court before Judge
Benedict.
Mr.. A. H. Purify, United states Assistant District
ATTORNEY, conducted the prosecution, and Mr..
William Fullerton appeared as counsel Tor the de-
tepdanr.
At the sitting Of the Court, Mr.. Columbus s.
Stephenson, late President OF the Ocean Bank,
was recalled, and briefly Intercepted by the Dis
trict Attorney relation to some former points OF
his testimony.
TESTIMONY OF ]. II. AsKIN.
NJ. j. ii. Askln, President OF the Fourth National
Bank, Of Philadelphia deposed that he only knew
by nearsay that the bank loaned Mr.. Calender
money; he borrowed 1920 900 from the Vice Presi-
dent and Cashier OF that bank with the assent of
the witness; the securities Portage Lake
bonds and notes OF Wild, Conant and Avery; the
bank closed and this money was paid before the
closing OF the bank; witness took up the bonus
and notes and put in ,hei. place $4,000 or good
money; believed that the directors OF The bank aid
not know OF this loan; wltne took up the loan
because he believed /: had been made with his
assent and without the knowledge OF the directors;
the securities were IN the possession OF ais coun-
Sci; he was stil out OF the possession or this sum
OF money.
To Mf. Fullerton-There were about 500 900 OF
Portage Lake bonds. as well as / recolect;
$4,000 OF Illinois Southern Railroad bonds,
$50. 900 OF sullivan. Decatur and Mattoon Rail-
road bonds. and certificate for 100 shares
OF the Albany and Brunswick Railroad bonds
could not tell the amount OF the notes. cannot
tell the date OF the loan; think tue bank iaiied
Oh the 1s.li OF December. 1871; the affairs or the
bank have been wound up aud the oepostors all
PAID; was a stockhoder IN the bank TO the eX-
tent OF nearly one-haf It's capital! the capital
32ooooo or s225,ooo; hope that my sl2o 900 is not
me very hopeful that shall get my money; that
was as to the Portage Lake bonds; heard that the
canal was finished.
To Mr. Purdy-I did not hear that the canal had
been taken possession OF by the Attorney General
and VINO mad no eartniy Title to II.
THEODORE NJ. DAVIS RECALLED.
Theodore NJ. Davis, the receiver Of the ocean
National Bank, was recalled and re.examined at
considerable length by the District Attorney, the
tendency OF his evidence being that, with regard
TO the Portage Lake and Lake superior Ship Canal,
Railroad and Iron Company, as described In the
bonds, there was no such railroad, and as TO the
Canal described as twenty-lonr miles long, the
Portage Lake Cana proper was only two miles long
with some four or five miles OF y river AZ the emo
know the lands; the company did nos own
&C., 900 acres OF land; they had title 70
47,s5s acres OF land OF which the mortgage recited
III the bona was the first debt; the deed
was recorded the 18th December, 1872; the deed
was not on record at the time the bond was
gwen; he did not Know what the value OF the
land was; heard talk about II, but OF his own
knowledge knows nothing OF It's value the State
canal was regulated by law, but the rate was not
yet fixed; heard tnat a few ships went through the
canal. The witness was then examined as 10 the
CONDITION " tue oank its protested paper, ITS
suspended DEBT, &C., Mr.. Purdy, calling upon the
witness TO 20 on with his description OF the dead
weight Of the bank, and Mr. Fullerton observing
that lie could not see what additional force could
be given 70 igures'by having them stated twice.
The figures were repeated over and over again al
1dseaAo, until the jury seemed 70 be heartily sick
OF them. The conclusion OF the witness was that
The bank owed It's depositors s2.5, 4o2, while its
capital amounted TO only 81. 0uo,0 900.
To Mr.. fuilertOn-l say that there ia no railroad
built as covered bY The bond; the canal is not
bult; there is a canal called the Portage Canal
proper, about .wo miles long; at one end OF The
was improved and aredaed out; the Portage Lake
Company did not own 600, o0U acres or land IN 1915
they mad not tite ~ TIE land IN loIl; these and5
cover a great deal OF territory, and ! dare say
have been upon them The company were bankrupt
and were unable to complete the canal; under
stood that they had not title 70 the land; there is
@ deed out the parties who made 1t had no title 70
1T; the utle was 20 come from Mr. Anthony;
would not swear that Mr.. Anthony had not con
veyed the property e. Avery and CoDant.
OTHER TESTIMONY FOR TIE PROSECUTION.
J. III. crane, Cashier OF the Shoe and Leather
Bank, was recalled and he testified mat in octo-
Der. 1871, CaIlender's check Ior $4,000 was not
TO Mr.. Fullerton the witness said mat ne had
been offered thirty cents The dollar for first
mortgage Portage Lake bonds oy Mr.. DAVIS but
he refused IL because he believed tina, Mr.. Davis
was ''on the nake.n
William A. wheeiock, President O! the Central
Eationa Bank. deposed that NJ. Cal!enderis check
for $1,000 on that bank ID October, ls9l was not
good.
Mr.. Calender had an account there.
Conrad NJ. Jordan, Cashier OF the Third National
Bank, deposed that Canender's check on that bank
III October. ISL, for $500 would not DC good.
To Mr.. fuAerton--The cneck was not presented;
Mr.. Calender had An account IN the bank.
Columbus >. stephenson was AGAIN recalled, and
he gave evidence respecting tne payment Of 500
70 Mr.. Calender for making the examination OF
the Ocean Bank III October, 1871, IN compliance
with a request Contained n letter from the
Comptroller OF the Currency.
PROSECUTION RESTED.
The prosecution here rested, reservlug the right
10 call two witnesses that were expected to attend
before the trial closed. one vi these witnesses
coming from California.
W. Fullerton hoped that al the testimony for
me prosecution could be put IN before he COM
nienCed the delelcc.
Judge Benedict SAID that when the witnesses at.
tended he would rule upon the adnissi6litty Of
ter eviNnce on hearing from me District Astor-
ney what be intended 90 prove by them.
OPENING SHIPMENT AMP TESTIMONY FOR rHg DE-
Mr. Fullerton then cqeEed tae case on the part
OF the defence. He said That the defendant was
indicted Tor taking orlbe. and that the question
the jury had 70 determine was whether lie had
violated the law that respect. and whether he
exposed TO any penalties provided ior the offence.
!Hey LAD nothing 20 40 with Mr Calender tfdlsaC-
lions VITA ether banks except ~ Tar they
tended 10 throw rht On the sums o, money received
~ nr. calender from the Ocean Nati idi BANK. IL
was charged mat on The Eth Of September 1871 ne
loon sum OF $4,000 from the bank az q orOe
that on the "a October. is7l he took another br:oe
sum ana. ne repeated. that hey were 20 determine
Mr. Calender relations 10 other banks only IN so
Ia as taey tArGw Igst On MS Transactions with
lEe ocean BaLk. They would nave 10 decide
whether tie act ne had COMMITTED vas done with
sfm.n3i intent. lie mir. fuierton) dd not sup
pose that a man who got the appointment o; Bank
Examiner should rot carry On any business Ou I
ma; wllch related 10 us Official duty lie was paid
H.. s. a day. Way. tue carlnan VINO was
passing IN the street made more than mat and
managed 10 ave comfortably. Il could not said
7bat be should carry or no other oueness but that
a. BANK Examiner. because Il be was united to
~ ss'ary me Jury wei kLew Wat his eonGiton
%paIG be. There was not clerk a a bank IN thus
cay wh, d!d not receive more i3an s. day. The
Judge nad decided nat NJ. CALENDER was emitted
70 borrow money iiOin banks, and II he honestly
INTENDED 70 pay back those .oans he was not guilty
81 th!s charRe. The bonds given as collateral Sc
curly lor che loan had an iDfrJnsiC and positive,
gent not speculative, Va.ue. This was conspir-
S'v between lie tece ever Or me ucean Bank and
yarSts engaged - tbs vresentsaon 10 DvY ~