New-York tribune., 1875-03-04
THE COURTS.
SERIOUS CHARGES AGAINST BANK MAN
AGERS AND OTHERS.

SERIOUS CHARGES AGAINST BANK MAN
AGERS AND OTHERS.
BILL IN EQUITY FILED BY b. F. ALLES-IRREGUIAR
PROCEEDINGS ALLEGED AGAINST THE AMERICAN
EXCHANGE, CONTINENTAL, AND DRY GOODS BANKS
THE CHARTER OAK LIFE INSURANCE COMPANY
ALSO ACCUsED-HIsroRY OF THE BANKING FIRM
OF ALLEN, STEPHENS & CO.
Benjamin F. Allen of Des Moines, Iowa,
fled yesterday through his counsel Bird Blair, the
most vouminous and complicated bill in equity that has
been presented to Judge OF the United States Circuit
Court for the last three years The complainant Is a
member OF the banking firm of Allen Stephens Co. OF
this city, and the defendants his copartners, William
A. Stephens and Herman Blennerhassett, aud Joined
| with them as defendants the American Exchange
National Bank the Continental National Bank and the
Dry Goods Bank all OF this city The object OF the Dill
is among other things. TO force Stephens and Benner
hassett account to Allen partnership funds alleged
to have beep rauduently disposed Of and to restrain
the American Exchange National Bank from parting
with certain securities now Is claimed In It's posses
sion Besides charging the banks with many irregular
tles tie bill that H. White. the VeePresiIent
OF the Charter Oak Life Insurance Company. used
s15ooOo OF the Company's money in outside specua-
ton. and that the Company, to conceal what Its vice.
President had done. advanced 100000
Dyested OF its legal verblage, the bill ia as follows:
tn January 1872 BENJAMIN F. Allen agreed with Will
liam A. Stephens and Herman Bennerhassett TO become
| a "a
SION business TO be carried on In the city OF
under the firm name OF Alien Stephens Coz ana there
upon partnership agreement was executed, providing
that tue capital stock Of tae partnership should be
$4,000. all Of which should be furlhed by Allen; but
the firm in such sums as seemed to him IT. Ire
| money advanced was TO draw interest sc the rate
| OF per cent per annum, aud Ike rate OF
interest was TO be charged upon all drawn from
the firm by either Of tue partners each OF whom should
ness, and pay onetrd OF the losses TGe profits were
TO be credited 20 per cent to Allen, 90 per cent to
Rlann anff nd
mainiug 40 per cent be credited to contingent
account winch might at any time be divided among the
| partners by mutual consent Tine accounts to be
balanced on the rst days OF January aud OF July In eaeh
year. when the respective pro OF each partner should
be cagried TO his individual account, such prohts
to be estimated after carrying to tho contingent ac-
count all doubtfa debt aud uncertain pending opera
OF the firm such sums as might be necessary for his per-
sona ana ianiiy pr0vlued tne sae uI TOe %
amount lie might have 10 his credit The hrm name
was lot to be used or It's assets employed by either
firms business Neither OF tho partners should indl-
vidnalIy make indorse, or gutrlntee any note d ar
become auy way the surety OF any one, without the
t we're e' to M deVoe o tner entire time and to
the firms business, and were not without the consent
Of Allen, 10 eDgis3 ia any other DusIne s5.
Ia pursuance VI the agreement mentioned the nrm
began business In January, 1872 and irom Tic very start
large amounts OF money were dep0sC5u wiz ~ Hot VI
he deposits being made DY Aiens acqiMntahce' ana
! correspondents in the Western States TIE deposits
were 50 large mat the E53po aRreen 10 ue
by Allen was needed aud payment VI the same was
| waived Dy stephens anu BSIhcElao-ctt, ncIsuct VI
whom ever contributed any mOacy 10 the lcm; but,
owing to great credit and acquaintance OF Stephens,
the R.n Gurlg the first SIX months OF s eXisehc: was
able 10 DO ana actually Gl1 pl3hess "hch yltllea
net profit " over soJ0cJ Except "A tue ady~ncement
of tic $50 00O IA capital O- TIE III Allen bas compiled
with and performed all OF the slyGhtJhs ana agree
ments contained in tue articles o. pdrtnGtShp to Je
kept and performed by hiu aud has IN all thng5 el
Stephens and Bonnernassett from the 0eginnng nave
had charge Of the irm's business, and 0f It's books
assets and properly iAey lestI5 u tIS Nly Vi -
York, while Allen resides In Chicago, H., ana IN D1s
uudes aad b. virtue OF the provisions 0!
the partnership agreement; 20 Keep full tru and accu
and to ,s the first days Of January and
July OF eacn year durnE the coljInHtnce
and believes, and charges the fact 70
be, they have incorrectly and impropsrly Eept sad
boo and act entered therein al tuc transactions
of sid lrn that tAcy nave uOt given All.u credit
Tor mcley, for which he was EMIT ed to be credited
and nave nos charged themselves WIN moneys when
tuey, aui each Of t1cn, nave drawn cut O saii n.n
| and appropriated to their own use and benefit
years neglected and refused tn balance said firm )
books the St d1ys OF J95qarg ana Iay S 9Pa
sttemcuis thereof although oft'n c'ql2sei 10 do So
sscplcns ana Biennernasse ia vi,llon OF tle terms
OF The articles of partner-hip aad without Alon :
! knowadge and consent. "did employ ana
use the firm assets Otherwise thlA IA the
! rr.ular course of the 1tn's business, and en-
! harked in speculaiious ana operations outside OF
the same and II II ~, 1874 t4cv c-teteI "'o specu-
a,ion on their private account aut through the pur-
chasa OF large Interest IN silver mine" IN me I.rrl.
Tory OF Utah. lnOwu ds the Mono Nine, fof |hith tAey
agreed 10 paY aad did pay $4,000, under an aflat ge-
| ment with 8 H. Waite, the YicePresdhnt and Treas,
urcr OF the CAartcr ok Lie Insurance Compauy Ot
| Hartford Conn. By that arrlngeneI', " Whte or Tue
SAID Company was 10 ply tle sam oI $JoOCJ OF sAl
purchase money tor DrOpOriJHae shlre o the lhtci
ct SO purchased by said stevens and Beanerlssett,
who lG thu salu sum OF Sh1U0 Win the IlArF Ihu
ont OF the assets or SAID firm or Acn stephens o.,
| without the eonsoup OF Allen Ia pursuance 0i me
Ist-mentoned arIngemeHi, tho sal! Charter OAK Lie
| and Blenuerhassct; the said sum OF $4,000"
TIE nteres; III the Mono Ane plErh'aei Dy stephens
and BlennerEassest mas proved a'Tety |ortAe, M aai
having proved "St phen5 aHi B.ennerLas,'tt nos
pretenI that the speculation wa. e.tFu ITO Dy tut
Oa partnership account aud thit Alen 10 DeaI MS
proportion OF ne loss " sad speculation. lhe tFtW-
ing by Stephens and Belner!asset' OF Sp'VV rom
the assets OF the arm gftdtS Iiauteu Us az
sets embarrassed It's operations, ana seriously cilppou
It's condition., aud ut tn Request Oh stephens al peh
nerhassett, Allen ID AuSis, lot came ~ We We" " & lu,N
and had consultation with BlenLerhlsett, WuO Iheu
represented that was aso.aey neosa.tS ina they
should nave he SUN % s-DoO y Pt ~.
them expended In the purchase OF saii nile au thdt
the Charter OAK Life Insurance C0mpAny would rather
than have the fact Known tAat rs VIC f.cooet, "au
Treasurer hd used s5lO0J 0t t funds loan or advance
fnH he sale OF bis property in Iowa. and could
procure in settlement OF debts due 10 him" AfCer such
REPRESENTATION Allen, I. H. Wnite, aId BeunerhaSsett
consulted together when 1t was agreed upon on the
part Of Allen that he would at once return and pro
could and the Of White acting for said Charter
ok Life Insurance Company" that 1t would, as fist
tent Of 500 oco" Between Aiei, st,phens & Bennc;
hasset it was thereafter agreed tnat sSlO3loL saa
money should 20 directly TO Allen and the Otler SAo0-
OOS Of the same should deposited VITA the sid rn Of
| Allen, Stephens & Co. to the credit OF Alea
In pursuance OF the last menti2ned ageeilent tNIe
procured sent stephens aud seclr
Ties 10 the amount 500 000O, upon WAicn. au
upon the fath credit OF Aleu-as lie Informed
ana believes said Charter Oak Lie Insurance Com
! pany made and issued its paper 10 thc ahOuht VI
S4jOOOO and delivered the same to sald Biehnefnas
srtt ana stephens to by them sold aud NEGOTIATED
and the thereof To be delivered 10 te nFn OF
| Alicu Stephens q Co., and he credited 10 Allen.
large portion If not i Of the paper OF tue CARER OAK
Life Insurance Company, was sold or nego ated ana
the ayaiis thereof received by stephens aAd Inner
hassett but no part the sane was, a. Alien Is IN
| formed and belle YES credited 10 his account
| At that time Allen was the President and chief man