New-York tribune., 1875-10-30
LOCAL MISCELLANY.
pRooKLYN TRUST COMPANY.

sITTlrMENT or THE SUIT BROUGIlf ON ACCOUNT
OF MR. MIILss RAILROAD TRANsACrioNs-Phf-
,ANT OF HALF A MILLION IN BONDS.
The Brooklyn Trust Company and Jonathan
A White who have been defendants in suit brought
AGAINST them by the Town Of Nddletown, Conn. nave
,ust settled the matter by paying over 10 the pann
about $500 900 in bonds OF the money value OF SiZoVo
This suit grew out the defacaons OF the late E'ner
bert g. Mills President Of the Brooklyn Trust company
and the alleged completely Of its Treasurer Mt spraHue
Of its Secretary Mr. T. Rodnan and of stockhoider ava
sDeculator Jonathan A. White. When IL was uso"'o,"'
in July 1873 that Mr.. Mills had been adeiaui'er' "o
oficers OF the Trust Company seized soiue oo"us
OF the New-Haven. Middletown and "hiimahuc
Railroad Company which he had pledged with the com
many or plaeed fer safe keeping in its vaults Mesers'
Mile Rodman and White, through the agency oi MI
Robinson had entered into an agreement Win inc ran
road company furnish the money TO mish tne h'e'
and received from time 10 time f236Ooo OF hrSt moiE
cage bonds s5OOOO0 Of second mortgage bonds, uoteu
by the towns of Niddetown and other towns along inc
routc $500 600 OF second mortgage bonds unndorsed
and 100000 of common stock. They sue
roeded In getting possession Of the secu-
rites before the work had been perlormeu'
a. Mills and white members OF the Executive Com
it;ee Of the Board OF Directors Of the railroad ihey
did not perform their contract, but actually advanced
only about 100000 in cash and in supplies The death
Of Mr. Mills IN July ls73 defeated all their plans, a. II
has been shown evidence that they intended III august
and September OF that year TO put the bonus upon c
market and roaze enough 10 pay of Their Indebtedness
10 the Trust Company and thus the dedication of Mr.
Mills would have been concealed. The actual value oi
the bonds became known, and Mcssrs. ROdman White
secreted what they retained. ant the Brooklyn Trust
Company seized bonds in their vaults which were IN
Mr.. Mills's name -
The towns that indorscd the bonds and the railroad
company then brought sut against the Brooklyn lrnSt
COmpany aud Jonathan A. White tO recover the BONES
which the plaintiffs claimed The defendants unlaWfulN
held TO The Vaiuc Of SSO00O0 The plaintiffs declared
that Mills and White had never fulh led their contracts,
and that the whole transaction was fraudulent, whe the
Trnst Company based its claim 10 the bonds on the
grouud that advanced 10 the railroad company
was s Dropery unawfully used by Mr. Mills. The suit
District evidence taken establishing the 1acs
given. The defendants counsel then rec0mnendeu 10
their clients that settlement snOnd be had N possible
mud accordingly bonds the amount OF nearly SJOOOoO
have been trans the plaintiffs, while the trust
Company in addition has paid the costs OF the suit
amounting 20 about $4,000. suit has therefore been
discontinued against tho tOmpany but separate acon
10 he brought against Mr.. White indN ldualy for the
recovery of the rest Of the bonds is threatened.
What effect this aymeDt will have upon the ahars
of the Brooklyn Trust Company II not known. Among
the assets in the made by the receiver III
September. 1873, S22jOOO IN Niimautic railroad
bonds which were valued al Sl5O,0OD. Their actual
value s not than - cents on dollar, or about
sJ625O. OyertiInfts of MessIs. Mills ana Rodman,
amounting ~ $1,000 also included III their state
nent and said 10 he secured by the bonds W!iCh
the Trust Company hiss just paid over TO the Mlmanlc
Railroad Company and 10 the indorsng towns. 1he
capital of the Company SJOOO0O II appeared IN the
uade any annual reports O its condition 10 the state
Controller as by its charter IL is required 10 do