, 1875-03-06
Gill In Equity Filed by Him In tho
o. y. Circuit Court at
New York,
Serious Charges Against Bank-Man-
ayers and Others.
History Of tho Banking Firm Of
Allen, Stephens s. Co.

yesterday through his counsel, Bird t. blair, tho
most volunlinous md complicated bill In equity
that has been presented to aJudgo Of tho United
States Circuit Court for tho last three years.
The complainant la n member OF tho banking
0rm Of Allen, Stephens l. Co., Of thia city, aud
the defendants arc his oo.parlners, William A.
BIophous md Herman Bleunerhasastt, aud
Joined With them as defendants aro tue American
Exchange NATIONAL Bank, tho Continental
Dank, and tho Dry, doola Dank, all Of
this city. Tho object Of tho bill
IL, among osLor things, to force Stephens and
Ulennerhassett to account to Atlou for partucr-
ehtp funds alleged to havo been fraululonsLy
disposed Of. and to restrain tho American Ex-
change National DauL from part!ug with Certain
sccurtties now, ~ iH o'atmel, In its possession.
Besides charging tho hnllB with mauy ,rrcgu-
laritcs, tic bill aaBcrta TINT s. II. White, tho
yica-ptosident Of the Charter Oak Life 1nsur-
anco Company, usod $4,000 OF the Ootnpany'e
money III "an MISREPRESENTATION and that tho
Company, to conceal what Its yioe. President Lad
done, advanced so0o,G
Dives!cd Of lts legal ycrbisgo tho bill ia IL
follows,
IN january, 1879, BonIamn r. Alien agreed with
William 4. Stcl.rns pnd Norman l,ienncrAahse!t 10
becone partner with them in general banklng and
Now York under tho hra' name Of Allen, stcphoiss
Co.. nnd tl!erelspoM rarcrttp agreement 'saa ex-
.hp so b. s5oooo ss III x ve .oI i. Is fr
nlahca ty ALEU- but either Of tic other TartnOrs
might atlyapce money to ths ar,n In such sums as
tereat 1t ta rate Of cent PEE annun. and like rata
ofnere.t to 10 charged Upon oil drawn from
rocsiyo oaethlsd Of lilo prots derived from the bua-
nOst, and pay olo.E Of the !osscs The profits were
& ses.s Il ss a ss SET e h @ sss sn @ e
remaining 10 par cont wsa. 10 To credited to =
sugent account which might Il any tlmo bs d.
accounts were 70 bo balanced on tho 1ss d.ys
Of Jpnuary and July IN eacl ycsr when ths reape:t
s liz ndsdua assaun such ' prot. to e. es.
mated After carrying 10 tho contingent account
all doubtful debt and unser!a!n nsndinG opera~
oha. Each Of tho partners might draw from the fina
Of tho firm snch auts might TO necessary for lx
personal and family exronscs. provided tho eatnc dhs
Of tho xmount hs might have 10 s croalt. The firm
na,no WA not to 10 uso1 or it, asHeis employed by
e nrnla b,,aIucss. Neither ot lhe Partners SHOULD
dr1t {not including rhssEs)' b or otlsr oblis.tioa
the conAens Of ali tho partners. Stephens aid Dcn.
ncthassott were to devoto their enre tina and atsn
connens Of Al!on. 70 engago IN any ohsr lustnea,.
In pursuance Of the agreement ruent3one1, ls firm
ss ss .1g, S'ns y }'n e pns %
enees ana eorFespondens IN the Wsstorn atntes Tls
esaHI "Ssn ~ s.He tas ~ s'oseoo skaeu1 ~ ~
TUG same was Waived By sseplens and uenuerhassets
neither .. wna syes contributed ny money sp tue
nf aerhens, tho lrn during the arst six months Q!
a o.s.sne0 Ts s1.,. sn1s % do ana pns sstaly did
s.ocoo to IL. capital ot .ie rna, Alien das eemrlioi
msuta contasned in tho articles of partnership 10 b
kept anu performed by him, and has IN MI things
"a e ~ ~, 81 tno ns
hau sole charge Of The nrs business anu od eookb
1ssets, ana properly iAcs fesuo ~ sne Cty q HeW
n.. ~ a 4 s., ~. dwtS e I'll sannsaa .rS &c;
b'nnerhassess nndos snd Y virtue Of tn provision:
eas HI W H.. 70 ta Iao, s
o"s, ana 70 balance Ia BOOKS na no IT, uays q Ian
~ ~ nI % S ye4I @ .as a s
and eh1rEss ths tscs to Ga thsy asss Incorrectly
r. 2en. sau aaa n1ve n aot eeesen m
sye not ese Aen ersis for r. noaeys I for VII With b.
With o, rs TEX ana ss;h e
oTn nse Ana oSheh" stephchs aha nlshnoshasae
"s Ia ~ nr,. .Mo 1870 ~ "u @
.ry nj July" and lsys "n.gisete'l I'D rciu'sa
housa otten sa sssnss'ea so 10 ~ sepeas s ai
nsucsSs asa, !" haf'aeran,p n nno !nM Wauot aHema
nMno"eao M q anu consent o,hraao aa enoy .G aTa w. w.
ana operations oMsas o 1he sao an%
III Ma1 io4, tney ehto!sa anso hreeaasio9 Oh the'F
psss'e account ~ a. .as2nsn sne nfsS1o o.
lnses' IN syer n sns nr ~ ms iess"ty s a %
aRseeu 70 My, h14 ~ paf. sHv;No unaet an ",
ragc!neat " VIII ~ d HI Whste, Lhq slss.rseneht ana
Itsasarer e. tno ghhrser oas Lte:tnssrsnee Oon-
n'my" Of Hartford. Conn. hy tnat arrangement; O.
waite or tne Conany was 10 ia5 tho sun o.
Of sal! pnrehase-noney for rropost!ouse share OF
the 1ntersht 90 parehagcd Wy sa!a stevens ana hle-
nerha.stts who pa!a tne aa!a sum o. ssp.o3 VITA
tlc money and q the assets Of sa!a nIm ot Allen
stephens Co., without the sonasnt" of Allan. In
Mrs91anso ot w taa!,moasionee advancement .h9
siai 70 ss,1 atephsns and 'ns saa '
The intcrtst In tie Mono alua puEehase! by ssc-
!nns snd r. rToys4 utterly %ort!e:.
actt now pretend that tho speculation was enters1
Into hJ them Oh partnership account. md tlat Aen
ia 10 bear hf proportion OF thn oas Of ruil sroulA-
ion," The drswing out by Bcpheaa unt bleuAeEha4-
sct OF ?49o 0Q0 tron tho assets 81 Tue Arin 9reaty
roduced ita available assots. embarrassed tts opc1a
tions, and seriously crippled IT. condition. and, 1t thu
request Of Stephens sMl hlenuornassGtt, Allen, In
1A3t Eew THff a1if hu1 a r0i1HtltI-