The New York herald., 1876-12-29
BROKEN TRUSTS.
The Defaulting Trustees Otis D. Swan
and Coles Morris.
SWANS RELATIVES AND CLUB SUFFER.
The Morris Case Said To Be q
Family Affair.

Tho sudden flight OtisD. Swan. OF No. 81 Wall street,
reported in yesterdays HERALD was the subject of
much yesterday among the large and respect
able circle OF bankers and brokers who had business
privMc associations with him. Many who had known
Swan light OF tho church, loader of society and
one OF those who try shine by their moral and
elevated conduct lie astonishcd that such
truly good could be guilty OF such fragrant wrong
making away with from $500 900 $500. 600 Of his
relatives money and $4,000 from the funds OF his
club, the Union League. His former associates think
ing Of his kindly manner and lofty moral bearing,
seemed TO speak very well OF him. A fellow broker
who rented 10 Swan part OF his Office at No. 81 Wall
street, said that he would be as willing to
trust Swan as he would his own father.
"This offence" said he, 'is simply hypothecation OF
securities deposited with Swan tho way OF business
that is all He not man OF extravaRant habits,
but, on the contrary. exemplary in his conduct and
should not be at all surprised II he came back and
explained everything TO the satisfaction OF his rcla
tivcsn Another broker in the same Office also OF
the opinion that Swan might yet como back, and Mr.
Benjamin swan, his brother (who purposeiy lodged
every representative OF the press pursuit of the
OF tho case in conversation with other brokers
still held out tho hope that Otis d. Swan might como
back. There Is doubt that hundreds of the most
scandazed by tho disgrace brought upon them by
their former associate, who turns out to be
criminal dcfaulter. If they s.ll speak kindly of him
and unwilling to believe tho worst of his alleged
deacations only reflects credit upon their humane
and lenent dispositions
LEAGUE cLun's LOSS.
Many OF these friends continued even TO assert
tcrday that Swans Transactions wore simply family
matter all the funds which wore Incorporated by
him having belonged TO the family estate. This how
ever, in direct conflict with the statement made
yesterday morning by Mr.. John A. Weeks, the chair
OF the trustees of the Union League Clubs build
ing fund, that Swan had undoubtedly ombezzlcd about
SIS, 900 from this fund. This amount seems small, and
distinguished members OF tho fraternity to
which the highly moral and pous Swan has
allied himself may despse him for stealing petty
q sum. Let them DO not ovcrhasty. If Swan
did not steal moro than $1,000 1t was
the best no could do under the circumsances-and,
the old adagc says, no one can do more. Tho clubs
building fund for whose trustees he acted secretary
which were registered in the names of tho live
Otis ID. Swan, John A. Weeks, James A. Roosevelt,
William h. Fogg ana Franklin II. Dcano Hence u
impossible Tor swan TO convert the bonds to his
Being treasurer, however, hc could collect
all the interest since last January the bonds which
deposited with the United states Trust Company
and this what the worthy Swan did Hence II Will
be observed that II swan aid not rob the club, of which
he OF tnc most esteemed founders, Of moro
than petty s.. 900 It not SWANS fault Perhaps
OF the mcpbors OF the club would like TO know
why the other trustees did not look honest
admins istraton OF the Trcasurcrs Office by Swan. but
stated that the highly respectable gentlemen who
werc swans associates had no time 10 attend to their
duties, and moreover, that they had implicit cona-
dencc in the highly moral Swan
SWANS BANK ACCOUNT RIGHT.
Swan had q bank account with The Bank OF Com
merce Mr. Vail, tho cashier OF the bank, stated that
hts all right and had not been overdrawn
cashier the president, Mr. Robert Lcnox Kennedy,
freely jokod over the Affair." which showed that their
and that they had taken sufficient precautions avoid
one some or The brokers cnergeticaIiy repeled tho
thereby cast upon thom. they that Swan ceased
a broker 1873, when he failed, and forced
to withdraw from the stock Exchange.
PROSECUTION PROBABLE
Diligent inquiry yesterday failed TO ascertain the
exact amount OF swans detaica.ion OF his fathers es
Frederick swan, who with their children and heirs
tho principal sufferers reputed to be wealthy
and fcc natural dslcacy in exposing their relatives
guilt They inclined TO condopo hts tault. Mr.
C. N Fcarisg, Swans brother n-lax. who resides at
No 20 Lafayette place, declined TO state tho precise
extent OF swans deiacation. and contented himself
with saying that tho amount currently saied-bctween
The estate had been under swans conircI since the
dcath OF his father IN 1875 He has regularly paid the
interest due on these fund.- and y Is supposed that
and OF The detection Of his cmbczzcmcnt OF the
Union League Clubs money prompted his light.
OTHER SOCIETIES.
As to the other Institutions with which Swan waa
connected OF them said to suffer, probably
excepting those Of tho Society Library, which were
stated TO DO intact In reference TO his official assoc
alton with tho New York Hospital aud the Lcnox
Hospital, Mr.. Robert Lcnox Kennedy, OF the Bank Of
Commerce. called Mr. Kennedy said that so
far the New York Hospital was concerned IL was
not possible he could defrauded IL Tor bo
was not po sion TO enable him TO do SO, and ho
felt that the Same was truc OF the Lcpox Hospital
though he position TO Judge so accurately.
He simply knew that financial wrong the part Of
Swan not evcn possible.
Swan had dign fed and prcposscssng appearance.
He about hty, Of full habit, with large, round
well sh aped head, somewhat bald, with grayish mus
tache. dis whole appearance and manner were those
OF dgnitary OF the church and leader OF society.
Mr.. COLES NORRIS CASE.
Together with the above painful story came the
rumor that Mr.: Coles. OF the law nrm OF Norris
Billings K Cardozo, had dcfaulted trustee OF the
great Hoins estate In New Jersey, and had hcd the
city, Mr.. Morris is very we'll known, being a senior
partner OF Alderman Billings and Michael II. Cardozo
While the statement that Mr.. Morris had 1cd
found to be erroncous-Mr. Morris being at his pala-
tial residence No. % Fifth where he resides In
sumptuous syie is unioub cdiy true that tho report
OF dcaIcation 10 not without foundation. Mr. Carr
being called upon stated that the hrm and Its c