The New York herald., 1876-12-03

THE ADJOURNED HEARING on THE FIRST RE-
PORT OF THE RECEIVER OF THE FRANKLIN
INSTITUTE FOR SAVINGS BEFORE THE MASTER
N cHANcERY--A sToPPAGE OF TELEGnAPHIc
COMMUNICATION.
by TELEGRAPH TO TuE HERALD.
Providence, Z. J.. Dec. 2, 1870
In the matter OF the first report OF the receiver OF the
Franklin Institution Tor Savings there again
hearing to-day before the Master in Chancery Pre-
vious 10 argument witness called by one o. the
for the dcposiioIs the purpose o: showing
that De of had been doing quite business in trans
fcrring mortgages and pocAcng the commissions TOR
the same addition to his charges for services The
witness testified that he wanted mortgage transferred
10 irend and tnat De " OH declined unless he pad
him commission 0! ono per cer,; that he (De wol9
told his friend thai he could Get him other mort
cages which he could get moro interest,
ana advised him not 10 take his, when he remon-
srated with De Wolf Tor charging COMMISSION; hc
lDe woli told him he had right 10 charge brokerage
upon everything he did IN the bank, and under no
restrictions that he finally paid him onc.nalf per
cent
Do Wolf, wncn examined IN relation TO this charge
denied saying he had right 10 charge commission; |;
that no did not positively decline TO transfer the
mortgage without receiving the COMMISSION Of one per
cent He acknowledged, however. that he finally COM
promised one-haiL Al the previous meet
ing he acknowledged that he had received $l!',l50
in commissions Tor negotiations OF mortgages De
VOLTS counsel proceeded TO show thai the expenses
incurred were In view OF the importance o!
the trust and that especially in the matter OF consult
Ing tho lawyers outside OF the State.
In reference 10 tne paper of A. < W. Sprague and
the fees incurred ~ bringing suit against the attc they
should CLAIM that when DeWoi. entered upon his du-
ties, being charge OF large interests, and dnding
question in the bank in which he did no. feel able to
TO % q
ihis expense; that when advised by counsel
that he had right to recover on the sprague notes Il
his duty TO try and do Counse. argued that
the compensation was reasonable but that Il he
ierred the mortgages Tor the depostors .t part
The counsel Tor the depositors followed against tho
reception OF the report He read from the statutcs
and claimed that under them II was technical breach
OF trust Tor the receiver TO draw dollar Of ,he
| bank tor his until allowed by the Court;
| thul not dollar should nave been paid
without the order OF the Court Ho quoted
from authorities to sustain this position. Ho also
quoted authorities TO show that compensation tor
ccivers should be what is reasonable for person or
ordinary ability and competent 10 perform the duties
| He excepted TO the report as whole as being IN no
account Tor the reason that no one tell
/ from II whether DeWoli has donc his duty
That the standing Of the bank cannot be told IL
| He objected the account ground that thcre
was not single expenditure tho account that looked
like economy, and took up the various items 10 prove
| this statement The pay Tor the clerks dinners WAS
| unnecessary expense. The pay 10 the police
illegal and against the orders OF the police force. Tho
| expenses which grew out Of the desire to attach
4
not only unnecessary, but he had no right incur
thcm take the step In this last matter he claimed
that " Dc VOL succeeded no would get nothing but
litigation upon htisation ~ short that II he succeeds
| he ias Under The law he had right 10
| interfere with this extended paper, which
interference with the acts of tue previous
trustees Of the bank. He had certainly munagcd
affairs with prudence and discretion, and there
suspicious that he influenced by desire avcnge
himself upon the Spragues ior injuries received His
receiving commissions Tor the negoiiutlng OF loans
counsel characterized as contemplate thing do,
VI IL done the money received belonged 10 the
bank money derived from assets. De Wolf had
discretion TO exercise In winding the affairs vi tho
bank that should entltle HIM 10 such large compcnsa-
! ton Is asked In every matter he should have
taken instructions from the Court and especially in
| the matter OF Sprague's extension note.
Counsel argued the ut great length for the
receiver ami commended his course IN bringing the
suit against The Spragues, claiming that when
the bank found the paper OF tho latter by
irresponsible names, end which had been placed there
by the trustees OF tho nsti ution IL was his duty
decide II IL good bad and OF the eminent
lawyers wnom he consulted, before bringing the SUIT
told hun that tho acton ot trustee by which they
pretended TO bring the bank TO an arrangement
fraudulent and that person acting Tor others, finding
that an attempt fraud had been made, and being
by eminent that II was his duty at least
make attempt prevent the fraud bring the
transaction 10 light
TNorE.-The above despatch ends in this abrupt man.
nor in consequence OF all the wires and from New
port having failed The telegraph operator that
there is no prospect OF restoring standardization Tor
Soma little time- -ED uRRALD1