The New York herald., 1877-09-23
CLAIRMONT SAVINGS BANK.

COOPER ExPLiINs-IHE PRESIDENT OF THE
UNION TRUST COMPANY sILENT-sKETcH or
GENERAL sMALLEY, THE RECEIvER-BRoAD-
WELLS PAST CAREER
The affairs OF the Cairmont Bank seem to be more
muddled than ever. The arrest OF sherman Broad
we'll president OF the institution, indicates that mere
serious developments are in store for the trusting
dcposhors. Tho name of william Cooper was freely
used In connection with the negotiating oi loans
for vicc President Swan OF the Cairmont Bank, ana
the gentleman, who is son-in-iaw OF Broadweli
having quarrolied with Nj. winser, a lawyer, AFTER
ward agreed TO HIM at the bank. Mr Cooper, at
this meeting said, ''About last Juno Mr. Swan came
to me and asked mo raise money on some
bonds -"
The reporter here asked the question OF Mr.. Cooper
whether It strange that he Cooper should be
selected to raise money tor tho bank, seeing that he
son.ln-law ol the president.
NJ. Cooper replied stfiy-- am a broker, and
suppose the bank has right to employ its agents"
''Who loaned the money 10 you?n was the question
asked.
''rhe first loan made was by Winsow, Lanier Co.,
at the rate Of three per the bonds oil the bank
The bank wished the loan transferred to the Union
Trust Company aud made time loan at two per cent
Tho Trust Company refused 10 deal with Swan, the
secretary Of the bank no was unknown TO the but
agreed treat with me-"
$50 you deposited with the Union Trus; Company
sil 900 IN United States bonds in your as
security TOR loan! %
''Precisely.n
"What was the resutf"
81 gave the bank that time order for the boncs
but the Trust Company slnce tho trouble has arisen
refuses 10 surrender them the trustees" Mr
Cooper said that early last July an additional loan oil
81, 900 was effected tho same manner He de-
posted the banks bonds as security and the Trust
Company gave a check Of $500 his order
which he mmediat ely mdorscd over to Mr.. Swan, AS
secretary oil the bank He asserted that in all these
transactions he acted only as broker, obtaining moth
ing but tho usual commission. Sir. Swan had repaid
81 QUO OF tho loan from the Trust Company.
THE COMPANY.
ME- King, tho President Ot the Union Trust Com
papy was seen He refused positively ~ answer any
relating to Mr. Cooper or bonds Clare
mont Bank and rudely turned his back and walked
away. Il Is not known, therefore, whether Aooper
has an Interest in the Union Trust Company as this
institution supposed TO DO largely engaged
liquidation OF the aie Horace f. Clarks estate. ana
since the panic OF 1878 has been dong only small
ana supposed conservative business.
RECEIVER.
General II. A. Smaey TOOK charge OF the bank at
about noon yesterday He counted the cash on hand
and reported 1t ut 1862 20 The count the day the
Bank Examiner took charge thero was reported to DO
conoY Tho receiver bin.set deserves u passing
notice Henry A. Smaley has recently been through
bankruptcy On February =. u petition was iled
against hun by seven creditors, whose claims were
follows: David A. smaliey, $1,000; Laura b. Smalley,
81, 500; b. B. smallcy, $1,000; Julia f. smallcy,
$1,000; H. N Twonibly So, $50; George W. Fisk $500;
George 4. johnson. S265. He consented TO the ad-
duly adJudicated. the beug referred Register
Allen. Al tho meeting OF creditors only one creditor,
Julia +. smaley hled claim; 1t was for $4,6l4 10,
In gold anu So, 664 20, currency. John H. Putt was
appointed assignee, but there were no assets what
ever. Mr.. smalley applied Tor his discharge from
bankruptcy, and there beng no opposition his dis
charge was granted in May last. X. W. Newcomb and
j. A. strand arc the bondsmcn Of General Smalley.
TIE TRUSTEES INDIGNANT.
IL will be impos sibIc to overestimate the indg-
nation those OF the trustees who have como out OF
this lam.ntablo alair clean handed One OF them SAID
TO the reporter yesterday :-"Broadwell Is not The
only guilty man. Swan IS just as culpabIe, and no
doubt would be arrested as ii would be oompounding
was ul great service, however, 10 the trus-
tees IN getting Ior them statements from the
books ana assisting them arriving something Ike
clear idea OF the status oil tue different accounts
Another OF the officers Of the bank was not
len!ent toward Mr. Swan lie said:-"lt's very foxy
for swan TO be his desk aud affect fine
sorrow Tor all our misortunes-a sort Of
CHRISTIAN meekness; but | think II Will DO
cation Is, who Is responsible for 1t and the
ring who contrivod tins banks discreiit. He gets
religious letters from friends advising hn that he
"a martyr and then gives them to the newspapers to
manuiacture capital Tor himself For one am IN
the Others, and think the trustees 1t to them
selves vndicate their honesty bringing to justice
every implicated 10 TINS dirty business"
One oil the committee told the reporter that all the
property that could be Iound of Sherman Broadwe
mud attached and II was supposed thut least
So 600 would in this way, which is invested
with squor= No. Cortlandt street, IN the gun bus-
uess. He has part interest also with other nrms,
enough 1t is supposed, 10 amply creditors TOR
any defalcation tnat may have been made.
THE PRESIDENTS ANTEcEDENrs.
Broadwel's past career AS the protector OF the
Morris and Essex Mutual Coal Company was first made
known IN the HERALD, and some interesting facts
nave since been developed regnri TO this organza
tion. IL appears that 1t was started in 1866, win
Broad eli as President aud s. W. Corwin Ia aw
as secretary The stock certificates at least many OF
them were issued from Morrisown, but dated from
New York. The people OF Morrlstown, Madison, Mil
burn Rockway, Booneiown. Dover New Vernon and
other villages Investors III the Morris aud Essex
Mutual Coal Company. The back OIL the stock certih
Gates read thus:-
The holder If within certificate is entitled annually
to coal Tor each share stock held by him.
gives notice TO tn, company OF his desire coal,
which will be aelyered to him in pursuance % Of es Of
will receive their dividends cash should than
from lis sale viii be divided among all shareholders
ALIKE whether they have havo not elected TO take coal
nj cost.
II can therefore, be seen how specous this plan
WAS The principal use the villagers have made of
late years OF these certificates has been to paper tho
walls OF their summer houses with them.
An old resident OF Morrstown, who was member
OF the Baptist Church OF winch Mr. Broadwci was
deacon was more explicit with regard 10 thai sentie-
mans career than any person whom the reporter en-
countered he said that Mr. BroaLwol iniled
moved 10 Deckertown. In this village. when he quit
In 1914 lS45, he lct behind MN very
savory reputation" Beng asked TO 20 INTO partcu-
lars the gentleman declined, sa! ing that HIS term
cred all tnat he desired to say. From Dcckertown Mr.
Bruadwel removed to NJ MddlctOwD, ~ Y, thence 10
Ithaca aud thence TO Mor.isowD. He had never been
popular the latter town. 'Some years ago, while
Dr. BrdgemaD, WHO u now III Albany, was the pastor
the BartIst church here" added the gentleman,
.tucre was some trou lie between him he deacon
which lead to the PASTORS withdrawal. Thcre
so me talk o money scandal IN which the dc c0n's
name was used, but | didn't Denevc IT,"
Ii yus expected that more arrests would be maoo
last evening IN connection with the bank troubles.