The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-12
QUEER BANK GEMENT.
How and Why the New Haven Second Ma
tionsi Loses So, 600.

In the Supreme Court Of this State is
pending an interesting suit, which reveals lax
ity. careessness. ignorance. and mismnnage
ment on the part Of the officers OF the Second
National Bank Of New Haven, Conn. resulting
in the loss 10 that institution Of s4s .O0O. From
1872 TO 1875. the bank. Of which MIR. Samuel
Hemingway is President. discounted about
1925. GOO Of notes given by j. 4 T. Pearsall Of
Now York 1ty. by as is alleged, corrupt bar
gain and agreement
J.6T Prarsall were extensive fruit import
ers in New York. doing business at 1868 Front
street. John Pearsall. the senior member. died
In 1874. and from that time 10 Dec 20. 1875,
Trcadwol Pcarsall. the surviving member, car
ricl on the business. and continued 20 have
lnrgc sums discounted at the same bank under
thr same iirm name. Al the last nained date
to MrGrcsor Steele oil 40 broadway.
A few months before tn" failure OF the FIRM
their rhirf hp0Nsecprr, Comstock. had sported
sum- ta"urly and ilvrdl II + rh2rr,h. win INC
taird lie firms failure when this assignment
thir y w Haven Bank 81 600 but Il stood upon
the ,h"dues filed Icy the Hssign"" in favor Of
h,n&k"rpcr or clerk Tor q Mr.. Finch. one Of thu
dire tors of the bauk. Warner had assumed To
be- the owner ot thus larg" claim against the
broken irm u fruit dealers 10 keep. II is alleged.
tie bank IN the background and from public
view should ia" matter reach the courts;
The sun Is instituted against John II. Stow,
who appears as rsInee oi the notes, taking
assignment from Warner. the alleged purchaser
Of them for 81 900 Tho complaint charges that
the drfuntt firm maize these notes 10y u corrupt
and usnrious bargain and agreement nj more
than l"ga interest. and continued the practice
Of doing Il Tor a long time, paying. taking up,
and renewing the notes M they hs-cHne due.
Tho corapnnt also alleges that President Hem
ingWuy itthOugh he swears that he docs not
know Charles H. Warner assigned the notes to
Warner. and he assign, Il and transferred them
to John i. stow, defendant, who seeks TO obtain
the payment 81 th"m or pr"porticnhtr snare
81 them out of the estate Of Trtndwru Pcar-Al
The assigu"" sues 20 have the clniIn lndlcny
aludirutcd upon before he rnn close the estate
aud therefore demands judgment that tn" notes
and loans OF money be- declared void and the
defendant has no clalm M on ne estate
President Hemingway was examined b@tOra
Jh.uns g. lngerHoll. comm -slohrr. appointed
by lnlec Dykman. At his ono" IN New Haven
for Mr.. Steele the assignee. Mr., liemingwly's
deposition portrays wonderful amount ni IL
ton the hank made Of the claim. He docs not
know t. whom II WINS given or sold, or anything
mu. about 1t; His testimony shows ihM the
bank has an Indebtedness OF SIS 900. with no
security whatever except TreHdwrl Penrsall
who was doing business undor the firm name
Of J, X T. ieareali sui seangnI t. ne death 9,
firm and made their paper worthless; also that
the practice OF banks requiring cndorsers 10
three years the Pcarsalls and the bank had
these business transactions, which amounted 20
2 in nE a Tn n IN inc rc f9IP or S
yors granted to the Pearsals. as the following
letter will show: o,,
u e. . M J R'c +, Com SsS, today one barre, SO.
oord oranges Tor your own use Please acceptwh our
should we require additional discount for about 90
s SS9 IssSSd9s so dn n' M, 1e t ' Inst a nn
''''''' ' Yours &c, J.Gr. PIARsAi.,
In concludinp his tcstinonv Ho,ni ncway said ,