, 1879-07-10
THE COURTS.
A Case of Considerable Interest to Banks
and Bankers.
Tho Marsh Harvester Company and Its
Disputed Paper.
Brethren Who Cannot Agroe-Judgmonts
and New suits.


TN III t1' courtroom of he United States Cir
cult Court here.
The Ease uroso In this way: A ycar and a
half nco
!. D, EASTER 4 CO.,
heavy manufacturers and dealers In agricultural !
implements ut Chicago failed, and went into /
bankruptcy, With liabilities OF over half mill.
Inn. At tho sa.so time the Sycamore Marsh
Harvester Company (af1lcc Mt Chcngo, fnanu-
factory Sycamore. Ill,) fni'cd witt, liabilities at
about the satne figure. Each of thesc concerns |
afterwards made compositions witt, tts creditors
under the Bankrupt law. In closing up theso !
proceedings, contest bas developed !
between the Harvester Company mud certain |
creditors. The Company opl,osed tho claims Of |
the following creditors: Chatham National |
Bank Of New York, SIsoc d. Leather National
Bank nj Eoston, Natlonai Hide 4 Leather Bank !
Of Boston, Mcrchants' Il stuuutacturers' M
tToual Bank Of plttshurg. Ohio National Hank
Of Cleveland. First National bank Ut Cleveland,
First National Hank Of sas.itlon, O., First Ma.
tscnnt Bank Of coshoetou. o., farmcrs' National
l}ank OF Sulctn, o., 11arriaou National Bank Of
Cadtz, o., City Bank of Akron, o., md Benjamin
lair. barker, Mansfield, o. The claims Of t'csn
parties are the notes Of tho Harvester Com
panY, discounted md held by saId parties. mid
amounting 10 between $15, ,0O0 ntd Sl00, ,000.
The Company object 10 these notes on tho
Erouud that thu Secretary, II. V. Smith, br
wbotu thrse notes were stgued, was not authur-
ized 10 sgu the notes Of tho Company, and that
the Company did not receive my consideration
for said notes. TIE COMPANY also cluim shat
the Treasurer usd Sectctary. who wcre tnem-
bcrs Of the firm Of j. D. Eustcr IL Co, Issued
tati notes frauducntly, md that ]. u. Eastcr iE
TO. received The whole benefit Of the discounts.
4 great amount VI Testimony has boen taken
at Sycamore and IN Chicago during the last
several months, Including the Testimony OF D.
r. Fast. Treasurer; Fl. v. Smith, Secretary:
q. ". Marsh, President; a. N. ssark, superiu-
tcnlent; aud Dir. Miller, bookkccper Of the
Marsh Harvester Company; and james
s. Waterman. Director OF the Com
puny, and President Of tue Sycamore
National Bank; also tho testimony OF
several OF the Cashiers Of the creditor bankt.
1t appears that during the time tl'cse notes
were lssucn majority Of the stock Of shc liar
vcstcs Company WINS owned by J. D. Easter 4
Co, md tho Treasurer, Secretary. and Vice
President, ntld maiority four Of the Directors
were 1ncmtcrs OF that arm; a''t1 that thu Office
gctl,er, n,t! Mr.. Fast conducted thu finances Of
hoth concerns. ansa was allowed to run them TO-
ecthcr as hu thought best for the neuett Of eael.
1t seems that the President, afr. Marsh, was ne
eustolcu " ssln Ho'ss ~ 1Ha'a; ttu " t"ci,tl
That the Company's uotcR hni for son.e years
t1 9cen alGneu ~ u!eIcut osEel"'-ftsslleh nst
llensules' occtesol5; alau % nss''tant @ oute.lu. ~.
Company, signed BY these different officers, nWl
running buck during the last four or fire
years, orc in evidence to show that thy COM
p9.y nn ~. ~ ro,'ras"rtu, ~ aco fta.1n.
Kcl,utn nl.i Cook d Upton, Of CLrago, md
tic crctlttuts nru represented By John II. Ella,
ESQ. It IL claIncs1 BY tho attorneys OF the
oy i o te 65nws oo @ IT,
guestion Of who received the consideration OF
tic notes in dispute there arc tho books Of tho
II, TI,c questions raised here arc very important,
cspcctaily to hanks. 1t involves the rights of
holders Of tic negotiable paper Of corporation
who hayu discounted IL, ia good faith, for valu-
out uotice Of any irrcculsrity, md how
fnr tj,ey are nirectcl b7 what Yns
done with ,he proceeds. Also, how
| far CORPORATION can, us aEuiuat
i sucl, holders Of It's paper, defend by showing
that thc otllccr who signed the paper ,yns noi
authorized t,y the by-luws. The questions are
about tic same as those rnisetl lately in Massa-
chusetta on tic recent failure Of tho large
/ manufacturing companies tilure.
| In tic claim Of the OHIO National Bank m
additional question is raised, Mr. WcCIYrnond6,
lie pres!dent, admits in his testimony that ho
had mt discounted the DOtc8 0t the time 1f the
in;lurn NJ ,he CnmnanY.-ihev wcre whiting in
his BANK tor discouns.-but claims to hold tl,cm
as collateral security for debt duo tic bank,
I'i,e counsel for Ike creditors takes ths nos.
ton hat tho law In th!s country, Or ia England.
nern,jts a bnnk to hold any pnocr which cutnrs
III tia hnns inr anr nnrnpso ns scr,,rttv for
INV balance duo tlse bank Tic caso viii proba-
bly ocCGny tic week.
| ~ ,,,r.,.,, .x,,,,,.
t., ,.,,,n .mn n, hrn,hor. ~ oour. IN ', ,,rv ,,nf,,
ternal way, ass FLED yesterday IL thc Circuit
Court " jana Y; FetaSplaea asa'nst Caarcs
y. Eppa, .Io*cph r. dfeer, lichfJ DccEer, aslu
George II. Leonard. Complainant states tint
IN 0stoeer, Ct ~ i, 1s', =. l.. Epps q 60: borrowed
| SlO,Wo Of ". T. Endicntt, n1lu gave isote and
lease of Epps' nlAls.hou4o % security, md also
some warehouse receipts e. eag ~ oTsl 91.
| CHS Of barley atsa malt III tic Hall.Ionse. Ihis
note nut tho accompanying collaterats wero
subssqnsna, ass,gnsd to sopalnnnnt: u, IN
sion for 81 800 on this noto acanst c. l.. Eppa
J. + urcs. Execution vas 'mmed,a,ely
month thereafter. Epps and Greer fllcd hl'
against complainant null Others TO set aside
t.s41-. IA rkIt ttAk-