The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-16
THIRD AvENUE SAYINGS BANK.
The supreme Court Decides that tho Trus-
tees Must Pay their Bends.


One OF the first things that Mr.. Samuel
II. Hurd did after he was appointed referee OF
the broken Third Avenue Savings Bank was to
bring a suit against the fourteen trustees OF
tho bank for $4,000. Tho bank suspended on
the 4th Of October 1875. On the 9th OF Janu-
ary 1874. the trustees executed bonds to the
amount OF $4,000. which were added to the
assets. This was done to place the bank on a
more substantial footing. The suits were
argued before Judge Van Brunt in the Supreme
Court. Before judgment was rendered Thomas
W. Decker and W. S. Opdyke. two OF the trus-
tees who had executed bonds TO the amount Of
;2ouO each paid their bonds. Judge Van
Brunt rendered judgment in favor OF the ref
cree and against the trustees An appeal was
argued last tober The cases OF the trustees
Spencer h; Hreene al one time President Of
the bank. Richard Kelly, and Danio D. T. Mar
shnll. VINO had executed bonds for the largest
amounts, were selected as test cases. Mr..
Grsene's bond was 5000. Mr.. Kellys $40. 900
ana Mr.. MHrshRlls 81 500.
on Monday the General Term. Judge ingalls,
writing the opinion. affirmed the judgment OF
Judge Van Brunt against Mr. Greene, In the
credible that person Of ordinary intelligence
should not have inferred that bank which re-
The evidence OF the defendant showed clearly
that he was possessed Of knowledge OF facts
gard S soTney eES pS e nay IN
executed the bond in question. No Inference
could reasonably DO drawn from ali the circum-
stances but that the defendant and the parties
who executed tho other bonds knew that the
bank was crippled and required support. and
iha. they EXECUTED the bonds hoping TO prevent
ltS ihllure. These bonds, amounting to tll 1900.
were reported TO the Bank Department as as-
sets Ia the years 1915, The bank WINS thus en-
abed to continue its business. and depos tors
lntrusted their money 10 II upon the nssump-
ton that II was sound institution. Tho court
iurther held that all the circumstances consti-
tut"d consideration sufficient To uphold the
Dnnds' Inc Judgment as rendered against Mr..
Greene IL for tl9 79i3l.
The General Term also affirmed the judg-
ments against Messrs. Kolly and Marshall for
t251S.93 Ani t3.G29.Gi. respectively. and in
writing the latter opinion the Judge said that
IN view OF all the facts OF the case and the
relations which tho defendants bore 10 the
Dnnk, ~ would be unreasonable and unjust TO
allow them TO escape liability upon the pre-
tence that they were not informed in regard 10
the pecunihry condition Of the bnnk. or upon
the ground that false representations were
made in relation thereto. when II was apparent
thM thcy had every opportunity to examine and
ascertain the facts. and there was no evidence
that they aYuiled themselves OF such privilege
II parties would voluntarily assume such lin-
biities they should not DO pcra.!iiad unon
slight grounds 10 avoid the consequences TO the
prejudice OF innocent persons.
feel much relieved to got the decision"
said Receiver Hurd last evening. " for the do
posilors nave becn wOndoring at the long de-
NY Oi course they could not understand IT,
simply one moro stop. The trustees will CARRY
the clse TO tho Court OF Appeals. | am OF the
opinion that tho judgment Will bo sustained
lhtrc. Whom | first got tho judgment Judge
Van Brunt sail II woIld stick. Most Of the
bonds are good. think, and II the judgment il
mnt reversed We shal get most OF tho money.
rms with odds nnl ends that | have picked up
VIII EiYeA dividend Of ten per cent, | should
think. Flltron per cent. has bgcn paid When
"!st tGpk the matter in hand said that did
not spo how the depOsitOrS could realize mors
than 25 cents on u dollar l 500 no reason now
~ change thM opinion