The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-26
THE SOUTHERN BANK DIRECTORS.
They Are sued BY Dispositions 10 the
Amount Of Rl4saz g.

Eugene Doherty has filed n petition In the
Third District Court alleging that Thos. Lay
ton. Bradsh Johnson, John I, Moore, VIM. u.
G. Claiborne, Jr., Thos, Layton. Jr., and Thos
Fitzwillam arc indebted TO petitioner In the
sum OF S7l00 Al. Petitioner represents that
he II creditor and depositor In the Southern
Bank; that during the year 1878 UP to tho
eighteenth OF March. 1879. the above named
parties were directors Of the bank. and Thos
Layton president: that on January |, 1870.
the bank did not have on hand An amount In
specie or legal tender notes equal TO one-thlrd
of It's cash liabilities at that date, exclusive of
It's circulating notes, and did not have on
hand for the other two-thirds of said cash
liabilities an equal amount In specie. legal
tender notes. etc.
Petitioner further shows that the said
Thomas Layton, Bradish Johnson, John T..
Moore, William q. o. Claiborne, Jr., Thomas
Layton, Jr., aud Thomas Fitzwilllam, direc-
tors Of the said Southern Bank, did, during
tho months Of September. October. November
and December, 1878, and January, February
and up TO March IS, 1879. furnish TO the Treas
urer or the State statements Of the condition.
assets, liabilities, ETC.. Of said bank: that said
statements were furnished for publication
and were published by the State Treasurer In
the official journal on October ., 1873, Novem-
Dor IA. 1873, December IL, 1878. January 10.
1879. February 7. 1879. and March 8, 1872 as
will appear by reference TO copies Of said Off
cial journal, the New Orleans DEMOCRAT, of
those dates; that In every one Of said state
mcnts tho said above named directors, will
fully misstated tho condition Of the said bank,
representing the same to be solvent, whereas
IN truth and in fact the said bank was during
all that time and had been long before hope
lessy insolvent. That said false statements
consisted Of
tho sum OF $672,72s 80, whereas, in fact and
In truth, the bonds included under said Item
were not at the time Of any OF said statements
worth, In cash, anything near said sum;
(b) In concealing the fact that the said
cash assets, bonds, were not Mt the time OF
making said statements In the possession or
under the control of said bank;
(cl In largely over vaiuing tho real estate
belonging 70 the said bank;
Id In conceaiing tho fact that the said
bank had attempted to pledge large portion
of It's assets to three Of said directors, Messrs
Moore, johnson and Claiborne.
(0 In largely overestmating tho value OF
the assets OF the bank.
OF the bank, TO wit: A judgment in favor OF
the city of New Orleans against 1t for
upwards Of $4,000.
That all of said directors caused and assented
to the said publications. end knew thereof !;
and knew that the items above set forth were
falsely stated In said statement, and that by
the publication Of said statements they gave
to the said bank a credit and reputation for
solyency In the community; that had the said
directors published the true state OF the
affairs OF said bank, petitioner would not
have made any deposit In said bank after he
knew its said true condition, and would have
withdrawn whatever amount he then had In
said bank: that by making said statements,
and causing them to be published, the said
directors deceived and misled the public gen
orally, and particularly petitioner, and caused
him to make deposits In the bank, and they
are now liable to petitioner individually ~
sOiido, for the amount due him by sald DanK.
Petitioner shows that VIM. G. 9. Claiborne,
ST., died In the month or August 1878; that
his succession has been opened In the Second
District Court. and that petitioner reserves
his right to sue said succession and the heirs
OF VIM c. c. Claiborne. wherefore petitioner
prays that Thos. Layton, Bradish Johnson,
John I. Moore. VIM. o. O. Claiborne, Jr, Thos
Layton Jr., aud Thos. Fitzwilliam be cited to
appear and be condemned to pay IN sohdo to
petitioner the sum Of $7l00 %.
A similar petition was filed by Withheld q
Mitchell for $2722 Widow I'll. G. Stewart foT
$3.50 80, Peter s. Lawton for $500, and Dan
A. ). Naught for 1910 so.
Messrs. Chas. LouQue and McGloin Nixon
represent petitioners In the above suits.