New-York tribune., 1880-06-23
COVERING UP AN EMBEzzLEMENT.

small children. The rigin of the fire Is unknown
COVERING UP AN EMBEZZLEMENT.
WHY THREE DIRECTORS OF THE SUSPENDED NEWARK
RANK CONCEALED A FoKMER TRLLERS DISHoN-
EsTY.
john w. Taylor, of the Essex County bar, who
has acted as counsel for the First National bank
cealment by the directors of the bank OF the
amopnt of Dovels defalcatiOn several years ego.
The pesHss $aSSa soS S S6Sh D0IS @
RvoS hs SqspS .dTs That Of the Rn nst nte
% gence Of the defalcation was brought to him by
President Cook and Messrs. McGregor and DleKer Sj
son. directors who were very much snIprlett in0a anu
shocked and unacquamted With the exacE M loss
at that time. They brought Mr. D4yell to MI lay, lay
lOrs Office and he xpressed his 70 GuIn
over all his property to tne Danh nr anH Tayor
advised the directors to take conveyances from
Dovell for all his real estate Mr. TAYLOR pTepared
conveyances c,n included PROPERTY belonging to
Dovells mother, and the value of the whole was was
s9GpPSsdt ts f0 matter GS epSG Should be- made public
Taylor advised that nothing should pe slld aDouo
at that time, as it would ruin Dovell, ana pTevenS
him S1 %@ks WhSo Rq pe aes the Other
directors, as they could take no steps not areaoy
taken. RI, ,;o.oro IN
MIR. Taylor's opinion, anything illegal or IMMORAL
The Object of suppressing the facts was not 10
screen Doyel. who never had any assurance s,yen
him that lie would not be punished. NIL MI Iayii yi,o
himself advised the directors that they cOud MAKE
no promises and could have no understanding WIFI
DOyell to the effect that he should not De prose-
cuted Dovells offence was enDezzleInent aCcVIu-
ing to the Revised Statutes of che Unlted otaUes'
and is misdemeanOr. The cOnceament OF q ms
demeanor is not an offence against the Unlteu
States statutes The same offence is high mlsde-
meanor under the laws of the State, and the con-
cealment of it is not made criminal ofience. MI
TaylOr pronounced the course OF the directors cn-
tirlv legal ANY possible action agalnSI tne !ule9
directors is debarred by the State and Natiohai
statutes of limitation. They ana AZ OF tne of
hold srs arc liable however, to double the e%NnC Vi
their stock for any deficiency such qehclency
being assessed pro rata among tnGJn' tents ~
Mr. Taylor said that they could be held clViiay OF
criminally liable only if they signed the oauk
statements knowing them to be fa se The directors
| undoubtedly took their statements as maze w u3
the cashier was correct. In Mr.. Taylors opinion,
| the Dovell defacatiOn was not cause Ior It Int
| suspension of the bank. The real loss was not
| over $4,000, and the capital at that time was
| $500, 200. He had been informed from tlnie ~ ~
| time that tho banks affairs were prosperous anu
within year or two he had been told by dlrectorS
| that they were doing good business. -,
The tax officials of Newark refused 10 give .Io
names of the stockholders of the bank Tor puDcilc
| ton and it is question whether transfers 3i 4i
| property made since the Dank suspended VIII
enable those who may resort to that cXpedleht 10
escape responsibility and avoid payments tnat may
he reouircd OF them under the law. United states
Marshal Hutchinson has served Wits OF aItacliiII
! suit brought by Receiver Hobart against lledden
| as an absconding debtor. The cashier, when hTst
elected to his position. gave bonds III &Zo1OO, Ils
bondsmen being Augustus, Martin u: SRehiter SRiter
Goble f. c.. Bliss. Charles NJ. Bolen, ana WateI
Greveen Messr rs. Bolen and Bliss have since failed
in business.