The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1880-02-24
THE SOUTHERN BANK IN COURT
A Question Involving the Legal
Responsibility or tho
Directors.
Tho Caae OF Whitfield & Mitche
Against tho Directors Submit
tod to tho Jury.
Unable to Agree They are Looked Up for
tho Night.

| Yesterday the closing argument In tho cneo Of
Whitfield X Mitchell Va Thos. Layton ana o, hnra
was matlo In tho Third District COURT by judge
| NJ Gloin and tho rnRn givrn To tho Iuty ut 4 u.
M. ThiR case hne provoked more than us,lnl
| interost, and II was. therefore,. natural thnt
there ahenld bo II largo ntendnnce OF lawyers
| mud others enrh day It. opened on Monday ma
| tbs first argument mndo 10 the Iury ON
| Thursday. Tho intarost attaching to 1t was
| largely owing to tho fhrt TINT thirty OF forty
| suits Of Il lIko character nro pending In tho
| ammo court. and represent aevoral hundreds Of
thousands Of dollars It IL nduestion Involving
tho individual responsibility oi tho directors for
tho d, h'a and obligations of tho bank.
Tho plHintlIa were represented by MasRra
MeGiotn y Nixon and Ghns L,u1ue md tho
dcfendnnts by Mosara. T. j. Hommes .Iobn A.
CnmpheH. II. O. Miller and HIngleon & Brown.
Since Thureday the court had boon engagol In
hearing argument from tho respective counsel.
but 1t WINS only yesterday ov"nIng that tho Jury
aucesaied Ia having tho Heo submitted to thnrn
The Judge made II Iongtby charge and tho Jury
retired to consider tho cnee Tho petition may
DO briefly cItoi IN follows:
THE PETITION w..
Petitioners alleged that thoy wore anpopl'ors
In tho Southern Bank To the amount oil 1857 60 .
that ,Ip o the dig eenih Of Mnrrh Thus Lay,on
Moore. W. g. g. Claiborne. W. q. 9 Claiborne
Jr md Thos Fiizwttltam wers diieeerp Of
not hnve on hind M amount in anfeiA or in
legal tender notes euunl Ia onn-thrd II NIL itp
cnfh lishlliies NJ that dae oxeIllsive of lts cir
Gu nlng notoa md did not have on hnud Tor
tho other twn-third Of its cash Ilahiliies m
equal amount In specie. egnl tender notes
or legal tondnr funds. bills of exchange
rinety days fhat thesa farts were Il the knowl-
.lge Of sud dir"ctora. thai th"y participated In
ana nasentad to I"nna md dls"ounts, knowing
TIM, they were made In violn,inn Of law ana
thus rendered themselves individually lnho
for tt o eIts and obliRn Ions Of tho hRnk That
eaid directors In tho stetenenta furntahed tho
Suite Treheuror no 10 Mnreh 1879 wtlltniiy mis-
etnt"d tho condition Of tho bunk. representing
before hopa6ssly Inaplvsnt. That Rnld false
statements consisted of:
/. In plaeina NJ n eueh INSECT ~ said bnnk tho
sum of f672.72s 30. Whersas IN Duet and In trnth
tho bonds included und"r 9ald Item wore not
mt the time of my Of said statements 4orth in
cash, anything near anid sum.
a, In noneenI'ng The fact TINT tho said cash
nasn'a hon1s, Wsro not nt tho time II making
sHid statements In tho possession or under thu
control of snid bank
3 In largely oysrvaluIng tho real estate be-
longing 10 tho said bank
l. In eonreaing tho fact TINT tho anid bnnk
had attempted to pledge y largo portion Of
Moore. JOHNSON aud Claiborne.
9. In hugely over stimhtiug tho yaue of
tho nssea OF tho bank.
" Ill tbHfN'liuE WI lhfu ~ lHuffiHttlHHf'S vi
the bank To wit Judgment In fhvor OF tho city
Of New Or leans against 1t for upwards al $40 ooo.
Tho petition went on To any thnt NIL of said
directors assented TO said publications. nId
know Of them. and thpt by tho publication t',ny
created II fnso reputation TOR aolvaney, Poll
tton further shows thAt for upwards af yenr
tho direolotH wera aware Of tho inaolvent con
diion of tho bank. and that they with this
knowledge. received deposita.
At $40 last night Judge Monroe. finding tho
Jury unable to agree. left tho court nfter M
thori2lng tilem to g!vs u saned verdict to tho
sheriff In the oven. Of hg rn"ment.