The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1881-02-10


The National Banks OF Mahoning
County VS.. the Auditor and Pros.
Ini JUNCTION Dissolved-The Uaited
States Court Decides Against the
BRnks.
An important and interesting decis-
ion was made by Judge Baxter, in the
U. S. Circuit Court here, yesterday.
The cases were entitled the First, Sec
ond. and MahOning National Banks
(each respectively, against James 3.
Hughs, Auditor of Mahonlng county,
and Monroe w. johnson, Prosecuting
Attorney of Mahoning county. The
facts upon which the cases were based
are as follows: The Auditor of Ma
honing county was notified by the
Board Of Equalization, at its spring
and summer session, that large
amount OF personal property of GER
tain rich citizens of Youngstown and
vicinity had evidently not been listed
for taxation. That an examination of
the returns of the assessors of Ma
honing county showed there was only
about S1OO 600 of personal property
returned to the assessors under oath
that an examination of the returns of
the banks, required by law to be made,
showed they had over million of
dollars on deposit,and as it was known
that most of the money on deposit
there belonged to the people of the
county, it was suspicioned by the
Board of Equalization and Auditor
that some of them had made false re-
turns.
Whereupon the Auditor commenced
proceedings-bei advised by the
Prosecuting Attorney - under the
statutes. against about thirty of the
wealthy citizens, many of them stock
holders in the banks, and sent out his
subp1nas for the cashiers of the three
National banks and other banks to
come in and testify to the amount Of
balance Of deposits certain individuals
individuals in the county, naming
them, had on their books on the day
preceding the second NJ MOnday of
April, 1880. They came in ans W er to
the subpHaas, and, being interroEated,
answered that these individuals had
balances in their favor on deposit in
the banks at that time, but they could
not further answer without the books,
whereupon the Auditor made appli-
cation to the Probate Judge for sub
pRnas duces tecum, to bring with
them the books. The Cashier came in
with attorneys. and filed motion in
the Probate Court to dismiss the pro
ceeding on the ground that "it was
unnecessary and illegal, because no
occasion had arisen for it, and upon
the Probate Judge overrnling it, they
hurried to Cleveland and filed bill
Of complaint in equity in the q. s.
Circuit Court, asking for All injunction,
and alleging, among other things, that
under their charter they were not
subject to visitorial powers" and that
.'the necessary result OF the lnvesti-
CATION will ba to unlawfuily expose
the business affairs OF the banks, lessen
public confidence in them as dcposi-
tories of money, and diminish their
deposits, and greatly impair the value
of the franchises with which they are
invested, and praying for an injunc-
tion against the Auditor and Prosecu-
ting Attorney" Judge Welker grant
cd an Injunction. and the proceedings
before the Auditor and Probate Court
had TO stop.
A molten was then filed for disso
luton of the injunction by the Audit
or and Prosecutor, and general de.
murrer TO the bill was filed, ond al
though this was in July, everything
had to await the coming of Judge
Baxter.
The case was heard yesterday on the
motion to dissolve the Injunction and
demurrer, and Judge Baxter granted
the motion, and dissolved the injunc-
ton, and sustained the demurrer tC
the bill on the ground, first, it was 8
case the U. s. Court should not have
interfered with, as it was matter
pending in State Court, and ought
to be disposed of by the State Courts
second, on the ground that the Audit
or had right to the information he
asked for, and that the banks could
not refuse to give the information
their books contained as to the partic
ular individuals whose returns were
being Investigated.
Since the beginning of the suits
JAS B. Hughs's term as Auditor ex
pired, but on motion, his successor
Freeman H Sherey, was made party
and the proceeding, which was ad
iourned at Youngstown, awaiting tb'
action of the Court, will now go on
and thorough investigation made
which will doubtless result in placins
large amount of personal prOpert,
for taxation on the duplicate, whicl
never before found it's way there
What the next move of the wealth.
gentlemen and banks of Youngstown
will be is unknown, but it is probable
an application OF some kind will b
made to the State Courts. Exception
were entered to- the decision, ant
: the case may 60 10 the Supreme Cour
at Washington.
NJ. w. johnson, of Youngstown
and w. G.. Mcfarland, of Cleveland
appeared as counsel for the Auditors
and Sidney Strong, Z. W. Sanderson
and Jones 81 Murray for the banks
Cleye. Leader, 1st.
Bloody Riot in Akron.
AKRON, o., Feb. 5.-Last night, a
, Policeman McCOurt was taking ROber
Hart to the lookup, about so men cam
out of Peter Maynard's saloon, Soutl
Main street. to rescue the prisoner. 2
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