New-York tribune., 1884-12-31
DAN1EL, DODD IN CONTEMPT.
nrcrs,oN ny THE vICE.CHANCELLoR
nrNiYes or riIr NEWARK SAVINGS iSs''io''o''
-risK A nArcus METHODS
m, r,,,eRArn 10 rus rRpuSr.l


m, rr,,oR,ra 10 rus rR,nuNr.l
r,,x,ox nec. 3O.-Aftcr long conference
"a, w,a. chancellor pird and others. Wee Chancellor
Wan r,eet ntc ,h,a afternoon ncd an opinion ID 'h' oae
a, tho Newark savings Institution, holding o"n''' ''
crcsient ~ tho ina,ltntion. guilty oi eon'"r', A.
esse 'aroao ont of the Recond failure o' ,ho m'""" "
NAV e,uaed by tho failure Of fiah i'atch' VINO owe"
.,,t ,.,,,, 4, ooo 600 Uwna discovered that thiA
.,a o,her loans had been ade ly Dodd IN Violation ~
Che order Of the Court directing TIM, tho bank '"hos
should he invested only In United states boh"" VI ''"
eatate aud for this reason M Application ""' "'' "
bayc the Board of Managers declared IN ooh'o"p"
A,ter reviewing tho circumstances OF tho case 'no
opinon says. referring 10 'ho P'o" i" "' ~ ~
Court had no jursdioiion'
Ifu were possible for party to commit conomp' WI ",
court 10y the nsolence OF his dcience woua % sv ,be m
quite plain. when the circumstance uhuer WHO" ~. W.
order alleged 10 have been violated was ne'o. '' ~
eontempt ought 10 be adudged guilty. whehcr their con
duct prior TO their appearance III ooIt on uo Pcs ~
what constitutes proprety, decency and manness ~ Is
scarcely possible FOR me 10 imagine course OF sonu's
judicial tribunal give him. by the righiu exercise ol
Its undoubei jurisdiction aid and pr9leeuni Sovno % -,
what asks the Judgment OF the Go court 10 ps
md adv anage that accrue from the JUDGMENT anu
then after he has got all lac get ana wheii ms N
terest or his caprice or conces make IT desirable
FOR him TO do So TO INSULT by trampling upon
its Judgment and deying authority ana wheh u, rs s
court ha, is without TO punish him. for IT had
ant
WINGED that had authority to pronounce ana WHICH
he has since cOntcn.hed
The opinion refers 10 the two loans Ssooooo eAch'
inadc to H. Hartman Co.. Of New-iork secufed ny
stock coatcras being wul violations OF the COURTS
order The loans were paid after Tue hsltuuoh i"o'
but the vice chancellor says:
But II is said that although technical cpntempt may 0
have been eomwed Ss Sat yS, e Nc to nnnish tie con-
temnor for his contempt is an act OF yengeance Whcn
infcts punishment on acontemner OF l's hutnoi
insult but 10 yndicate the rover ana haes's Vi '"0
la ~ and TO compel obedience TO It's mandates.
In reference plea that the Hartman loans were
temporary loans aud $nvestmonts within the mean
ing OF the order OF the Court the Vce-Chanceiior hoos
that the word Investment must be held to cover tenn
porary loans.
Referring 10 the Fisk Hatch loans he quotes the letter
Of Fisk & Hatch. Of January 90 1888 in which they
say: Il understood OF that are 10 Keep at
all times I'm your special box In our vaults snceht
amount OF good securities the amounts with
ample margin" The Vice Chancellor then says:
The box mentioned IN ettcr special hox OF the
institution the property OF the institution bn OF
Fsk Hatch they hei the box ana tne 10 Keys keys wiSn %
there No officer OF the institution could enter Without
their leave.
As to whether the securities referred to in the letter
were 10 United staos bonds only, the VceChanceIor
says:
think Mr. Dold was fully Justified in believing that
they meant by gObl securities such "a he t0ii tnem
would alone be accepted, that is United states bonds
This contract still in fu force when tisk Hatch
suspended They were SIN indebted 20 the IN h7it9%uIn %
jn the SUN $4,000 the special box was sul III ther
vaults. hat the box was empty ana me INSTITUTION Mas s
themselves OF The control which their contract gave
them over the collateral to deprive the Institution OF It's
Tie less enectnaly Except for short intervals, the
proofs show that the loan was wholly unsecured by any
box nor anywhere else Hatch swears that he Is uot
that any securities mad been aid ou or desshieu
a. collateral this loan. but that the securities which
were held in the oco considered held for that i-
pose that is. that Fisk & Hatch considered that the
les
purchase. pledge AMI exchange stood as security Tor ths
loan bnt he also says That neither apart nor the whole
apart 50 as 10 show that the Institution had any right to
In refereice 70 the examinations OF the bonds made
nuartefiy rs the Auditing committee OF the ranagtrs,
tie vice chancellor SAYS:
"thc rto,i3 how that rlst 4 iiatch alyay' tn9y
HacAa56 5tiei % a5yt ic sst59ia b5$ Bfepitei tf
tttI'.9',4 n " clBiiS tley o4ia an II theif
ESaot8ati .Jfsia m.fHSgsf5ss. iFF4g 5fsHs dli5Fj
i4O. Ifni54l't al'UFff{' 'g't3ts hIg ifag38f |
R4Gfi9lifhtJb ,Hsioa' s5aa'it.saA@fR
3Ilaf Eheg9t v o,lq1i tlf Aniss 9IiAE a58il
Mii.l nNniiwuwIiu ha'g ioagSa tsnWd 4ls eNo |
iorIoScr whoic pcronn lntdiuty di not gyo bun al
ibo .ccnilll De desired ltis ransacon ls NlIhoA! .
oOuurlpal even IA hc history o iho business deAlnBs
Of ins ihshmion
Tho wee Chancellor determines that President pold
alone was guilty of these contcmpe' but that lhlee
other ~ nngcTs \. Bishop baldwin Agcrnons = liuhcll
aud Francis Machln, had such u knowledge ol Them
a. to render them legally labo for their
poounlary consequences. In the last two
pnges Of the opinion Of the Vice oChancrUor
refers poncdy the pressure which had been brought
10 bear upon the Court 10 hasten the decision of s
case evidently rofcrrng chiefly the criticisms upon
tho delay made by Justice Dopuo In his charge to tho
Grand Jury Newark recently. Mtor abiding to the
arbitrary nature the power OF puning contempt and
the necessity for the OF caution IN It's exercise ho
concludes:
udgc who either hastcns fatcrs In tho discharge
of any duty under the stress OF extraneous
influence, from what source IL may,
bns nriiher The courage nor the independence
necessary for the faithful discharge OF his duties.
The ncxt move will be to bring Dodd before the Court
for punishmen the extent which in the discretion
of he CbaDco Or The Essex County Grand Jury Is con
sideIing the matter OF mdicting the managers.