New-York tribune., 1885-07-21
NELSON ROBINSON & cos. SECURITIES.
rur rInM IFEr LIEN All TIE METROPOLITAN DANK

THE FIRM LEFT THEN AT THE METROPOLITAN BA'h
FOR SAFE KEKPfS5-PRoDUcED IN COURT.
Nelson Robinson, the son-in-law OF George l..
seuey WAS the principal witness yesterday In the action
by which Frelng II. Smith. as receiver OF the
Atlantic state Bank OF Brooklyn. seeks TO recover
s235 600 from the Metropolitan National Bank.
This sum was passed in loan to Nelson Robinson
Co Referee Co,e listened while Colonel Baker asked
questions and while r. l. Stetson conducted the cross
examination. Mr. Robinson said that he had borrowed
five sums In tho fall of 1888 from the Metropolitan Bank
through Mr. soney the total being S2350OO Tho prin
cpa his had paid but 1t had met the Interest
up 20 March l. 1884. Nelson, Robinson & Co were then
doing large business ~ they were borrowing %'oVo'
600 annually. in sums OF from $4,000 to 100000
Mr. stetson-wero you not known "seney's brok'
ersi" A-Not that know OF.
ur stetson-I did not think know things which were
going on In Wall-st. which you did not know
Mr. stetson then got out pile OF certificates OF stock
OF the East Tennessee. Virginia ana Georgia Railroad
o,nn.ny represeptng 900 shares and gOody supply
OF OHIO Central aud other certificates which formed tho
collateral deposited the Metropolitan Bank by Nelson
Robinson 60 as security for tho loans Holding these
tenaery; the lawyer Ask Ssaed When the nrm failed
Q.-The Metropolitan failed the same dayi A-Yes,
few hours later. ,u
o-Wcre the closely connected that the failure
Of one involved that of the othori A. am not familiar
with the AFFAIRS OF the metropolitan Bank ,
O-Was there any other cause for It's falluref Al
don't know. | owed them something; can't remember
how much good many people would think IL large
Mr' stetson-wen tho bank sent back my certified
check for 81 100 that morning That was large enough
for me. - . a.,
Mr. Robinson said that he had not had access To the
securities subsequent the failure. lo had not seen
them until Mr. Stetson produced them. They had been
piaced by tho bank for safe Keeping No loans
were made on them some East Tennessee shares had
been substituted FOR others at different times.
O-Iaye personal recollection or tho transac-
tlos by which substutons were made for all OF those
shares held collateral security for those loans Al
kept transferring the stock as had charge ut Tor the
crowd.
Mr. stetson wanted TO know what crowd" and he
learned that Mr.. Robinson referred to MS father-in
laws crowd" the Seuey interest" Mr. Robinson
had unpledgcd securities In the bank
Ceorse j. MsGourkcy the cashier Of the Metropolitan
Rank had examined the books diligently and lie had
failed To- nd any trace Of loans Nelson Robinson
failure lie mad seen the bundle OF securities the day
after the suspension. Mr.. Denton. the cashier OF the
Atlantic hank, was about carrying them
| away when Mr.. Jacques asked that they
he left at the bank. because the Atlantic Bank had
largely overrawn It's account and he wanted To nyestl
gate the matter. The witness had afterward examined
me securities and taken inventory OF thcn MT Me-
Courkcy said that II loans were made by the Atlantic
Bank TO Nelson Robinson Co. this would appear ON the
Metropolitan books In the form of diminished credit
for the Atlantic Bank. n Nelson Robinson n Co. did
not yet the then the gellcrs books would
show an excess cores cspondingy,
Mr. stetson then formally acknowledged To Colonel
Raker that offset the S23J0OO claimed by the
receiver the Atlantic Bank owed the Metropolitan $780,
5l7 50 with interest The falling on OF the securities IN
value was traced through financial reports. The case
Will be summed up to-day.