The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1885-07-15
A HEAVY VERDICT.
The Jury in the Nesdham-Nsw Bank Case
Return Special Verdict
Finding for the Plaintiff and Assessing the
Damages at 54,7OO-The Verdict Re-
ceived With Surprise by the
Defendants.


in the suit of the survivors of the Indiana
Banking Company against John c. Wright
and John c. New announced that they had
made a verdict and Judge Walker was
called. The attorneys for the plaintiffs and
defendants were notified andappeared in the
court room, where the verdict was read. The
document was very long, being a special
verdict, covering all the points in the
case and giving the plaintiffs S154, 700
damages. The principal points covered
by the verdict are as follows: The
jury find that Morrison and Miller
were acting for the Indiana Banking Com
pany in the purchase of 9, $50 shares of First
National Bank stock from New and Wright,
and that the purchase price was $3.50 for each
500 share of the stock; that John c. New was
Secretary of the United States Treasury and
had his residence in Washington City after
the sale to Morrison and Miller. and that
John c. Wright was absent in Europe for
more than year after the sale, and that be-
ing thus absent service could not be thus had
upon them, and therefore the suit
was not barred by limitation;
that Wright and New concealed from
Morrison the true condition Of the First Ma
tional Bank: that when Morrison purchased
the stock of New and Wright he was not
aware of the extent of the Miller and Slaugh-
ter defaleatiOns nor of the condition of the
notes, accounts and other assets of
OF the spurious United States bonds;
that A. ID. Lynch, the United States Bank
Examiner, had been used as an instrument
in the hands of New and Wright to forward
the sale of the bank stock to Morrison and
Miller. In all the points covered by the
verdict it agrees with the PLAINTIFF theory
OF the case, except that the jury estimates
the value of the stock at at the time OF the
sale at 500 per share.
The suit was brought by William Need
ham and others. surviving members of the
Indiana Banking Company, against John c.
New and John c. Wright, for damages. al
legged to have been sustained by the plain
tiffs in the purchase of the old
First National from the defendants
The complaint set up that New
and Wright knew that the First National
Bank Tin 1879 was burdened with large
amount of worthless notes, accounts and
poor property; that James L. Slaughter and
Carey L. Miller had embezzled a large
| amount of the banks funds; that it
| amounts of forged United States bonds; that
| forged bonds and worthless paper to the
| amount OF 100000 was carried; that the
| the bank books, but that a large
amount of the embezzled funds were carried
| as cash on the counter; that New and Wright
| entered into a conspiracy to sell William H.
| Morrison, who was acting for the Indiana
| Banking company. S23S 500 par value of First
| National stock at 800, 525, when the said stock
| was not worth face value; that false repre-
| sensations were made to him, and Morrison
| ignorant of the condition of the bank and re-
| lying upon the representation made, did buy
| $3.50 shares for S393, 525. In a second para
! graph the plaintiffs ayerred that the In
| diana Banking Company did not know the
condition of the First National and that
| NGy md ms 10 fall
| and fraudulent representations, assuring the
| Indiana Banking Company that everything
| was all right Further, that under such mis-
| representations the Indiana Banking Com
pany bought $3.50 shares of First National
| stock at Sl65, and that the condition of the
| bank was not discovered until shortly before
| ii went into liquidation. The defend
ants set up general denial, and also
held that the plaintiffs were barred by the
statute of limitations. On the issues thus
| joined the introduction of testimony began
| and continued five weeks, being argued dur
| ing the whole of last week. and goHg to the
| jury Saturday. The evidence has been
| given in the Sentinel, and further reference
| to ii is unnecessary.
| A reporter called upon Mr.. Wright after
| the verdict was rendered ana asked if he had
anything to say in the matter. He said that
| he was very much Surprised TO hear the YER
dict, and was curious to know upon what
facts it was based, as nothing given in tcsti-
mony would justify suce a finding He
would most certainly appeal the case to the
| Supreme Court and did not question that it
| would be reversed. He did not wish to eX-
| press himself further in the matter, and
was disposed to take q cheerful view of the
ultimate result. The reporter, during the
| talk with Mr.. Wright, was impressed with
| his cheerfulnesS. He did not have the air of
q man who has such heavy verdict returned
| against him, one in fact that would sweep
away large part of his property if sustained
by the Supreme Court. Mr.. New was no less
| surprised at the verdict, but beyond eX-
| pressing determination to carry the case to
a higher court, would say nothing. On the
| street it was the one topic of con-
/ versatiOn, and much surprise
manifested in all quarters. The merits
of the case were discussed from different
| standpoints, but even those who expected a
| verdict for the plaintiffs were not prepared
to hear such large figures returned. The
| court Will convene at o'clock this after
| noon, and the first step will no doubt be
| motion by defendants for a new trial. If
| this is Overruled an appeal will be taken to
| the Supreme Court. 1t is related that Mr..
| New after the jury went out on Saturday.
accosted Wright as follows: ''If you will
| pay the lawyers fees in this case will agree
| to pay whatever damages the jury assess
| against u.s." Mr.. Wright declined the prop
| osition feeling certain that there would be
no verdict for the plaintiffs.