New-York tribune., 1891-03-08
FIGHTING OYER A NEW BANK.
FORMER COUNSEL OF ITS ORGANIZER SAY THEIR
RIGHTS WERE VIOLATED.


The National Collection Bank OF New-York was In
corporated at Washington on February l3, and yes
terday charge was made that the original promoter
of the bank had transferred the conduct OF the pa
and all his interests for consideration to law hrih'
after which he incorporated the bank But the sVo'y
seems to be purely personal difference Oetwceh
the promoter and his former counsel, and does hot
affect the status of the institution. the NauohaA
Collection Bank is TO be situated in this city, ana
its object is to purchase out-oftOwn checks and DIS
for cash that received in deposit here ana thus
afford local banks a market for their country checks
and bills. 1t is proposed to make the discount less
than the present cost Of collection. 1t Is estimated
By those interested in the bank that the banks OF ts
city receive daily deposit ont Oftown checks and
bills in amount from $l2OOOO0O to $l1,Ooo,ooo.
Gcrrit : Glen first suggested the idea of such
bank. and engaged Morse, Haynes & Wensley' OF NO.
10 Wall-st, his counsel, to organize the Ddlh'
Accounts differ to what happened after TINS. But
there was disagreement and Mr. Glen engaged
Andrew Wesley Kent of No. 81 Wlliam-st, to carry
the plan Of organization. Yesterday Mr. Morse
said that his firm was pleased with the idea OF
collection bank and took hold Of Mr. Glcn's plan
and pushed it successfully The State Trust Com
pany, Of No. 30 WallSt. agreed to receive subscrp-
tOns. and pr0spcctuses issued announcing that
The bank would have capital of 100000, ana CIV
inG the names Of the principal subscribers. Among
them are Wells. Fargo d Co.. the American Express
city, and many outoftowr banks. Mr.. Morse said
that Mr Glen wanted hi, firm TO take more active
part In organizing the company, but tEat thcy ri-ed
unless Mr. Glen gave them more authority and wider
scope. Mr.. Glen then made transfer ot his Hght
Of conduct ard his interest In the bank to the firm OF
Morse, Haynes Il Wen,ley, for consideration, and
with the understanding that he was to have some
remuneration after the bank 0ganilcd. and also
to be elected vice president Of II. subsequently the
firm IN the papers that Mr. Glen had fled articles
Of incorporation at Washington. They wrote to him,
but received no reply. Nr. Morse added that the hrm
had lost the tran,lcr papers. but he said that Mr. Glen
had made them out. and also that the firm hdd Judg
uent against Mr.. Glen for some $500
MIR Glen AID Mr.. Kent denied that Mr.. Glen had
made any transfer at all. Mr.. Glen said that ho dc
clded 10 change counsel for which he did not
care to discuss except in a general way But he would
-ay that he preferred 20 have a lawyer who had ma!
more expcricnce IN such affairs Nr. Morse did nos
have any record Of transfer and the fact that the
state Trust Company understood the situation ami was
receiving subscriptions was sufficient peoof that the
situation was honorable and satisfactory. Mr. Glen
said that all subscriptions TO the bank that were made
when Mr. Morse was the active counsel were Tor the
benefit of the bank and not for the benefit Of any ndl
vdua. lie had borrowed money from Mr.. M"sc' but
had cyen good collateral lie denied that jude cn'
lad been obtained aehh,t nun Dt iaua '' ,o,,n MN
TO The City Court obtained by Morse. Hay he' am NcS
ley to satisf some proIi>,Ory n"c, ana SuPpo g wa,
this the matter upon when MI M0'sc oD'a'L'u
his judgment. ,,~ go r.,
Norse Haynes Wcnscy issued circular on req,
ruary l.. announcing that Mr Glen ilid tai7etcI ,
ihc conduct of the scheme 10 them. and at tcy hai
not authorized him 70 obtain any subscriptions ior tc
bank or To act Il, them IN any way. Ihey sad tIdt
cycrl sub,crbe.s had withdrawn since this circular
was issned Mr. Kent said Yesterday that these SUB
,cribers had prosc~scd ntcrti"n 10 come IN aeHh
after they understood the zeal situation lie SAID the
plan was going on first rate. and TIE bank woulu sDoh
be organized President Paine, Il the state Trust CON
hO a
Glen and his former counsel and that the bank scheme
was getting all right