The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-04-19
AFTER MISSING BONDS.
The MERCH RANR' ASKED TO
ACCOUNT FOa $4,000.

George B. Carhart OF Brooklyn and l..
J. Guilmartin sue for $4,000 and
$4,000 Respectively Of Bonds De-
posted for safe Keeping With the
Banks Lats Cashier-Ths Grounds
for tbs Suit and the Banks Defense.
Two important suits growing out Of the
Gadsden embszzlement were filed in the
city court yesterday against the Merchants
National bank, one by George D. Carhart
Of Brooklyn, N. Y, for 800, O0O OF bonds, sup
posed to be Of some s35, 900 actual valus, aud
the other byLawrencs Guilmartinf for s15, 900
of bonds, supposed to be worth Sl8 1000.
The bonds are Of various corporations,
and were deposited with the Merchants Ma
tional Bank for safe keeping. G. Y. West,
Esq.,, is attorney for the plaintiffs and
Erwin, Chisholm & duBIguon for the de-
PENDANTS.
The suits raise most interesting and i'm
portant issue in commercial law, and their
progress and decision will be watched with
great interest By the commercial world,
especially that portion OF it directly utter
ested IN banking. The names Of the opposing
counsel are sufficient guarantee that the
cases will be vigorously contested.
The plaintiffs pleadings are very carefully
drawn, as If the parties estimated the diff
culties before them.
QUESTION OF RESPONSIBILITY.
The whole case hinges upon the RESPONSE
bility of the bank for the bonds deposited
with 1t for safe keeping, and whether under
the circumstances it is bound to MAKE good
their value. The bonds were not deposited
with the bank as security for a loan, but
simply for safe Keeping.
1t is understood that the bank will defend
upon the ground that these bonds were de-
posted with Cashier Gadsden personally,
and not with the bank and that the bank
had no connection with them, and even if
they were deposited with the bank, it is not
liable, because it took as good care of them
as the law requires.
The whole question is how far does the
legal responsibility of the bank extend in
such case,
The petition of George B. Carhart repre-
sents that the bank is indebted to him
100000. 1t recites that on Nov. 81, 1888, he
Entrusted with the bank, as special deposit,
ten 81 900 bonds of the Montgomery and
Eufaula Railway Company, valued at 81 200
each.
RECEIPT FOR DEPOSIT.
A copy Of the banks receipt is given,
which, with the usual heading of the banks
paper and the dates, reads as follows:
The following bonds and scrip for stock have
been deposited in this bank as collateral on loan
Of G. b. Carhart to Malcolm Maceau for Sl5,-
900, and are held subject to the order of said d.
d. Carhart: Ten thou and dollars of the Mont
gomery and Eufauia Railway Company bonds,
Nos 1857 to 1886 inclusive. S1,OJ) each; so
shares stock in Planters Rice Mill Company as
per scrip No 1873, 500 per share; II shares of
the Brush Electric Light and Power Company.
as per scrip No. 5l1, 500 per share. the above
stock standing in the name of g. b. Carhart.
The signature of Thomas Gadsden cash.
Ter, is attached, with copy of the stamp
Of the Merchants National Bank.
In the same manner. Jan. 8, 1889, Mr..
Carhart deposited other bonds and consols
to the amount Of $50 900, valued at S240 900,
and received a similar receipt Demand
has been made for these stocks and bonds,
and the bank refused to deliver them, be-
cause they were not there to be delivered,
except one 81 900 bond of the Montgomery
and Eufaula Railway Company, which was
turned over.
The Guilmartin petition, in the same form
and manner, states that on March z, 1887 he
lntFusted to the bank ten second mortgage
South Georgia and Florida railway 81, 900
Z per cent. bonds, with coupons commenc-
ing November, 1887, attached, for which he
received the usual receipt, aud March Z,
1887, five second mortgage, $1,000 South
Georgia and Florida railroad bonds.
The cases will come up at the next term
Of the city court.