Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1892-01-20
DIRECTORS BLAMED
For Allowing Percival
to Rob the Bank.
B0NDSMEN DENY LIABILITY
And Have Prepared Pleadings in An
swer to the Plaintiffs Writ.

ArnURN. Me, Jan. 20.-In the action Of
the National Shoe and Leather bank
against the b1nd~men of Marshall C. Per-
ciyal, viz; Charles X Mathews. Homer
PcrHval, f. p. Hayiland and !, Foster
Prrryal. GUARDIAN OF Charles NJ. Barrell.
60 rncoyor ~ 20. tie amount for which
tIr' .T.'.. ""re cn the bond of the de-
e. .f r ;Lr counsel for the de-
fcr . i'.'tr s. Cornish, and ~
: Lt. li,adings yesterday
b. ir,al court in answer TO
e.. ..u s.it -Four pleadings were
Ill.,. u.c sch ~ the four bondsmen,
ri riu, ...e. Following Is the sub
stgn.c o. he
Grounds of the Defense.
fl.t- Tie writing obligation" was never
A. rH-e an accept a h. the plaintiff bank
second Mar-hsil &. Percivai at all times
WI faithfully and truly kept and performed
all the conditions OF the bond.
1hird- While Mr.. Perciyal was cashier OF
the hank, the plaintiff bank semi-nnnually ex-
amined the institution making full settlemen Mt
with him, and spreading upon their records
the fact Of such examination and settlement
fourth-The plaintiff bank at the conclusion
OF each examination and settlement declared
that In ali respects the accounts were accurate
and true, and that all books notes, drafts, se-
curitics, moneys and other property OF ths
bank had been honestly, strictly and faith
fls, kept and produced; and II either of the
statements or certificates were untrue in any
respect the bank
Deceived and Dcfrauded
the defendant. and was guilty of such negli-
gence and breach of duty toward him, as
surety on the bond,as estops the plaintiff from
asserting any liability of the defendant for
any violation of duty or wrongful acts OF Per-
cival as cashitr, from and after the date Of
such -ettlcineni, untrue statement and GER
tihcate.
Fitth-Ihc directors of the bank retained and
continued Mr.. Percival in Office long after any
defalcation or malfcasance in his Office would
have become evident TO the directors upon a
careful examination of his books and accounts,
and OF the affairs OF the bank and after knowl-
edge Of such facts rs rendered Pcrcival unfit
for cashier continued him therein, and were
the eby guilty Of such negligence and want as
relieved and discharged the defendant from
liability from any subsequent wrongful acts Of
Perv.val.
SiSth-The bank retained Percival in Office
loul after II had actual knowledge that he
was corTuptly and fraudulently embezZllng
the moneys and property Of the bank and was
deiaulter and guilty of malfeasance, and, not
outstanding such knowledge, concealed the
same from the defendant, and
Assisted Percivsi to Cover Up
the same, furnishing him means, moneys and
securities therefor. Yet, Notwithstanding this,
the dircctos, In statements and certificates
from time to time published declared that the
accounts were accurate and true, and that all
the money, property,etc. of the bank had been
faithfully kept and produced, thereby deceiv-
the defendant and inducing him not TO con-
tinuo his bond.
seventh From tn tine the bond was ex-
eCutcd, April 20, lSij, before the bank had re-
cci,cd its charter and become n corporation,it
being expressly provided that the capital stock
should be but slJO,0o, the capital stock was in
creased at different times 10 $4,000. the last
increase being from $4,000 TO $4,000 in
November, 1887. This discharged the defend
ant from all liability for the wrongful acts,
etc, of the defaultng cashier.
The case will not come to trial until the
last OF the present term.