The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-05-01
PIDCOCK'S TROUBLES.
Extent to Which the First
National Bank and Mr..
Young Are Involved.
THEIR ANSWER 10 THE RECEIVER
Bonds and Mortgages in Possession
Of the Bank Held as Col
lateral Securities.

The answer, Jf Edward F. G. Young and
the First National Bank of this city to the
bill fled by William Y. johnson, receiver Of
Somerset County Bank, was filed yesterday.
Proceedings were begun several months ago
by Receiver johnson to discover what bonds
and mortgages or securities said bank or
Young held of J. N. Pidcock's. The bank
alledged as a reason for its refusal to divulge
the business of its customers, in the first
instance, that it was against good banking
principles, until called upon by proper
authority.
WHAT HI BANK ADMITS.
The bank admits that 1t holds a $4,000
mortgage given by Pidcock upon his lands
in the State of New Jersey, also that various
bonds and mortgages and personal property,
In the bill Of complaint mentioned, were as
signed n transferred by Pidcock to the
bank and are still in its possession, but that
several OF said bonds and mortgages were
delivered to Pidcock, at his request several
years age.
The ban also admits that it holds bonds
of the Rockaway Valley R. R. Co the Quit
man Lumber Co, and the Boston and Al
bany r. r. Co. of Georgia, and shares of the
capital stock of the Whitebou use Mfg. Co.,
Rockaway Valley R. r. Co., Quitinan Lum-
Der Co and the Somerset County Bank,
amounting in all to several hundred thous-
and dollars. The bank holds q note OF the
Boston and Albany r. R. Co., given to the
Quitman Lumber CO., for SIS, 7j9. 30.
WERE GIVEN AS SECURITY.
The answer also sets forth that none of
the bonds aud mortgages or securities were
that they were given to the bank to secure it
for any indebtedness Of Pidcock's. The in
debtedness Of Pidcock previous to the 4th OF
July. 1898, amounted to S77,457.2i; his in
debtedness upon paper discounted by the
bank. apart from other liabilities hereinafter
referred to, previous to and upoa the 2ish
day of July, 1890. amounted to Z 1871, the
whole Of which was due and owing. This
paper, the bank insisted, should bs taken up
by said Pidcock and a new nots given there
for, together with additional security. There
upon a joint and several note YVES made by
james Pidcock, Jr., and John T.. Pidcock,
payable on October /, 1893, at said bank, to
was endorsed by said Pidccck, and discount
ed by the bank. The proceeds of the paper
aforesaid. amounting to the sum above MEN,
toned, were taken up and delivered to said
Pidcock, and III place thereof the bauk held
said note OF S77,457.2l. Subsequently, this
note was redaccd, by a payment out of ]. Il.
McLean's estate, to So, 560.54; thereupon
two other notes were made by j. N. Pidcock.
Jr., and john +. Pidcock, one for S35, 600
and the other for So, 506.54. These notes
have never been paid.
The securities OF every character refer
red to are alleged to be held as collateral Sc
curity.
BANK SHOULD BE MADE A TRUSTEE.
The bank charges that Pidcock, as one Of
the firm of Pidcock & Sons, was liable to it,
as a member of said firm, to the amount of
between forty-three and fefty-four thousand
dollars, a large amount of which still re-
mains unpaid.
The bank claims that a receiver ought not
to be appointed, but that the bank should be
made a trustee for the proceeds in excess of
the amount which may be due to it, and that
the bank sliould not be subject to delays in
collecting the moneys therefor.
Pidcock in his time was one of the largest
dealers in the bank.