The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-01-15
It is Now in Session for the
Trial of Civil Cases.
JUDGE SEYMOUR PRESIDES
Case Growing Out of Failure OF
Bank of New Hanover.
IT'S THE. FIRST ON THE DOCKET
Yesterday was Spent in Taking Testi-
mony---The Evidence Will be Re-
sumed To-Day and Argument
of Counsel Heard.

=
day morning, the first case on the
docket was one growing out of the
failure of the Bank of New Hanover.
1t was the case of Cook, of New Jersey
VS.. Junius Davis, Receiver and others,
an action of ejectment, alleging that
the mortgage by Adrian and Nollers to
the bank was fraudulent and void as
against creditors. The plaintiff Cook
purchased under execution upon GER
tain judgments obtained in United
States Circuit court by certain credi-
tors of Adrian and Nollers, and now
brings action against the Receiver
seeking to recover the said lands, the
value of which is between $4,000 and
$4,000.
paper containing a proposition
from Adrian and Nollers, found among
the bank papers, agreeing to secure
certain notes due the bank by a mort
gage not to be recorded, was offered
by the plaintiff The defendants OBJ
iected, the Judge admitted it,. and the
plaintiff excepted.
Mr. Adrian of the firm of Adrian
and Vollers, was the first witness. lie
testified that his firm owed the bank
over 100000. Paid s per cent before
the mortgage was executed. Then
per cent. He said he had no purpose
to defraud other creditors. He fdenti-
fed the agreement with the bank not
to record the mortgage. If mortgage
had been recorded it would have ruin
ed his business. None of the creditors
of the firm, after assignment had
been paid in full.
The plaintiff, Martin II. Cook. testi-
fled that Adrian and Noilers owed be-
fore and after the bank failed, and had
paid nothing after that date. In
March, 1893, Adrian and Nollers ask
ed for extension of notes. Mr.. Cooks
agents, at his request, made inquiry
as to the standing of Adrian and Vol
lers March 23d, 1893 President Bates
wrote that Adrian and Nollers were
good. Objection was made TO its adj
mission, but the judge held his decIs-
ion. At the time Bates wrote, he had
himself required Adrian and Nollers TO
give mortgage on all their property
to secure his bank, said Judge Russell
and ought to be admitted in evidence.
Mr.. Rountree argued that Mr.. Bates
had no authority from the bank to
give any representation of the stand
ing of any patron, and that his repre-
sensations were entirely outside of his
duties as President of the bank. He
cited authorities to sustain his argu-
ment to exclude the letter, from judi
cial decisions in England and in this
country. The judge decided that the
letter was competent. Mr.. WE'LL read
it. In it Mr. Bates said that Adrian
and Nollers means are estimated at be-
tween 100000 and S150,000 and the
individual members of the firm owned
property worth $4,000 to 900. Mr..
WE'LL asked Mr.. Cook if his firm would
have sold any goods to Adrian and Vol
lers if they had been in possession of
knowledge of the existence of the
mortgage. Objection to this question
was made.
Credit was extended 10 Adrian and
VoIlers by reason of the representa-
tions contained in Mr.. Bates letter.
Mr.. VolIers was the next witness. He
testified to the agreement of his firm
with the bank to execute mortgage
which was not to be recorded. The
book-keeper who had general charge
of the accounts kept the agreement.
But the book-keeper did not see it.
I'VE thought it was a good idea for
him not to see it, liz known it would
injure the credit of the company. Owed
the bank about $4,000. Made new
notes for $4,000, reducing interest
from per cent to 4 per cent, and gave
notes for the balance. Book-keeper
was not notified to enter on books the
new notes. Didn't want the book
keeper to know it, and concealed it
from him by the suggestion of Mr..
Bates. l was a director in the bank
when IL failed and had been for some
years. had 81 500 stock in bank. ID.
J.. Russell had judgment against Adj
rian and Vollers, obtained about May
1st. Mr.. Bates was in Mr.. RusseIPs
Office so was ]. Mr.. Russell wanted
the money on Judgment due the in
solvent National Bank Mr.. Bates
wanted it To stand 30 days. Russell
declined. Mr.. Bates told Russell that
Adrian and NoIlers were as good as
gold. This was about "a couple of
weeks before the bank and Adrian and
Vollers broke" When mortgage was
made Adrian and Vollers owed out
side of their debts TO the bank, 100000
preferred in assignment, and $4,000
odd to others. Property was not G.
nough to pay the debts if the firm had
to go into liquidation.
Cross-examination, Mr. Vollers said
the bank had been trying for sometime
TO get the mortgage before it was due.
List of assets showed excess Of liabili-
ties. My individual property worth
S11, 600 We would have had to make
an assignment if the bank had not ac-
cepted mortgage. The amount due the
bank had not been decreased for sew
eral years.
Mr.. kadar Bryan. assignee Of Adrian
and Vollers, was next sworn. They
owed from $4,000 to $4,000 outside OF
the debt due the bank. VIII realize
from total assets about $4,000. The
firm owed about 100000. The prop
erty embraced in the mortgage to the
bank will bring $4,000 TO $25 900. Val
les of real estate about the same. Mr..
Adrian's individual property was
worth $4,000. Mr.. Vollers' was worth
So, 500
AFTERNOON SESSION.
At clock the Corr resumed its