The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-03-17

Russell Gage Helped HIN Out-HHncock
Rnnk In the IMrch.

Enough nerve to mako n high bid without the
wherewithnl TO meet IL and sufficient gumption
10 know how TO dispose of the bid, seem to have
been about all that was required to make n good
stake out OF the recent Issue OF 500. 100000 of
Government bonds. according to allegations
made in an action brought by the Hancock Ma
tional Bank of Boston against Abraham White
and his wife, Cora Theresa White. two bidders,
and against e. b. Cuthbert & Co., Russell Sage,
aud Zimmerman & Forshay, who took slices OF
tho bid.
Young. who Is said to be q broker in q small
way In Boston, and his wife Cora made a bid
for 81. 900, 900 OF the gold bonds at different
figures. They were successful In the terms they
offered to the Government, and then the work
began Of raising the wind to pay for the bonds.
On Feb. o they made n contract with the plaintiff
bank by which II was TO advance the gold to
take the bonds. 1t was to receive $4,000 and
u per cent. brokerage for its services. The
plaintiff bank advanced the twenty per cent.
required on Feb. 10 through the Third National
Bank of this city. which took the installmcnt
of $4,000 face value of tho bonds, which 1t
still holds as security for the $203,OO It ad-
vanced. The plaintiff bank says that the Whites
then took their contract elsewhere. although the
bank was ready to fulfill It. " says that the profit
over $1,000, aud that as It is not enough to pay
their $4,000 due on the whole contract and
BE. it viii be irreparsbIy damaged II the Whites
are allowed to carry through their deals with
Russell Sage and the other brokers. The plain
till bank got a temporary injunction against
Sage and the brokers and bankers, f. Il. Cuth-
bert g. Co. and Zimmerman q Forshay. but
manent. Justice MacLean in the supreme Court
yesterday dissolved the Injunction.
On tho motion for injunction Cora Theresa
White submitted an answer and an aflda Wit,
but White was not directly represented, Mrs.
had broken It's ARFGement TO nnAnCe their Did.
She said that through the banks failure to do
so she and her husband had to drop $500, 900 in
bank took. up the Sls0,OOo it was unable TO
raise gold for the rest and they were compelled
do not owe TINT bank anything for failure to
keep It's contract, and she asks IS, 800 damages
81, 500 which they had to pay in excess for the
gold 81 1000 in loss Of interest on their money,
900 in bonds which the plaintiff had caused to
be held instead Of selling them according to the
Mrs. White also AYERS that the bank falsely
represented that 1t had influence at Washing:
ton to get the defendants an allotment and
which 1t falsely declared had been filed BY ]. p.
Morgan against such an allotment.
II. j. Jaguith- President of the plaintiff bank,
says that White came to him for an advance on
the bonds procured sayinG tina. he Was dead
had pawned her jewels. He says that he is in
formed that White was ordered to appear
for e1ami n; s96 for not being able to pay a
Russell Sage made affidavit that White came
to him with a letter OF Introduction from the
Third National Bank. Mr.. Sage advanced gold
to take $24O.OOO of the bonds which he sold,
giving White his share on the sale. He then
advanced money to buy 100000 more. of
which he has sold $4,000. The rest he holds
subject to his lien for the money advanced. and
he declared that 1t would be an act OF injustice
for the court to grant an injunction which
might defeat in part his rights. He said he
p p%iain,, nfo' sanF. of r Hny r ssfan of the seo Ti 600 'a os
bonds were taken by Zimmerman & Forshay.
Mr.. White said last night that he had not been
served with any summons in the injunction
case, but that he filed affidavits substantiating
his wife's allegations. Mr.. White says he pre-
sented himself at the office of the representa-
tives Of the Hancock Bank. but was not served.