The sun., 1898-11-03
MYSTERY OF A BOND SUIT.
TON 0RIDI WAS IN 1T; ALSO 4
efD.0O0 FEE

GieoGon-Au Fartios 10 the Chso buont
Amotion granted yesterday by Justice Trua
In the Supreme Court attracted attention 3
LITIGATION which hitherto progressed In undia
turbed mystery. The case was as matter o
fact settled como time ago. and application fo
the motion Just granted was made weeks arc
Justice TruaX sat In the Supreme Court yester
day TO finish up some uncompleted business
A part OF this was tho request to have mad,
moro certain and definite the complaint in al
action brought by Edward u. Shepard. Arthu
8. Leland and George II. TOwle. comprising tn
Arm Of Leonard Towle d Co.. against Senate
Thomas +. Grady. Nelson Smith and Elber
Crandall. The suit was 10 recover the sum o
$4,000 placed In the care OF the National SAFE
Deposit Company. In addition to Senator
Grady's law firm. the safe deposit company
and Thomas J. Fielder are made defendants
The latter IL tho managing clerk Of Grady
Smith d Crandall. and has one Of the keys tc
the box in which the $4,000 Is kept But Il
takes two keys TO open the way to It, and the
other is In the possession OF a clerk employed
bY the plaintiffs. He Is also q party to the
action.
Justice Truax's order yesterday read:
"The complaint should distinctly state the
bonds. To this extent tho order is granted.
Order TO be settled on notice."
The utmost secrecy was observed yesterday
IN regard to the order and everything connected
with the case. On the eve OF election no Tam
many Hall member was going to allow any
news OF Senator Grady's action in the matter
10 get out. The lawyers for the plaintiffs were
as reticent. for they. by the terms OF their set
tement, were bound to secrecy. That the
was settled before It came to trial all hands
admitted But no details Of the settlement
could be had. Forster d Spiers OF 50 Wall
street were the counsel for the plaintiffs In the
action. ALI Information at their office was re-
fused.
Il have nothing whatever to say on the
subject" ono Of the members Of the firm said.
''and will not say how much Senator Grady
got. know he Is a public man. but this is \
private affair"
It seemed to be very private affair. But
The Sun reporter learned that the litigation
was concerned with tho recovery Of $4,000
deposited as contingent reward for the reg
istration of certain bonds. The registration
was 70 be done before given date Senator
Grady did not accomplish 1t. and the plaintiffs
wanted their money back.
The plaintiffs in the action alleRe that early
In the present year Edward d. Shepard con-
trolled q large amount Of bonds legally issued
by the towns in Queens and Richmond coun-
ties. This registration was made necessary
by section 172 OF the charter OF the city Of
New York. This reads:
"All stocks and bonds heretofore law
fully issued by any OF the municipal or
public corporations or parts thereof which
have heretofore been annexed 10 or con-
solidated with the corporation known as
rs the Mayor. Aldermen and Commonalty of
the city Of New York. or which by this act are
made q part Of the corporation OF the city OF
New York as hereby constituted, including the
counties OF Kings and Richmond, for the pay
ment Of the principal and interest of which thu
city Of New York is liable. may be registered
and must be recorded by the owners thereof
in the Comptroller's office in said city and shall
be transferable at the pleasure OF the holder,
either In person or by attorney only upon the
books Of tho corporation in said office. and sub
ject to such reasonable rules and regulations
as the Comptroller may prescribe; such regis
try and tfansfer to be indorsed thereon by the
Comptroller.
Whenever such stock or bonds have been
Issued in coupon form and whenever hereafter
corporate stock Of the city Of New York may
be so Issued. 1t shall be the privilege of the
holders thereof at any time, subject to such
rules and regulations. to convert the same into
registered stock or bonds. and the Comptrol-
Ter is hereby authorized to issue registered
stock or bonds therefor in the manner and
form In which the same would have been con-
ditioned IL iforiginally issued In registered form
The interest on all such stock and bonds
when 80 registered shall. as the same becomes
due and payable. be paid In like manner as
upon other registered stock and bonds Of the
CITY of New York; and whenever any such
stock or bonds have coupons attached the
Comptroller shall. upon registration thereof.
have authority to detach all coupons there.
from and shall thereupon indorse the fact Of
such registration with reference to this sec-
tion."
The plaintiffs allege that in accordance with
this section their bonds had to be registered.
and Senator Grady's law Arm was engaged to
do It with the promise that $4,000 would be
9th of last February. in compliance with the