The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-08-01
CHAPMAN HAS THE BONDS.
STRANGE DEVELOPMENT IN THE
PERTH IMBoF BASK CASE

Broker Refuses to Give Up Securities on
Demand of Banks Lawyer-A List of tho
Paintings on which Chapman Borrowed
Money-A New Receiver IL Appointed.
Another complication was discovered yester-
day In connection with the Middlesex County
Bank failure Among other valuable property
intrusted to George N. Valentine. the default
ing cashier. were bonds Of the Chesapeake
and Ohio. Hooking Valley and Lehigh Valley
railroads. which belonged to the Perth Amboy
Mutual Loan. Benefit and Building Associa-
ton. Of which Valentine was Treasurer.
Shortly after It became known that Valentine
was defaulter officers OF the association asked
him whore the bonds were. He said they were
In the vaults OF the bank. The tenn porary re-
ceiver. James Mcguire. made a search for
them. but couldn't ind them
Yesterday a receipt was found signed by
Henry T. Chapman. the New York broker. who
was heavy borrower OF the bank as we'll as
Valentines Wall street agent. for $4,000 OF
Chesapeake and Ohio bonds. $4,000 OF Hook
Ing Valley bonds. and $4,000 OF Lehigh Valley
bonds This receipt. on it's face. showed that
Chapman received the bonds from the Middle
sex County Bank and agreed to return them
on demand. AS soon as this receipt vas found
1t was assumed that the bonds covered by it
were those belonging to the Perth Amboy
building loan association.
The receipt was imm ediateiy sent to George
W. Wickersham Of the law Arm OF Strong &
Cadwalader. 80 Wall street. who have been re-
tanned to look out for the banks interests In
this city. Mr. wickersham made formal de-
mand upon Mr.. Chapman for the bonds. Mr..
Chapman refused to give Thorn up. explaining
that he was acting under the advice OF his
counsel. Clarence F. Birdseye OF II Broadway.
To- whom Mr.. Wickersham WAS referred. Mr..
Wickersham said Yesterday that steps would
br taken immedately to obtain the bo.ds from
chapman. The receipt is dated Dec, 10. IL -.
about, the time Valentine began his stock
The deHositors and shareholders Of the bank
have tried to find out what kind OF paintings
those were upon which Henry T. Chapman
90 9 ths srnh at
out yesterday. Here is the list:
Artist. SuhJeet
H',pnEMA,, MrsDAEET.
yyts$ S .m:,:ra,sm II. : SS!!fs s''''
WhTTEAr. ANTOINE.
p Paris ,r,;: R f. for the Ball
c"aoT E c. F Fss Wv H Ssl Away
h ~ If4S TnASco's Ready Tor Work;
PR1G.nr.: 4 q. s,Esst sssns IN Aisisr..
!. The biz Of sale conveying these paintings to
cIudes with the following: said paintings be-
Ing sold and transferred in pledge as security
for the payment OF any loans made, or which
should be made by said bank to said defend
ant" From this it appears that the paintings
were put up as standSg collateral not only Tor
money lent to Chapman at the time the bill OF
sale was given. but for subsequent loans which
he might require. The bank officials, those
who conducted the affairs OF the bank before
Valentine became cashier were satisfied. how
ever. to leave this collateral for, nine years In
possession Of the m an who put It up,
The last Of the pictures included In the bill
Of sale were removed from Chapman's house.
$40 Clinton avenue. Brooklyn. Yesterday and
placed with the Brooklyn Storage Warehouse
note Tor s100O0. given by Chapman to the
bank foil due yesterday and was not paid.
Mr.. Wickersham said that: under the law.
Chapman had three days IN which to give bond
for the pictures and T. take them back into his
would pass into the custody OF the receiver
for the bank, to dispose OF for the benefit Of the
creditors: Mr.. Wlckersham also said that
nothing has been found to show that any other
the pictures. His valuation was $4,000. 1t
that he pictures above mentioned are only
small part OF Mr.. Chapmans collection.
The accountants who have been working on
the books report that they are unable to tell at
than S21 800 or not.
Edward g. Campbell. Vice President OF the
National Newark Banking Company, was APP
pointed permanent receiver OF the Middlesex
terday. Mr.. Campbell succeeds James Ma
guire. who declined to serve further. James
Parke made an argument in favor OF the APP
polntment OF Mayor J. l.. Compton. Of Perth
Amboy. but the Vice Chancellor held that an
outside man would better servo the interests