New-York tribune., 1901-07-26
w. E. d. STOKES SUES BANK
HE SEEKS TO RECOVER AS A STOCK
HOLDER-FRAUD CHARGED ALSO
IN ANOTHER SUIT.

William f. D. Stokes a stockholder of the
Seventh National Bank. through his attorneys
Butler & Harwood, of No. 135 Broadway, has
taken out summonses IN the Supreme Court
against the directors of the bank, President
Thomas and Forrest Raynor, the receiver. The
complaint charges the directors with reporting
TO the stockholders that the capital of the bank
unmpaired, and that the bank in addition
to the capital, had a large surplus, when it was
already insolvent. 1t further charges that the
directors utterly failed and neglected to per-
form their official duties' that they suffered
and permitted the accounts of said bank to be
kept in inaccurate and deceptive manner,
which failed to show the true condition of it's
affairs
The directors also charged with employing
incompetent persons officers of the bank.
The plaintiff demands judgment for the total
amount of his loss a stockholder of the bank
and for the of the suit
Charles Henry Butler, of Butler & Harwood,
said that in his opinion the directors would
have TO make good to the stockholders to the
extent of the market value of their stock before
the failure as we'll as the 100 per cent assess
ment.
A bill of complaint filed yesterday after
noon in the United States Circuit Court by
Wing, Putnam & Birmingham, of No. A. Will
iam-st. as counsel for the Coal and Iron Ma
Seventh National Bank and Forrest Raynor,
individually and as receiver of the bank In the
complaint 1t is alleged that the plaintiff prior
to June 25. 1901, a customer of the Seventh
National Bank and that day mailed to the
defendant draft for $29,69S 81 The draft
drawn by the Bank of Commerce National
Association, of Cleveland. the American Ex-
change National Bank, of this city, in favor of
the Coal and Iron National Bank. IncIosed with
this draft others the American Ex-
change National Bank. which. together with
the first named draft. amounted TO 3d.. .262 o.
Instructions sent to collect these drafts
On the evening of the same day the reports
which were published to the effect that the Sew
enth National Bank was unable TO meet large
Clearing House balance were. it is alleged speci-
George w. Adams. cashier of the Seventh Ma
tional Bank who telegraphed to the Coal and
Iron National Bank that the NewYork insti-
tuition in a sound condition. II is charged
that these kilograms were false and were sent
with the intention of deCeiving the plaintiff who
would otherwise have taken steps to prevent the
acceptance payment of these drafts: that the
Seventh National Bank received these drafts
and. knowing that the bank hopelesSly
insolvent retained and endeavored to collect
them. On June ~. the drafts having been
turned over to Forrest RayrOr, receiver. and col
lected by him. the latter requested by the
attorneys Of the Coal and Iron National Bank
to turn to them the proceeds from the
drafts which not done. The court is asked
to direct that the defendants pay over to
the Coal and Iron Bank the amount of these
drafts. with interest.
The Federal grand jury continued its investi-
cation of the banks affairs yesterday. William
II. Kimball, ex-president of the bank, was called
before the body. Three clerks of the bank APP
peared with a number of heavy packages and
five ledgcrs. =. r. Thomas, who was elected
went to the jury at l p. m. His examina-
tion lasted for only ten minutes.