The Montgomery advertiser., 1902-01-16
BOND COMP ANY
 HELD LIABLE
 < Suit May Brought to Rec-.s cr Money. IRE $ JRER RESPONSIBLE
SuretieS Must Make Good Loss
 inBank Failure.
This is Ground on Which Attorneys Base Action-Josiah Morris & Co. Not Parties to Trans
 action-Interesting Case.

In all probability suit will be instituted in the City Court today by the County of Montgomery against the United States Fidelity and Surety Comapny of Balti- more. Md, for $l2o,oOo on the bond oi J. J. Cochran, Treasurer of Montgomery County. It is also probable that another suit of $6.000 will be instituted against J. J. Cochran, County Treasurer.
 While everything has been done on the quiet. and the members of the Board of Revenue and attorneys for the coun- ty refuse to discuss the affair, it has been learned that matters are coming to focus and today will probably sec the initial step in what promises to be a celebrated legal battle.
 J. G. Finley and Jesse Staliings, who represent the county. have been at work on the bond matter for some weeks. 1t is understood that certain data regard ing the dealings of Treasurer Cochran with Josiah Morris & Co.,, with whom Cochran deposited before the suspension of that bank, were essential to put the suit in proper shape. These books and accounts since the suspension of Josiah Morris & Co.,, have been turned over to the First National Bank, with whom the Treasurer now deposits his funds. A. NJ. Baldwin. the president of the bank. is vested with power of attorney for MT. Cochran.
 A section of the State Code invests the Judge of Probate with authority to app point an expert examiner once d year for the purpose of examining the books and accounts of the County Treasurer. In order to facilitate matters and with out delay secure possession of the books and accounts of the county treasurer. the Probate Judge appointed J.. G. Cowan to examine the papers and books. of the County Treasurer. On an order from the Probate Judge, Mir. Baldwin, who acts for the. coupt Treasurer, over to Mir. Cowan U Tho latter spent all of yesterday working on the books and 1t is expected that he will complete his labors some time today. The data thus secured will probably be used in the 1.nal drawing up of the suit against the bond company and then the litigation will be- gin.
 When J. J. Cochran was elected Treas urer of Montgomery County he made bond for $120. 600 in the United States Fidelity and Security Company of Balti-
 
 about $44.OOO but shortly afterwards issued $100,000 worth of road bonds. This money was turned over to the County Treasurer and he deposited the funds with Josiah Morris & Co.,, making a total deposit of $144.000, $24.00O more than his bond.
 A year ago the banking house of Josiah Morris & Co.,, suspended payment. The Board of Revenue held several ex- ecutive meetings to consider the matter and it was finally decided to withhold action against the Bond Company inas- much as Josiah Morris G Co.,. had prom ised to make semi-annual payments.
 The Board of Revenue did not enter into the creditors agreement The Board held that the county was not creditor of the bank, but Cochran was required to make an additional bond of $l20.0OO. lie was allowed to make this bond with the same company on condition that the old bond would be liable for the funds in the bank should payment be defaulted, and it is on this old bond that suit will probably be instituted.
 Matters remained in statu quo until the first of December, when Josiah Nor ris & Co. failed to make a second pay Stallings was employed to assist the county attorney In the matter. The Board adopted resolution vesting the county attorney with authority to take such steps in the premises as he saw fit. Mir. Finley and MT. Stallings have been at work on the case since and the insti- gation of the suits will probably be the result
 Josiah Morris & Co. made one payment to the county of about $1S,OOO, which left a balance of $126,0 ,000