The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-24


value, but IN themselves borrowing
large sums upon such securities, which
sums they have not yet repaid. With.
this is coupled the charge tint they
are insolvcnt.
Specific Chprgcs.
Here Is n specimen of the amended
!, BILL flied yesterday, two paragraphs
quoted and others summarized, detail
ing certain alleged transactions Of the
bank:
THAT the directors have mlsmana.yed
the affairs OF the bank IN that said
board permitted one s. Gaicski. also
director OF said bank, to have dis
counted at said bank certain paper
alleged to have been drawn by one
j. Osho for $4,000, payable ut the rate
of $500 per month, the last note being
due the latter part of 1915, that this
large sum was discounted without any
collateral, and upon the Endorsement
OF snid'S. Galcski; that your orator be-
1ieves the said Galeslli Is insolvcnt, and
that recently, with intent to hinder,
delay and defraud his creditors ana,
without valuable consideration, he
conveyed to his wife his residence IN
Richmond; that your orator believes
that this action on the part Of the
OF these proceedings against the South.
ern, Interstate Bank and other cor
porations With which the said S. Ga
leski Is connected.
Your orator further shows that the
said Southern Interstate Bank holds as
collateral security certain notes drawn
by the said Galeski. Endorsed ana nc
cepted BY the American Guild, for $23,-
600, which notes Were not secured in
any manner except by the Indoors mont
and acceptance of said Guild, and which
would not have been accepted at any
bank conducting a lawful and lcgiti-
mate business
Continuing, the bill rccitcs that the
directors of the bank have discounted
for one Beverly T. Crump notes
amounting In the aggregate to S7,74O,
and that the bank took as collateral
for n note for $500, 1000 shares Of
stock OF the Southern Interstate Bank
and 40 shares of stock Of the Mason
Park Land Company. tits alleged that
these stocks are totally Inadequate
security and really have no market
able value. The bill further charges
that the three shares Of stock Of the
James River Coal Company, offered
by said Crump as collateral for n loan,
are worthless. 1t is asserted by the
bill that the Atlantic and Pacific Oil
Company, 5000 shares of the stock of
which are offered as collateral by said
Crump, and accepted by the bank, was
in reality a defunct corporation, and
its stock of no value. Again, the bill
alleges that the bank also loaned to
said Crump $4,000 on so shares of the
Mason Park Land Company, which
stock is Of little or no value. Finally,
it is alleged that the said bank loaned
10 n aon
security the Endorsement of the Amer
lean Guild, which, the belief is OK
pressed, is insolvent.
The amended bill asserts that the
bank loaned to Joseph b. Montgomery
S1.77045, with deed of trust on GER
tain property on West Cary Street us
collateral. 1t is asserted that these lots
are assessed at only ssG5. As to the
loan to Montgomery of s2,477.SG on the
security of his wife and 500 shares OF
the Ohio and Western Oil Company,
1t is asserted that Montgomery's Wife
owns little, II any property. and that
said oil stock is practically worthless.
The Bill thus goes into the various
transactions of Mcssrs. Galcski. Crump
and Montgomery with the Southern In
terstate Bank, and denies that the Sc
curities offered are oc adequate value
upon which to Ter money.
Argued on Merit.
After the dinner recess, Judge Grin
man. without specifically sustaining
or overriding the demurrer directed
The attorneys to proceed with argu-
ment on the merits of the application.
This consumed all the afternoon ana
Until o'clock
Attorney Lamb opened and closed
the argument on the main issue. He
declared that the Interstate Bank had
leaned seven-ninths of it's capital stock
40 the American Guild at one time
without security.
The Guild, he commended, owes $4,000
as security for Galeskl. Mr.. Lamb
Went somewhat into the report of the
and Virginia on the Guild, ard declared
that the Guild had been prohibited
from doing business in North Carolina
Attorneys for the defendants denied
this and asserted that It had not APP
piled for license to do business in Nortl,
Carolina. Mr.. Lamb went into the
acquisition by the Guild of the Mod
e err pnritans and the Yeomen of Amer
transactions. Mr. Pollard, for the do.
PENDANTS asserted that the report on
Inc Guild was closed document, not
having been released by the Corpora
tlon ComGrlssion.
Continuing, MIR Lamb asserted tina,
the Bank OF Commerce and Trusts was
In the same contract purchased. guar
antor and trustee. having purchased
the lease and vault of the dissolved
bank. guaranteed its deposits and as.
sumed the collection OF It's assets
In arguing against the provision IL
Inc contract for accounting to the di
rectors OF the Interstate Bank. Mr.
Lamb said in part: ~ say these moi
should not be allowed to handle on,
cent OF this. money. The stoclholder
Of this bank have right to have ;
receiver in whom they have confidence
ask II In the name of these stock
holders. who have been robbed"
Worthless Security.
Mr. Lamb contended that the bool