The Barre daily times. (Barre, Vt.) 1897-1959, 1909-09-04
For Loss on Loans They are
Held Responsible
OLD SHIPBUILDING TRUST
Judge Blames Ohicers Of a Trust Com
pany-The Judgment with Inter-
est VIII Amount to
ss5o,ooo.

Saratoga, N. Y, Sept. 4-Thirteen
former directors Of the trust company
Of the republic are held responsible in
decision made public today BY Justice
Van Kirk, for losses sustained BIZ the
trust company through loans made in
1902 BY its president, Daniel Leroy
Dresser, from the eompany's funds on
securities of the United States Ship
building company, and for which resti-
tuition 20 the trust company was asked
in suit brought BY Charles Fl. Kavan-
augh, a stockholder, against the diree-
tors. The action was tried before JUS
tiee Van Kirk here during the greater
part Of june and July.
Justice Van Kirk holds that the de-
PENDANT directors, Perry Belmont,
Charles d. Marvin, James McAiahon.
Thomas Crimmins, Charles w. Wet.
more, William H. Baldwin, Ballard Nc
Call, Charles 4. Brooker George J..
Could, Elbridge / Snow, Herbert T..
Satterlee, George G. Boldt and Stuyve-
SAINT Fish, failed to perform properly
their duties as directors; that losses
sustained By the trust company we're
due 70 negligence; and that the indiyid-
ual directors are kable for the losses
suffered BY the company during their
terms Of Office, after Aug 10, 1902,
when, Justice Van Kirk decides. had
they performed their duties they would
have learned of improper aud reckless
loans being made TO Lewis Nixon, pres.
ident Of the United States SMpbuidne
company, and others. Up to this date,
he says nothing had occurred Of sufR
Gent Importance to put the directors on
their guard
Justice Van Kirk excerpts George c.
Boldt from any liability for transactions
made after July I and prior to Oct. 10,
1902, because he was necessarily alb.
sent from New York City. He also per.
mits the defendant directors. after paw,
ing the Judgment directed in this action
to purchase back from the trust com
pany at price Of for the common
and 42 for the preferred sboek of the
Bethlehem Steel corporation. which was
realized BY the trust company in c0nnec-
tion with the items held by the court to
be losses He also allows credit pro
rata 70 the directors for ssh 900 reeeiv
ed by The trust company IN its action
against the sheidon syndicate.
The justice holds that Il directors
See ~ 10 entrust the business 81 the
corporation 60 officers and employees.
they assume the responsibility and
may BE- held responsible for the acts Of
these employees 1T IS not a sufficient
excuse re says TO state that loans
were not presented 10 the executive
committeci ii was the duty Of that
committee to require them 70 Be pre-.
sented."
He SAYS that TIE duties of directors
are not entirely limited TO regular
meetings II Is not full performance
Of duby 70 employ competent officers
who are believed 10 lie reliable. The
directors have other and additional din
ties, he Gays. Justice Van Kirk eharac.
tegizes the action as a difficult aud az
traoriinary case, aud directs an extra
allowance Of $4,000 costs 10 the plain
tic m hrs findings the Justice gives no
total Of the losses for which he holds
the directors accountable. The action
was brought to recover about sT00.00n. /
The Judgment awards today. with in
terest viii reach about $3.50 900, sc
eording to State Senator Bracket, the
attorney for the plaintiffs.