The sun., 1919-05-29
.CARRANZA DENIES
COURTS AUTHORITY
In Fight for Bank Deposits
Here Agent Contends Juris-
diction Is Lacking.
DECISION Is RESERVED
Manager Says "First Chief
Wrecked Institution by $780,
100000 Forced Loans.
DECISION Is RESERVED

oupreme court justice Tierney re-
served decision yesterday and asked for
him by Saul Z. Rogers, an attorney of
IS Broadway in behalf OF William B,
Mitchell Of Forest Hills. l.. l., for an
Injunction restraining the local agency
Of the Bank Of Montreal from paying
over to representatives Of the Carranza
Government of Mexico sum of approx
briefs in the application brought before
imately si45.ooo This money is on
deposit with the Canadian bank for the
account Of the now 'defunct Banca de
Londres y Mexico, of which Mitchell
was the manager.
The action grows out OF the decree
issued. by Carranza September Is, 1915,
suspending the banking laws Of Mexico
and declaring void all the bank char
ters In the southern republic. When
this decree went into effect the bank OF
London and Mexico had on deposit with
banks In the United States approx
mately half a million dollars. This
amount Carranza. through DR.. Alfredo
Caturegli, his financial representa- tive
and member of the Commission None
taria, appointed by the Mexican presi-
dent to liquidate the banks. seeks to OBJ
tain.
DR.. Caturegli some weeks ago brought
suit to recover the money that was on
deposit with the Bank OF British North
America, but was turned over with the
other assets of that bank when II was
absorbed recently by the Bank of Mont
real In the arguments yesterday coun-
sci for DR.. Caturegli commended that as
he was the representative of the finan-
dar asNK. -
rnent and In the position Of a receiver
| of the funds of the Bank of London
and Mexico the court had no authority
to act in the matter involving a friendly
| sovereign power.
Besides asking for the order restrain
ing the Bank Of Montreal from paying
| over the money to Carranza's represen-
| tative. the Mitchell application prayed
for the appointment of receiver to
safeguard the funds within the jurisdic.
| ton Of the court and an order restrain
Ing DR.. Caturesii from pressing his suit
further. Justice Tierney announced
| that he was convinced that he had nc
power 20 issue such an order.
Attorney Rogers In making his aryu.
ment for a restraining order reviewed
the story Of the seisure of tho bank and
the depletion of its gold and silver re
serve. amounting to upward OF $4,000,
| 600, through a series OF forced loans t
the Carransa Government. The detalli
pof the alleged wrecking of the bank b,
this process were told in a recent issu,
OF THE Sun. Mr.. Rogers declared tina
II Carranza's agent ever got his hands
on what is left of the banks resources
1.-The money would disappear beyond tn,
Jurisdiction OF the court. would find IL
| way into Carranxa's excheQuer and maxi
impossible any chance OF recovery b,
creditors OF the bank in this state.
| III this money gets back to Mexico.
said Mr.. Rogers. at Is gone. We know
what 10 going to happen TO that money
1t is going to CarranZa Just as sure a
God made little green apples. and the,
we will be in the position where w
cannot sue sovereign State for H.
recovery-if there is such a thing as
sovereign State in this case. and dom
concede that there is This money 1
going to Carranza because he is the ex
ecutive, financial. administrative an,
judicial head OF the Mexican Govern
ment and"
you don't expect me to set asid
CarranZas claim to his titles, do you;
inquired the count
But the money Is here, and DR.. Catu
regli submitted to the jurisdiction O
this court when he brought suit to re
lcover IT," persisted Mr. Rogers.
Jerome s. Hess, counsel for DR. Catu
regli. attacked the jurisdiction of tn
court. and contended that by coustitu
tional act OF the de facto Mexican GOV
eminent the funds involved were now tn
actual property Of the Republic OF Mex
leo.
The Bank OF London and Mexico is a
institution entirely British owned, an
the plaintiff. Mitchell. is an Enslishmal
who had been in charge Of the bank
AFFAIRS in Mexico for many years unit
the Carranza decree went into effect.
The courts decision Is regarded f
important. because of its bearing o
future attempts by Carranza to invok
the American courts to gain possessio
of funds OF other Mexican banks now o
deposit in the United States.