Year: 1875

A decision has finally been reached oR the applica
ton for the removal Of William s. Carman recover
of the Third Avenue Savings Bank. The application
was made to Judge Westbrook at the Special Term OF
the Supreme Court in Ulster county. After hearing
a lengthy argument in the matter, In which several
prominent lawyers participated, he gave his decision
yesterday granting the application The grounds upon
which his decision is based clearly given in his
opinion which we give in FULL


Continued engagements circuit since the submis-
sion OF this matter one week ago have prevented its
earlier examination and decision, other and rress
ing duties NJ the present only allow very brief state
ment of the which induce TO grant the APP
plcaton TO remove the receiver From the complaint
In the action. which verified by Daniel Bates,
president Of the defendant II appears that the Third
Avenue Savings Bank on the 10Th day Of Septem-
ber 1S75-the day Of the verhcation OF such COM
plaint-insolyent and had been for more
asd I day ' Of January, ISIS, the receiver,
who was then the secretary OF the corporation,
signed and verified report which purported TO be
just and statement Of the condition thereof on the
first day OF that month"; whereby Il was shown that the
bank solvent and that the assets OF the institution
were So 900 65 in excess of its liabilities On the 26th
day of December 1874, and about month prior to the
date Of such report the present had been made
the secretary OF the defendant at which time its
situation must have been known to the directors who
appointed him. This suit to dissolve the corporation
and wind up It's affairs was confessedv Instituted al
the request of its directors and the appointment OF the
present receiver upon the application for judgment no
objection being made by any OF the counsel who APP





such officers. The present application then pre-
sents this question, Is an individual who on the
secretary OF the then known insovent savings
bank by its then directors, who was used by
them in a month thereafter to make and
verify false statement declaring its solvency,
and who named by them as its receiver in q suit
which they caused to be instituted to wind up ITS
affairs, fit and proper person to execute such
trust especially should he be retained when every credi
tor. so far as known asks TO remove HIM This state
ment of the case indicates the answer II Mr. Car
mar na n will v fal in
resenting the bank TO be solvent he surely is not
q proper person TO be ntrusted with the delicate
and important duty which he Is called upon
ceyer TO discharge II after filling the Office OF
rotary for only three days less than month he could
be SO easily imposed upon as to make such false
statement he certainly had not the requisite mental
qualifications to grappe with the difficulties which
must surround him in his new position II he was
condng, he says he was, take the actuaries'
statement OF the condition OF the company true
and swear positively iniormation,' without
knowledge, such confidence may be imposed upon
hereafter II certainly has been In the past
TO the great injury of others Apart however, from
the objections which present themselves TO the con
tnuance Of Mr. Carman receiver by reason Of this
conessedy erroneous report and affidavit OF January
last his connection with the managers OF the instu
ton renders him an improper person TO discharge this
trust He the secretary OF their selection, the
cever of their choice In his latter capacity he will be
called upon to investigate the acts of his patrons and
the proper discharge OF his duties may require him to
sue those to whom he Is under personal obligations.
Duty and feeling should not collide in the person of the
receiver IL they do and the former is overcome hu.
man nature will only repeat itself To such q tempta-
ton no officer whom the Court selects should be sub
jected. These views have been expressed before
by me IN another case, and they regarded
sound Besides, the Investigation OF the
receivers conduct as secretary may be necessary.
How many Of the present deposors OF the defendant
ifany have become such by OF his false state
ment In January does not appear II is but fair con-
clude, however that as there public disavowa
by Mr. Carman OF the want of truth in his affidavit
I'll this suit instituted in September last to dissolve
and distribute the effects Of the corporation, startled
the public that considerable Of the creditors became
such during that period Is II fair TO such persons that
Mr.. Carman should sit in judgment upon his
duc2 To this, most obviously, only negative answer
can be given For the reasons thus briefly stated Mr.
Carman must be removed and a receiver appointed
The attorneys for the moving parties will prepare tho


ecessary order and submit the same to me for ap-


rnYal