14112. State Bank At Morris (Morristown, NJ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 31, 1849
Location
Morristown, New Jersey (40.797, -74.477)

Metadata

Model
gpt-5-mini
Short Digest
fbeea3b7

Response Measures

None

Description

The State Bank at Morris reorganized Aug 1849, issued notes, and collapsed by Oct 31, 1849 amid alleged frauds and worthless Susquehannah notes. Receivers were appointed and creditors were notified; criminal trials of officers/directors followed. There is no clear evidence in the articles of a depositor run prior to suspension — failure appears driven by bank-specific fraud and insolvency, leading to permanent closure and receivership.

Events (4)
1. October 31, 1849 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank collapsed after massive fraudulent operations: issuance of notes without bona fide capital, acceptance of worthless Susquehannah Bank bills, diversion of assets by directors and an agent (Egbert A. Thompson) who withdrew large sums; perjury and conspiracy indictments followed.
Newspaper Excerpt
On the 31st of October two month after its reorganization, the bank was defunct; and it for fraud alleged have been perpetrated ...
Source
newspapers
2. April 12, 1850 Receivership
Newspaper Excerpt
The receivers of the State Bank at Morristown, N. J., have given notice to the creditors of said bank to bring in their claims within six months from the 12th inst.
Source
newspapers
3. June 17, 1851 Other
Newspaper Excerpt
TRIAL AND CONVICTION OF THE CASHIER, HARVEY DAYTON, FOR PERJURY ... Indictments against Lambert Norton, the president ... and six directors, for conspiracy to defraud the stockholders of the bank Morris County Circuit Court. June 17, 1851.
Source
newspapers
4. September 20, 1851 Other
Newspaper Excerpt
Lambert Norton ... was acquitted by the jury ... With this trial ends all matters connected with the unfortunate failure of that institution, the Receivers having finished their labors some months ago.
Source
newspapers

Newspaper Articles (9)
1. November 1, 1849 Burlington Hawk-Eye Burlington, IA
Article from Burlington Hawk-Eye, November 1, 1849

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BURLINGTON HAWK-EYE. Per Tele Barlington Hawk-Eye pers. Foreign LIGHTNING DESPATCHES. it be said of this age as Arrival of the TA Telegraphed for the Burlington Hawk-Eye. an age of humbug, and in One Week letely humbugged than in SACKVILL ST Louis, Oct. so, 1849. CUTRAL papers. Papers Wed Horrid.-On man shot dead-One mortally wounded endeavor to secure pat-Three-others badly wounded. pretence of impartiality The Europa a as feelings of ALL-tread. A few days since two Frenchmen, giving their and left for Bost age family papers in our names as Count Georselor de Montesquiou and ed in this. But how is it Count Raymond Montesquiou, came the City Hotel Pending the d where they have since remained. About & past 11 Russia upon the e minority, gets up a neulast night, as Stewart and T. K. Barnum, nephews pecting the extra some broken down party of the proprietor, were retiring, some one on the refugees, the En s about, like Gov. Marcy gallery tapped on the window. The gentlemen in probable report reputation," staking his the room drew the curtain to see who had rapped, promises and deceptive but nothing de when instantly a man on the outside shot through s from the opposite side; at until the resol the window. The gun was loaded with one ball and e of the farmer and the his council shall ison is infused into the several buck-shot. The ball passed entirely through Emperor's reply nsinuations are constantthe body of T. K. Barnum, wounding him mortally. the Turkish capi papers are puffed to the J. J. McHomes was severely wounded with buckhers. shot. October. Appr ently given on one side, cision might be a Mr Albert Jones, coach manufacturer on Third ates are announced, withPorte was exce street, on hearing the noise, opened the door leadpolitical intrigue. ing to the gallery. At his appearance, the other the effect produ f the county are printed London and Pari barrel was discharged at him, and he fell dead. The those for other parts with ball entered his breast,passed through the lungs and representatives. ies on the opposite side, out of his back. This barrel also contained buck. te for different men, each A large fleet C shot. One struck Mr H. M. Henderson on the forewere voting for THE MAN. in the Bosphorus assions, &c., &c., which head,severing the artery and inflicting a bad wound. den Horn, betw vorable to the other side, Two others entered the wrist of Wm. H. Hubbell Black Sea and r improvements dare not of Liberty, Mo., the wound not being very severe. Marmora. The uld hurt OUR side and All the officers commenced searching for the o to belie the title of neu. line fully equipp perpetrator of this wholesale murder. They found ed and armed. n the honest and unsus. one of these Counts dressed in an entry on the same d above, are but the preAn army of or floor. They seized him, believing him to be the h we poor victims of neuassembled round guilty person. He said his brother was the murwill not rejoice when the reviewed from d derer. As they passed his room, he spoke to his be MEN and not DEMA. A letter, dated brother in French. He rushed to a part of the room avow their principles and where there were several guns, and it was with fore entering Tu will be for men of intelligreat difficulty that the officers could wrench the rances were giv h neutrals, as are unworgun from his hand, with which the desperate man fellow refugees, y those papers which are was trying to shoot them. The crowd would have lowed to proceed at do you say to this killed him on the spot, but the officers protected A considerable I HENDERSON Co., ILL. him. When asked if he had done the shooting, he been put on boa answered yes. Being asked why? He said "I was NGS AT SEA.--The vette and a Fre inspired God, to kill two men." of to-day gives inis said, for Gree ST LOUIS 29th, 7 o'clock, P. M. la letter from Capt. An eloquent ur-Ordinary to good country at $4,25 a 4,40. Lord Palmersto he whaling barque Quincy extra 4,50. ishing an account English journals Wheat-Stock heavy and market rather dull, oat's crew of the Accounts from mixed 63 a 75, fair to good 80 87 prime 90, choice uptain and five othlah had been sen 92 sacks returned. allel in the annals embrace Islamis Barley-Fair and prime barley 105 a 111. No On the coast of been unsuccessfu sales of Pork. Lard, common butchers 5. Whisky in lat 3 N, lon 104 24 25. moresh and othe s in his boat, from should induce th The line is down between Louisville and Pittse part of the third burgh. had no scruples. he boat capsized The most alari Second Despatch. is of distress were from Turkey is, NEW YORK, Oct. 29. s from the Janet, Europe, who are The Crescent City arrived yesterday morning.. H. saw them take Turkish, are in Left Chargres 17th and Jamaica 19th October. She the barque, which sequence of the brings no California news. At Jamaica the new c direction for his I tween Turkey Tariff had received the sanction of the government. e and horror, when influence of Russ The duties had generally been raised. f him, the Janet of the Greek chu MONTREAL, Oct. 29. rse until sundown! Serious disturbances took place at Quebec on the Sultan, betray ffort to reach the the occasion of the Annexation excitement. On taking advantage d saw the men in Saturday the Mayor refused to act. Some mostinnity to get up a fluential and wealthy citizens of Quebec have signe whales, and apGreat activity ed the annexation manifesto. Much excitement the fate of their iers to and from prevails. lly determined to Europe, but the PITTSBURGH, Oct. 30, P. M. be wind, and refunds allays all a A rumor is prevalent that the Susquehanna bail her one man The Paris cor Bank at Montrose has suspended. a they did not sucTimes, says, that NEW York, Oct. 30, M. from water, but ed by the English The Courier and Enquirer of this morning (day other of her crew; bassador of St. I before yesterday) contains a letter from Washingn up to their arms ject of Constantin ton stating that the Emperor of Russia had banishlast 48 hours.rate but firm te ed to Liberia, Bodisco, late Russian Minister at were seized with calculated to wou Washington and husband of an American lady, for without food or owning property in this country. Bodisco was enNicholas, but avd trapped to Russia, his crime having first been disthey raised a bit of to support the P covered by a spy. His property is valued at about asterly for Cocus that would compr half a million of dollars, mostly in government secoast, a distance independent Go curities. merston likewise 7th day they had to Sir Stratford C No alteration to notice in the Flour market, of their number Holders firm and demand moderate. Common to Mediterranean fle rolong the lives of straight and mixed western $4 1.2 to 4 62 1-2.$ unfortunate vichas intimated to Common to good brands of western Gennessee fell, met his fate unanimity exists Michigan and Oswego, $5 16 to 5 25 a 5 45. ernments on this ) and willingness. Corn in moderate request. Ohio mixed 54, yela shower of rain low 65. Market for Pork firm and prices have an In consequence upward tendency $10,60 for mess. Good demand Falloux, the dis ss or instrument for Lard, market firm. Beef fair demand. For Cofquestion and the epended for guidfee limited. difficulties has : of the North Star St Louis Oct. 30,7 P. M. Receipts limited. Flour, French Assembl the sea from the ordinary to good country brands to 4 40. Exday another of the made in any papel tra country brands 75. n. On the ninth culty between the Wheat. Stock heavy, market unchanged. ComGovernment is th their relief; and mon, mixed to prime 60 to 90, sacks returned.the Paris Presse Good to prime from Levee 90 to 100 sacks included. lowed by the reCorn and Oats White 40, Pure yellow from Leof a dolphin leap"Some explana vee 40, sacks returned. Oats 32 a 33 sacks incluessary. The Fren y companions dided. several birds also ed an indemnity Whiskey dull market prices drooping a 22 1-2 French subjects b fall a prey to the prices unsettled. Mexico; this der , and ministering On the 13th of some difficulty, th From a Private Despatch, received here yesterday. urged our Minis affering. land was State Bank of Morris at Morristown, New Jersey, and Susquehanna Bank of Pa., failed. American Govern d to be Cocus Is-

2. November 17, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 17, 1849

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COMMERCIAL AND M. For Sales of Stocks. & see Fourth Page FRIDAY. Nov. 16-P.M. The Stock market is heavy to-day without &C. tivity. excepting for Governments, which were wanted at advance. The sales of Fancies were moderate and a: the Second Board everything was heavy. The market for Exchanges has not opened yet, butte supposed that it will at a decline. Sterling is nominal at 9@9 per cent. Francs are 5.25 and duilThe large shipments of Cotton and Tobacco from New Orleans during the next four months n. st keep the supply of bills very large, and keep the rat far below the specie point. In addition to produce the , is also 8 considerable amount of gold dust belonging to American account, which has gone to England from California, and which will supply a quantity of sterling. In Freights there is not much doing, and rates are steady. OF Cotton there is & fair amount of ship. ment at 7-32d, Dead Weight 15a @20s, Flour lasd, Corn sjd, Beef To Havre Id for Cotton The Walter Joy Bank at Baffalo has suspended payment, but its circulation is good, as it is amply 88. eared by State Stocks with the Controller. The notes are still redeemed at the same rate as other State money, by John Thompson, 61 Wall-et. There are also rumors in regard to the Union Bank of Dover.The Pawkatuck Bank in Conn was reported in trouble, but we hear it is only through the indiscretion of the Bank in issuing notes before they had made arrangment with the Suffolk Bank of Boston This is a new inall. tution, and the matter will be erranged in a few days There are rumors about the street of some la e forgeries of paper having been discovered, but the ar. ticulars are kept quiet at present The balance in the Sub-Treasury conti aea to increase. The amount today is $3,916,159; Receipts, $75,090; Payments 52,322. The Asnelot Railroad from the Valley Road to Keene on the Cheshire Road is to be completed within 8 year. This subject. however, will not interfere with the building of the direct River Road from Brattlebor, to Bellows Falls The friends of this webeme have not been inactive during the last few weeks, but have been employed in obtaining subscriptions on the line of road, and obtaining the right of way. Several import ant negotiations in regard to this road are under Way and when closed we shall be able to give the particulars. This road must and will be built, and put New. York In connection with Vermont and New-Hampshire Ira C. Whitehead, W. N. Wood and Benjamin Williamson have been appointed Receivers of the State Bank of Morris. The Morristown Jerseyman intimates that the subject of the failure of the institution will be investigated by the Grand Jury to be empanneled next week. Statement of the Receipts and Exp n es for repaire on the Delaware division of the Pennsy lvania Canel from December 1. 1848. to November 1. 1819.

3. April 26, 1850 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, April 26, 1850

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PHILADELPHIA, April 23. Powers's statue of Eve, executed for Mr. Preston. of S. C., was lost lately, by shipwreck. on the Spanish coast. It was considered his master-piece. The receivers of the State Bank at Morristown. N. J., have given notice to the creditors of said bank to bring in their claims within six months from the 12th inst.

4. September 9, 1850 The New York Herald New York, NY
Article from The New York Herald, September 9, 1850

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Our New Jersey Corresponden MORRISTOWN, August 24, 1850. Morris County Courts Again-Indictments os. Morris and Essex Railroad Company-Important Civil Susts-Notice to Bill Holders of the Late State Bank at Morris. The August term of our courts is now in session; and though the Grand Inquest in and for the body of our county, have had no more bank failures to investigate, they have found it incumbent upon them to present two bills against another corporation-the Morris and Essex Railroad Company. The first indictment against them in effect, not in fact, charges their conductor, Isaac Van Pelt, with an assault and battery on Col. Nathaniel Mott, of Rockaway, New Jersey, in ejecting him from the cars on the morning of the fifth of June last. The circumstances, as I understand them, are these the company, as a check on their conductors, and that the trains may not be delayed in giving out tickets, and making change with passengers in the cars-in other words, for the great convenience of the public-have lately adopted a rule requiring all to purchase tickets at the several ticket offices before entering the cars, or pay an additional five cents when procured in the cars. Col. Mott was at Dover, and reached the depot just in time to jump on board as the train was leaving, and when the conductor called for tickets, had none. The extra five cents were demanded and refused, the cars stopped, and the intractable Colonel ejected. Hence the complaint and bill. The trial will involve some nice legal questions, and will not, probably, be brought on this term. The second bill charges the company wish keeping up and maintaining a nuisance, to the great damage and inconvenience of the people in and about Rockaway. It is alleged they have built upon and otherwise obstructed a public highway at that place. No criminal business has as yet been taken up this term. The Court of Quarter Sessions will be organized this morning, to traverse the petty bills. The Circuit has thus far been occupied in the celebrated and long contested caseof J. Seward, Jr., vs. The Morris Canal and Banking Company. The plaintiff OWBS a valuable farm at the head waters of the Morris Canal, and brings an action for damages done him in consequence of the company's erecting a dam at the outlet at the lake, and raising the waters so that they flow back upon and injure plaintiff's lands. The defendants deny flowing any lands of the plaintiff to which they have not title under an assessment made when the dam was first erected. The trial will probably continue the greater part of this week, the plaintiff) having not yet rested. For plaintiff, H. J. Mills, L. A. Chandter, E. W. Whelpley, Eeqrs., and the Hon. J. W. Miller. The latter, our Senator, is confined to his room with an attack of fever, and has not as yet been able to be present at the trial. For defendants, F. T. Frelinghuysen, Theo. Little, and Asa Whitehead, Esqrs. No. 2 on the civil list, is another very important case-Den ex demise Florence C. Rice vs. Jeremiah G. Hamilton. A mansion house and farm, situated at Denville, this county, valued at fifteen thousand dollars, is in controversy. The plaintiff brings suit to eject the defenda int. and recover the premises, alleging defendant's title deed bad, on the ground of inability on the part of the grantor to contract, by reason of imbecility and insanity, and fraud practised by the grantee. The trial is set down for Thursday morning of this week, and should the canal cause delay it be. yond that time, you shall be duly advised. For plaintiff, Theo. Little, Morristown; E. T. Schenck, Fonda, N. Y.: B. Williamson, E. Town, and Asa Whitehead, of Newark For defendants, E W. Whelpy, and J. J. Scofield, Morristown A. C. M. Pennington, Newark: and Sanford or Jordan, of your city. Before closing. I would remind bill holders of the late State Bank at Morris, that the time for presenting all claims or demands to the receivers, W. N. Wood, J. C. Whitehead, and B. Williamson, Esqrs, at their office in this town. will expire on the 12th of October next. As to the probable dividend. or dividends, that may hereafter be made and declared, the current belief ie, the bills will eventually be worth one hundred cents on the donat or nothing. All depends on the result of the suits instituted in the Court of Chancery against the old direction. AUGUST 28, 1850. I have to inform you the important cause of Den ex dem Rice vs. Hamilton, goes off for the term. Judge Ogden necessarily leaves here on Monday next, to open the Passaic Courts at Paterson, and the time intervening will, most probably, be wholly consumed in the trial of the cause now in progress, Seward vs. Morris Canal and Banking Company.

5. June 22, 1851 The New York Herald New York, NY
Article from The New York Herald, June 22, 1851

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EXTRAORDINARY BANKING OPERATIONS. The Exploded State Bank at Morris, N. J The Susquehannah Bank and the Protective Insurance Company TRIAL AND CONVICTION OF THE CASHIER, HARVEY DAYTON, FOR PERJURY TMENTS AGAINST LAMBERT NORTON, THE PRESIDENT. FOR THE SAME CRIME, AND AGAINST SIX DIRECTORS, FOR CONSPIRACY TO DEFRAUD THE STOCKHOLDERS OF THE BANK MORRIS COUNTY CIRCUIT COURT. June 17. 1851 This day was opened, in Morristown a special term of the Circuit Court of Morris county N J. for the trial of indictments arising out of the operations of the defunct State Bank at Morris. Judge Ogden, of the Supreme Court, presided The case is. perhaps, without a parallel in the history of banking in New Jersey. It is briefly this The bank was incorporated on the 28th of January 1812, with a capital of $50,000, in 1,000 shares of $50 each, under the title of the State Bank at Morris N.J It was regular country institution, and ap. peared to be conducted honestly enough; but partly from ignorance of the principles of banking, and partly from negligence. the bank was involved in difficulties o having invested the capital in real estate, which was no use in banking and having outstanding judgment for debts, that were never carried into execution. The shareholders became dissatisfied. and something wa necessary to be done. It was agreed to seek from the Legislature a supplementary enactment, reducing th par value of the stock from $50 per share to $20. and t increase the number of shares, by admitting new sab. scribers, 80 as to make the capital at least $40,000. In the meantime no notes were to be issued. While som were busily engaged in getting this law passed. with th best intentions, there were others concoeting plot to turn it to their own advantage There was an under standing among the stockholders that there should be a new board of directors, and new officers But some of the old regime went to work, with Harvey Dayton, and Lambert Norton and Egbert A. Thompson, stranger from Cincianati to whom they transferred 2,052 of the shares, out of 2.265, receiving for the same $28 per share being $8 above the par price, and thus giving him complete control of the bank. He was intro duced through Willard Earle. an officer of the Protectiv Insurance Company of Somerville company located in Somerset county but having its real centre of operations at Wall street, New York. This company was also mixed up in the bank explosion Thompson was represented man of capital; but he paid for the stock by $20.000 in Susquehannah Bank bills, which turned out to be not worth a rush. and by checks lent him by Harvey Dayton, the cashier of the bank. and by David Sanderson which checks were afterwards removed from the bank the former for $6.000. being replaced by check of Thompson himself; and the latter, for nearly $10,000 being paldawa in discounting a draft of the Somerville Protective In surance Company, of which Sanderson was a director Sanderson was also a director of the State Bank at Morris Thompson drew check after check. till he drew to the amount of $48,003 42 overdrawing his account to the extent of $10,000. and getting possession of the assets. or real estate of the bank, worth $14.000 But before all this could be complished, it was necessary to have bone fide cash capital in the bank of at least $40 000; for the law organizing the bank anew was passed on the 14th of February, 1849, on condition that before banking operations should be resumed. the president and cashier should swear that there was bona fide capital of at least $40.000 depos ited for banking purposes This was sworn to on the 20th of August, and that affidavit is the subject of indictment against Dayton and Norton Operations commenced in the bank on the 21st of August and then Egbert A Thompson & Co had it all their own way They issued notes like thunder and Thompson took $50,000 of them to the West. to ope. rate there. while Willard Earle the secretary of the Somerville Protective Insurance Company got $20.000 more to circulate and went West and South. it is said, to pay losses the insurance company in these notes. He died suddenly and his family got the notes. and claimed them as their own. They presented $4.000 of them the agent of the bank at York; but there was no funds to pay them except the Susquehannah notes, and that bank had just in, and also the Somerville Insurance Company Thus the bubble burst On the 31st of October two month after its reorganization, the bank was defunet; and it for fraud alleged have been perpetrated meeting of the directors at that time, that the latter are to take their trial Meantime receivers in chancery and civil and criminal proceed ings Were instituted. All that remained of the property of the bank was $18.000 of the Susqueb nuah bills and few Indictments were found by the Grand Jury against the president, cashier, and directors. The indict ment for perjury was the first the kind ever tried and its validity was objected to. the case The was Court removed Supreme by and after argument. the validity was established. and the case sent back to be tried here record. Norton who was formerly connected with the Canal Bank at Albany which failed. has not appeared swer to the indictment and it is suspected he will not, unless Dayton is acquitted He is the father of Norton, the convicted libelier, who is here watching the progress of the trial. The State ts. Harvey Dayton. for Perjury The Court assembled at 11 o'clock and Harvey Dayton was put on trial. The following jury were sworn. the defendant exercising his right of challenge to the extent of nineteen peremptorily, and two or three for cause George Crane. Gilbert Budd. David M Force, Daniel Owen, Isaac Corwin Mahlon Mills, Amoe Prudden Sitas 11. Hopkins, Gilbert Bodine, JOB. Headly, Francis Peer. Wm Jaggers. One of the jurors is ascertained to be relative of the accused: but it was not discovered till he was sworn. There were number of ladies in the gallery, and the interest appeared to be very great The counsel for the State are Attorney General Elmer and Theodore Little. Esq. Counsel for defence, Pennington T Frelinghuysen and Hon J. W Miller Mr Little opened the case for the State. He said. by an act entitled An act to establish State banks in New passed January 28.1812, bank established Morristown. by the rate name of The President Directors and Co. of the State Bank at Morris." The charter was for twenty years. The bank weht into eration under that charter On the 19th February. 1829. by an act entitled An act to extend the act incor. porating State banks in New Jersey. the said charter and supplemental to it were continued until the first Monday in February 1849 On the 13th February. 1845. by an act entitled An act to extend the act incorporate suping State Banks in New Jersey the chartez and plements were continued in force the first Monday in February 1806. The bank continued in existence until another when was passed. the 14th February law tled "Anact for the relief of the President. Company the State Bank at Morris Mr Little he act the act. This and read proceeded the Board of Directors on the 2d of April, 1849. On the 18th August, 1819, there were two meetings of the board. and new dynasty was formed. and the bank passed under the control of strangers Edward Condit resigned bis office President and Lambert Norton was elected in his place On the 20th August. 1849, the defendant. cashier of the bank and Norton as president. made their affidavit before Charles E Seofield master in hancery. in this town. agreeably to the the fourth section of the law February 14. 1849 It is in the making of this afiday that indictment charges the defends with havi ruptly and falsely. The affidavit filed office of 1849. State, of the the Secretary bank August business its and resumed then until when it ceased to redeem its bills and failed It will be to sustain this the State. competent and that show, by 20th at the 1849. Morris, August on State Bank capital $40.000 defendant cash fide bona knew this fact. or had the means of knowing it. We referred laws several produce the original afidavit signed by the defendant and Aworn before E Seofield, master in chancery show the defendant' admissions what composed the ferred to. and show by the the half than much more Thompson. one and Egbert his property of bank: that August 1849 and oheekst $48,003 were that day charge him he bank that $40,000. $2,100 was composed of the heck D. Sander. SOD. the State Bank at Elizabeth and was not good for the amount: that that check. If and petly called cash. constituted no part or the capital bank. have WAS loaned the defendant unde:

6. June 24, 1851 The New York Herald New York, NY
Article from The New York Herald, June 24, 1851

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The State Bank at Morris. TRIAL OF SIX OF THE DIRECTORS FOR CONSPIRACY TO DEFRAUD. MORRIS CIRCUIT COURT. MORRISTOWN, June 23, 1851. Before Judge Ogden. SECOND DAY. The State of New Jersey vs. Lambert Norton, David San derson, William Thompson, Samuel 8. Duty, Joseph Cutler, and Jacob M. King. for Conspiracy is Defraud the Stockholders of the State Bank at Morris- The court set exactly at eleven o'clock. The jury were called or when they answered to their names. Edward T. Thompson was then examined in continuation, on the part of the State. The Financial Committee were E.A. Thompson, David Sanderson, and the Prosident. (Is handed the ledger.) The ledger shows the amount of bills prepared and signed for issue. The daily statement book shows ho much is on hard. The disference is the amount in civilation. After the bills are entered in the Jedger, they are regarded as cash. Mr. Norton, the President, made the entries sometimes, and I made them at other times. Mr. Asa Whitehead-Do you know those things from your OWD personal judge ? I judge from the books; all the money that went out of the bank was intended to be entered on the books. The entries on the ledger, it correctly made, shows the notes prepared circulat. The daily statement of 30th October, shows office notes in vault, $12,200; office notes, $13,456-these were in the bank. Hon. Mr. Miller objected that the evidence of the book of itself is not suffic. eat, and that the directorsare ncFresponsible. either civility or criminally, for the entrick made by their officers Mt Asa Whitehead follow. ed on the samd'side and denied that the books were facie evidence. as far as criminal intest is concerned In't civil suff, the directors might be charged with knowledge of what the books contained but not in a criminal proceeding Attorney General-The booksan books of a corporation. and are evidence of the act) of the corporation. The act charged is a corporation act Mr. Whitehead-Iadmit that the books of a corporation, are evidence of corporation absts. but not T he eriminal intent of individuals, and that the actemicst be proved by vitnesses In a civil action the question would be entirely different. Court-It is impossible to show what the circulation of a bank is on a given day, unless by its books; and, therefore, it is compatent the State to examine the witness as one of the agentle of the directors, and they are grima facie evidence. tnl the entries are stown to be fake or fraudulent. Mr Norton is proved to be President. and two other of the defendants were on the [Finance Come mittee, and the circuiation of notes waspeculiarly their province. Witness then continued his testimony.-Up to the 25th of October, when the last issue was made, there were $58,800 of notes executed, of ones, twos, and threes; of the denominations of fives and twent en, there were $24,930; of the denomination of tens, $80 0; of fives and tens. $15,000; total-$106,730; I believe the draft of A. E. Thompson, for $15,000; wessent by L. E. or M. E. Bradley & Co., of Cincinnati, for discount; the whole amount of money Thompson brad/from the bank to the 31st of Ostober, 1849, was $107,458 54; the amount of his credit on the books is $82,583; he is credited on the 31st with $5.400; this was Susquehannah money. which he had taken to xchange, but did not succeed; on referring to the books, I find that he re turned on the 30th, $4.000 of those notes that he received on the 25th; in reference to what I said on Saturday about the $100 voted to Col. Thompson. it was from Norton that learned that ThompSON had expended that amount in law expenses; heard Thompson say that he had expended more than that amount Q.-Did you not. on the 80th of October. say that you had doubts about the bank The question was objected to, but the Court overruled the objection. Witness sent a communication to Mills & Co., in which 1 stated. .. N. B. Theseare reports that the bank has failed; notwithstanding that I still believed it was Fafe. Q.-Did you see reports in the newspapers of its failure, and before that day Question objected to, and the Court sustained the objection. Witness. I remained in the bank till the receiver got possession; there were from $12.000 to $15.000 of Susquehanna notes deposited in the bank all that time Cross-examined-Th money charged to Thompson wassent to him for circulation, the object being to get drafts and bills in discount: he returned to the bank. on several occasions, drafts and bills he had received, and also gold. I think to the amount of $3.000; Thompson represented that he could obtain a profitable circulation of the notes of the bank in the West. and get in return the notes of other banks for the redemption of their own notes; I understand the receiversgot back $37,000 from Thompsen: the draft of $15,000 on the Phoenix Bank, is not credited to Mr. Thompson; it ought to have been. Re examined.-Thompson is charged with $20,900 on the 25th October. as director; I am not sure what it was for, but I think it must have been for the notes of the bank. Cross examined.-The paper handed to me purports to be a copy of letter I wrote, by order of the board, to Mr. Mills, of Cincinnati; it is as follows NEW YORK. Nov. 1, 1849. The First Telegraph, 110 Main street. Messrs. DEAN & MILLS:GENTLEMEN- am instructed by the President of the State Bank at Morris, to employ you. and through you, other legal counsel. to revover from Egbert A. Thompson. of your city. now returning home, $11,900, notes of this bank: ones, twos and threes. payable to D. Arnold, and $9,000. fives. payable to H. Rosa, obtained by Thompson as a director, and which, we fear. he will use dishonestly. Also, that you advertise, that the public be cautioned against receiving said notes; also, a security for $4,297. notes of this bank delivered to Thompson. for which he has failed to give security according to promise; also, to regain from him security for$$17,000 Susq uehannah Co. Bank notes. paid by him for bank stock. which notes prove worthless. Inform me whether the Phoenix Bank. of Cineinnati. is responsible for $15.000 Answer immediately. Address to this city. I will pay allexpenses, and will write you more fully E. T. THOMPSON. Cashier. The ross-examination of witness here closed, and the court adjourned for dinner.

7. June 25, 1851 The New York Herald New York, NY
Article from The New York Herald, June 25, 1851

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The State Bank at Morris. TRIAL OF DETO THE DIRECTORS FOR CONSPIRACY THE FRAUD STOCKHOLDERS. 23. June MORRIS CIRCUIT COURT MORRISTOWN. N J. Before JudgeOgden. Lambert The State of New Jersey US David Sanderson, Norton, William Thompson Samuel S. Doty Joseph Cutler and Jacob M King for Conspiracy to Defraud the Stockholders of the State Bank at Morris SESSION The Court resumed at half past 2 o'cleck P M Ephraim Marsh sworn was in the city of New York on the 30th of October 1849 saw there Mr Sanderson Col. Thompson and Lambert Norton at the Merchants Hotel had conve ation with them heard them con verse together on the subject of the difficulties of the State Bank at Morris think there was placard the subject of the State Bank at Morris: was there in the of Mr Sanders and Mr Norton in about half an hour after Col. Thoma came and they pre sented it to him think the placard was to the that the State Bank at Morris had failed and cautioning people against taking their bills: this was in the foreabout said afternoon in the coming noon: was something train came myself in that train: Col Thompson in it; the train arrived. should think not far from o'clock; was not before nor later than 7 o'clock think it was said by some of them that they supposed the death Elard Earle was the cause of and there some difficulty about the money of the bank he had in his possession receivers sworn was the of William Wood one of the State Bank Morris: I took charge between the first and eighth vember: the document handed to me it is the bank dated of inventory the assets 13th of April.1850; the amount is 196 85: have dum of the bills present the total amount of the bills nd debts against the bank is 17.803; there draft Burdett $848 there 50 claimed by other $2.672 Thomp drafts for the Nort Lambert the and dorsed by him Jason King Co $13: G W $12 Olds $44 claim Benjamin Edward Condit $47 believe that is all the debts except the bills have from the this time, from $10 000 $12.000, in cluding the banking house sold $6,200 to David San $2000 have from inveathe $5.800 the for house when mo banking tory; tgaged bands that the the settlement with the of celled by into the hands some of them to the brokers ten cents some about dollar longer than three months we have tried could from the assets; have never seen E Thompson All the claims presented were not allowed by the claim of prese sted by in the suit against the Earte allowed call at the American and learned that they had $4.000 of the bills of State Bank at Morris. and they held also the drafts one have which they of Bank the Morris and. underCounty by Cornell aims bills John for presented the Excalled when Bank bills him. drafts State were the the Bank and the $400; Bank bank the failed after that the there $2.200 the hands claime the receivers of by Morria at witness to want understand the about these Attorney General- If you underta ke to understand de in New York the new I should than greater like attach all They (Laughter) manner of things Ira the one receiv Bank Morris; the handed paper assets State of the of the Morris: available contains first the page all the the furniture the found that the for good for them; drafts give to them agreed would Th and papson return Bradley the $250 but did pay 000 the draft on Bradley draft of $10.000 the Phenix B Thomp Phenix Bank same in the build in the but they The Phenix laughter Bank not the notes to Mr Sanfrom which his was erased The State called upon the defendants to produce the Counsel on The other the objected. offered when length the and identified produced the them eased but utterly crossed the with read. could be and T Edward by the that stating of the order board erasure done by These notes delivered to the of a defendant two chancery suits instituted by the receivers, one against Condit Seofield and Dayton and the other against Doty on the 3d day of January last was Court made 1st the the of order day done of January insisted in our bill that there was fraud in the ground on which the notes given up in the chancery suit that we entitled to the stock. he was entitled to the notes. examined The arrange was Judge Condi notes Thompson Sanderson held Doty. to the amount of $5,700 and the mortgage given to secure Sanderson and Doty from that note Condit gave up his note. and Sanderson and Doty gave up mortgage and Sanderson agreed to make the what receivers house the $7,000. including banking brought Sar derson bought it for $6.200 examined N We Wood in assets received $9166 85 there is due from Mr Sanderson who is good. there $800 sum and small in Mr. interes Williamson's hands the total is about $10.000 we offered to take $1.000 for the drafts of E Thompson we found large amount of office notes on hand. many old and new: 000 $37 gave ones: new of destroyed notice we to the creditors to bring in their claims: the circulation about $75.000 including that received from Cincinnati: mean all the bills the bank that were out. Hull. publisher of a paper. was amined to prove the directors names, but the evidence was objected to and the State then fell back on the books of the bank which proved it though in no one place were the names all together Th State here rested Mr Pennington then pened the defence He said the crime with which his spectable clients were charged would render them as infamous as that of which Wa yton was nnicted incapaci tating them wit. nesses court of justice, and making them liable to incarce: ration in the State prison It crime of the highest moral turpitude. But was not proved -there was no proof of conspiracy The for defence would offer no testimony, unles to was only by the mest distorted infer nees and by foregone conclusion. that any man could pronounce the defend ants guilty of the crime laid to their charge Samuel R. nolds. Henry Hillard. Rev Dr. Mesler Can Lewis Mills Judge Vanorden Wm N Wood Mr field. Aaron Barclay Isaac II Williamson Eiwer Captain Hall, Mr Hartwell Mr. George Browne. and Eugene Dowd ly gave the defendants. Col Thompson. Dr Doty Mr Sanderson and Mr King excellent characters Mr Pennington then offered number of certificates of character for Norton chiefly from elergymen in Al baby but they were objected by the Attorney General. and the Court held that they were not evi idence. Mr Pennington still pressed the certificat The Attorney General said he knew no thing about the way those ificates were obtained. nor whether they geruine; if they were ever so authentic they would not evidence Mr Pennington said that some of them had the seal of the notary public attached. to prove that they were genuine Attorney General-That makes no diff Pence: I cannot stand here in my public capacity and permit them to be received Court. unnee Fary to discuss the matter further have never known an instance of certificates being to ceived The defence here rested The Attorney General then summed up to the follow the indictment charged inspiracy erase endorse the and destroy upon of defendants. one Sanderson. David the ment there That wheth doubt questi they did relied He upon and the being then the the not jury Th plausible bank had been having August the three of W Thompson. and defend. 30th on following the

8. September 24, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 24, 1851

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NEW-JERSEY ITEMS. John T. Bishop, a native of England, but for some time a Methodist preacher in this country, with his mother attempted to cross the canal just below Jersey City on Saturday in an old scow, for the purpose of getting some quinces at Mr. Thompson's place, a short distance from Bergen Point. Just after leaving the bank the boat began to fill, which so alarmed his mother. a woman of 60 years. that he attempted to put back. but the old lady, in her fright, overturned the boat, and precipitated them both into the water. For some time they clung to the sinking tenement, making every exertion to be beard-at last Mr. Garret Newkirk came running toward them, but before he could get another boat to them, Mr. Bishop sank to rise no more. He instantly relieved the old lady and placed her on the bank, to return for the other, but when found life was extinct. He was buried on Sunday morning. Mr. Bishop. had promised to preach at Cold Spring, New. York State. 18 We learn from Morristown, that Lambert Norton, late President of the State Bank at Morris, and charged with being concerned in defrauding 11, was acquitted by the jury on Saturday evening. With this trial ends all matters connected with the unfortunate failure of that institution, the Receivers having finished their labors some months ago. Trenton City is in a ferment about their supply of water. Means are to be taken to provide new sources A fire at the present time would be likely to have its own way. Trenton is in the dark, owing to a disagreement between the Lamp Committee of the City Council and the Gas Company. On Friday last, the barn and outbuildings' of Benjamin Lewis at Pennington were burned. Loss $2,000 insured $1,000.

9. October 2, 1851 Jeffersonian Republican Stroudsburg, East Stroudsburg, Milford, PA
Article from Jeffersonian Republican, October 2, 1851

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# Acquittal of Lambert Norton. We learn from Morristown, that Lambert Norton, late President of the State Bank at Morris, and charged with being concerned in defrauding it, was acquited by the jury on Saturday evening. With this trial ends all matters connected with the unfortunate failure of that institution, the Receivers having finished their labors some months ago.