1.
October 31, 1878
Daily Press and Dakotaian
Yankton, SD
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BUSINESS TROUBLES. AT PHILADELPHIA. Philadelphia, Nov. 1.-Detwiler & Welsh, owners of the Market street flour mills, have failed. Liabilities about one hundred thousand dollars. AT TROY. Troy, N. Y., Nov. 1.-The MercLants and Mechanics' state bank closed to-day. AT WASHINGTON. Washington, Oct. 31.-The German American national bank, which grew out of the German American ravings bank, and occupied the same building, suspended this morning. The German American savings bank has also closed its doors and put up the following notice: Owing to the suspension of the German American national bank, this bank is forced to close. The officials of the savings bank declare that their institution is sound. Both banks were owned and patronized principally by Germans, and the suspension causes much surprise. An excited crowd surrounds the building. The cause was an inability to realize on real estate mortgages. The national bank examiner expects the depositors to be paid in full.
2.
November 1, 1878
Daily Globe
Saint Paul, MN
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BANK FAILURES. A Number Which Have Closed Their Doors ---Inability to Realize on Investments the Cause. WASHINGTON, Oct. 31.-The German American National bank, which grew out of the German American Savings bank, and occupied the same building, suspended this morning. The German American Savings bank has also closed its doors and put up the following notice: "Owing to the suspension of the German American National bank this bank is forced to close." Officials of the Savings banks declare their institution is sound. Both banks were owned and patronized by Germans, and the suspension causes much surprise. An excited crowd surrounds the building. The cause of the failure was the inability of the bank to realize upon real estate mortgages. A National bank examiner, now in charge. states it is probable depositors will be paid in full. TROY, N. Y., Oct. 31.-The Merchants and Mechanics State bank was closed to-day. CINCINNATI, Oct. 31.-The banking house of James E. Hemann & Co. closed its doors this afternoon, All demands against the bank were paid over the counter up to 3 P. M, but accounts in the clearing house were not adjusted, and at 5 P. M a deputy from the theriff's office served an attachment issued at the instance of John Berger, for $1,140. He attached the fixtures of the bank. and also the household furniture of Mr. Hemann at his residence. It is stated that Archbishop Purcell and] his brothers are not depositors, and have not been for several months. The report that the Volksfreund newspaper is any way concerned is untrue. That concern loses nothing. Mr. Hemann has had no interest in that paper for fifteen years. The bank has been payingsix per cent. interest on current deposits, and has experienced some heavy losses. Last May the deposits amounted to $352,000. There was a run then, but the bank survived it. There has been a steady drain lately, and suspension was inevitable. The firm decline to make any statement of assets and liabilities, but the latter are very heavy, and variously stated from $175,000 to $250,000.
3.
November 1, 1878
The New York Herald
New York, NY
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CRIPPLED BANKS. Failure of the Merchants and Mechanics' Bank, of Troy, N. Y. A GERMAN BANKING FIRM SUSPENDS Two Banks in Washington Close Their Doors. [BY TELEGRAPH TO THE HEBALD.] TROY, N. Y., Oct. 31, 1878. In compliance with an order from the Attorney General the Merchants' and Mechanics Bank (State) of this city ceased to transact business at noon 10-day. It is freely charged by the depositors that their funds were received after the closing of the bank became a certainty. The suspension will be severely telt among a large number of the laboring classes, who will be the principal losers. The stockholders are half women or guardians, who seem to have been generally inveigled into purchasing the shares. The bank officials decline to give any information on the subject, but D. T. Vail, the president, allegos that the difficulty was caused by the inability of the Scbaghticoke Woollon Mills to meet an obligation of $400,000 which the bank was carrying. Mr. Vall is also president of the latter corporation, and is freely charged with injudiciousness 10 making loans to manuiacturing concerns in which himself or a lew associates were in aterested. Disastrous real estate investments also contributed 10 create the trouble. The last statement ot the bank published showed a surplus of only $14,200, while the loans and discounts aggregated upwards of $750,000. The capital stock was $600,000, and 11 is thought the total loss will be about $300,000. The bank has been considered unreliable by business men for some time, hence the women are so largely involved. Daniel Robinson, manager of the Troy and Boston Railroad Company. is also believed to be somewhat involved personally by reason of the bank's closing. No other important trouble 18 anticipated in commercial circles here.
4.
November 2, 1878
Evening Star
Washington, DC
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BANK FRAUDS.-The report of the New York York bank superintendent on the condition of the suspended Merchants and Mechanics' bank. at Troy, N. Y., states that the bank is hopelessly insolvent; that according to the report of the examinerthere is an apparent deficit of $465,664; that the officers have been guilty of grave irregularities in the transactions of the bank, and have, in their sworn reports, concealed from the bank superintendent by false or equivocal statements the true condition of the bank; that deceptive devices were adopted by such officers in September, 1878, and he is convinced that the financial condition of the corporation is beyond any practical remedy for restoring it to soundness. Motion for a receiver will be made Monday.
5.
November 2, 1878
The Sun
New York, NY
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TROY'S BROKEN BANK. Its True Condition Concealed by False and Equivocal Statements, TROY, Nov. 1.-The following are extracts from the reports of Bank Superintendent Lamb and Bank Examiner Kirtland relative to the condition of the Merchants' and Mechanics' Bank, the doors of which were closed by the Attorney-General yesterday. Mr. Lamb, in his report to the Attorney-General, says: The result of this examination is a great surprise. in view of the character of the managers of the bank, and the reports which they have sworn to and sent to the Superintendent of this department for a long time. The bank 18, in my judgement, hopelessly and remedilessly insolvent. In evidence of this, 1 append hereunto the report of the Examiner. which shows an apparent deficit of $465.664.64. Further, I regret to add that the Examiner reports that the officers have been guilty of grave irregularities in the transactions of the bank, and have, in their sworn reports. concealed from the Bank Superintendent, by false orequivocal statements, the true condition of the bank. The Examiner finds, in particular, that deceptive devices were adopted by such officers in S. ptember, 1877, to evade the searching inquires then first made of the State banks in the schedules which I attached to blank forms for reports of such banks. It is only by such untruthful devices that the actual condition of this bank has been conceated for a year from me. I am convinced that the financial condition of this corporation is beyond any practical remedy for restoring it to soundness. The Bank Examiner reports: An examination of the condition, conduct. and affairs generally of the Merchants' and Mechanics' Bank of Troy shows a deficiency of assets to pay liabilities of $465,664.64 I found eight notes carried in the past due paper amounting in the aggregate to $337, These notes, I am informed, were procured about a year ago from the individual signing them for the purpose of enabling the officers to relieve the cash of that amount of items, and to swear to the report sent out from the department about that time. This bank has carried the Schagticoke Woollen Mill for some years. its present indebtedness being $430,867.98; of this amount $20,000 is probably secured by 18 good endorser. The management of this bank has for years, in seeking to conceal the true condition of the corporation, with which its President and directors are closely connected, resorted to transactions of a very questionable character, and for which, it appears, the President is almost wholly responsible. A motion will be made on Monday for the appointment of a receiver. It is said that the stockholders are to be assessed fifty per cent. The management of the institution is severely censured. and many of the unfortunate shareholders are in favor of instituting criminal proceedings. D. Thomas Vail. the President. owns over 800 of the 6,000 shares. and is also President of the Schaghticoke Woollen Company and the Troy and Boston Railroad Company.
6.
November 2, 1878
Daily Republican
Wilmington, DE
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Bank Suspension. The report of the New York bank superintendent on the condition of the suspended Merchants and Mechanics' Bank, at Troy, N. Y.. states that the bank is hopelessly insolvent: that according to the report of the examiner there is an apparent deficit of $465,664; that the officers have been guilty of grave irregularities in the transaction of the bank, and have, in their sworn reports, concealed from thr bank superintendent by false or equivocal statements the true condition of the bank; that deceptive devices were adopted by such officers in September, 1877, and he is convinced that the financial condition of the corporation is beyond any practical remedy for restoring it to soundness. Motion for a receiver will be made Monday.
7.
November 2, 1878
The New York Herald
New York, NY
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BANK FAILURES. THE MERCHANTS AND MECHANICS' OF TROY HOPELESSLY AND REMEDILESSLY INSOLVENTDEVICES OF THE OFFICERS BY WHICH THE BANK SUPERINTENDENT HAS BEEN DECEIVED. TROY, N. Y., Nov. 1, 1878. The following are extracts from the reports of Bank Superintendent Lamb and Bank Examiner Kirtland relative to the condition of the Merchants and Mechanics' Bank, the doors of which were closed by the Attorney General yesterday. Mr. Lamb, in his report to the Attorney General, says:The result 01 this examination is a great surprise, in view of the character of the managers of the bank and the reports which they have sworn to and sent to the superiutendent of this department lor a long time. The bank 18, 1u my juagmeni, hopelessly and remedileasly insolvent. In evidence of this 1 append hereunto the report of the examiner, which snows an apparent deficit 01 $465,664 64 Further, I regret 10 add that the examiner reports that the officers have been kuilty 01 grave irregularities in the transactions of the bank, and have 14 their sworn reports concoaled from the Bank Superintendent, by false or equivocul statements, the true condition of the bank. DECEPTIVE DEVICES. The examiner Liods in particular that deceptive devices were adopted by such officers in September, 1877, to evade the searching inquiries theu first made of the State banks in the schedules which 1 attuched to blank forms for reports 01 sucn banks. It 18 only by such untruthial devices thai the actual condition 01 LOIS bank has been concealed lor a year from me. 1 am convinced that the financial condition of this corporation IS beyond any practical remedy for restoring 16 10 soundness. THE BANK EXAMINER'S REPORT. The Bank Examiner reports:An examination ot the condition, conduct and affairs generally of the Merchants and Mechadics' Bauk of Troy shows is deficiency of assets io pay liabilities of $465,664 64. 1 found eight notes carried in the past uue paper amounting lu the aggregate to $337,443 38. Those notes. I um informed. wure procurou about a year ago from the individual signing them for the purpose of enabling the officers to relieve the cash of that amount of 16cms and to swear to the report sent oui from the department about that time. This bank has carried the Schaglicoke Woollen Mill for some years, its present Indebtedness being $430,867 98. of this amount $20,000 is probably securau by a good indorser. The management of this bank has for years, in seeking to conceal the true condition ot the corporation, with which its president and directors are closely connected, resoried to transactions of a very questionable character, and for which, It appears, the president is almosi wholly responsible. A motion will be made on Monday for the appointment of a receiver.
8.
November 5, 1878
The New Orleans Daily Democrat
New Orleans, LA
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A neglected industry in the United States, says the Boston Commercial Bulletin, is that of flax-growing and the manufacture of linen. Forty years ago nearly every farmer in the country knew how to raise and prepare flax for domestic use, and many of our fathers and mothers were to some extent engaged in this manufacture. Now, however, besides a few small mills in New England, and a couple of thread mills in New York and New Jersey, the business is given over to foreign manufacture. Of the raw flax used by the crash and thread mills, 4000 tons are imported, and 1000 tons are home-grown, principally in the northwestern. portion of the State of New York. A considerable portion of the imborted flax is Russian; that of the best is Belgian, a part Canadian, and some Irish. The report of the New York bank superinendent on the condition of the suspended Merchants and Mechanics' Bank, at Troy, N. states that the bank is hopelessly insolsent; that according to the report of the exEminer there is an apparent deficit of $465,664; that the officers have been guilty of grave iregularities. in the transactions of the bank, and have, in their sworn reports, concealed From the bank superintendent by false or quivocal statements the true condition of the Tank; that deceptive devices were adopted by Such officers in September, 1877, and he is conlinced that the financial condition of the cororation is beyond any practical remedy for estoring it to soundness. Motion for a reeiver will be made Monday. The New York Shipping List gets a great eal of truth into small space when it says: A very common error among business men limited experience is that of economizing the matter of advertising whenever times The dull,' profits small and prospects not overTromising. This is the rock on which many Business men are shattered. But the more perienced and successful merchant realizes Le fact that when trade is dull, it is the more
9.
November 9, 1878
New-York Tribune
New York, NY
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TELEGRAPHIC NOTES. THE ALABAMA IDEA OF GRANDEUR. ENFANLA, Ala., Nov. 8.-The East Alabama Fair, which will begin here next Tuesday, the 12th inst. promises to be the grandest thing of the kind ever attempted in this section. An extra large number of horses are already of the ground. A DISAGREEMENT AS TO TERMS. BOSTON, Nov. 8.-The effort on the part of the managers of the Fitchburg Railroad to lease their line to the Old Colony Railre and has proved fruitless. and the whole projeet has now probably been abandoned. The two companies cannot agree as to terms. THE RECEIVERSHIP OF A BROKEN BANK. ALBANY, Nov. 8.-Justice Osborne heard the application for a receiver for the broken Merchants' and Me. chanics' Bank of Troy to-day. Representatives from Troy and New. York banks were present, and the decision was reserved. MRS. WITTENMEYER RE-ELECTED. BALTIMORE. Nov. 8.-Mrs. Annie Wittenmeyer. of Philad Ipmia, was elected president, and Mrs. Mary T. Burt, of Brooklyn, corresponding secretary. of the Women's Na. tional Temperance Union to-day. THE FLIGHT OF A MILITARY CLERK. ST. LOUIS, Nov. 8.-Geo. W. Farrant, the former agent and collector of the National Guard of this city. has fied with a large amount of the company's funds. Farrant has been secretary for the regiment, and received $1,000 salary. DEATH AT THE TABLE. CINCINNATI, Nov. 8.-Wmm Colton, a comedian, from Chicago, arrived here yesterday. and while sitting down at dinner at the "Live and Let Live" Diuing-roome dropped suddenly off his chair and expired. Heart disease was the cause.
10.
November 20, 1878
The Daily Gazette
Wilmington, DE
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Diminished Assets. A Bank Supposed to Have $700,000 Assets, Now Reported to Have Only $100,000. A special dispatch from Troy, N. Y., is as follows : James Forsyth, receiver of the broken Merchants' and Mechanics' Bank, took charge to-day. Before the failure the bank claimed $700,000 assets, but the examiner reported that the assets amounted to only $300,000. It is now said that they will not exceed $100,000. D. Thos. Vail, the President of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a millionaire. Some stockholders have threatened criminal proceedings against Vail, as it is believed he has speculated and lost heavily in Wall street.
11.
November 29, 1878
New-York Tribune
New York, NY
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CRIMES AND CASUALTIES-BY TELEGRAPH. LOSS OF A SCHOONER. ST. JOHNS, N. B., Nov. 28.-The schooner Annie B. has been lost. She was bound from Charlottestown to NewYork with potatoes. She was owned by Captain Secord and James Boyle, and was partly insured. ARREST OF A RAILWAY POSTAL EMPLOYE. BUFFALO, N. Y., Nov. 28.-Charles Kimball, of Kendallville, Ind., an employé of the Railway Mail Service, was arrested near Dunkirk last night, and committed to jail here to-day, by Special Agent C. E. Heary, for robbing the mails. Kimball has made a confession. RECEIVER FOR A TROY BANK. ALBANY, Nov. 28.-Charles E. Patterson, of Troy, has been appointed receiver of the Merchants' and Mechanics' Bank of thatcity, vice James Forsyth, declined. RAILWAY ASSURANCE.-Passenger (waiting) : " How iong is the next train to Cupplesam 1" Porter : " As long as this 'ere plat orm, if It don't get smashed in half afore it gets 'ere."-[Fun. RE THE GLASGOW BANK.-Evangeline: "Papa (to paterfamilias, whose wife and five daughters run heavy bills at the milliner's) what is unlimited liability 8" Papa: " Marriage, my dear."-[Fun.
12.
December 12, 1878
The Manchester Journal
Manchester, Bennington, VT
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TROY'S BROKEN BANK. The failure of the Merchants' and Mechanics' Bank of Troy bide fair to be nearly as bad as that of the Washington County Bank of Greenwich. A special despatch to the New York Times says: D. Thomas Vail, now nearly 70 years of age, bas always stood high in the confidence of his townsmen. After Mr. Edwin D. Morgan resigned the Presidency of the Hudson River Railroad Company, Mr. Vail acted #8 its chief officer, and it has frequently been remarked that his skill in management and the confidence which capitalists had in bis integrity and capacity saved the company from bankruptcy. Afterward he became President of the Troy and Boston Railroad Company and the Merchants' and Mechanics' Bank. Pending the opening of the Hoosac Tunnel the milroad was kept up by the bank. During a lew years past it has, however, been in condition to take care of itself, and the bank's money bas been diverted to the Schaghticoke Woolen Mills, into which $100,000 of Mr. Vail's money and $350,000 of the bank's funds have gone. When the last report of the bank was made to Superintendent Lamb, Mr. Vail stated under oath that the largest debt due the bank from any single corporation was $40,000 The Receiver's examination established the fact that the Schaghticoke Company owed $350,000. This discrepancy was made the basis of the charge presented to the Grand Jury, and Mr. Vail was indicted for perjury. The Schaghticoke notes have all dia appeared, but it is not believed that Mr. Vail has any knowledge of their whereabouts. In fact, he has been 80 ill since the failure occurred that bis family do not mention business matters to him. Until the failure be was supposed to be worth $1,000,000. It is now believed that be is bankrupt. The Receiver thinks that the stockholders and depositors of the bank will not recover a dollar, and that almost the only claim that will be paid is ebat of the Troy Savings Bank for $65,000, which in made by law superior to ali others. Proceeding against the other officers of the bank are pending.
13.
January 30, 1879
The Sun
New York, NY
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A Bank Trustee Refuses to Resign. TROY, Jan. 29.-Shortly after the suspension of the Merchants' and Mechanics' Bank. Bank Superin tendent Lamb requested that President Vail of the above bank Daniel Robinson, and C. R. Church should resign the positions held by them as trustees of the Troy Savings Bank Messrs Vail and ( hureh complied but Mr. Robinson refused to reside. and Mr. Lamb began proceeding to remove him. The " stimony taken is quite voluminous, and the report of the Examiner is to the effect that Mr. Robinson has been guilty of such acts as will jusury the courts in removing him The Troy Times says the Bank Examiner's report 18 damaging
14.
February 2, 1879
The Sun
New York, NY
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TROY'S BROKEN BANK. A Claim of the Citizens' National Bank of New York Rejected. TROY, Jan. 31.-When the Merchants' and Mechanics' Bank suspended the Citizens' Nntional Bank of New York was a creditor for about $18,000. The attorney for the Citizens' Bank affirmed that their claim was entitled to preference, because the Merchants' and Mechanics' Bank had collected for the petitioner in the capacity of agent. Judge Osborn appointed Judge Parmalee to take testimony and report findings. The ref. eree finds that the Troy bank acted as collector. under 8 special agreement with the Citizens' Bank that the defunct bank should make collections for the Citizens' Bank from day to day, and, in lieu of other recompense, should hold and use the money collected. and at the end of ench week make return: that as the use of the money was the consideration for its collection. that tast destroyed the relationship of principal and agent and that in the matter of the money collected and merged in the capital of the bank the relations were simply debtor and creditor. and for that amount the Citizens' Bank could not claim precedence before other creditors. Of the $18,000 about $3,000 was collected after the suspension.ind Referee Parmalee finds that this forms no portion of the assets of the broken bank, but belongs to the Citizens' Bank. The opinion. if sustained by the Court, is important. as it establishes 11 precedent for several other cases.
15.
April 13, 1879
The Sun
New York, NY
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TROY'S PLUNDERED BANK. The Motion to Quash the Indletment for Per. Jury Against Its President Denied. ALBANY, April 12.-Justice Westbrook today rendered his decision on the motion to quash the indictment for perjury found by the Grand Jury of Rensselaer County in November last against D. Thomas Vail, President of the Merchants' and Mechanics' Bank of Troy, now in the hands of a receiver. The alleged perjury consisted in swearing to the correctness of the quarterly report of the bank. made about Sept. 1. 1878, and in stating that the largest aggregate of loans to one individual, firm. or corporation was $49.221.55; and, second, in declaring that the aggregate of loans upon paper made, accepted. or endorsed by the directors. individually or as members of firms, was $42,004.21. Justice Westbrook holds that the Superintendent of the Bank Department can call on any institution to state in its report. in a general way. the largest loan made to any one individual, firm. or corporation, as such information is necessary to show its condition, as is shown by the history of banking institutions which have been wrecked by large loans to single individuals. corporations. or firms. The absorption of an entire bank capital by one or more of its officers is so frequent that no argument is needed to show the wisdom of demanding this information. The statute demands it in such words that language plainer could not have been employed. The application to quash is made upon the assumption that the Superintendent asked more than the law allowed. We are clear that he did not, and hence the motion cannot prevail. Incidentally Justice Westbrook holds that the presence of an accused person in court is not necessary during an argument, but is during a trial: and he orders the clerk to enter upon the minutes, nune pro tune. a denial of the motion to quash the indictment, giving the defendant an exception to the decision ordering it.
16.
April 14, 1879
New-York Tribune
New York, NY
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RESPONSIBILITY OF BANK PRESIDENTS. ALBANY, N. Y., April 12.-Justice Westbrook to-day rendered his decision on the motion to quash the indictment for perjury found by the Grand Jury of Rensselaer County in November last against Dr. Thomas Vail,president of the Merchants' and Mechanics' Bank of Troy, now in the hands of a receiver. The alleged perjury consisted in swearing to the correctness of the quarterly report of the bank, made about September i, 1878, and in stating that the largest aggregate of loans to one individual, firm or corporation was $49,221 55 ; and, second, in declaring the aggregate of loans upon paper made, accepted or endorsed by directors. individually or as members of firms, was $42,004 21. Justice Westbrook says: "The application to quash is made upon the assumption that the Superintendent asked more than the law allowed. We are clear that he did not, and hence the motion cannot prevail."
17.
September 18, 1879
New-York Tribune
New York, NY
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COURT OF APPEALS PROCEEDINGS. ALBANY, Sent. 17.-In Court of Appeals. Wednesday. September 17, 1879: No. 11.-John Gelston and another executors, respondents agt. William B. Shields and others, appellants: J. J. Perry for appellants, Homer A. Nelson and George C. Blanke for respondents. No. 16 William A. Miller, executor, etc., appellant, act. D. W. Montgomery and others. respondents; argued by F. G. McDonald for appellants. B. W. Traitel for respondents. No. 17.-Elizabeth Down, appellast. agt. George J. Me. Gourkey and others. respondents : argued by J. McKeon for appellant, Osborn E Bright for respondents. No. I.-Lydia Warmath, respondent agt. A. Fayette Tracy and another, executors. appellants. - Passed. No. 27 -Joseph M. Koeliler, respondent, agt. Solomon Ad. le.. administrator. etc. appellant; argued by Samuel Brand. man for appellant, will am Henry Arnoux for respondent. DECISIONS HANDED DOWN. Keep agt Keep.-Motion denied with $10 costs on the ground that this case is not appealable to this court. Weed asi. Burt.-Jud ment affirmed with costs. Shaw agt. Cock: Sueblev a Connor.- Order affirmed and judgment absolute for respondent on stipulation with costs. Kingsley agt. the City of Brookly 11 (TWO caref).Judgment affirmed with costs to each par y as against the other in the appeal in which each is successful. Seeley agi. Clark: Bockes act. Hathorn : Kilmer agt. Hath. orn: In re. Cheesborough to vacate, etc. In re. Patterson, receiver of the Merchants' and Mechanics' Bank of Troy.Orders affirmed with costs. Bookes agt. Hathorn Kilmes art. Hathera.-Orders of General Term dismissing appeal reversed with coats. Argali ag: Pits.-Orders affirmed. CALENDAR TO-DAY. The following is the day calendar of the Court of Appeals for Thursday, Septe mber 18, 1879: Nos. 25, 29, 30, 10, 38, 39, 41. 42.