Page:Federal Reporter, 1st Series, Volume 3.djvu/827

 ggOf .7.; ' ' ÏTEDERili BBPOBTER. * �the time, on negotiable notes, inadequately secured. It charges that the directors permitted A. A. Hutchinson, now a bankrupt, to overdraw in 1872 and 1873 to the amount of $15,000, although he was at the time also largely indebted to the bank on negotiable notes inadequately securod. It charges that the directors, in July, 1873, declared a dividend of 6 per cent, upon the face value of the capital stock of the bank, amounting to $5,921, that being dividend No. 12; and that this dividend was unlawfuUy paid out of the money of depos- itors and capital stock, and was paid to share-holders, whether their subscriptions td the capital stock had been fuUy paid or not. It charges that the directors declared and paid a dividend in January, 1873, known as dividend No. 11, amounting to $5,897, which was paid out of capital stock and deposits under like cù-cumatances to those charged as to dividend No. 12. The same charge is repeated as to divi- dends No. 10 and 9, paid respeotively in July, 1872, and in January, 1872 — one of them amounting to $4,643, and the other to $5,636; ail these dividends being of 6 per cent, on the nominal value of the capital stock. �The bnl charges that the said four dividends were declared and paid, although the least investigation would have dis- closed that the capitaJ stock of the bank had already been exhausted by eight previous dividends which the bank had declared and paid — the firs; being of 10 per cent., and amounting to $907; the second, of 13J^ per cent., amounting to $2,076; the third, of -10 per cent., amounting to $2,236; the fourth, of 10 per cent., amounting to $7,019; thefifth, of 5 per cent., amounting to $8,835 ; the sixth, of 8 per cent., amounting to $8,420; the seventh amounting to $7,634; and the eighth to $2,576. The bili charges that the directors, after ail the profits and capital of the bank had been absorbed by "enormous dividends" declared up to 1872, and by loans upon worthless and inadequate securities, nevertheless did, in the yearsof 1872 and 1873, with the capital andthefunds of depositors, buy up stock of the bank, as set out in a list exhibited, paying therefor $10,777. It charges that in 1872 and 1873 the directors declared and paid dividends to the ����