In re Marcus

139 Misc. 675, 248 N.Y.S. 219, 1931 N.Y. Misc. LEXIS 1105
CourtNew York Supreme Court
DecidedJanuary 31, 1931
StatusPublished
Cited by6 cases

This text of 139 Misc. 675 (In re Marcus) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Marcus, 139 Misc. 675, 248 N.Y.S. 219, 1931 N.Y. Misc. LEXIS 1105 (N.Y. Super. Ct. 1931).

Opinion

Hatting, J.

Under the authority vested in him by article 23-A of the General Business Law (sections 352 et seq. as amd.), the Attorney-General has undertaken an inquiry into the acts and practices of the Bank of the United States and persons connected therewith to ascertain whether, in the administration of the affairs of the Bank of the United States and its subsidiary or associated corporations, fraudulent practices were indulged in. In the course of the proceedings the Attorney-General appointed and designated Max D. Steuer his Deputy Attorney-General in charge of such investigation, and later appointed as assistant in the capacity of assistant attorneys Israel H. Perskin and Harry A. Gordon. At the request of the district attorney of New York county, Mr. Steuer later accepted an appointment as assistant district attorney to conduct proceedings before the grand jury in New York county and to present to such grand jury any evidence of crime which might be available. In the course of the proceedings before the Attorney-[677]*677General subpoenas were issued to a number of persons having knowledge of the affairs of the Bank of the United States and its kindred companies, among whom are the petitioners Marcus and Singer. Prior to the issuance and service upon these petitioners of subpoenas for their attendance, the investigation had already been in progress and the public examination of one Blauner, a director of the said bank, had without objection by the latter to the form of the investigation. Upon the service of the subpoenas upon these petitioners they made an application to this court ex parte for an order to show cause why the subpoenas issued to them should not be quashed, upon various grounds which will be later fully enumerated, and an order to show cause was obtained which contained what has been construed to be in the nature of a stay of the investigation by the Attorney-General until the entry of an order determining the matters arising on this motion. Said order by its language stayed any duty on the part of the petitioners to attend at the inquiry referred to in the petition.” Prehminary objections to that part of the order to show cause which restrained the duty on the part of the petitioners to attend the inquiry as being in violation of section 879 of the Civil Practice Act and section 882 (as amd. by Laws of 1930, chap. 378), were made by the respondent on the ground that notice of such application was required to be given to the petitioner before the same Was granted. However, in the light of subsequent events and the statement of the Attorney-General, by his representative, that pending a determination of this motion no examination of the petitioners would be undertaken, the preliminary objections to that part of the order to show cause are now unimportant.

As to the principal part of the application, which is confined to quashing the subpoenas, the petitioners base the application chiefly upon the fact that Max D. Steuer, who was appointed Deputy Attorney-General, has had multifold relationships with litigations involving or relating to the affairs of the Bank of the United States, and that he had made public announcements which the petitioners contend indicated a prejudice against the Bank of the United States and persons associated with it; that in the dual capacity of a Deputy Attorney-General and assistant district attorney he is acting in two incompatible offices and principally that the contemplated investigation by the Attorney-General is announced to be a public investigation. Supporting their contention that the multifold relationships of Mr. Steuer disqualify him from acting in a public capacity in the conduct of this investigation, the petitioners have recited five actions, some of which are still pending and in which Mr. Steuer acted either in the capacity of attorney of record [678]*678or as counsel to the attorneys of record. In all of these actions it has been disclosed that he represented interests adverse to those of the Bank of the United States, and a consideration of the matters involved in those litigations shows a connection not directly with the Bank of the United States, but sufficiently remote therefrom to remove the suspicion of bias or prejudice. It may be said upon this subject that immediately upon his appointment as Deputy Attorney-General Mr. Steuer severed all connections With the pending litigation and that association, if it could have been deemed a disqualification, has wholly terminated. The contention of the petitioners that the public utterances of Mr. Steuer, either through the medium of addresses to a gathering in a public school, in the press, or otherwise, to the effect that it was Jais intention that the investigation should be thorough and that if evidence of misfeasance or malfeasance or any other reprehensible or actionable conduct on the part of persons in control of the affairs of the said bank Were found, that they should be the subject of prosecution, where prosecution would lie, indicated prejudice, is unfounded. This was merely an expression of the duty which devolves upon an examining official in the investigation which is in progress, and prosecution, if found warranted, is in fact the very purpose of the investigation. It cannot be said that this declaration of intention is evidence of a prejudice or passion, or of an intention to persecute any of the witnesses at the investigation, and indeed a perusal of the entire announcement charged to Mr. Steuer, and which is purported to have been broadcast as the address of Mr. Steuer at a mass meeting held at the Girls’ Commercial High School in Brooklyn indicated an intention that the investigation to be conducted should be fair and impartial, and that no attempt would be made at particular persecution, neither would an attempt be made to involve any person unnecessarily nor without sufficient and proper evidence to justify it. Therefore, as to the contention of the petitioners that Mr. Steuer by reason, of such relationships and his public utterances had become disqualified to be the examining agency may be disposed of with the conclusion that no evidence of such disqualification exists.

Another point strongly urged by the petitioners is that Messrs. Singer, Perskin and Gordon are associated as counsel to a group of the depositors and stockholders of the said bank and its subsidiary compames who have organized a Bank of the United States Depositors’ and Stockholders’ Association with the expressed purpose of recovering for the depositors and the stockholders alí that might be available to them upon a strict and proper liquidation of the affairs of the Bank of the United States, and that such association [679]*679as counsel to the depositors and stockholders creates a conflict of interests in the dual capacity of counsel to the depositors and stockholders and that of examining agent in the Attorney-General’s investigation, and is a further indication of his disqualification. To entertain this objection would be tantamount to holding that the interests of the depositors and stockholders of the said bank and its subsidiary companies are adverse to the interests of the directors and the subsidiaries of the said bank, so as to place Mr. Steuer in a position of advantage to use the agency of his investigation as Deputy Attorney-General in - furthering the interests of the depositors. The very purpose of article 23-A of the General Business Law is the safeguarding of the public from exploitation through fraudulent practices.

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Related

People v. Thain
24 Misc. 3d 377 (New York Supreme Court, 2009)
In re Lipson
39 Misc. 2d 778 (New York Supreme Court, 1963)
In re Bowers
203 Misc. 653 (New York Supreme Court, 1952)
People v. Irwin
166 Misc. 492 (New York Court of General Session of the Peace, 1938)
People v. Horvatt
142 Misc. 803 (New York Supreme Court, 1931)
In re Marcus
232 A.D. 731 (Appellate Division of the Supreme Court of New York, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
139 Misc. 675, 248 N.Y.S. 219, 1931 N.Y. Misc. LEXIS 1105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marcus-nysupct-1931.