Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1819-01-23

| the object was TO influence the eection.-
Mr.. Leiper, one OF the Judges Of the first
election, states, that he did so himself. The
effect was, that Baltimore, which had about
one-seventb of the shares, owned by indi-
viduals, gave more than one-fourth of all
the votes that could be given.
In that place there were HE shares Ia
ken in ll72 names, by George Williams
as attorney, the whole of which, on exam
ina,ion, he owned. Al Philadelphia nearly
one third ofthe shares was owned, and the
votes given at that place were about two
nin,hs of the whole authorised. For
more particular knowledge of these divi-
sions Of shares, the committee refer 10
| the statement herewith submitted, marked
XLVII. They are not aware that any re-
marks which could be made by them could
present The subject in a stronger light than
the above statement of facts. The same
persons who thus held the power of ap-
pointing directors, are found to have the
greatest loans on stock. 1t is alledged that
they have now consolidated the shares,
but, when occasion shall require their d.
vision, former practice will facilitate the
operation. lp the opinion of the commit
tee it is the greatest evil in the whole sys'
TEN, and is the origin of all others. So
long as the large stockholders can control
tho choice of directors, SO long can they
! hold and acquire immense amounts OF stock,
by the proceeds of notes discounted on
their shares, aud, SO long as they can OBJ
tain such discounts, they Can control the
election of directors. The system places
the property of the other stockholders, and
of the government, the credit OF the bank
and of individuals, and in measure, that
of the nation. at the mercy Of few large
stockholders, who, without having really
contributed to the wealth or value of the
institution, have the control ofits concerns.
1t requires corrective, and the commit
tee are of opinion, that it is in the power
Of congress TO pass supplementary law,
! not contrary to, but in support of the pro-
vision charter, and 10 give it the true
, and real effect originally contemplated
And they have instructed their chairman
to ask leave to report bill prepared for
the purpose.
The committee deem it their duty also,
to submit to the house, resolution marked
XLVIlI. authorizing the discount of a note
of 10000 dolls. at 60 days, and directing
that it should be paid by post note drawn
at 60 days after date. 1t is stated by the
cashier in his examination that that post
note was made payable in Philadelphia.
They find resolution of the 30th Of ia
nuary, 1917, XIX, expressly authorising
the Office in Baltimore 10 grant discounts
to the amount of 100000 dolls. to be paid
in post notes so days after date. There
is no doubt entertained that this was done
in Baltimore from its subsequently asking
permission TO DO more, although from the
manner in which the books of that office
are kept, it would be difficult TO ascertain
the fact. The only circumstance which
throws any doubt upon the transaction be.
ing deemed usurous is, that instead of ex-
acting more than lawful interest, the bank
has charged and received interest on mo-
ney that it never loaned. Not being a
draft on another Office, it cannot be consi
dered as an exchange operation. As the
parties have remedy in the courts ofjus
tce, fer any injury they may bav. sus-
tanned, the committee do not deem it ne
cessary to recommend any provision on
the subject.
Under the resolutions au:horising dis
counts on pledged stock, form of pledge
was adopted, marked XXlll. A, AID I'm.
der the resolution of the 25ih July, another
form was adopted, XXXlI. both Of which
were used by those obtaining loans. AL
though the latter form is in the shape of a
mortgage or hypothecation, yet the equi-
table interest in the stock was in the bank.
1t might be questioned whether the stock
holder could vote upon his shares which had
been actually transferred to the cashier in
that form. Itdoesnot appear that any objec-
tons have been made To such votes, but
that they have been received without scru-
pie. !twill be found difficult TO reconcile
with the 9th fundamental article of the
charter, a resolution Of the Gath June, 1877.
L L - Al