Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1826-10-31

his services; and il was certainly his duty not 20
snort with his signature lie also in habits
of daily attendance in the Office, and there Is no
evidence that he did not inspec, the books WIN
respect TO MIR. Davis he was the Secretary oil the
Companv and had the books constantly under his
eve, and with respect TO Mr.. Fermilyea, II is IN
proof that bonds TO a considerable amount passed
through his hands Mr.. Rathbone was Director,
and it appears that for long time previous meet
ing of Directors had been called But Mir. Rath-
bone was more less actually engaged in the Office;
he was partner of Mr.. Eckiord's and had op-
portunity of knowing the condition of the Life
and Fire Company to a certain extent. With res
pect to Mr. Barker, it appeared that he the
agent, made the advances, and was acquainted with
Its secessities. There IL no evidence that Spencer
and Brown knew any thing about its condition.
1 stated that it is important that your minds
should be satisfied to what extent those respective
individuals were acquainted with the real situation
of the Company Ii they truly believed that the
bonds were as good as United States bills, very
different conclusion must be drawn. If they
knew what its real situation was-if they knew
that it was Incidentally insovent, and that these
efforts only made to protrsct its existence,
then you will perceive that another conclusion must
be drawn. II may, no ever be the truth that they
not fully acquainted with The extent of its
losses. They may have INDUCED hope that it
would itself even With the los OF its capital
You will attribute fraud or honesty TO these ind-
v!dusls in such degree as you consider these pre-
m,ses. For if these frauds have been committed,
they have been effected through the instrumental
~ of the bones issued by The Life s. Fire Com
Pany.
In proceeding TO remark on the other branches
of the subject, the first allegation is made the
two certificates for 2,5C0 shares of Morris Canal
Stock. II appears that by bylaw of that COM
pany, finance committee was appointed, con-
ssting Of Mr.. Eckford, General Swift, Mr.. Yer
-
the Vice President BY this bylaw the finance
committee entrusted with ell the powers of
the Board during the recess They appointed a
sub-commiitee, consisting OF General Swift and
Mr.. Yermilyea. Two certificates of stock were
issued in pursuance of se-olution which authorised
loans 10 the Life and Fire Company at the rate of
Ia per cent. a month. 1t was the act of the a
nance committee, hut not the act of the finance
committee assembled together for the purpose oil
consultation twas resolution got up and sent
round Tor signatures This Is singular mode oil
doing business. Mr. Bayard hesitated-had two
or three conversations, and in the of these
conversations it appeared, that none of the indiv.
dras indicted declared its object that for which
II was used after issuing the shares. 1t therefore
seems res onabe to presume, that they had con
teupla'ed 10 make of them : they did, ard that
II not after-thoueh
Ia pursuance Ot this resolution, the certificates
were issued to the Life and Fire Company, and
passed into the hands OF MIR. Echford. As be-
fore statel, the whole of this finance commit &c
consisted OF the director ofIhe Life and Fire Com
pany. Mr. Rathbone took The resolution to Mr.
'')uveTneur. They acting in double capa-
city; hey were IT. officers of the two companies
] dill not originate with Messra. Gouverneur
I'ayari, or Ogden. They disclsin all knowledge
aud say that they knew nothing about the certiii-
ca'es t ai.er the failure OF the Life and Fire Com
plny Were they aware at the time of the transfer
that the Life and Fire bonds were without value
and that sooner o! later loss must ensue, L
they were aware, It l. for you say whether these
resolutions were honest or fraudulent, or whether
they conspired or did no, couspire. From that
time until the failure, tie Vice +, esident of In,
Morris Canal, Mr.. Gouverneur, and Mr. OGDEN
were ignorant that $500 shares had been trans
ferred to the Life and Fire Company. Now, gen
iiernen, II II was honest why was it screened
What laudable end could there be that they should
lie kept in ignorance OF this transaction? I shall
not de'ain YOU, however. At the time this reso.
luton bears dae, If is in proof that MI Eckford
was absent, and that he signed it on his return -
The certificates bear dale on the day of the reso.
il on, and the stock passed into the hands of Mr.
EckiCll.
Another Transaction is the stock subscribed for
The heneht OF the Morris Canal Company Mr.
~ len states how 1t done. The oher mem
bsrs deny any knowledge of the Transaction. 1t i.
alleged that they kept thai stock; that they made
P"J"SH VI l. e, anu 'lat Tue O!geCt wa 10 Keep II
out of The hands Of Mr.. Maculloch On this sub
lect you have the evidence before you.
Tie next branch o! this cause is the Trades
mems Bank. I'm application made to some
Of the III ect5rs, who held large quantities of stock
for the purpose Of ascertanns whether they would
sell their Interest. This stock had been partially
paid in The bank held stock noe- They a.
greeI to give ~ per Ct. advance. Ten per cent
IS paid In cash, aud he residue in Life and Fire
bonds. Now, gentlemen, why was If or 10 CT
ABOVE the market price given for the siock9 To
what laud 'bIe use OF jusifiabe purpose could the
funds be put for paying such premium? Il
seems II was made previous to the election Ii
succeeded, and they came into Office on the Oh
July. 1t was thro' the agency OF Mr.. Rahbont
that The notes OF the stockholders were taken up
aud his own check substituted, aud that the notes
OF the individuals satisfied by his check
when he had not a dollar 10 the bank. 1t appears
that this stock, which had been hypoihecateJ 10
the hsLk for $4,000, found its way into the
hands OF Mr.. Rathbone without being hypothecate ed
to The bank. il was done with the sanction of the
finance committee, which was appointed by the
president. This was a departure from the esta-
bished by laws OF the company. IL was Nh
Reed who had appointed Mr. Rathbone, and he
himself was ex-oticio member. The other mem
0ers were MIR james, OF Brooklyn. and Nr. Gou-
Terneur This mmittee, consisting Of four per
sons got together and took upon themselves 10
make this arrangement with MIR. R4tfbone The
powers OF the finance committee were set forth by
the bylaws. They authorized 10 discount tC
the AMOUNT Of $50, 600, but there il no authority
to act they did. They took upon themselves
10 cancel this hypOthecauon subject only TO the
restriction that IL should OF be pat out OF their own
hands. Now for what legitimate purpose could
lNH N.HN.f. L.. ...N