Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-03-01

readily be perceived That they esteem
the Stock of the Bank Of no value
That this conclusion is just, may well be
inferred from the conduct OF many OF lis
stockholders ior upon inspection ol the
transfer books, it appears that VIM.
Freeman, Elisha Parks, Adams Bailey,
+. S. Carruih, Samuel S. Lewis, John
Henshaw and David Henshaw, have
within few days, actually disposed OF
the whole or the greater part Of their
Shares.
In speaking Of the Directors Of this
corporation by name, or of other persons
connected with them, the committee feel
bound to repeat that they have done il
with pain, and only in the discharge of
their duty. And they would again OBJ
serve that there is manifest difference
in the conduct Of different Directors; but
they feel constrained to say, that while
some of them have tuken the lead in the
disposal Of the funds Of the bank and Of
its depositors, others have either wilIul!y
closed their eyes at these doings, or have
been greatly negligent in the discharge
of the duties OF their office. Mr.. Parks,
in communication made BY sim to the
stockholders, Jan. 3Oth, in which he re-
signs the Office of Director, filed by him
from the origin of the Bank, says-"As
| have never, since 1881, held or been
interested ia but single share in the
Bank, felt that the stockholders ought
to place in my stead person who had
more interest in the Institution, and
would better represent the interest olthe
stockholders in the direction" The
stockholders may well regret that he did
not come to this conclusion long ago,
when there was some interest left to rep
resent. In respect to Mr.. Mills, the
District Attorney, who has been in the
direction for little more than Q years
past, it should be said he accepted his
seat with the understanding that he would
not be required to attend the regular
meetings Of the Board-but only to act
as their counsellor in cases where advice
might be required and the committee
are entirely satisfied that he has been
ignorant Of the extent Of the loans, and
Of the manner in which they have been
made ; and they cheerlully bear testi-
mony to his frank and honorable course
during the whole examination. Mr.
Adams Bailey also, has taken no active
part in the management OF the Bank, so
far as il appears to the committee. The
committee will also say word in regard
to Mr.. Hood, the Cashier. While they
feel that he, with others, must bear the
burden Of the mismanag of this In
stitution, yet they believe that he has
often yielded to the pressing importantly
Of one or two directors where his own
judgment would have dictated a con-
,rary course, and though large debtor
TO the Bank, that he has forgone the OPP
portun,ies afforded him equally with
others Of greatly increasing his private
debt.
AS citizens Of Massachusetts, the
ancient and honorable Commoaw ealth,
the Committee feel the modification Of
presenting to the view ofthe Legislature,
the gloomy picture Of a ruined Bank =
" ith solid capital, substantial friends,
and equal advantages with kindred in
s,alI is gone! Its capital wasted,
It's friends abused, its associates fed
No one so poor to do it reverence.
The charter of the Commonwealth
Bank was continued by the act of 1880,
ch. So, until tho lst day Of October,
1881, and was made subject to the liza
biIities and requirements Of the act of
1928, ch. 96.
In closing their report, the committee
presented as the joint conclusions from
the facts presented
That the Directors of this Bank have
iniringed its charter in the amount Of its
loans.
That these loans have been concealed
by purposely conlounding the resources
and the liabilities of the Bank.
That number ofthe acting Directors,
by their own showing, have remained
grossly ignorant of the affairs Of the in
stitution, and have permitted the Cash
ier and two or three Directors to dispose
of the monies Of the Bank attheir pleas.
ure.
That the loans thus controlled have
been made to the Directors themselves,
'or some Of them and their associates, to
u much greater extent than the capital oi
the Bank itself.
That instead Of making sacrifices
themselves to provide for their just debts
to the Bank, as they from time to time
fell due, they have often continued o'
extended their own loans, and thisto the
entire sacrifice of the property Of inno
cent stockholders.
1t appears also from the report OF the
Committee that upwards Of $4,000 o
the debt Of the bank has already beel
paid since its failure in the deprecated
bills Of the bank bought up by the debt