Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-01-07


To CoRREsPoNprSrs.-"A Reader" givin
sketches of New York aanciers, and beginning
with George Grisweld and Richard Alsep, has oe'
received. Also, sketches of George New'bold, Al
bert Galla.in, and Robert White. ALI in good tune
Highly Inpp, tant from PhiladeIphir-in.
iictment of the schuyikili Eank Hama
.ets-geport OF the Grand Jury-GreRi
klxcisesneat ia Ph,adcIphia-- rror of n
RSnaves and swindEors-Joy among shs
Hoaest.
Last evening we received highly important intel
ligence from Philadelphia, relative TO the state
morals and finance in that city, and the proceeding,
of the honest grand jury in relation 10 the great
SchuylkiIl Bank frauds.
We were the first to announce yesterday morning
the Indictment OF these men, with their names and
we here annex the documents and other dev lope.
men,s. Meantime we ought 10 menten that the
Rev. Doctor Bethune, who used to smoke his segars
under the trees at Saratoga last summer, 4. giving
lectures ON Pericles and humbug
Ga Saturday next attempt will be made to quas h
these indictments. Will any honest man in Phis-
delphia give faithful repor. of the procec
being paid for his trouble If not, we shall send
reporter from this city, where honesty can vet
be found on being well paid for.
Happy for the character of ephia-hapyy
for the cOuntry-happy for morality finance and re-
lgsn-the great reform has begun in that city where
1t has been most corrupt-in Philadelphia.
We annex all the facts and proceedings brought by
yesterdays mails.
The Grand Inquest of the Commonwealth of Penn
syicGnta, inc wiring for The Gin and COUNTY of
Philadelphia, at ths December term, 1889 of the
Court Of Criminal Sessions, make the toilotcing
REPORT:
While the subject of forfeited reccgnizances was
under consd ration the attention of the Grand In
guest directed by the honorable Court to the stu
pendOus frauds charged to have been practised in
the Schuykil Bank. In tie exercise OF the authori-
" elonging to their body, the Grand Jury
before them persons who, in their op nien could tes
tfv in the matter and learned from them the charae
ter OF the crimes and part of their extent and
received Information which Justiies in their opinion
presentment OF Hosea j. Lewis, the prime
for perjury, forgery, and conspiracy to
to present, IN association with his name, the
of some other iudiv iduals connected with him in
different acts, frauds, various degrees Of crime
In the examinati IN, the Grand Jury led to be-
heve that the mana cement OF the Schuvlkill Bank
had, Tor long tim been almost entirely IN the
hands of the late Cashier Mr.. Lewis and that little
regard was had To- the supervisory powers OF the
Board of Directors and that the periodical state
mens OF the affairs OF the Bank, CURED by law
custom, were frequently islsifed by order Of the
Casherso that the condition Cf the institution was
concealed from those whose business it was 20 watch
Overland protect the interests Of the and
the community at large.
1t became evident to the grand jury that the late
cashier of the Schuy kill Bank, Mr. Hosea J. Lewis
had signed, AID caused TO be issued as genuine,
forged and fraudulent certificates for more than
thirteen thousand shares of stock of the Kentucky
Bank, the agency OF which appears to have been
vested in the Sehuylkill Bank though the grand
jury have not been able To ascertain the chara ter
and extent OF the power under which Mr. Lewis
acted for the Kentucky Bank, could they obtain
such information from any of the directors whom
hay nj sir
indeed, knowing OF the existence Of any agency and
others unable TO state whether Mr.. Lewis, or the
bank the gent Mr.. Lewis, however, il Is be.
Heved, acted in his capacity officer Of the
Sehuylkiil Bank and he alone, far came to the
knowledge OF the jury, signed these fraudulent GER
G6cates, and caused them 10 be entered on the pro-
per book b. the transfer clerks, who not it
appears and, adsed, could not be, ignorant Of the
great extent of the ever-issue, as the beck before
them exhibited the situation Of the agency.
or the disposition which the late Cashier made Of
the money thus fraudenty obtained. the Grand Jury
have been able to receive no satisfactory infcrma
ton. In addition to the fraudulent issue OF Ken
tacky Bank stock the Grand Inquest have reason 10
believe that Hosea J. Lewis also caused 10 be issued
certificates of,tock Of the Schuykill BaHk beyond
the amount sanctioned by the charter OF the insta
ton, for the purpose Of raising funds. or the ertent
Of the frauds ei various kinds committed by Mr. lie.
is IN his otic al relations with the Schuylk Bank,
the Grand Jury can form no correct estimate: they
have, however. expressed their opinion OF the cha
racter ofthese rdnds by the different presentmeDts
which they have made against him. IL is believed
that the annals Of pecuation scarcely furnish pa
ralel instance Of fraud existing for such length Of
time, and carried to such enormous extent, and
through so many rlmiicaions Of business.
In examining into transactions connected with the
frauds OF Mr.. Lewis, aud enquirsng whether there
partic pators IN the transactions the attention
OF the Grand Jury called to report ola
mittee, Consisting OF Messrs T.. yansyckle, X Flem-
ing, and James LeFevre, who were appointed
the 9Th Of November last 10 examine into report
upon the OF the Bank IN which report the Bank
was represented as solvent "a and was "recommend-
ed 90 the confidence Of the Stockholders
II appears evident that the committee kne nothing
OF the fraudulent sale of the Kentucky Bank stock
Of that of the Schuylkil Bank stock that they
could not, by rules Of banking Institutions, examine
private accounts, sHd therefore, ignorant Of the
drafts that existed to vety large amount, Gard
the book of oyerdrafls in general in Banks had
long been dsused la this Institution and that they
believed tAst LARGE Of gold, twenty five thou
sand dollars, exhibited 90 them part of the specie
belongin 90 the vaults of the Bank, did indeed ap.
pertain 60 the institution though il appears, to tie
satisfaction e the Grand Jury, that the gold was
brought 60 the Bank just before ths examination, and
returned Immediately aftcrwaad, by direction OF the
Cashier, Mr. Lewis Whatever 81 reprehensibe care
lcssness and pspabe neglect Of duty be i'm uied
10 the committee M collecting materials FOR their
port they cannot IN the opu &C the G. and Jury.
be charged with criminal intentions. Theirs was
the common error of too many in the initiation
an owe wcenIug confidence ia the integrity 81 the
Cashier.
The amount of personal sufferings caused By mis-
aCCmcnt, 'raud. or neglect within sh nrt time has