The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-16
sl6l,793 80


name OF the party really interested in the fourth
| for which the settlement made with Mr. s. VS..
| Wilder. This motion did not prevail but the Report
was accepted and the committee discharged.
After the Report had been read the following pre-
amble and Resolutions were submitted by Mr.. James
Martin, and unanimously adopted by the Directors
present, who were Messrs. John r, NeG, Joseph Ca
bot, Lewis VAIN, John Conne, Manuel Eyre, Rich
ard Price. Lawrence Lewis, James Martin, George
Handy and Robert Taylor; Mr. Neif acting by depu-
taton as President pro tenn. in the absence OF Mr.
Dunlap
As il appears by the Report of the Committee ON
Advances, that large transactions have been going on
for several years without the sanction knowledge
OF the Board Of Directors, and further appears,
That these transactions were mostly if not wholly for
the account and to the Profit and Loss Of the
tive officers Of this Bank at those times, il is due from
this Board that their Just condemnato such things
should be fully expressed and recorded il is there
| fore
exclusively and Of right belongs the Board Of Di-
rectors, and that all loans discounts made by
Committee of the Board in with the ofii-
GERS should be duly reported to a regular meeting OF
the Board.
"Resoired That the loaning or discounting on the
deposte of collateral security promlssory notes OF
the officers ofthe Bank is unauthoized and contrary
TO the proper administration of the airs OF the
Bank.
Resolved, That the large advances made by the
Officers ofthe Bank in the periods of 1878, and
1889 being totally unauthorized, and unknown to
the Board Of Directors merits and receives our Just
ccnture and condemnation
BY the Thirteenth Standing Rule ofthe Bank, II Is
provided that the Committee the state Of the Bank
composed of five members and elected by Ballot every
three months should least once during their time OF
service examine and count the discounted notes, and
compare the amount thereof with the balance OF the
amount of Bills Discounted in the General Ledger:
they shall also count the cash. and the printed and un-
printed paper in the possession of the Cashierexam
inc the evidences othe public debt and property OF the
corporation make inventory OF the same, TO be com
pared with the books order to ascertain their agree
ment and report TO the Board" The custom appears
to have been for this committee to confne their exam
nation exclusively to the cash, Bills discounted on
personal and other security the Issues and the Printed
and Imprinted Bank paper on hand. The account,
however of the general state of the Bank, submitted
to the Directors at every stated meeting contained the
Items Of Bills Receivable on Bank stock and other
security" which includes well the bills receivable
for sale of branches as the loans made in the manner
heretofore advered to- and Foreign bulls OF tx
| change" under which head was contained the ad-
vances shipments of merchandise Thus, on the
2Sth of June 1888, which day an examination was
reported by the Committee on the state OF the Bank,
there stood the debit of" Bills Receivable, the
OF $l3 1000 55 cts, and OF Foreign blils oil
Exchange THE sum of 81, PIG, O9, "a cts The Com
mtee annex to this Report List OF the Directors
and the several Standing Committees of the Board
since the re-charter. (AppendiI ~
Not only in regard to loans and settlements but IN
relation the purchase and sale of stocks the esta
Of general policy the Board Of Directors were not re-
| gulariy consulted. OF this, the committee must be
permitted TO present some instances as illustrative In
September 1885, the Bank purchased the Merchants
Bank of New Orleans" of the capital OF one million
Of dollars for an advance of 76 $50 dollars and esta-
blished il as the agent Of this Bank at that place On
the 9Th day of November, 1885, in like manner pur-
chase made for Si 600 dollars of the Insurance
| Bank of Columbus, Georgia" In August, 1889, ar
rangements made for the purchase Of the charter
of "the Hamilton Bank OF Baltimore, and the pur-
chase effected but the Bank never went into opera
ton the advance was but small There was taken
from Mr. Cowperthwate, on the LIST Of March, 1888,
eighty nine shares of Bank United States Stock at
40 dollars the Bank selling the same day at 10 dol
lars less BROKERAGE and on the 9Th day OF January,
lS40 there received from him as cash one hun
dred and thirty shares 100 dollars the market price
of that day being IS dollars rs cents. On the 4th of
March, 1899 Messrs. Joseph Cowpcrthwaite, Thomas
Dunlap and Joseph Cabot, agreed to purchase OF the
Bank two thousand shares OF Philadelphia and Read
ing Railroad Companys Stock at foriy dollars per
share, on credit of two years, and on the application
of these parties the 18th of February, lS10, the
said contract annulled II is stated IN Report
of the Exchange Committee Of August %, $40 and
entered on the minutes of the Board that the Phila-
delphia and Reading Railroad Co. have made con-
tract with Mr. Joseph Cowpcrthwaite for loan of
500 900 dollars in his individual capacity, (ahough
supposed by the company to have been on account OF
the Bank to be converted into sterling bonds at 4
dollars so cents per pound sterling At the period OF
that report the Of 1896 900 dollars of this loan had
been taken up, of which the Bank then the hold
of 22 900 dollars, and on that day with the as
sent of the Board assumed the balance unpaid Of the
contract. Upon the 18th day of August 1888, the
Bank guaranteed contract made by Mr.. Nicholas
Biddc in his individual capacity for the purchase OF
two thousand five hundred bonds of the State OF
Mississippi of two thousand dollars EACH amounting
in the whole 10 five millions of dollars.
The signature ofMr. Thomas Dunlap, then second
assistant Cashier affixed TO the guarantee, on be-
half of the Bank, upon the verbal authority ofthe
President Upon the Goth Of January 1889 the
Bank guaranteed TO the State Of Michigan, the pune
tual fuIflment of the obligations of the Morris Canal
and Banking Company, for the purchase OF bonds OF
that State to the extent of 3 1867 dollars % cts,
for 700 900 taken at par and including interest on
the nstalments payable every three months up Jan,
Is43. On the 29ih Of April, 1899 the Bank guaron-
tced contract entered into by Mr. Thomas Dunlap
in his individual capacity for the purchase OF one mil
lion of dollars Of the illinois and Michigan Canal
Stock" In regard TO these transactions, the Commit
tee can find no authority the minutes the Board,
and have been referred TO none by the President up
on whom they called for information.
Tho Committee submit herewith (Appendx NJ ia
statement of the Profit and Loss Account Of the Con
tngcn Fund and abstract of the losses chargeabc
thereto In this last account the charge under
date of June 30 1910, of 100000 dollars TO Parent
Bank notes account" which has not been explained
10 the satisfaction of the Committee IL must be also
mentioned that among the expenditures OF the BANK,
there is entered at various dates commencing May y
1886, sums amounting in all TO 6lS,64o dollars 10
cents, paid on the Receipts Of Mr. ~ Biddie, OF
"Mr N Bddle and J. Cowpcrhwate,D and Cashiers
Vouchers" As the Committee were unable TO obtain
information upon the subject OF these eI
pcnses from the books officers Of the bans aPpca
lion was made by letter TO Mr.. ~ Biddie and MT J.
Cowperthwaite, from whom reply has been recciv-
cd.
The Committee have now performed the task as
s;oned them by the stockholders. They have endea-
yored TO select from the mass OF materials submitted
-, ,bo;, ox animation only such seemed sufficient
40 illustrate the general Of the administration
~ ~ Rank To bnyc zone mere into detail would