Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-04-22


lsiblc -the origin and nature of the late proceed
ings touching the Bank of the United States.
7ro Won who have been wholly uneonnected with
either the old or new Bunk OF the ohten states
To YOU who have never borrowed dollar, or re-
ceved favor IRON either, nor teen responsible TOR
dollar as principal or surety to either-what con-
Germs the Bank possesses but little interest," but the
story should he preserved, not merely TO show TO
the suffering stockholders the influences which nave
mised them, hut as n curious illustration how OBJ
scure and Insignificant causes may produce great
disasters pray you, therefore, TO follow me down
through these mysteries.
On the docket of the Court OF Common Pleas OF
Philadelphia, on the Equity side, Is the following
Entry;
Cheyney Hickman for the Of
the President, Directors and Compa- / Deer Term,
ny of the Bank OF the United States, 1910.
and the President, Directors and
Company of the Bank Of the United
States. no l.
Manuel Eyre s. Charles Massey.
Here is a suit the purpose OF which IS tn decide a
claim for a sum varying from $4,000 to $4,000, ac-
cordlng to an account which the Bank wishes 10
compel the parties 10 render.
Without meaning to give any opinion about that
case the simple fact that the Bank had Just brought
n suit against Mr.. Charles Massey, was ofilself suf-
fcient to prevent his being member of that Com.
mttee OF Investigation. Before any tribunal he
would have been rejected as a Juror, and n sense
of proprety should have induced him instantly to
decline the appointment His partner, Mr. Manuel
Eyre, had been Director in 1910, but in conse
quence of complaints against him was leii out oil
the Board at the last eecton-a source OF keen dis
appointment These feelings found other stmulants
to support them. Mr.. Eyre is understood to be the
largest stakeholder IN the Schuylkill Navigation
Company, OF which Mr.. Lippincott is the Presi-
dent, and these three persons, Mr.. Massey, MIR.
L,ppincou, and Mr. Eyre, and their friends are be-
evcd to have nearly all their fortunes dependent
the success of that work. while they have no in
teest in the Bank-Mr. Massey owning only two
shares MIR. Eyre three, and Mt Lipplncott i've
Il was at one period thought profitable specula-
ton but every day 1t is encroached on by later I'M
provements, and more especially by rail road
going directly TO the very mouth OF the mines, so
that its stock which sold at $40 or $50 share
IS now on its decline, and has already reached S65
or SEQ These parties extremely sensitive on
,ho subject OF every new improvement which may
interfere with them, and they 1re more particular
~ bitter against this Reading Rail Road, which
when completed, will probably supersede the rlver
navigation. Now the Bank Of the United State:
has been obliged TO take for debts large number
OF shares in the Reading Rail Road, and with
view protect its own interests has gwen facilities
TO finish the road TO make It productive; som
of the officers and Directors were also holders o
shares ia the road, and what still more criminal
MIR. Jaudon while in England negotiated some LOAF
or got some iron foe the company. Now the own
ers OF the Navigation Company saw clearly that i
these persons should be rendered odlous, ii The
, Bank OF the United States could be broken down
1t would carry down this Reading Bal Road, anC
thus increase the profits Of the Company. This i
really the foundation OF the whole OF this aIsol
upon the Bank. IL is the vengeance of the Schuyi
KILL Navigation Company against the Bank OF tn
United States for lending money 10 the Reading
Rail Road.
or that intrigue the Stockholders Of the Banl
have been already the duPes, and am very mucl
sfraid will be the victims.
To carry 1t on, awaiting themselves of the con-
fusion of the annual meeting in January, Mr.. Lip
pincou proposed Committee, Of which he o
course made Chairman, MIR. Massey another men,
ber and four others completed the Committee which
had power to fill their own vacancies. Three out
OF the six members declined serving the remaining
three filled their places, and as Of these remaining
GhTee MIR. Llppincott and Mr.. Massey the ma
iOrity. the Committee IS in fact Committee OF the
SchuYIki Navigation Company. All this our gal
liant friend Capt Stockton began 10 explain 10 the
meeting, but he was silenced, You saw, by the
Impotence OF the crowd. Very soon after they
began their labors which were originally confined
20 an examination OF the Assets of the Bank came
the last suspension OF specie payments-nnd then
for the first time they received from the Board Of
Directors a resolution declaring Shat the Board
readyto afford Them every facility in the prosecu
ton Of any investigation which the Committee may
be willing TO make Of the affairs and transactions oil
this Bank and the causes OF its actual situation and
that II is the wish OF this Board that the Commit.
tee should make such investigation" Up to the
date OF the SUSPENSION and while the Board belev
ed that they could 20 on continuing specie pay
nents, they determined TO keep this Committee Of
Investigation TO their proper sphere OF verifying the
assets, and had instructed the Committee Of the
Board appointed 10 meet the Committee of Invest.
CATION. But the moment they found that they could
no longer continue specie paymens-In the alarm
and confusion which followed hey appealed TO the
'COmmlttee OF Investigation and begged them now
20 examine the causes Of their prostTation. Tha
the purpose OF this was 10 relieve themselve.
10y thtoSng the blame on their predecessors, canno
he doubted, is IL less evident that the COMMITTEE
perfectly understood II II had been in the re so
luton, Tor the most remarkable character Of the Re
port this-that from the lightning u the end Their
IS not censured, nor scarcely mentioned any trans
action Of the Bank within the last two years
There seems TO have leen TACT understanding
chat the Committee might investigate what lhey
pleased II they would only abstain from touching
the present Board. ave commenced" saws the
Committee, ''an examination OF the aft IRIS and TRIMS
Actoas ofthe Bank, and the of its actua ST.
LnatlOn and yet they find no cause, no transaction
no for the actual situation OF Bank that
not at least two years old. ltseems me fmy adj
minstratOn had been sold 10 the Committee by these
Directors at the price Of heir own safety. Had ti,y
nothing 70 say about the protest by Messrs HOun-
guer CO-nothing ofthe injury TO the credit ofths
institution 10y the sales OF Post Notes in the fall oil
Is39-nothing OF the publication Of the lst Of Jan.
u1ry-n0thing Of the mption-nOthinz Of the
third suspensiOnl Not One single word. The
Stakeholder wanted TO know Why his stock vas
reduced from TIC in March, 1889, 70 n in March,
1871. Well,-the protest by Messrs Hottinguer
and Co. reduced the stock SIG a share-that was
Joss Of 5000 600; the publication Of the LIST OF Jam
uary, 1871, brought II Sl7 share ower-that was
loss Of about 50 100000 the suspension in Fe-
bruary still further reduced it $50 share-that
was a loss Of about slO,OGO,OOO. None OF these
C fee seemed worthy Oi these anxious erquirefs
oiter truth-but having al last obtained permission
20 examine the private accounts, they repaid II by
combining their attention 10 lhOse only whom they
hoped 10 iniure, and uJs'ained from oil serious no
tee o. what coacsrnei those in power al present.
Accordingly. Dung these three months inquisi'on,
they could find nothing more Interesting than 10
elk, mi rOscoTe IN nd. the accounts OF certain OF
hrers, aud parade them before crowd Of lrrtated
stockholders 10 excite their indsnatiOn-accounts
moreover, finally settled, and Therefore incapable u
yielding any thing but reproaehSs, and on which
according 10 their own showing % s impossible that
a loss ofany magnitude can be- s1stFlned
Accordingly, when they have husheI tbess eos-
ripiDgs Hey seem 10 have done their work, aud nU
chat they have 10 say Of the general administration
uf the Bank is that during the existence OF the late
Bank Of tie u. s. on the 9Th Of March, 1886, the
comm ttee q Exchange was author zsd 10 make
stock loans at FIVE per cent, and they object;
That such power ought not 10 be delegated;
That the Committee made too largo loans 10 in
divduals and firms;
That they ought not % discolnt-but only bug
bills Of Exchange;
That they kept no minutes but gave verbal or d.
ders 70 the officers Of the Bank; and that
Their transactions "wefc never submitted 10 the
Board az its regular meetings, is Il any where
mentioned on the minutes as having been reported
60 that bodytor their information or appreciation"
Now, Whist mean 10 prove. is this
ist. That these Exchange Committees have been