Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-10-28

The PmGxIx BASK OF BosToS We find in The Bos
ton papers of Saturday minutes of the testimony taken
at the preliminary examination of VIM Wymnn, Ere
side nj and Thomas Browne Jr, Cashier, ct the PhGnX
Bauk. charged with having feloninusy emhf zzled
$500 900 funds Of the bank, and Of Wm H. Skinner,
Of lie firm Of Stanley Reed CO., charged with having
| been an accomplish in their frauds.
| The operation carried by means of checks
drawn by Skinner in the OF Stanley, Reed X Co.,
on various banks in which that firm had no funds these
checks being cashed by Wyman, with the knowledge
and conn,vance, as is alleged, of Browne.
We copy tina, portion Of the statement made by the
cutting attorney in which is described Tie mode oil
doing business at the bank-sbowng how utterly me-
rlectful Of their duties were the directors.
We nov come TO the mode of doing business IN the
Ppnix Bank as testified by Mr. Hunnewel and others,
directors from which it will appear that there existed
| no check on the dongs of Wyman Indeed, Dr. Bates,
director said in his cvidence-sWe had unlimited con-
| fdence in Mr. Wymun. considered Mr. Wymnn 10 be
the PhGnx Bank, and the PhGnix Bank TO be Mr.:
Wyman and whatever statement, or report he prepared
for me TO sign, signed with very trlfng exnm'na'
ton. 90
The board met on Monday and Thursday 10 delbe-
rate on paper proposed for discount Wyman presided
and named from list prepared, or from hle The notes
proposed Against these notes which the board voted
accept, they marked "yea, but they never looked 10
Sec or inquired what how many notes he so marked,
laknr i, for granted that he only marked those which
they had agreed to do This the grand opening OF
which he took such absolute advantage. Farther, They
called question his practice OF nsconhtihg ~
discretion between the regular days lie recommends
S r. & Co s drafts New York, Philadelphia, BAIT
more &c as being be tier than the ordinary notes IN
the Market particularly they would yield some pro-
Il, by way ofexchange. ie represented the firm 10 be
one Of the substantial whose paper was 10 be mad,
and that John Skinner the general endorser on 'her
paper ,ras not one # the ffm when he IN tact was,
On Monday, Sept. &c, Wyman submitted to The
hoard n dividend sheet, showing that profits rising
little over $40 600, could be declared on Monday, Oct
Sd, The semi annual dividend day. On fnday aiter'
noon the semi-aunual examination was commenced
and Wyman exhibited Inst OF bona fde paper held
as security the amount of 216 liz; but at the next
meeting, on Saturday afternoon, he gave IN in,ima.
ton that all was not right. Mr.. Hunnewell and MIR
Hard instantly requested HIM 10 let them Know me
worst He then produced the overdue notes, checks
and drafts of S. r. & Co, about which The directors
were entirely ignorant, 10 the enormous amount oil
S225, 2GG John Skinner being the endorser on the
notes lie said the checks and drafts had never been
presented because it known that there never were
any funds in the hands of the drawees whether banks
IN the neie hborhood or houses OF the South.
He confessed that he " Ind done wrong, and had
ruined the bank He said he was first induced 10 de-
va,e from the right course in The summer OF 1889, when
John kinnpr applied 10 him for 81 GOO Tor 3 q Co
He resisted the first application and after That Stanley
asked him 10 meet him and his partners ut Philips
Beach on a Sunday. He made the appointment and
met Skinner and Stanley, Reed being prevented from
attending by sickness. STANLEY and Reed are now
dcad1 Skinner said unless he could obtain Slo0O0 he
must be ruined man, and that the firm must lal.-
Still he declined Then Skinner had recourse TO tears
and cried like a child These tears melted Wyman,
and he yielded TO his request.
The directors asked him why he made the subse.
quent loans, and he REPLIED that they kept coming TO
him for more, to keep them from failing till he let
them have much that he afraid Ia Refused them
lest he should break the bank by compelling the firm to
fail, and a, the time blast his own reputation.
Notwithstanding this state of affairs, Wyman urged
the board TO pay the dividend advertised Monday,
lest the bill holders shonld become exasperaed, and
destroy the banking house, the houses of individual
directors, and attack their persons. He offered to pay
the dividend himself; and finally said that iii were not
paid he would not the risk Of remaining in town,
and would move his family off before Monday morning.
As to Browne the proof was, that he admitted that
he knew something wrong in the condition OF the
loans to S. R. e. Co.. but denied that he knew the e1
, toni nf