The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-01-19
Philadelphia.
Correspondence Of the Herald

Correspondence Of the HERALD
PHILADELPHIA, Jan. Is, 1872.
Close Of the investigation against the Late United
States Bank Oficers-Dscision of the Recorder
against IAem-Heh to Bal Each in $4,000 TO
Appear and Stand 1fial-Jaudon Committed
Further Prosecutions-Fre-Le ctures-Stocks
After closing my letter yesterday the examina-
tions in case Of the lateiocers ofthe United States
Bank was continued, by the witness, Mr.. Taylor,
reading the minutes of meeting Of the Board, held
January 81, 1910, at which the claim Of Mr. Jaudon
to extra compensation, as the European agent Of
the Bank, were discussed and disalowed. BY a re-
port Of Committee made at that meeting, it ap.
peared that Mr.. Jaudon received salary for thirty
months services, equal TO SSl GEO. besides some
expenses credited to him, and claimed an extra
compensation for procuring loans TO the Bank
amounting TO $67, 9l0.
The cotton speculations Of Dir Biddle were next
referred to by the witness, BY which it seemed the
Bank sustained a loss Of S6}I, 800 81, besides
other loss on cotton exported by another authority
from Mobile. A detailed report of this matter is
unne cessary, as the public are ready acquainted
with the transaction. resolution was passed at
the meeting of the board at which this natter was
reported, declaring that the large loans made BY
the officers Of the Bank in 1887, 1888 and 1899,
were unauthorized by the Board and in violation OF
the rules Of the Bank.
Mr.. CAMPBELL, counsel Tor Austin Monfgome-
nv, asked the witness If the receipts and charges
referred to, on the other examinations before the
Recorder, were left in the drawer of the cashier
until made up in packages. He replied that some
were charged the day of their date but the rest
remained in the telers drawer, as 80 much cash,
until made up in packages The packages endors-
ed by me- said the witness, were put into my hands
nv Mr.. Andrews. In reply toa question from Mr.
Brewster, the witness tated that Messrs Boland,
Lppincotf, Plat. Henry, and Rasten, were the
COMMITTEE on the State of the Bank, March, 1885,
and he produced their report made during that
month.
In this report, the committee state notes Of the
Bank and Branches to the amount OF So 2S2, 800 had
been cancelled and burned by them, and among the
rest t. n post notes, dated in February, all on the
same day, and made payable TO J. Andrews in three
days after date, TOR $4,000 each, were ss cancel
led aud destroyed. In statement made BY the
committee, these post notes were marked mot Is.
sued" The witness said he never saw them, and
kne nsthing of them until he saw the entry upon
the statement referred to- The first time he knew
any hing about them, was when he discovered by
charge made in reference to them, that the Bank
appeared to be paying more notes than 1t had ssu-
Mr.. Patterson, the FIRST Teller Of the Bank was
next called and sworn. He stated that he entered
the Baak in 1916 and had continued in II until the
present time He referred to the entry OF notes
burned in March, 1886, and stated that the words
following notic- of the 500 900 named in that re-
port, "not issued, were added after the tenth OF
that month. About the close of the old charter,
paid the 100 900 to Mr. Andrews, and took his re-
ceipts for the several items that made up the
amount I kept the receipts and other memoranda
Ia my drawer until the entry was made, a. so
much cash. He stated at the time that be was go
ing TO hand IL over to the President. He brought
the post notes to me, asd told 10 charge them to
the note account Of the parent bank
Mr.. Patterson said that he did not know th al
these notes were issued 40 he never had any thing
to do with them. He could not say what became
| of Mr.. Andrews receipts for this S40O,O00 The
notes were made 0 cover the amount Of these re-
ceipts which was all paid out within three months
befo.e the close Of the old charter. There nc
entry Of the items until the total amount made
| up and recorded l don't know that any search
| was made for these receipts. ! looked for them
| without success.
Whsn Mr.. Andrews brought these notes TO me
| he waited until made IN entry Of them, and ther
took them away with him. do not know whether
| ha obi aimed the memoranda and receipts, or not
| | discovered at one time that the Bank appeared
| to be paving more notes than il had issued, but
DO not recollect the amount or time. mentioned
| the discovery to Mr. Andrews, and suggested tina
an entry should be made te correct this apparen
error NV impression is that Mr.. Andrews go
the whole Of the 44O0, 900 referred TO.