The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1842-03-17

ident OF the bank VIM McComb, had no col-
su talion in ielaliOn 10 the failure Of the bank
with the officers and directors, before the NOR
ming Of September 6, l54l" Mr., Hanna
testIfies, that he was not consulted indvdu
ally nor ds a director. in relation 10 closing
it's doors. Benz amin Bentley swears, that he
did not suppose the bank would entirely sus-
pend payment two hours before il did,
That an entire failure of the bank had been
in contemplation by Benjam Bentley for
some time, and that arrangements TO lessen lis
available means, and al the came time increase
its circulation, we're also adopted and carried
into effac., is clearly apparent. In proof Of
this conclusion we refer IN the first place. TO
the deposition of Benjamn Bentley himself
His testimony is, "that, that in the month
of June the amount of specie was about $l4,-
O00." During the same month. $4,000 IN Sill
yer and gold, were sent 10 New York, 10
meet the payment of drafts previously drawn
on time. And further, that after the shipment
of the IL 600 in June, no efforts were made
TO increase the amount Of specie, The sale
of this specie is also admitted by j. w. Me-
Millen, Teller Of the bank. Another evidence
of fraudulent design on the part Of the indI-
viduals who managed the bank, is the entire
omission of monthly statements of the cOndl-
ton of the bank upon the statement book
The only explanation Of this omission as as"
signed by the teller is want Of time. No state
m ent is recorded after the sale Of this specie,
and the pledge of the residue TO the bank Of
Wooster, which was sold at premium Of se-
ven per cent.
10 addition to these evidences ofpreparation
to fail, is the increase of circulation, and the
means resoned to by The bank to keep It's own
paper out. McAleu tesifes shat there had
been a run on the bank from February 16ll,
to September 6, 1S4l, The day It was closed.
May 81, 1911, the circulation was $l2O, 725.
McNlIllen gives The circulation on the day Of
failure, l25000
Notwithstanding this run, the circulation
was increased, while. the means of the bank
were diminished The manner in which this
amount of paper was kept out, will be seen by
referring TO the depostions Of MCMillen, M.
D. Welman, Harris and Rhodes, viz: by the
exchange of notes, and the pur chase of the
drafts.
Again, The amount of bills discounted was
gradually lessened for several months prece-
ding the bankruptcy.
March 81, l54l, bills discount
ed, 1925 1853 7S
April 80, 2ls.22l SO
May 81, 2ll,6OS %
AT the date of our examination, the amount
of bills discounted, as appears on the ledger,
after deductng the amount of Benjamin Bent
ley's Indebtedness, was 70,934 So.
On The llh day of September, 184l, four
days after the failure Of the German Bank of
Wooster, it appears from the minute book,
that several Of the directors met, and assign
ed to Benjamin Bentley, as trustee, all the
effects of said bank. [See minutes Of that
date.
The character of this assignment, and the
loose and summary manner 10 which the en-
tire effects of the bank were assigned 10 one
man, without security, or even making sche-
dule of the assets, or their value, led rresis-
tably, TO the conclusion, that the public good
was not properly consulted. 1t is remarka-
BILE, that no reason is assigned by the direct
ore, for suspending the business Of the bank,
The causes which rendered such step me-
cessary, are not even alluded to, and yet the
board met five days after the failure, and ass
signed 10 an indIv ldual, whose interest, more
than that Of all persons, would be promoted
by the depreciation ofElhe paper in circulation.
That no schedule Of the effects of the hank
was made at the time of assignment. 10 shown
by the dispositions Of Bentley, McMi!Ien, M'>
Comb and Hsnna
1t is shown by the deposition Of s. L. Lor-
oh, that pnbc meeting Of the citizens of
Wooster. endeavored, through a committee,
to obtain knowledge of the condition of said
bank, but were refused by Benjamin Bentley
on tue ground that they could not expect that
he (lhe said Ben,Iey,) would answer any in,e-
rogatories that would 60 10 crminae him
SELF
The bank became entirely ms olvent by tho
withdrawal of Benjamin BenlIcy's note of
$1,000 without leaving an equivalent.
From the testimony of several of the wit.
uesses, aud especially from that Of Wellman,
it is clear, tina, only about $4,000 we're ever
paid on capital stock; and of this sum, be-
tween 10000 and 10000 were borrowed by
the Wemans at different times, during their
connection with the bank, all of which indeb'-
edness was ultimately cancelled by transfer
of their stock 10 Benjamin Bentley.
Ia The progress of the Investigation, tes'i-
mony was elected 10 prove that Bentley
paid for the stock purchased Of the Wemans
and satisfied his own previous Indebtedness TO
the bank, by bis individual note, which u|ti-
matey amounted to S94 1926, so tina. the ab-