Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-02-03


able, aud enuTely a, vatianee with the true prinei-
piles OF Banking.
Your COMMITTEE, also four q that no bond had
been taken from the late Cashier, under the new
cha te-. and the only alleged Tor not taking
said load, was, that the Cashier refused to give H.
and tina, the President aud Directors considered the
old bond good.
In conclusion. your Committee say that they
nave M date upon which they could invesugat. the
state OF the Branches 1T this Institution, thei efotc
recommend that a Committee OF Stoe kholders, con.
sisung OF other than Directors, be appointed to ex.
anime into their condition.
All Of which is respectfully submitted.
Nr Chandler moved the following re solution
Rssolrsd. That the communication m,,ie 10 thi.
meeting Yesterday, 10y the President. aud the report
OF the Committee appointed yesterday, he recorded
by the Secretary on the Journal, asa part Of the
proceedings Of this meeting.
Which resolution, on motion of MIR H. w I rich
was amended 10y adding tho words "without !, n.
pressing any opinion Of the Stockholders on ei,hcr'
Inc Kesou ton, as amended, was then adopted
Asthe RESOLUTION Of the Senate calls for expla-
n'uons ON the statements ofihc Bank ct Virgins
ana the report made To the stockholders Mt their late
meeting by committee, the following brief tem,,k,
are respectfully submitted:
on examining the report it will he observed, tina,
me ehiet difference between the committee and IN.
directors ot the Bank consists i'm their t,snec,;,
estimate OF the bad and doubtful debts of The ;rst
luton. The committee admit 'thst aison,,o wan,
o' time necessarily compclS them TO he very brief
anu They can only call the attention of the stock
houefs To lew particulars which came under th,,,
notice NOW, the fac; Is. that the committee wen,
through ne whole OF the suspended and bonded
oeots, with such explanations rs the cashier and ,b
pfssiuent could give them. They thousht nron.,
10 swell the bad debt sII 1892 beyond the es,im,,c
'ne directors, and tho doubtful debt SIS 900 more
making together S76.I92. Whether IN, bn,r;.i
estimate OF the committee or the more deliberate or
OF inc directors - entitled To most CONN encr ~ MAJ,
no' no" bs becoming to express an opinion which
can have no practical operation. >''
Inc next subject OF anmadversion on the mar, ol
.e Iu,'tee Is the value of the stocks held n, the
"o,her bank. The directors pnt down their vnInc
al the cos. They consis, of 500 OOO oC V;,,in; s;
Yet cent, STOCK, $50 S5i Of arous stocks and 3 inO
uVo OF James River and Knnaw stock Tbe e.,
mas long been held by the bank, and has nlx,v.
49, .O"''ueted as convertible fund. while the
NS WIS regularly receiving interest on IL, The
second description consist. of various stocks t,L ,
:" "o settlement OF questionable debts and vh,rh
INC ''''e' STOCKS, are greatly reduced IN rrire NJ,
80 ue"'s noweSe', nave been received on some 90
; =, 49, '"e es'aohshments are all in an mpro.-
ing condition, and IT Is believed they will
~ become productive. Ofthe mnnner in wh;eh 49,
oanK acquired the james River s. Kan,wb, -
u N heeu.eSs TO say more than that The dirsc,or -,
me oanS are not responsible for the acquisition NJ
After once making their estimate .f IN. had and
doubtful debts, the committee introduce the sns
penueu uebt, IN which all the bad and doubtful ar.
uo'uuec, and then Proceed to "temaik as their do
noo'ae CONVICTION that some Of the loss has resulted
''om the creation of large debts and the wan, a,
proper attention 10 them after being susn.ndcd :,
IL sat once admitted that some or the loss ia,
resu 'ed from largo debts, but when they VOC
cre''en' tue parties, both makers and cndorssrs
were considered very wealthy and the debts nc,f,ct
/ " sale. in the great muia'inns in the r,o,.,a
Shi"s OF the country for the last or yesr, when
uoVernments and Banks and individuals b,vo ;n
CURED heavy losses, Is II wonderful that this b,n
"hch rs purely monied corporation sbonId s,,s'
e'n osses oy extending credit too far To certain IN
uNllOoisf u IS an easy matter after an .vep, r..
/ happened 10 attach blame, but bank dirertors a.
no more seers 'han other men, and il is well kno,
nst the strongest corporate companies and nd;v;d,
at hrms both IN Europe and America hay. spfT.re,
Immense losses Occasionally from an over EXPANSION
o, the credit system in the phrenzy of tb. -.
That any portion of these large deh,s r,fcrrod -, -
tue committee have been lost from the want Of ~,
per aVenuon alter becoming suspended il MI,
cohrad.cted. IL Is not at ell times sooJ -, -
I"s"u'e law suits asains, dclinquens until efT,,,s
are made 10 render the debts rs secure es noss;t
elher 10y banks or individuals, and this bang Ia,
Ios' morning 10y negotiation. which il couId bov. o.
tanned by the process of law. W.
Inc case 10 which the committee allnde "uha,.
.ue enuotsero OF note had been released by ne.ec,
."oush they consider ihe debt good was 90 So; ;
iaeiorily explained to the meetino in svool'i
u 'he oanK, 10y the maker of the note thar M, g.,
'"sr explanation Is required at this time.
he COMMITTEE also, remark, shat another LARGO
u.o' "'sh' nave been lost under the statute of I'M,
''os out ior The timely counsel of the cashi., n,
ms coming into office" This debt had re-, -, o''
'et'ed 10 this bank by the bank of the Un,,.d S.,
"hen Inc office at Richmond was about 70 10 -
oo' '"u was secured by deed OF trust on yal,,hio
rtIope'y. ne same person owed another deh, n
t"'S oank, which was not sat sfacorv se,uroJ -, a
u became an object in the frs, insteore -, 80
eiu' ueot, winch was rccove cd by /. Inv suit Re.
lore The present cashier came into Office much
was iet by the officers OF the bank in teonrd -
lHe nrst mentioned debt, and one az ,I -.
80 pPled 10 TO execute the trust, no declined ac,
lus "ihout the interpostion OF the chanccry 60,
80" '"c particular wording Of the trust deed. aho,,
'nis period General Pegram came into od: - ~
""u great promntness took the proper LEGAL s,.ns
10, ,he recovery OF the debt 'P'
The last specific allegation or H. .o,.:,
'na; no oon1 had been t'ken from the late ga sh;.
u''e' the new charter" In tho opinion of lonrncJ
LIs II Nas not deemed essential that new hood
J"J1tu oe taken, nasmuch the old bond NOV;
ueu LOT the obligation of that officer ,s.o loo,' ~ =
should continue IN Office and VII, ~ s q NC
utnomInate the new charter" was n nnsr. 80
81" o' the corporation with certain modiheations
Nnlch DID not change the tenure of the c,sb;e,,,
Inc general state Of the Bank on the frstof In
u'tyi WIN the estimate OF bnd and doubtC,l att.
EXHIBITS the condition of the institution ,cco,d;,,
10 the views OF the officers of the b,nk No -
uon Is made OF the probable gain from the dcs,rnc.
Iu '"Ss "i notes during thirty eight yenrs nj
very extensive circulation. That ooin l. -.
equal TO any loss that may be sustained rom ,bs
depressed price of the stocks held by The bnnk nd
as me bank cannot, 10y law, divide more tbnn 1 ne,
cent per annum OF its profits the annual surnI,,ss
VIII II IS hoFed, restore the entire capital IN rho
course OF lew years. The bank Inns been excocd
ihgiy unfortunate in losing a large amount ~ -.
paper on IT'S way TO Lynchburg, which has ion,,
SINCE oeeh Carried to the account Of prof, and loss
ahu would, Notwithstanding, have been in excel
Ient condition but for the great loss sustained b,
the misconduct Of its late Teller. The bank bns
been IN operation thirty eight years md has rends,-
' yu 10 Inconslderabe service To the Commonwealth
The individual stockholders have p,iI aLn,,' So .n
hundied thousand dollars in bonuses, and the S,nts
mas received about Two millions Of dollars in div
IN anticipation Of its revenue.
IN conclusion 1t may be truly remarked that IN.
eaIng and premedltaied design Of the chairman
d the committee, as avowed in his speech on r, 70
5ntng the re; ort, was the removal of tho Presden,
81 the institution.
JOHN BROCKENBRoUGH.