The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1848-05-06
The Wooster Bank

. communication from JOHN II. HARRIs,
enc Of the directors Of the Wooster
bank. which presents partial view Of
the condition Of that institution. Ac-
cOrding 10 this, the capital stock paid
in is $249,450; Of which $l71,900 is
held by JOSEPH s. LAKE, who is the
head Of The late failing house in New
York. His partner in business is his
sen-in.law, Q. KLxxM,--.he latter be.
ing cashier Of the bank. He has not
been engaged, however, Of late. in the
discharge Of these duties, but has been
conducting brokerage business at
Cleveland. The business Of the bank
has, for several years, been conduc-
ted almost entirely through their agen-
cies, with little knowledge, on the part
Of the directors as to its details; Mr..
KLrMx protesting to use its funds for
the purchase Of drafts on the east, and
remi,ting them to Mr.. LAKE for collec-
ton. Both rendered their accounts
regularly which appeared to be fair and
satisfactory. The following extract
presents the condition Of the bank at
the time Of its stoppage. |, cuts Of at
once all hope that any considerable a.
mount will be realized by its creditors,
while It presents a picture Of modern
banking ,ha, stamps the whole system
as utterly worthless and fraudulent.
The books Of the bank on the eve.
ming previous TO the suspension, as ex-
hibited TO the Directors in the Cashiers
weekly statement, sho wed that its as.
sets amounted 10 $76s,799, and its liza.
biIities, inclusive Of the capital stock,
contingent fund, profits and unclaimed
dividends, to S492,4o3; OF which $462,.
92s was in circulation, and the balance
principally deposi.es. OF the assets
they showed $92,56o TO be in specie,
and the notes Of other banks; $4l5,.
2sl in bills discounted and bills Of ex.
change; S8s,759 deposited with J. s..
Lake & Co.; $5o,49s deposited with
o. Kiemm & Co.; $57,665 in state
stocks; $i9,244 in real estate, and the
balance in those miscellaneous items
that usually enter into bank account;
but from wha. investigatian have been
able 10 make, | find that the amount Of
the assets OF the bunk actually in the
hands Of j. S. Lake g. Co. and o.
Klemm g. Co. at the time Of their fail.
ure was abou, $4,000, consisting of
the above items charged TO them re-
spectively as depo sites, the state stocks
Of the bank, bills of exchange, &c.;
leaving under the control of the bank
a little owe: 100000, consisting Of
tire above items OF specie and notes Of
other banks, real estate and miscelIa-
nies; and the balance Of bills payable
at the bank, a portion Of which are bad
or doubtful debts; but as to what a.
mount, am not advised.
The enquiry will naturally arise in
the public mind, as to what Mr.. Lake
and Mr.. Kemm have done with so
inrge an amount Of the banks assets.
In reply to this inquiry would say.
that they acknowledge the loss Of $l50,
900 last year in the produce operations,
which presume they went into with
its funds; and that am informed since
the explosion, that il was with its means
that Mr.. Lake got up the Branch Banks
in Akron and Toledo, and a Bank in
Texas, and purchased the Mineral Bank
Of MARYLAND, and the Canal Bank Of
Cleveland; the stock in all Of which has
become nearly worthless in conse-
quence Of his failure. OF what other
speculation the stockholders and note
holders Of the bank have been made the
victims, we are as yet unadvised; but
time will perhaps develop them.
As to the amounts that will be saved
from ihe wrecks Of the two firms, and
applied TO liquidating the liabilities OF
the bank, Mr.. HAaRIs says the directors
have no knowledge. In a private note
his communication he
says:-"Our Information from Mr..
LAKE, although indefinite, is Of the most
gloomy character. We fear that he
has spent the last dollar, and negotia-
ted the last bill Of the bank IN his pos
session, to save himself"
The Statesman of Tuesday publish.
e. a letter from Wooster, dated on the
18th instant, from which we extract
the following paragraph. What does
this movement meant Is the specie
sent to Cleveland, TO sustain the asso-
ciate bank at that place!
"The Woster bank sent two wagon
loads OF specie to Cleveland night be.
lore last. This is true! II is now
ascertained TO be fact, and no secret,
HAT Jos. S. Lake anG o. Klemm. his
stand indebted 10 the bank
eS77 900. Ii is now certain that tho
failure is worse than the German Bank
If Wooster" .o q K eaa
The Freedom Of the Press in Aus.
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