New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1849-03-15
The Canal Bank DeveIopmcnt-The Wyster,
OF Iniqnlty.


Senator Bokee. from the Committee consisting
Of himself aud Senators Floyd ard Cornwe submitted
report this morning the senate In part 10 RELATION
70 the frauds of the Canal Bank. -
The report rccited the history of the Bank from lc-s
when Il was chartered with capital OF SSOVVV~ its
early management was prudent and us by pro
vided many guards against needy aud unprlholpieu
directors among others. limiting them TO discounts
proportonsie 70 their shares In the captSi' anu Pu
yiilns that no person should have loan or discount
whose name was on protested paper IN the BANK. IN
s.i2 resolution adopted declaring thst no note o.
any clerk of Bank in this city should DE discounted
Alter this period there Instances OF " gross neg
ect OF duty Encouragement and violations OF various
statutes - NIL.
two of the directors after an investigation OF the con
Germs of the Bank reported sundry msprsctces IN Us
administration and contest thoreupOn ensGed LOT the
control OF the Bank. which ended IN ths tJrcuou ol
those directors from the Board and the retention ~
the Cashier and of the before dominant interest IN
lSl2 an illegal oath OF secrecy administered 10 the
clerks Of the Bank binding them on All occasions 10
keep sccresy 10 regard 10 the affairs OF the bank unless
when Intercepted By Court OF Justice. IN l,i% on
motion OF Nr Croswell the Cashier was authorized to
purchase the stock Of the Bank aud % sell again 10
tle directors taking their notes thereor-an obscure
process the object of which the COMMITTED indicate 20
have been indemnify the purchasers OF the stock IN
the contest OF $40 go ,
From this time the downward tendency OF tne Dans
became hesdlong and the degree OF IT'S necessities ana
ia reck.ssness we're manifested in the resolution
pAssed by the Board authorizing the Cashier 10 obtain
-.
the discount of the paper discounted ana TAKEN oy
the Bsnk--a course stgmatized by tue majority oi .he
Commtteeas illegal fraudulent ana void On May
D. sl7 the Board authorized the Cashier 70 lnNe't ia
Treasury Notes our surplus capital The Bank wss
the irretrevably ruined, and the Committee consider
that the only object OF this lion was 10 lull su'
pic0n. some Treasury Nc were purcnsseu ahu
we're hypothecated 10 secure loans to the Bank, and
were sold.
The next step was authorize the Cashier TO lend 10
the Pratt Bank OF Buffalo any sum In his dlscreton ana
Du,L
Bank while assuming the attitude OF alender, was
borrower in fact and was paying sl9O day Tor dis
counts and two of the Directors, Me-sf- rage sho
Van BeDthuyse testify that they were inaufeu 20 ssu
q note % secure the payment OF money borrowed oy
the Bank and required by It's necessities tdaily used
the money of rs depostors psyiug In shayes during
one month S 600 aud lin the words OF the COnm,tee)
"ibe Cashier TAR improved the arts OF hnancerng
"a 10 take from the pac kaees Of other Banks deposited
with him the money scessary Tor his Transactions
The discounted paper was passed over o ",her banss
aud in the words OF the Teller, Inc Meenahles ana
Farmers Bank daily swept the Board" Yet the day
before the failure became known, the Cashier ana the
ether leading manager Croswe. called on the officers
of other Banks for loan of slOOOOO-sn act character
lied by all the guilt of a fraudulent conspiracy.
1.-THE secret appropriation 20 his own purposes by
the Cashier and the gross loans directors without
security were, says the Report concealed By JGse
sHiss and false odths Of these loans Mr. CroS"t
exceeded the amount, allowed by law to al the Direct
ors Hs Indebtedness 10 estimated In round numbers
at 5000 coo. He one OF the Commssioners 70 os,
tribute the stock of the Bank on ts charter wss one OF
It's first Directors and continued ia the board except
brief interval the end. He was one OF The buyers
up of the stock in the contest for the control OF the
Bank Ia 1910 It's egent 20 procure loans In New
York. &c and attempted to obtain from other Banks
100000 the night before the failure on his representa-
ton and that of his associate OcOt,they together hay
rg At the time Illegally taken 100000 out of the Bank
all Of s $500 600 capital and s2000O0 oft other re-
sources
The Committee speak Of the position OF this man
engaged In business requiring no large loans, holding
responsible relations with the public and quasi official
one with the State probably tending 10 u the sus
stamp these and the other transactions set forth as in
dlcaing a deliberate con,riyance and premedtsted
design 10 ruin the Bank" which the blamsbe apathy
aud elect OF other directors rendered more easy.