The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-12-16

FINANCIAL OPERATIONS.
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The Bank OF susquehannnh County Again.
MoNTRosE, Susquehannah County, Pa,
Dec. A, 1919.
JANIS GORDON BENNETT, ESQ. =
Sir-I send to you another communication rela.
ting to the affairs of the Bank of Susquehannah,
which, believe, contains information of peculiar
interest to the bilbolders, to large portion Of
them. regret that il was not In my power to COM
municate the facts therein set forth at an earlier
day-but il was only yesterday that got posses
non of those contracts, although had previously
heard of their existence.
Yours, respectfully,
BENJAMIN T. CASE.
THE STATEMENT.
In following up the erpcse OF the affairs OF the
Susque hannah Bank, have deemed It my duty to
ascertain and publish for public benefit, whatever
may relate 10 the circulation of the bank on the
9Th OF October last, and much regretthat i could
not have bsen done at an earlier day but if 1t be
understood that l never was stakeholder, or in
any way interested in 1t. or knew aught of it's con-
Germs or Its management, unit since the explosion,
Quoting country banks, and the veil of secrecy and
even OF mystery, which Is thrown over them, will
readily excuse the delay.
In my former communication, have stated the
circulation at over $500 900, and now proceed to
state how that amount came to be issued, who
ought to be responsible for the redemption of
the notes, and how they may be respec-
lively Identified. The first entry on the book
OF minutes Of the proceedings Of the board of
directors, In April, IS45, Is on the ninth of that
month, when resolution was passed for the
Issuing the six thousand dollars of stock TO ANGEL
st. John, and ST. John u Goddard, Sin accordance
with previous agreement and on payment of
three thousand dollars" Alter that the business
seems 10 have been conducted without anything
uncommon In country banking happening, until
May IL, lS46, when the following resolution ap-
pears.
Resolved-That the President and Cashier be
hereby authorized TO enter into and conclude an
arrangement. on the pert of this bank, with Seth
II. Mann, cashier of the Canal Bank of Cleveland
or s. H. Mann and T. G. Severance. cashier of
the City Bank OF Cleveland, Ohio, 10 furnish said
Mann, or Mann q Severance, with the circulating
votes OF this bank, 10 an amount not exceeding
one hundred thousand dollars, upon such terms as
they may deem proper and just; aud that they
DO authorized TO deliver 10 SAID Mann, or SIEVE.
rance, such amounts as they deem proper, during
the tendency of the exchange OF contracts between
The parties" 49,.
Among the papers of the bank is a contract.
which, no doubt, was made in pursuance of this
resolution. The following is an exact copy
This agreement, made and concluded this first
day OF July, A. d 1916, by and between the Bank
OF Susquehannah County, of the State Of Pennsyl-
wanna, by William l. Post, their President, parties
OF the first part, and Seth H. Manu. of Cleveland,
OF the State OF ONO, party of the second part
WitAesseth - That the parties of the first part,
for value received, and in consideration OF the
covenants and agreements hereinafter stipulated
and mentioned, have loaned, and hereby do loan,
90 the party OF the second part, the notes or bills
OF circulation OF said bank 10 the amount of seven
sy thousand dollars $50 000) ana the party of the
second part covenants end agrees, 10 use the
notes aforesaid TO obtain for them as far as pos
sible, such circulation as shall best prevent their
return home tor redemption. That he will provide
Tor the redemption of said bills they may be re-
turned tor such purpose, at the city Of New York,
and at the rate OF discount al which the agents of
the bank Ia said city redeem them. That, when
Teda 0at6 hall hA VpaIt 81. the.
party OF the second part for re-clrcuaton. That
SAID party Of the second part viii keep accurate
account OF all sums by him, by his agents put in
circulation, and will, from time TO time, semi-annu-
ally, report the 10 said parties of The first part
That the party Of the second part will pay said
bank, seml-annually, from the date hereof interest
at the rate OF two per cent per annum on all sums
actually in circulation and use of said party of the
second part and all said notes IN possession of sald
party Of the second part, or N The hands. Of his
agents, or In transit, shall be deemed out OF crcu-
Iauon and not Ia use. And 4. Is further agreed,
that the bills issued by said bank shall always be
'ecrved al par, by the parties Of the first part.
theT 6~slgns, ia payment of any and every indebt-
edness 81 said party OF the second part, arising
under this contract. And II Is further agreed,
that the sum herein aforementioned, as notes
furnished for circulation, may, from time to
time, DO increased, both parties consent
ing; and IT so increased, Il shall be deem.
ed and taken under the stipuatioos aud
conditions Of this agreem mt. And u, ior any
cause, other than the fault Of the parties OF the
first part the party of the second part should ilil to
redeem, as herein before provided, the notes put
in circulation by hun, for the space OF sixty days
after written notice of such failure, then this con-
tract may be annulled by the parties oil the hrst
part, and lhereupon the whole sum loaned 20 the
party Of the second part, shall become due and pay
able. To distinguish the notes put in circulation
by the party Of the second part, such notes shall be
filed with the Bsme OF the payee, IN his hand wri-
ting, OF in that OF some person employed by him,
and for all old or mutilated notes, at any time re-
furted N the hank. To equal amount
shall be gwen IN exchange, and such returned
notes shall be efeciualy cancelled or burned. u
j. further mutually agreed that tnis contract shall
be and remain IN force (unless forfeited as herein
before prcvided) for and during the space oil one
year after the receipt Of a written notice, by the
party OF the second part, from the president OF the
bank, Of wish, on the part OF the bank, 10 dis
continue the arrangement herein snade. And to
prevent all mlsconsuucton. II Is hereby declared
that this agreement Is a simple contract Tor loan
ing money and in nowise to be deemed or taken
ss establishing an ageEcy.
"Wuness the siguaiurc of VIM. J.. Post, Pre-
eident Of the Bank 1T Susquehannah County, ana
the seal of the corporation, parties OF he first part,
and the hand and seal Of the party OF the second
part. - - ,,rs,,
The foregoing contract does not appear 10 have
been signed by any one on TIE part oil Tue oank,
or Mr. Nann's signature TO have been witnessed
by any one But. on the book of minutes, under
the date Of September 4, 1916 lind the following
resolution recorded -" Resolved, That the agree
ment between the bank aud :. III Mann be rati-
fed. az presented to the board this day"
Although a larger sum had been issued to Mr.
Mann, yet shortly puor TO the bank stopping pay
ment, a part Of the notes had been returned, re-
ducing the amount then out, TO seyenty-seven
thousand dollars, which he is TO provide
m.sns TO redeem according 10 the terms OF
the foregoing agreement. These notes were
all made payable TO Henry Clay or to MI;
liam Writ, and were all, or nearly all, filled
M with red INK. No other notes issued
by the bank are so distinguished. am informed
by Mr. Ilslsey, the teller, that he has seen some
OF those notes. where the name OF the rayee had
become indistnct-thai il had been written over
the red with black INK; 90 that any note OF the
bank made payable TO Henry Clay, or TO William
Writ, or filed up in whole or in part with red ink,
GENES within the provisions OF Mr. Manns con-
frsct.
II is but justice, however, for me to say, that
I have rot heard vi any default on the part
Of Mr.. Mann. From all 1 can learn here,
he has always provided for the redemption OF
fhcse noIes and e IS hoped that he will