The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-11-29
Developments OF tho susquehannah Coun-
~ Bank, and alse OF the State hank OF
Norris, Now jersey.
MoNrRosR PA Nov DIG 1910

Developments OF the susa n q n mn an Coun-
~ Bank, and alss OF the State bank OF
Norris, Now jersey.
MosrRosR, Pa, Nov. 26, 1919.
JAMES GORDON BENNETT, ESQ.,
SR IL have been requested to enclose to you, for
publication, an erposs of the causes of the recent
explosion Of the Bank of SusquehaRnsh County
The card Of ANGEL ST. John, published in your paper
some time since, has rendered the enclosed article
necessary. 1t was drawn up, and prepared for
publication, by my father, Benjamin T. Case with
the concurrence Of William l.. Post, the president
OF the bank, and Henry Driaker. Esq, of this
place; and they will be responsible for its publica-
ton. Yours, respectfully,
BEN. CASE, P NJ
MoRRrsrowN, N. j., November 81, 1s49.
Flnay Dongs in Morristows-.arrea Of Lambert Norton,
President Of the State Bank at Moris snd bdietmen.
Of the Cashier, and ssme Of the Directors.
On Wednesday evening last, Lambert Norton, Prssi-
dent OF the famous State Bank at Morris the explosion
Of which recently caused much commotion well
misery In the community and the of which
you have so thoroughly arrived in this place.
for the purpose probably Of looking after the assets Of
that concern knowing that, at any time any moderate
sized could convey the whole away In his brssohss
pocket.
attacks, should any be intended against him. The
Grand Jury Of the county having had the matter be-
him on Thursday morning. warrant sooord.
ipgly issued for his arrest; and when he about
taking the not having found the assets album
dsnt perhaps he expectsd-he gently tapped on
the shoulder by the Sheriff, who invited him to free
lodgings in the county jail where he remains look
ing through the CRATES asking occasionally, one who
since the explosion Of the PlainAeld swindls ci
tzens are much incepsed against fraudulent bankers
- - Qat m in
afoat, In consequences Of the mistaken clemency of
New FORK Governor We will try hard to secure Norton
and Of his associates Norton 10 indicted for per-
jury, In having sworn, according to the laws OF this
State which very strict In suoh matters that the
actual cash capital Of the bank had been paid In
Indictments have been found against the cashier,
and Of the directors likewise; and there Is strong
disposition among citizens to have all the parties In
this swindng affair, properly punished More anon.
THE STATEMENT OF THE sUsoUKHANNA BANK.
The late DISASTROUS failure Of the Bank Of SusQus
hanna sounty-ths excitement created thereby and
Inc srronsou: satemsns OF tns CAUSES that lad 70 IT,
and before the public what believe to be correct
narrative Of the whole affair Although have not 1t
this time and never have had any personal interest In
the bank yet. recently, circumstances have made
acquainted with the facts relating to it. that previously
to its explosion, had been carefully concealed not only
from the public. bat from the board Of directors
the latter part Of the year 1874 the bank being In
state Of suspension from Losses sustained from the
financial operations OF the first cashier Isaac s.
Kelun, with storm and Mergsn, brokers in fhilsdsl
phia whereby nearly the whole Of the original capital
by the thsn directors ANGEL St. John then OF
Lambertsvle In New Jersey to rssusctate the bank,
tion resulted In an agreement whereby the original
stockholders surrendered without receiving any pay
nsnt therefor third Of the stock held BY them to
ANGEL st. John and his nephew, Thomas r. st. John;
and there placed their credit the stock book
the further Of six thousand dollars their pay
ing In one half Of the amount, or $1,000 and subss
Queptly, Thomas st. John took the further amount
Of $500 Of stock for which he paid In $l6to IL
further agreed that ANGEL and Thomas r. st. John
an int of Rec nd
that the other stockholders should elect six-thus
giving to the St. Johns the control Of the bank and
in addition Thomas to be the cashier. Mr. Goddard,
the partner Of ANGEL had In IL but What
does not distinctly appear except that some time sfter
there placed his credit 900 OF the stock issued
TO the St Johns The st Johns also agreed TO the
bsnh in operation and redeem the notes at the brokers
shop Of ST. John Goddard at Philadelphia, for which
purpose they furnish SIS 600 and sush further
might be found necessary for which they we're
to receive interest from the bauk they to continue
the redemption, agents of the bank, and maintain
the credit Of Its issues until the expiration Of the
charter In 1852 Ne sale Of stock to be made to
transfer the control Of institution by either party
without the consent Of the other. In pursuance OF
this sgresment Thomas p. St John removed with his
family to Msntroes and the bank RECOMMENDED ops-
rations, under the control of him and his uncle In
April, ts4S, and continued for aught that was
known by any OF the other stockholders until the
ploson, the 9th Of October last The money above
mentioned, paid In by ANGEL and Thomas p st John
together With the ma OF the original capital
not sunk BY Isaac Ksllum the first cashier and his
friends, Storm Morgan, consisting Of few notes that
had lain and claims against individuals, not
amounting In the whole to more than 80 600 IL to %
much-wss the available capital upon which operations
were re- eomnencsd and continued - osnnot aseer-
tain that there any further accession OF pta
however the smallness OF the basis
upon which the buinsss rested the credit
Issued tolerabiy we'll sustained and things appear
cd to go on smoothly until January ists when u va:
announced that the redemption Of the notes had
ceased not emily In Phsdelphia but In New Ysrk ito
which place ANGEL st. John had In the meantime,
Goddard St Jshn) and that they we're selling In
those cities lat fifty per cent discount meeting OF
the depositors but few Of whom stockh oders
in any way Interested in the bank called at the
banking house, by the cashier, Thomas p ". John,
Who stated TO them, that the s,oppage arose from
sudden ana unexpected rush Of the notes for redsmp
tion In those cities, which had exhausted their avail
able funds-tbst the bank had met With loss, and
ing to about s1s 600 days in rsdesning such
notes - might be presented ct the counter the bank
The depositors having full confidence In him and In
his representations net only permitted their money to
remain but increased their deposits what they conve-
nienty could which. together with payments made BY
debtors enabled him to pay all notes presented for re-
dsmptios. until It was found convenient to resume
end believe that the stoppsgs imam.
cal operation Of the st Jebns to enable thsm to pur
S ~, sns NOES h 90, .. .ne .m.a;
eons began TO be BY some that all was not
right aud they ceased making dsposits In the bank al
the mode In which the business -as tran.sctsd-tbs
IN temper shown by the cashier when bills we're pre-.
Of large amounts Of new nstes TO be- put circulation
The latter accsunt.d for BY Thomas 81 John,
vhsn asked Why It vas done BY hi. saying that he had
become tired Of seeing the notes With Isaao Ksum's
name 70 them that many Of them bad become worn
and defscsd and II intended 70 Withdraw them all
from circulation and Issue ones In their place.
Sine. then, however, the old nstes have appeared to
oirculsts ~ generally % they did before.
As have stated above, Ancel and rhos st. John
having the pewer TO nominate majority or the direc-
Of them being the Cashier and the other hay
ing the agency in both the elites Of New York and Pill
adepba the Institution had been almost entirely under
their control since the resumption Of business BY the
bank In April lsts and the meetass OF the directors
became and rsrs and the latter part Of the
time they did not meet at all unless called together
Tor particular purpose They, and the public gs-
psrally With but few exceptions, had great condolences
In the Integrity and financial ability Of Thomas 81
John, which continued until the bank actually srpo-
ded and another Why the business left
almost entirely, to the management OF him ssd his
uncle Ancel
brought to light by the Investigations which have
been made by the COMMITTEES appointed for that pur-
poss and Others ssd although other things believed
to have operated In some degree yet the following