The Democratic sentinel and Harrison County farmer. [volume] (Cadiz, Ohio) 1851-1852, 1852-04-07

until his death, which occurred nearly two
Iyears ago. # .H. ..ar d
From the year 845, and for long time
before said Joel Buttles was also director
of the Columbus Insurance Company, and
retained the Office until his death, and was
1ne of the principal stockholders in this in
Istituion. Messrs. Swayne, Whitehill, Mi
ner and Noodle we've, at the date last men
toned, and for long time before, directors
and stockholders in this insurance company,
and are SO at the present time. .....'
There was never any connection whatever
between the City Bank and the Columbus
! Insurance Company, by reason of anything
contained in their charters, or by virtue OF
any agreement entered into by the two inst
tutions. They were distinct and indepen-
dent companies. By far the largest number
of stockholders in the City Bank were in no
manner interested in the insurance company
and by far the largest portion OF the stock of
the former was owned by persons who were
not concerned in the latter, The remaining
4 directors of the bank, whose names are not
specified, and who were generally three or
\ four in number, had no interest in the insu-
rance company, and had no knowledge that
tany connection ever existed between them,
or that any important business transactions
ever occurred. g
| Several years ago, at a date not precisely
known to this petitioner, the persons above
named to wit: Joel Buttles. N. II Swayne,
JOS Whitehill, VIM. Miner and Thomas
Noodle, as officers in the City Bank and In
surance Company, entered into conspira-
cy to use the money Of the bank, to support
the credit of the Columbus Insurance Conn
pany. Of this company the stockholders Of
the City Bank and the other directors, had
no knowledge and were kept profundly igno-
raut. iAIu al ..a g-.. aaa-a
In pursuance of this collusive understand
ing. the said persons, to wit: Buttles, ,Swayne
y hitehiil, Miner and Noodle, proceeded to
apply the money of the City Bank to the
usc of The Insurance Company, to a very
large amoun,. They made loans to said
Company, p.id 4beir drafts, permitted them
to overdraw their account, cashed their
worthless paper, and made large loans to
individual members of the Incurance Conn
pany. These frauds were practlced unIL
sometime in thoiyear 1849, whea in conte-
quence of The loss sustained by the great st.
Louis FIRE, the Insurance Company became
insolyent. .s.,......
After the Insolvency of this Company
the persons above mentioned made. use of
nearly the whole amount of the stock of tie
City Bank to sustain this bankruptinsttution.
They increased the Indebtedness of the In
surance Company to the Bankto an amount
exceeding $150,000 and this petitioner be-
lieves, to an amount nearly equal to the
whole capital stock of the Bank, This in
lebtednesS was created and enlarged by
loans to the Insurance Company; by cashing
worthless paper; by paying its drafts upon
other persons when sent to the bank for col
lection; by taking up drafts put into circula-
ton by the Directors of the Insurance Com
ipany, who were personally liable the reupon.
4 All these frauds were concealed by false
statements made by the Cashier to the other
Directors and to the Stockholders by false
oaths upon the semi-annual accounts which
the cashier is required by law to file with
the Auditor Of State, and by false entries, as
this petitioner believes, in the books, or by
totally emitting to place these transactions
upon the books of the Bank. Competent
persons, annually appointed by the Govenr-
or to examine the Bank, did not discover
Ithis misappEcation Gifts funds; some cunning
!. artifice was practiced to conceal them. To
I persons desiring to purchase stock in the
Bank, and applying to the Cashier for in
formation as to its condition, he repeatedly
asserted that no connection existed between
tthe Bank and the Insurance Company, and
that there was no indebtedness Of The latter
2 to the former. 7.s aa .aufaa}.sg.
J In the mean time the City Bank declared
h dividends of twelve per cent. per annum
and on two or more occasions divided a sur
plus of ten per cent. upon the stock
This misapplication of the funds Of tht
!, Bank, continued until the first of May, 1851
, when its funds were so far wasted that tht
bank was upon the. verge Of insolvency, Ye
at this date, when the Indebtedness of thI
Insurance Company, aninsolyent institution
! to the bank, exceeded half Of the stock o
the bank, the Cashierfled his sworn state
ment with the Auditor Of State, in which h
is requifedby law to make listof the bat
= debts due to the bank. and he did not re
port one dollar of bad debts, .1if
q TAt the period referred to, Joel Buttles be
a ing dead, Robert Mccoy was President Q
the bank, and James Mclean and Davis
\ TAYLOR we're Directors, in addition to th
other Directors above named,s These per
! sons had no knowledge Of the frauds tha
had BEEN praeticed inithe Bank. or Of n
I, s,,, .,s.L tl,o Ittettranent Camnany Il