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


10 wit: Messrs. Swayne, Whitehill, Minor
and Noodle, resorted to thefollowing fraud.
ulent and atrocious expedient' 70 relieve L
from its dangerous condition They resclv-
ed to increase the stock one-hslf-that is
Sl5o.ooO. This was accordingly dOae by
a vote Of the Directors. rs
Inrecommending and voting thisincrease
of stock, the said Swayne, Whitehill. Mner
and Noodle were guilty of fraud in the thsee
following particulars: rs
FIRST They artfully and purposely cen
cealed the wasted condition of the stock.
from the other directors and from all the
stockholders, who were Of the opinion thai
the Bank was perfectly solvent and In a
iourishing condition.
Second To induce the Stockholders to take
up the increased stock, the said Directors in
May last, at the time they had the project of
increasing the stock under consideration,
Ideclaaed dividend Of twelve per cent per
annum. 49,
Third. A fews days afterwards with the
same fraudulent intent, that is to induce
the stockholders to subscribe and pay the
increased stock. they struck offa surplus Of
ten per cent. upon the eaptal stock and paid 7
tito the stockholders. 4
At the the time this dividend and'surplus
was declared, the said Directors, Messrs.
Swane, Miner, Whtehill and Noodle, the.
Cashier knew that there was not dollar oE 8
profits on hand, out of which to declare ei-s9i
ther dividend or surplus, but on the con-! q
trary. there existed deficit of more than
S150,000. i was fraudulent expediene
ty extort money from the stockholders.
.;ssIh pursuance of this vote to increase the
stock, numerous stockholders, deceived by
the fraud of the directors and the falsehooas
.of the Cashier subscribed the inereasedasg
stock to which they were entitled, and paid.8g
thereon $4,000. Ga9 i ssi
Among the falsehoods uttered by the&a
Cashier, to conceal the condition Of the bank ), d,
or to induce the stockholders to increase n.
their stock, the following is one of the NEST
prominent. The Executor Of Lyme Starlingls
estate, which was entitled to about $50, 600 Il
of the stock, proposed TO increase it and ap-
piled TO the said Cashier to know whether
there was any connection betw, en- the Bank y.
and the Insurance Company. The Cashierg
denied that there was any connection shaslfg y,
ever. The Executor then requested WnTs
sulIivant to make an examination, in order
to test the truth of this statement. Mr, Sui
iIiyant accordingly made inquiry, Or an ex-
amipatEan, but did not discover the depreci;-
ated condition Of the stock, or the enormous
Indebtedness of the Insurance Company 10
the Bank. Confdng in the Cashiers state-
mept, the said Executor increased his stfisk /
and paid the rooney, TO the amsuntof s6, 600.
At the time that this faisehoOd was uttered.
ito wit: in May last, the Insurance. ComPa-
inv was insolyent, and owed the Bank more I.
than $780, 900. ae..vss
10 prevent the commission OF osher fraud6 ]
by color of this charter. your petitioner pFays
that the preceding charges may be Invest,
gated, and that the charter Of the said la
surance Company be declared forfeited for
gross and fraudulent misuser. 1900. 80.
All of which is respectfully submitted. NJ
| ri HENRY i. PAGE si