The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-10
THE TROUBLES or TIE BANK of PENNSYLVANIA.
Meeting OF the Stockholders-Au In the Dark
The Runaway PRECEDENT Defended-The
BIN Legaiizing Suspension Aocepted-The
Commonwealth Bank-Frauds upon the
C1ty-The Quarantine Convention.
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OUR PHILADELPHIA CORRESPONDENCE
PMIADEIPmA, Nov. Q, 1857
Aspecia meeting of the stockholders of the Bank of
Pennsylvan held at their banking house. this
ing, for the purpose, stated the CALL determining
whether to accept reject the recent Relief the
Legislature.
The probability OF exciting and important questions
being brought up and discussed and statements
regard TO the condition of the bank caused large at
tendance Stockholders present from all parts of
the State and the place of meeting was crowded Long
before the time Of meeting squads formed in every
available place in the vicinity Of the bank discussing the
condition of the bank firm belief the 'vlany" of
the President was expressed, while almost all united in
condemnng the Board of Directors for their puslanmty
allowing the defaulter much liberty and then it
were, thanking him for absconding Men who a few
months since were well to do in he world gave an ac
count OF how they were led to continue holding their
stock, even when was falling lower and lower by the
representations Of Mr. Abone that all would be right
he pledged them his HONOR and they reduced
almost 10 beggary
At the meeting called TO order by the appoint
ment OF Moncure Robinson, ESD Chairman and Col Nor
ton hcMlchael, secretary.
Mr.. ROBINSON, on taking the chair, said-You know,
gentlemen that have only been very recently director
OF this bank having been appointed at meeting Of stock
holders held at the Exchange to ill vacancies occaSoned
by the recent designations felt my duty accept the
appointment, in order To obtain better information
corning the real condition Of the bank and be better able
to understand the udcious to be pursued
but in order to give stockholders an opportunity to take
whatever course they NAV choose in company with the
| other members Of the Board, / resigned my seat as
director on Saturday evening The President pro empe
Of the bank, Mr. Patterson will give you a statement
of the present aspect OF its affairs.
Col w. c. PATTERSON (brother Of Gen. Robert Patterson,
the sugar Spectator, whose name has been intimately
socated with the losses of the Pennsy Bank then
addressed the meeting You he said that the
late President left this country in very hasty manner
that suspicious reports aroused by this
the singular condition of the bank These reports and
the uncertainty of the affairs Of the institution the
stock to fall rapidly from the comparatively low
price then quoted at The Board OF Directors were
called upon to make statement of its affairs, and was
| them in investigating the affairs Of the bank You
now call upon me for a statement l tell you,
| gentlemen, no such statement can be made"
Great sensation was produced by this announcement)
NO statement can be made that might not be alsined
within the next twenty -four hours No statement be
made TO which would consent 10 place signature No
statement be made that honest should make
10 another All that know is that the funds of
the bank have been drawn upon to large amount with
out the knowledge Of the proper officers that
they have been used for improper transactions The d
rectors of the bank seem 10 be only that the
funds have been thus used Large transactions of the
President have to light since the suspension of
bank of which the Board have been entirely ignorant
for which the funds Of the bank appear been
Iouare aware, doubtless from public rumor Of the con
dion of many Of the Departments of the bank Indeed
the condition Of the bank appears to have been understood
more thoroughly outside than inside. You are by this
means aware OF the classification of lis books and the
reliability of the apparent assets. have declined
| the position 10 which you have raised me, of Pre-
sident Of this bank anc am here ask the stock
holders of this bank to depart from their old policy and
msue into its management a larger proportion of its
heavy stockholders now hold in my hand the resigna-
ton of every member Of the Board of Directors both old
and with tho exception of the late President who in
resgnng that office neglected resign his seat as drec
tor These designations are placed al the disposal Of the
present meeting may add that the directors who have
thus resigned are DESTROYS Of change the board and
Will render all the aid in their power TO facilitate the ope
ratons of those TO whom You may choose 10 give your
confidence. Permit me to say, that the bank goes
an now no man can say whether the assets Of
the bank sufficient to pay its debts But If carefully
Glen, to warrant voluntary subscriptions on The part Of
stockholders, and enable the bank to be resuscted at
some future period.
Mr.. ROBINSON the chairman again addressed the meet
ing As meager and unsatisfactory the statement of
Mr. Patterson appeared TO be- ne believed to be only
one that could be made There is accurate ulNn
which 10 proceed TO arrive AZ intelligent G con
corning the condition OF the bank For several Seass the
President has sold your bills receivable and abs+oted
funds in other for his purposes without
the knowledge OF the directors The money thus obtained
charged TO sterling temporary loans and various
ether accounts and experts needed opera
tons Of the President for the last four years order
arrive at the real condition Of the bank The Board pos
sess great many papers which may serve To aid in
tracing these operations and have but little doubt that
with the aid Of good board of directors assets or rather
claims. could be secured which yet aware OF
We may be able 20 get from those who aided the
| late President in the abstraction OF the assets
a, ans pank some portion OF ,he properly thus OBJ
counsel Of the bank advising the meeting accept the
recent Relief Act passed by the Legislature They arrive
nj this conclusion after much reflection and believe that
the acceptance can do injury, while II may possibly
be beneficial The present directors Of the bank will
ing 20 continue retire, the stockholders may desire
He believed the Board should entirely re ORGANIC, and
that committee Of large should be appointed
to select Board for there were some members of
old Board who would be better able 10 conduct other
business than that Of directors of bank The speaker
then referred 10 the dictatorship OF Mr. Abone con
strued that gentemans resignation Of the Presidency
resignation Of this also In conclusion Mr. R trusted
that the next Board Of Directors who will take in charge
the affairs Of the bank at this critical mnmen will pro
pery attend TO their business and each feel that he has
most important duty 10 perform They may thus be able
70 aid the widow in preserving portion of the which
she has nearly lost and also the charitable
situations interested IN saving portion Of the they
had deposited In the bank They may be able 10
additional property and assets enough 10 make this old
bank again useful 10 the community
The CHAIRMAN then read the following resolutionss-
Resolved, 1st That committee Of five large share
holders be appointed by the Chairman 10 recommend
such names for directors Of the corporation may
their opinion most desirable and that the prcsent
Board Of Directors be and they hereby requested
organise the Beard by successive designations and cleo
tons IN such manner as may be recommended by the
Resolved, Cd That Mr. Thomas Albone having left the
United states and his seat in the Board Of Directors there
by having become vacant, his resignation az President
should be considered by the Board u Directors as a re
1 sgnaiion also Of his seat Dire,tor
Resolved, 3d. That the Board Of Directors when reor
ganzed be and they hereby req csted report To
the stockholders, at an early period and FAR the
same can be done consistently with their interest what
extent tho capital a the bank has been impaired by
authorized fraudulent acts 81 the late President and
the names q any aders or abe,ors in such unauthorized
/ or fraudulent acts
Mr.. RomSsos wished the attention Of the Committee 10
be appointed 10 be particularly directed ascertain the
aders and abettors of Mr. Abone, for assistance he
have had and we shall then be able 10 know who IL
| that have robbed the widow. let their be by
words Of contempt and let the unwayerng finger Of
| ever point al them
Tho resolutions considered seridtim The rt was
| unanimously adopted.
| Mr. JONI " Dvr1oS member OF the house OF 2 Aus
tn, Abone Co, protested against the passage q tho
second resolution lie denounced the action Of the Board
% Directors IN bringing suit against Mr. Alhbonc eharg
ing him with sbscondng with 500 900 when by the
statement Of Mr. Patterson end that they possess
data on which 70 base the charge. He pronounced the
prevalent opinions IN regard 20 Mr. Abonc eventually
| proving untrue. Only give him time 70 come back.
~ this point there much confusion and the speaker
was interrupted with loud Kisses and cries Of No
1 He u never come back. Humbug.n
MT DrrTos contnued-I have right 10 speak as re.
present stock n this bank II exception Is taken ~ my
remarks you are free 10 answer them when ! have
i finished.
Colonel PATTERSON then endeavored silence the tumul
", hored no man would have his mouth closed TO day.