The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-01-21

curities for the James Loan, alter t1e Board
agreed to the exchange, thus defraudng The
Bank out Of either the years interest on the
James Loan or the two dividends on the
225 shares of Lancaster Bank Stock.
Another direct, paIpabls and gross fraud
was committed upon the Bank in May, 1856,
by which i, lost 81, 900 of good securities in
the following manner: In February, 1856,
resolution passed the Board Of Directors for
the appointment of COMMITTEES 10 investi-
gate its condition, aud on the Sd of March,
1856, The following Committee was announ-
ced, viz: Hathorn FreeIaud, Benz Eshleman,
Augustus Boyd; A. Herr Smith, and Benz.
c. Bachman, Esqrs. This committee pro-
ceeded in the discharge of their duties, and
made considerable progress, before the divi.
dends were declared in May, 1855. On the
9Th OF May, after The dividend was declared,
Mr.. Boyd, a member Of that commiltee,
moved the Board of Directors 20 allow Mr..
Glenn 10 exchange with The Bank its stock
at $55 per share Cor bond of 81 900, which
the Bank held against Mr.. Glenn as princi-
pal, and five other responsible names as SUI
rifles, which was allowed by the Board TO
be done. Mr.. Gleim not having at that time
The the stock to transfer, Mr.. Boyd procured
for him power-of-attorney from his brother,
J. Taylor Boyd, and his brother.ln.law, T.
w. Henderson, for the transfer to the Bank
Of the stock held by them respectively, and
also gave power-of. attorney 10 transfer the
stock held by Mr.. Boyd himself. thus palm.
ing upon the Bsnk lis stock at S55 per share,
when he and the members of the Board of
Directors muat have known the stock of the
Bank TO be worse than worthless.
Among other causes, also, of the insol-
vency Of the Bank, was the paymen. of The
notes Of other parties without there being
funds standing 10 their credit in the institu.
tuition TO meet them. The most barsfaced
in criminal transactions of that kind may be
summed up as follows: In March, 1855,
VIM. L. Helfensein had notes maturing in the
Lancaster Savings Institution for over $50, 900.
These notes were endorsed by either the
President or Cashier of the Lancaster Bank,
in their individual cepacily, and also by Jno.
+. Long and Thomas Baumgardner, then
also Directors OF the Bank. AT the maturity
oil these notes they were. presented TO the
Lancaster Bank for payment, and were di-
rected by the Cashier to- 2be- paid, although
a, the limesMr. Helfenslein had no funds in
Bank 10 his credit 10 meet them-ihus ap.
propriating the funds of the Bank TO their
own private. indebtedness 10 an amount ex-
ceeding $4,000.
Another cause of the insolvency of the
Bank, was taking away from il, by David
Longenecker, OF $4,000 of first mortgage
Sunbury Railroad bonds, which had been Ia.
ken by the Bank as collateral and returning
10 ii in lieu thereof an equal amount of the
second mortgage bonds.
So early as 1s49, when Christian Bachm man
was its Cashier, several, transactions took
place which were the means of losing 10 the
Bank, more than $4,000; one Of which was
the loaning to Mr.. Shoenberger, $685. 900 of
the money Of the Bank, without the approba-
ion Of the Board Of Directorsj the other was
the loaning 10 F. A. Vandyke, broker in
Philadelphia, $4,000 for which specie cer-
ti6cale was taken, and which is still in Bank,
having been counted as specie from 1s49 to
this time, in the assets of the Bank.
Among the losses TO the Bank, may be
enumerated Subscriptions of Stock 10 Rail.
roads. On the 9th of December, 1852, the
Board of Directors subscribed $4,000 in the
Stock of the Philadelphia and West Chester
Railroad Company and on the 18th day Of
September, 1852, the Board subscribed $4,000
in the Stock of the Sunbury Railroad Compa.
ny--iEvesiments of the funds of the Bank
foreign TO The objects of the Legislature in
conferring banking privileges; and no Bank
can exist in healthy condition, with its funds
locked up in securities, from which gold or
silver cannot be realized to meet the demands
OF its circulation, and which ate so liable 10
depreciation.
The whole management of this Bank, from
1S4S, 10 the day its doors closed, has been
characterized by wicked criminality on the
part of the President and former Cashier, and
gross negligence on the part of the Directors,
in whom was confided tha; trust of the Stock
holders. II has been used as family affair,
without any regard 10 the rights OF the Stock.
holders and Deposilors, as if its capital had
been placed there for the especial benefit of
those, who, by misplaced public confidence,
succeeded in the control Of lis management.
From the sworn statements OF B. C. Bach
man, its Cashier, annually Furnished 10 the
Auditor General. as required law, the public
were credulously led to believe the 1nstitu-
tion was in sound condition; but from an
examination of The books, these sworn state-
ments are found to have been false, and were
known to be SO by the Cashier at the time he
made them. e.
As an example OF the manner in which the
Bank as used fot the benefit of some of the
Dire ciors, the minutes of the board show that
on March 18th, 1854, private banker, then
in the Board, was authorized 10 overdraw his
account, $4,000, paying interest st the rate
Of three per cent, per annum. This money,
was, of course, used in shaving paper, and