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

Bank out Of either The years. interest on the
James Loan or the two dividends on the
225 shares Of Lancaster Bank Stock. ss
Another direct, palpable and gross fraud
was committed upon The Bank in May, 1856,
by which il lost s4 900 of good securities in
the following manner; In February, 1856,
resolution passed the Board oil Directors for
the appointment Of Committee 10 investi-
gate it's condition, and on the Sd of March,
1856, the following Committee was announ-
ced, viz: Haihorn, FreeIand, Benz Eshleman,
Augustus Boyd;,A. Herr Smith, and Benz.
c. Bachman, Esars. This committee pro-
ceeded in the dischurgu of their duties, and
made considerable progress, before The div.
dends were declared in May, 1856. On the
9Th OF May, after The dividend was declared,
Mr.. Boyd, a member Of that committee,
moved The Boasd Of Directors 20 allow Mr..
Gleim 10 exchange with the Bank its stock
at s55 per share Cor bond of 50 900, which
the Bank held against Mr., Gleim as princi-
pal, and FIVE other responsible names as SUI
rites, which was allowed by The Board 10
be done. Mr.. Glem not having a, that lime
The the stock 10 transfer, Mr.. Boyd procured
for him power-of- attorney from his brother,
J. Taylor Boyd, and his brother.ln.!aw, T.
w. Henderson, for the, iransfer TO the Bank
of the stock held by them respectively, and
also gave power-of, ,alorney to transfer the
stock held by Mr.. Boyd himself, thus palm.
ing upon the Bank It's stock at $50 per share,
when he and the members of the Board of
Directors must have known the sock OF the
Bank 10 be worse than worthless.
Among other causes, also, of the insol-
veney OF The Bank, was the paymen, OF the
notes Of olher parties without there being
lunds standing 10 iLeir credit in the institu.
tuition TO meet them. The most barsiaced
in criminal transactions Of that kind may be
summed up as follows: 10 March, 1855,
VIM. L. Hslfensleia had notes maturing iu the
Lancaster Savings Institution for over $50, 900.
These notes were endorsed by either the
Presiden. or Cashier of The Lancaster Bank,
in their individual cepacily, and also by Jno.
F. Long and Thomss Baumgsrdner, then
also Directors OF the Bank. Al the maturity
oi these notes they were presented TO the
Lancaster Bank for payment, aud were di-
rected by the Cashier TO be paid, although
al Iie Iime.Nir iieifeIsIein had no funds in
Bank 10 his credit 10 meet them-,hus ap-
propriating The funds of the Bank TO their
own private Indebtedness 10 an amount ex-
ceedng $4,000. as.
Another cause Of the insolvency of the
Bank, was taking away from it, by David
Longenecker, Of 1000 of first mortgage
Sunbury Railroad bonds, which had been Ia
ken by the Bank as collateral and returning
10 j. in lieu thereof an equal amount of the
second mortgage bonds.
So early as I849, when Christian Bach man
was its Cashier, several transactions took
place which were the means of losing 10 the
Bank, more than S50, 900; one Of which was
the loaning 10 Mr.. Shoenberger, $25, 900 oil
the money of the Bank, without the approba.
tion OF the Board OF Directors; the other was
the loaning TO +. A. Yandyke, broker in
Philadelphia, SOS, 900 for which q specie Ger.
tfcate was taken, and which is still in Bank
having been counted as specie from Is4s &c
this time, in the assets of the Bank.
Among the losses 10 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 Ches ste
Railroad Company and on the 18th day @
September, 1852, 2,ihe Board subscribed 5000
in the Stock of the Sudbury Railroad Compa
ny--iEveslments of the funds of the Banl
foreign to the objects Of the Legislature u
comforting banking privileges; and no Banl
can exist in healthy condition, with its fund
locked up in securities, from which gold o
/ silver cannot be realized TO meet the demand d
OF lie circulation, and which are SO liable L
| dePrryiativ". - ,..
The whole management of this Bank, from
is4s, TO the day lie doors closed, has bee
characterized by wicked criminality on th
| part of the President and former Cashier, an
gIoss negligence on the part OF the Directors
in whom was confded iha; trust OF the Stock
holders, 1t has been used as family affa
without any regard 10 Tho rights OF the Stock
holders and Depos,ors, as il lis capital ha
been placed there for The especial benefit Q
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 TO tn
Auditor General. as required law, the publ
were credulously led 10 believe the Instilu
ton was in sound condition; but from a
examina,ion OF the books, these sworn stale
ments are found to have bsen false, and wer
known to be 50 by the Cashier al the time h
made them. - ~
4 As an example Of the mannerin which III
\ Bank was used fof the benefi, Of some ofih
1 Directors, the minutes Of the board show ih'
on March 18th, 1854, private banker, the
in the Board, was authorized 10 ovefdraw hi
] account, $4,000, paying inleres, n. The raj
/. of three per cent. pet anaum. This money
was, of conrssg used in ,shsying paper, an
twas liable 10 bs returned to ihe counters 4
1.-The Bank ths nextday, and gold orsilver Dc
manded Tor Il. ssetases slfsesFss.; sgsil
i II may belhat some of the paper held b
the Bank, which 10 now worthless, was di'
counted by D. Longenecker and B. C. Bach