Litchfield enquirer., 1858-10-28

Haven County Bank, appointed to investigate the condition of that corporation made their report last week, from which it appears that of the original capital of $500 000 about S370 900 has been lost by the mismanagement of the President and Directors ; the principal losses being from loans to Mr. Henry Dwight of New York, in reference to which the in- vestgating committee say
 In 194S, Dwight had discounted STA, ,799. .9S, without the knowledge of the directors; and in 1849 he had S363, 9G6, ,62, prior to any action by the board. S17 99S of which loaned without inter- est The balance against Dwight for money loaned on cash account for 1S47 and 194S, amounted to S90 267 .56. In 1850. Dwight had sSO3 693 C5 dis counted all of which except S2S GOO was not offered to the directors, and Sl70 800 without interest
 During 1851, Dwight borrowed on bills discounted Sl O56, 589 24, only S39 l6645 of which was sub mitted to the board until afterwards and $lC0 900 was without interest. SAP .23 was loaned with out an endorser but with collateras in tie shape of railroad bonds stocks, certificates of deposit, &c- The balance against Dwight on the cash account. at the end of 1851, was s80. 233. 3s.
 In 1872 he borrowed on discount bills $706, ,G6S. .06 none of which presented to the board, and S179 GOO was without interest. In 1858, Dwight borrow ed s45 505, s57 17G of which the board knew noth- ing about.
 On the 21st of February 1853, as the President states he receiveda telegraph dispatch from Dwight from New York, asking the President to meet him
 
 Dwight said he short and wanted $50 GOO. The President gave Dwight draft for $50 600, and the latter returned to New York. The President took no note check, any ether evidence of the indebt- edness, and says he had nothing to show for it.
 The Palladium speaks as follows of this expose of the Bank:
 It appears that of the capital of 500 600 dollars all but about Sl50, ,OG0 has either disappeared be- come of little value. How this has been done the rrDnrt shows in lnDutbv details in which dent of the Bank is made chiefly responsible for the management of its affairs
 What defence is to be made ifany, of these trans actions is yet to be seen. As they now stand, they cover with disgrace the parties implicated For their sake especially for the sake of the head of the ins tuion, from whom have always received the Il ost courteous treatment, we hope an acceptable defence may le made, for not only immense a. mount of money, but great deal of character is in volved in this business.
 It is beyond question established, that a great deal of the business of the bank has been illegally transacted and the only pallaton for that is, that others, even in our midst, have sinned in tEe same way. IL is however quite time that all the grand Napoleon Alexander the Great sort of fnancerng should come to an end throughout the State and that men of six per cent (not twopcnny) views made the managers of our banking institutions.
 The Register says:
 It all went on prosperously until Dwight failed, and then it found that these who had the most securities were the WoTSC Oil. but the Committee attempt to show that some of the transactions grow ing out of and originating in these loans to Dwight so irregular to make the President, and per hapS Of the Directors, personally liable to the Bank that he made the loans to Dwight without the knowledge of the Directors at the time' This is no doubt true but it is claimed that all his trans actions in the matter were regularly, though suhse quently. approved by the Board of Directors. There are also charges of ooseness in the manner of keep ing the affairs of the Bank-of individuals overdraw ing their accounts-of the inflequency of making held by the Bank collateral, slip through his fin gers. &c. &c.-which we magine are generally sus- ceptible of explanations. Indeed. Mir. Hochkiss sta ted in the meeting. that the charges generally urtrue-and would be shown in the future. The Committee also state that the President and the firm of which he is a member have at different times ovcr2rawn their account to the amount of S390 426 s. fer which they paid no interest This would be about four ffths he entire capital of the Bank and 1T frue, MT IIGtchkIgs must ne or rare ability to have earned fer the stockholders 10 per cent dividends on $500 GOO off the remaining S10G 000! We doubt if Dwight himself could beat such financial performance There has ever been a very large discretion allowed the President of this Bank-rerha2s more than is usual-nduced. proha bly,. ly his generally conceded ability as tnancier that in this case his desire to make money for the institution proved very serious loss to it that the whole transaction is to be deprecated and regretted brt that there is anythin" in the management of the County Bank affecting nnfavorabv the integrity of the President or Directors, we do not believe