The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-03-05


OF OBSERVATION-DISCLOSURES INVESTIGATING CON.
MITTEx REQUIRED.
BANK OF PENNSYLVANIA !
PTIADMPHIA, Feb. 20. ISIS.
To HIS ExcEIIENcY WM. =. PACKER, 6ovERSoR-
The undersigned were appointed under The act OF Oco
ber 1857, by your predecessor Governor Pollock, Com
mssoners investigate the condition Bank OF Penn.
sylvania. On the 1Ih OF November we commenced our
duties, and after partial examination adjourned. We
met again on the 10Th Of December and without arriving
at a satisfactory conclusion adjourned On the ON INST
we met again, and now submit our nnal report
When we first commenced examining tine assets OF the
bank, We were astounded at the apparent deficit and
some OF the accounts kept confused compli.
Gated msnner, were inclined 10 think that great
errors might be brought 10 light that might the bank
from assignment and the stockholders from loss
we had completed them the bank made yolnniarx as
Segment thereby relieving from the necessity OF fur
Their inquiry into the nature and value Of its present
sets and the amount Of its liabilities. We think due TO
those interested that the which led TO the assign
ment should be given. far could ascertain them
We believe the capital OF the bank was very little, II
any impaired the OF January 1853 The question
naturally presents itself how large capital lost in
50 comparatively shor. tmef 1t is remarkable that mono
OF the directors Of the bank had any suspicion OF fall
I ss f00d00 until AFTER the suspension OF september
rectors, vz-Danel Deal Charles Snnics son T. H. New.
hall VIM. p Newlsn, Isaac p Morris, Nathan II. Howell
OF Tho bank they each certify 10 a statement, that
s3 3so,35l o. bills discounted, bills Of exchange and
loans were found on hand when the books show that tho
bills OF exchange dscounedby which meant bills pay
able out Of the cyall that the possession Of the
note clerk amounted 10 only 81, G9T ,2O5 OF.
These appear 10 have been correctly examined. Tho
balance-$l s73, 141 1S-they did not examine. These
the temporary loans and transient discounts in the
Presidents safe Without examining them at alas each
OF them estnesthey signed certificate that they
were correct We can imagine how these gentlemen sign.
ed this statement, on presumption was rigai but 10
at the time no, correct These examinations OF the
directors annual annual and II they had been
thorough for the last four oe i've years the great wreck
Examinations partial and loosely conducted as these
appear to have been cannot be too strongly condemned
The Trtes making this excused themselves by saving
that they took the Presidents word that all rkhtD
II that sufficient excuse for not examining part Of
the assets they might we'll have taken his word the
whole the statement found the books. A, IS not
less remarkable that the officers and clerks OF the bank
all appear 10 have been entirely ignorant Of lis true
shortly after the commencement Of Mr. Alibones ad.
minstrson new accounts were opened, and eou.
clerks TO understand them: bills purchased, bills
receivable transient discounts temporary loans sterling
No and No q are in such utter confusion that Il IS i'm
possible 10 unravel them Buried up accounts
apart Of the capital OF the bank
We have examined under OATH the directors, but they
appear to know little nothing about these accounts Mr..
Eewka in March last, during the absence OF Mr.. Ali
18th to The 18th Of March directed si53 900 TO be
charged TO transient discounts and temporary loans
q hs 0o.a or me- a
the books some time during the month Of July tran
sen discounts have credit for an amount nearly equal 10
the only person, beside Mr.. Allibone, that ordered
charge s 10 be made 10 these accounts.
The account OF Thomas Abone, President and Thomas
Allibone, amount, in the aggregate, 10 immense
The OF Thomas Abone, President appears from
his testimony 10 have been entirely for the use of the
bank That OF Thomas Abone is indiscriminately made
up Of his and the business OF the bank he alleges
under oath, that large deposits made his iudiv
dual credit by parties not willing 10 open accounts In the
bank, and that theee from time time drawn out
on his individual checks that very large sums amount.
ing nj time 10 some six hundred thousand dollars
in a few days deposited by his friends
transactions such these which were, he states for
the benefit OF the bank.
10 one Of hese accounts s25 900 Is charged ,chh ,as
Qus az compensation 10 indridudl for services rendered
for post cbfce; also various memorandum checks,
amounting the aggregate 10 many thousand dollars TO
'tR J. r, Nv. " 90. = for premiums &C. (the mi
tias are only marked on the cheoks)
Ifthese sums were Paid for premiums on uucurrent
money for interest deposits they should have been
charged to interest account, surplus fund not car
rcd along Thomas Abilene, presidents account show
ing statement Of the earnings profits the
bank
We do not find any evidence that the bank al any time
took more than legal interest any bills il discounted
hut frequently sold bills on large ruinous rates
We find account Of bills sold by r. j. Ross Co, nj
PER cent month and commissions, Mr.. Qucksal also
sold some for the bank at from ~ 70 q. per cent
month Mr. Charles Henry Fisher took from the bank
one time about 1900 600 Al what rate he does reco
lect Mr. Fisher says this transaction made st the
urgent solicitation Of Mr. Abcne, TO save the bank from
eeetruction In 1858 This was the only time Mr. Fisher
bought the bills discounted from the banks.
II not take much calculation 70 perceive that in dis
counting bills in large sums nj per cent and selling them
from n 10 n per cent there great loss that must be
charged some account 10 keep the books straight
Another OF oss 10 the bank the habit OF paying
vsvIous interest on deposits The late presidsai