The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-07-24
PENNSYLVANIA BOGUS BANKS IND NEW
YORK STATE FINANCIERS--IMPOR
DISCLOSURES.
IFtom tao North American, July I'll

We publish to-day long but very interesting report
just made by committee appointed by the last legisla
ture of this Commonwealth to investigate the affairs of
sundry new banking corporations in the interior The
expose calculated to be very useful showing how the
Spectators Of New York State in the habit of dab
bling in financial matters in Pennsylvani with view
to swndling the community AS thoroughly as they do
their folks at home similar investigation in New
Jersey lately by the governor and other officials devel
oped state of things worse
The first Of these Pennsylvania banks all of which
chartered at the legislative session Of 1851 is the
Ioga County Bank The letters patent state that the
subscription amounted to 069 shares and the commit
found that 040 of these had been subscribed and
the first instament paid in single day. by certain Buff
alo finances, of whom Wells d. Walbridgc for himself
and various females, took $40 shares, while Edward d.
Thayer of Buffalo, took 200 more, and j. Porter Draw
ley the remaining 200 Iheyer belongs to nest of
inancicrs of that in Buffalo, of whom opened
the bank and entered discounts to the amount of
$40 655, all to Buffalo parties G. p Steers, OF Buffalo,
who elected teller of the bank that upon taking
charge Of it there deficit of 6373 The discounts
now amount to $50 066 49, nearly all of which has been
to Buffalo parties and ALL except note of ST. l00 in
sums of from S. 900 to $500. The 1hayers and Wal
bridge figure either drawers endorscrs In nearly all
of these 1t is clear that this bank purely spccua
tive the subscription notes having been Immediately dis
counted.
The same parties appear to have been the operators in
the new bank of Crawford county. 10 this concern
1854 shares of stock subscribed of which 1910
by the Buffalo gang and the rest by j. Porter Braw
ono OF the same party
shares This subscription paid in Toga County Bank
notes. being chiefly the $40, 1856 discounted at the
ganzton of that concern, except about 5000 paid in
specie The bank has circulation of $34 055 against
81 1876 "a in gold and silver, and its discounts reach
ST. which 500 has been to parties out Of
the State The teller states that he and the president
ordered at the time the engraving of the plates for
both this and the Iioga County Bank.
The Thayers again figure the parties taking the
stock of ne new Sl.amokin Bank, of which the whole
subscription l640 shares while they and their
cates took 1920 shares One of the Thayers sstled for
all the stock subscribed by persons not residing in Sha
mokin and paid no money except 81 900 in gold and
1928 900 in notes Of the Iioga and Crawford counties
banks Immediately upon the organization of the bank,
the books show that SO OF discounts were granted
to j. Jackson of New York city, and Underhill Lock-
hart, $3S, 900 being in item to Jackson The en-
dosers Of these notes j. W. Underhill and r. r. I'M
derhl while the teller of the bank is Robert Underhill
The circulation amounts to $26 450 and the cash to 81
! 372 05.
The cashier David A. Robinson, formerly of Buffalo,
explains that the money paid in capital stock of the
bank discounted to the parties named and the notes
were left the capital of the bank. person named
Street, pretcnce Of being Of means who intends
ed subscribing $40 900 to the stock of tho bank,
trusted with 800 900 to arrange system Of exchange
with the banks Of western Pennsylvania instead of which
he appropriated the money to his but was af
forwards arrested and obliged to disgorge j. jackson,
who figures principal operator in this bank alleged
himself to be worth $40 400 which, investigation,
turns out to be moonshine. j. H. Robinson another
party to whom the discounted $3S, 900 transferred
check About So, 900 Of the bills of the Shanokin
Bank were obtained from it by Robinson and used to
pay the first instalment of subscription of stock by him
| to the Mexican County Bank. How this money pro-
cured does not appear but II not by discount it
| was to be returned to the bank
Among the persons acting with the Tnaycrs, and be-
longing to the Buffalo party in oil these banks w.
Mech, several named Ganson c. III. Payne, and M.
Carson These appear again in the stock subscription to
the Bank of PhUnixville which, had organization
taken place, would have stood 200 shares taken by
Buffalo and vicinity, 1913 by PhGnixville. Some of these
subscriptions TO the amount of 1000 shares taken
for others by parties who only held powers of attorney
TO subscribe 500 shares They altered the figures at the
time Of subscribing The first payment on the stock
made in notes Of the Ioga County Bank, which was
objected to by the commissioners, and an investigation
ensued ending in the subscriptions being declared bogus
and withdrawn.
startling revelation is made by the committee rca-
tive to the bankno reporters Proof to have
been afforded that OF these publications regular
black mil Sheets which quote banks in good bad
standing according the conductors feed Letters
and circulars are described being sent to banks
curing immediate correspondence personal VISIT 10
make certain arrangements, pain of dsagreable
| sequences
Altogether the report is calculated TO surprise the pco-
pie of Philadelphia and Pennsylvania, and put them
on their guard against spectators in bogus banks All
these institutions have been manufactured by gang
of Buffalo operators and of the worst species Of wild
! cat
! 4