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

Of the bank certiass that, within tins iaa fs~
Sss ia ne Paa one hrm in Third street oyc
posiS AZ usarnus rates In 1868 the bank took from 0e
wealth s76 900 coupon bonds in 1864 and LIS
stu on the books as asset under the head Of oOapoa
bonds OF the Stsie Of Pecnsyvauia During the sans
in coiiuson with Mr.. Fey and allowed him TO oyerdraW
his secocni come $4,000 When was discovered, IL
boob keeper wse discharged but the loss was LEFT on ~
books where It still remains as an asset aaditiop y
some sl2 Oo more overdrswn by other irresponsible
sso loss Se purchase and sale Of
ts Of exchange, not charged 10 proper account b
appearing the books asset
The baos holds of its own stock bought al dIfaronk
times by the President, costing $l9s ,o70 6S.
Seine time during the month OF September last sos Ass -
OF the bills discounted disappeared and have not enSs
been All this time the bank was doing large bua-
noss having from twenty five to thirty clerks, including
amounting to ovef $40 COO per aDDum and declaring div
deuds, nevor less than four ana usually i've per oenk
every elk months.
The bank during tho last five years. declared II per
cent dividends its capital stock, while We do not b.
leve that after July 1862 il was in condition TO mako
any dividend at ali, up to the time OF its suspension.
Wo examined grea. many Witnesses under oath, aaA
but person refused to testify: that was VIM Kelly e
transactions with the bank Al the balances Of j.
Ross Co.. and r. J. Ross, amounted to more than half
We think the causes that produced the failure Of ~
bank dividends declared not earned and taxes o.
theso dividends, amounting together to moro than has e
he capital Of tbs bank Understanding taxes due the com
ea and attorneys fees in litigation or the same
500 COO lavish prodigaly in the ordinary ana ex
aornary expenses of the bank usurious interest PAID
deposits enormous losses paid the sale Of the bills
discounted Of the bank loss coupon bonds OF the Sao
OF Pennsylvania and city loans overdrAws on the ndvds
o. ledger discounts paid on uncurreut money loss o.
foreign bills Of exchange, 6tock Of the bank, and bad
debts and loans now in possession OF the bank May
the losses charged TO T. Alibone, presidents &C
count the individual ledger aud Of course did not aP
pear the general statement Whether any Of the money
paid without consideration or what we think usurioAs
contracts can be recovered is not tor to inquire o.
decide.
Mr Alibone from the alleged confidential nature a
Of these transactions, declined giving the names q
some Of the parties TO whom this money was psA-
Sufficient, however, IS known 70 identity tnem those
having charge OF the affairs Of the bank choose TO seek
The bank seems to have under the entire contrd
of the President who was, we think in many respects.
untitled for the position and by his impruden uanciex
ing often put himself in the power Of large depositors and
money Dealers who used their power without conscience
or mercy.
The difficulties in the bank commenced in the summer
of 1852 and the President appears to have INDUCED ha
vain hope tbst every trouble would be the last and that
every sacrifice to obtain money to sustain the bank would
give permanent relief and could soon be made up while
little reflection ought to have shown him that the "Shy
locks" who controlled him were, in every transaction.
plunging him deeper into trouble, and fastening taer
faDgs into the very vitss OF the bank.
While the President had those about him who weCo
plunderng him, it may be well to state that one rrn
syvaDa during the month pendng its failure The same
firm, the President says under oath, did this and much
more, without ony consideration
We and evidence OF fraud the part OF the lat6
President but ne appears NOT TO have taken time TO reflect
the consequences of his reckless management the
trouble to look into the deals Of his operations IT. he
says he did not know the true condition OF the bank 81
the time of s suspension, shows degree Of ignorance
of what he was bound to know that is wholly nexcuaSo,
and scarcely less than criminal
We think that OF the other officers OF the bank.
particularly the cashier on whom more especially de.
volved the examination OF accounts in detail and geners2
supervision Of the books should have discovered ths
vitality of the bank disappearing aud taken measures
to arrest its destruction do think the directors and
others officially connected with the bank are free fron
censure they ought 10 have seen and known that hA
manner of its management would end in disaster.
The finale or this bank shows there IL little utility and
ess reliance to be placed the bank statements, "a
sworn by the officers Of bank, and sent 10 the Auditor
General.
The remaining assets OF the bank the hands Of the
assgnees, Messrs W. C. Patterson, W. Ltteton Savsgs
aud John d. Taylor We have confidence that the inter
ests Of creditors will be carefully and viglanly attended
to. These gentlemen have labored assiuousy TO protest
the interests OF the bank and have already accomplished
much in bringing the affairs OF the bank condition 70
be understood. Respectfully submitted,
JAMES T. HALE.
ELI SiIFER,
J. c. BOMBERGER