The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-03-04
from the PHILADELPHIA LEDGER. l

hEPokT TO THE LEGISLATURE BY THE
COMMISSIONERS TO INVESTIGATE THE
AFFAIRS OF THE PENNSYLVANIA BANK.
The commissioners appointed by Gov Pollock to
investigate the affairs of the Pennsy lvania Bank,
nave made their report to the Governor. The inter
est OF 1t Is much diminished by the recent report of
the Directors, but some facts are still Important
The Committee of the opinion that the capital
OF the Bank was not much impaired the LIST of
January, 1891. How it came to be lost in so short a
time is mystery to them.
Soon after the commencement of Mr. Allibones
administration. new accounts were opened and are
50 confused and complicated that neither president
clerks or cashier seem to understand them-bis
purchased, bills receivable, transient discounts,
temporary loans, sterling accounts, No and No. 2,
are In such utter confusion, that it is impossible to
unravel them. Buried up in these accounts is part
OF the capital of the bank.
w e have examined, under oath, the directors
but they appear to know little or nothing about
these accounts. Mr.. Newhall in March last. DURING
the absence of Mr.. Allibone was appointed Presi
dent pro tem. and from the 18th to the 25th of
March, directed Sl53 900 to be changed to transient
discounts and temporary loans Mr.. Newhal saws,
(under oath when Mr.. Allibone returned he gave
ms own note FOR the amount, and the books some
time during the month of July, transient discounts
has credit for an amount nearly equal to this sum
AS far as we can ascertain, Mr.. Newhall was the
only person beside Mr.. Allibone that ordere d
changes to be made to these accounts
The account of Thomas Allibone President, and
sums. The account of Thomas AIlibone
President, appears from his testimony to have been
entirely for the use of the Bank. That of Thomas
Alhbone Is unfortunately made up of his own and
the business of the Bank; he alleges, under oath
that large deposites were made to his individual
credit by parties not willing to open accounts in
the bank; and that these were from time to time
drawn out on his individual checks that very large
sums, amounting at one time to some six hundred
thousand dollars in few days. were deposited by
his friends, and that much of his private account
was made up OF transactions such as these, which
were, as he states, for the benefit of the Bank
10 one OF these accounts $4,000 IS CHARGED ,chicl
ras goen as compensation to individual for service
rendered IN e8ecting the sale of the banking house to tn
government for post office; also various memoran
e DUN checks amounting in the aggregate to many
thousand dollars, to g Il. j. r. :" wv C NJ & Co
for premiums, &C., (the initials only are marked OF
the checks.
If these sums were paid for premiums on uncur
rent money or for interest deposits they shout,
nave Deen charged to interest account or surplus
1und, and not carried along in T. Allibone, presi
dent, account, showing an erroneous statement o
the earnings or profits of the Bank
We not find any evidence that the Bank at an,
time took more than legal interest on any bills i
discounted but frequently sold bills on large sum
at rulnous rates. We find account of bills solo
by k. j. Ross d Co., at per cent. month"; ant
commissions Mr.. Quicksall also sold some for thu
Bank at from ~ to ~ per cent. month. Mr.
Charles Henry Fisher took from the Bank at one
time about 5000 O00 at what rate he does not recol
lect. Mr.. Fisher says this transaction was made al
the urgent solicitation of Mr.. Alibone to save the
Bank from destruction in 1853. This was the only
time MIR; Fisher bought the bills discounted from
the Bank =
The late President of the bank certfes that. with
in the last four years, he paid one firm in Third
street, over one hundred thousand dollars for inter
est on deposits at usurious rates In 1853 the bank
took from the Commonwealth SIS, 900 coupon bonds
in 1854 and 1855, these bonds were sold at loss 81
Sl3,25l H. The loss is still on the books as an as
set, under the head of coupon bonds of the State n
Pennsylvania. During the same year. it was dis
covered that one of the ook-keepers was in collu
sion with Mr.. Fry, and allowed him to overdraw hi,
account some $4,000 When it was discovered
the book keeper discharged, but the loss was
left on the books where it still remains as an asset
or addition to some $4,000 more, overdrawn by
other irresponsible parties, making an aggregate Of
Ss2,63S Is. There also considerable loss in the
purchase and sale of foreign bills of exchange moi
charged to proper account, but appearing on the
books asset.
- The Bank holds of its own stock, bought at differ
ent times by the president, costing Sl9S, O7O SO
Some time during the month of September last
OF the bills discounted disappeared an(
The Bank during the last five years. declared 4;
per cent. dividends its capital stock while w,
do not believe that after July 1853 it was in con
ditlon to make any dividend at all up to the tim,
of its suspension.
we examined great many witnesses under oath
ana but one person refused to testify; that wa
YIN. Kelly OF the firm of Robert J. Ross a. CO.
inns hrm had large transactions with the bank A.
times the balances of r. j. Ross Co., and r. J.
Ross, amounted to more than half a million dollars
Mr.. Alhbone, from the alleged confidential ma
lure OF some OF these transactions declined giving
the names OF some of the parties to whom Thu
money was paid. Sufficient, however, is known t,
Identity them, If those having charge of the affair
OF the bank choose to seek redress