The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-12-03
rr,e penn.,l,anla Bank an ph.laae,phla.

The Pennsy Ivania Bank tn Philadelphia.
TRIAL or THOMAS ALLIBoNE AID THOMAS A. NEW
RAIL FOR CONSPIRACY TO DEFRAUp.
Tbs case is now on trial in the Philadelphia Quarter
Sessions. We quote from District Attorney Loaehead's
opening sketch OF the history Of the bank ami out
Hhe o. the facts he expects to prove
The Bank OF Pennsylvania chartered in 1898 By the
legislature It's capital a, that time 50 600 900 In
this bank recbarted for twenty ge years 10
end ~ March, 1855 with reduced capital OF - 500 600
Under these circumstances the bank had history Of
eAampleo prosperity II had been the lavore bank ~
the commonwealth Of Pennsylvania; had been the re
ceptaoie for the public funds Of the Smte and was the
agency by which the transfer OF public stocks had been et
fected. In 1880 stood 10 that high and hourishng
condition; but a little after this the disastrous and
ruiuous time of 1887 and 1888 scame protrang indi-
vidua enterprise and the bank felt the shock in com
mon with others, and accordingly the capital, in ls4i,
was reduced from 50 5o0oo0 to ST 562 900, and the
shares OF stock, which had been taken ct $500 per
share, reduced to make the par value $3.50 The
hank under that reduction of capital again rallied and
business flowed into her DOORS and, 1919 she felt suf
GENTLY recuperated 10 ask extension. BY the act
of ls49 the capital was increased to 81 600 and thus
the gentleman who had for number of years been acting
the president OF this bank retired and then that
Of these defendants elected 10 fill that highly
ponsble post At this time Mr.. Newhall director,
ana il is believed That hewas active and mainly iustru
mental in promoting the election of Mr.. Allbone. During
the few last Yeas, whenever the president called
away, he called as temporary president, Mr.. Thomas
Newhall There are peculiar privileges allowed to the
presidents OF banks there are peculiar accounts, kept
from every eye except that of the president the clerk
having it in charge But there is more than this intimacy
between the defendants member of the family of the
presden, became the partner in business of Mr. Newha
and many of the loans running through the books Of the
bank are loans to the cashier of the business firm.
The facts which the monwealth is prepared to
rroye were then set forth by Mr.. Ioughead The
Board of Directors, placing the most implicit reliance
in their president in the habit of meeting and pass
ing upon the merits of paper presented to them, and
selecting such amount they thought advisable, and
after the transaction OF this and other necessary business
they supposed the affairs of the bank had been attended
to. But they were mistaken 1t was after their labors
had concluded that the business OF the president or the
acting president, transacted On the 9Th Of July,
1857 The president without the knowledge or authority
or assent OF the directors TO the defendant New
hall the accommodation OF the bank TO the amount OF
eli 900 IN bills OF exchange, hch he drew house in
LIVERPOOL. The transactions Of Mr. Newhal were very
large and il ssary for him TO make remanCes
10 this house, and became necessary that he should
have the means TO do, aud then that he pur
chased from Mr. Aibone the draft before stated ON the
l4t Of August another draft or eli 900 handed to
Mr. Newha, again without tho knowledge Of tho drec
tors and ON the st Of September ne had s9699 - from
the president and the 81 Of Sepember further
OF 50 GEO. max aggregate from the 9th Of July 10
the % Of September Of s262 254 IS obtained without the
seyerl accounts which Mr. Ncwha kept paid for ia
this Mir Ncwha'l gave what called his memo
rauduu checks, checks which not handed To the
teller drawing The casa, but they represent the cash
ana placed the receiving tclers drawer, whore
they represent 50 much specie while they lie there In
this way, during the whoe 81 ths Time up to the 13th
September, these large Sums were paid Ter by giving
memorandum checks amounting to a0out $4,000. In
the beginning OF 1851, toward september when the iiuar
Ca crisis passing the land. Mr.. Newba found
that settlement must be made. The bill of oxchang,
on the Liverpool house had 10 be met aud accordingly on
the 18th ~ September, Mr Newhlil, IN the Of his
hrm drait bill IF exchange a hoGsc in Man
chr.,er for $50 OoN when Il ! alleged that he had NOT
ono dollar coming from that quarter. But something
must bc done with that bill aud NJ Albone, without the
knowledge Of the directors buys the paper from Mr. New
hall and ~ four or i've days aterward, while Mr. Ali
bone was absent, he TO the clerk and told
told him that he should be ceedei for this s50510.
and accordingly be received credit tor about $40 600
II vas thus that he was enabled to lift bis mem.
orandum checks. The 25lh day OF September arrived
ana this bank which had so long enjoyed the confidence
Of The public found TO be lettering and that day
the depostors nOtehOlders and stockholders TO its
doors TO transact their usual business and found them
closed. During this time MI Alibone seldom came 10
tie bank being necessarily engaged with the officers OF
other institutions about the 5th Of October he
tohs home. alleging sickness. Mr. NewhlI had been
taxing active part the affairs Of the bank and during
Mr. Aibonc absence acted president ON the 2sth
september and before Mr. Albone had retired 10 his
house MI Newhall came into the bank and went to the
note clerk. whose duty Is, when notes offered for
discount enter them on his book ana transfer them %
the cashier, who returns them about the time they
ture IN order, order that they may be arranged for
payment To this clerk Mr.. Newhal, acting president
made application for certain amount Of bills lie
leced fromhe bills then the property OF the bank si5
400 81 worth Of the bills discounted and approaching
turty. Several of the notes were due the next day,
and none Of them maiured at any very dsan,
period. Among the rest were two notes CT $4,000
each, one oi me fnadepha anu Reading railroad
Company, and the other OF William Boyd 20.
These taken by Mr.. Newhall, he depositng
with the c r. for the lsame his memorandum choks The
$40 900 each due the LIST Of OctObeue
the bank they bad been discounted there and
payable there Morris Halowell Co. had been large
deposor the bank and when liz doors closed they had
heavy balance their favor. They thought lust that
what the bank owed IN the way OF deposit should be
taken on account Of the then coming due against
them and il was understood that the matter would BE- ar
ranged In this way, the firm giving their check for the
balance. Tie notes coming due amounted to $40 900 ana
they had deposit sl4 coo These notes the
possession q Mr. Newhal. with the understanding that
he q carry them 70 the counting house Of Messrs
Hallowell Co lie did call on the firm, and received IN
exchange for the check OF the Bank Of Pennsyva
Tor $4,000 The amount ON deposit there and also re
oevcd O; checks upon three solvent and paying banks
10 the city for the MANIFESTATION. Mr. Newhall then
the funds and about two hours he returned 10 the
bank aui made settlement with the clerk. He handed
e. that individual payment first the check Tor sl4 900
he then hsudcd an undue Of the Philadelphia and
Reading Railroad Company for $4,000, which be had
taken from the bank the 2Sth lie also handed
a check the Bank q Philadelphia for s0 ooD, dragn
by the cashier anu payable IN blank. and bal
ance Of The $4,000 gave $1,000 the notes az the Bank
Of Pennsylvania ou another occasion sl3 800
drawn ifom the receiving teller IN the same manner Mr..
Lnughead then referred 20 the state IN which the Gre
proof safe found by the stockholders after il hAd
been represented by Mr. Aibonc the
amount Of million q dollars ~ assets Of value
found Al all The book Ia which Ne transient discount
ACCOUNT Is kept. referred 70 by Mr.. Loughead
showing dect ol Sl.5 600 THIS book under the con
troll Q, hc es'dent o. acting president alone Tic deficit
"a been madc M n fart, ana now stands s3Ol 900
Aear, the temporary loan account, which i for the
accommodation q parties apply NJ between boards,
shows dchci " s320.0OO. The "sterling account
Eo exhibits evidences Of mismanagemeut, &c. and %
cover ap nee the president directed that Tie account
should % pui into the individual ledger (which closed
a. every orc excent the preside himself
Tie bret witnesses called were clerks and directors 81
the bank who testified the course Of business n tho
bank. and verified certain Tapcrs offered IN evidence
DR. John Whitcman, ST., testded-I wa On.
gagged IN the bank as hrst teller; paying teller was
there over twenty years up 10 the time q ia fasre
anu assignment ] bad some memorandum checks.
there were three q them not more than three
one Il item vas for $50 600, dated July IL, 1857 /
Vns G tc ls.h from the 9th H. the lith ~ july
1uctar. .sai ihc 18th u August. Tor $50 900 aud
some ,arcas think another one for So 200,
~ AT rlslot -coolec, had the whole three to
k1t.& .Ht.a h.f traWtf ava counter a. my