Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1860-06-08

security for oil he modsy they had used. A
good deal 81 the money used was not charged
on tho books, butA good deal was on memo
randA and tickets shout the money drawer, in
various shapes and forms. occasionally
looked at the books of the bank. In May,
1859, Dutton & Patterson's account was not
overdrawn that noticed. The memoranda
of cash items to Dutton Il Patterson, up to
April or May, were kept same as like items
for other persons. The memoranda were
included in the statements under the head Of
cash items. Can't say as to statements after
May. was engaged otherwise after that.
The usual method Of cash items is to charge
them up il not arranged in few days. 1t
might require good deal of inspection to tell
just how Dutton Il Pattefson's account stood;
would have to look at books and through
drawers for cash items not charged. Can't
say that Dutton & Patterson were considered
the bank. l was dissatisfied several months
before the thing left. l was dissatisfied to see
Dutton & Patterson buy stock Of Isett &
Brewster; was afraid they could not carry it.
This was in the Spring of 1859. Heard
rumors, not in reference to the bank, but
outside business Of Dutton & Patterson.
got part of Isetts stock, viz: 81, 900; Mr..
Weed got some, and Dutton & Patterson
owned the balance.
Gas. NEALLEY s,oorn.-I knew defendant
when he was Cashier. had an interview,
with others, with defendant soon after he
ceased to be Cashier. can state the substance
of what was said to and by defendant. We
were appointed committee to meet Messrs.
Dutton & Patterson. We went by invitation
to Mr.. Dutton' room. 1t was in January last.
We talked about what was short. asked
Dutton what had become of the money? He
said it had gone to pay the debts of j. W.
Dutton, A. o. Patterson, Dutton Patterson,
and Abbott & Dutton, and for interest paid
on money borrowed. The amount short at
the bank was large, but l cannot state what it
was. Whatever was short Dutton acknowl-
edged had gone to pay the debts of the persons
above named.
Gross. ramined.-I am and was Director
from its origin. Brannan and Dougherty
were on the committee with me to visit Dutton.
was one of the Directors who assisted in
making some of the monthly statements.
dollar by dollar. We relied on the books to
get balances of other banks. We did not call
for the monthly accounts rendered by other
banks; the reason was that knew the money
was thore, and supposed the Cashier and
President were honest and that their BOOKS
were correct. l acted several times in making
up monthly statements. Never run over
private accounts Of Dutton & Patterson; did
not know they did banking business inside
of the bank never knew that Dutton Il
Patterson were drawing drafts in their own
names. took the statement as brought by
the clerk, in whom had confidence. swore
upon information, obtained from balance
books; never went into details. In the con-
versation with Dutton, he stated that they
had taken the money, and had neglected to
remit; that is, the drafts of Dutton & Patter-
son. l remarked that they might as we'll
draw on the town pump, as their drafts, If
sent on, would not have been paid. They did
not pretend to have any money, and, OF
course, l considered their drafts good. l
| recollect that some of buttons drafts were
discounted, Nov. 7, 1859. The drafts were
on G. H. Hazleton, Chicago, at 30 days.
Discount Register shows the drafts to amount
| to about $ll 900. I did not oppose the dis
counts; at that time, Dutton & Patterson
were in our confidence Us honest men. When
l considered that their drafts would be no
better than a town pump was after Dutton
admitted that money was all spent, and had
gone to pay debts of Dutton and others.
| Dutton said there were some drafts of Dutton
& Patterson there that had not been trans.
-mitted, but 1 never saw any; can't say
| whether there was enough or was not enough
to cover the deficiency. l never examined
| Dutton & Patterson's account because sup
posed all was straight. Dutton Lad nc
warrant to act in an irregular way, from me
| or the Directors The money was always on
hand when we examined, and, if the amounts
represented to be on hand in other places had
been there, all would have been correct
Dutton admitted in this conversation, and in
others, that the money was short, and told
them to charge what was not at the banks to
their account; he has admitted this several
times denied it; said they had taken
that money, and charged the amounts to the
Park Bank, Atwood & Co., Savings Institute,
&C., without having sent any remittances to
those banks; admitted this often, and said
charge it to Dutton & Patterson; he said they
had taken the money and used it, and had not
RENTED for it; said they would make it all
right; he said they had used it to pay the
debts of j. w. Dutton and the others above
named; said they had taken this money and
paid their debts, and charged it to these
I banks; if that was not right, he said charge it
to US, and pake it all right. Mr.. Dutton sent
for Inc several times twice in one day his
conversation was always the same: charge it
to US, and make it all right, but he never told
me on but one occasion what he had done
with the money. button at the time was not
very well he was sitting up at his room do
not know that his mental condition was
different from what it is now.
| GEO. C. STONE sDorn.-I am banker; am
connected with Muscatine Branch Bank as
President. Examined, previous to January,
affairs Of said bank; we set down the bad
paper charged to account of Dutton & Patter.
son to the amount Of $685. 900 part good and
part bad the account Of button 4 Patterson
was short $4,000. Done business in Mus
catine during existence of Branch Bank Mr..
Dutton very often called on us Green 4
Stone) Tor exchange, and got it; generally
| early in the month; struck me as rather
remarkable after monthly statements; their
statements may not have been published for
four or five days after sale Of exchange saw
| no statement 1t the time Of their purchase Of
exchange.
| Cross Called attention of others
| to the condition of the bank inentio ed it to
Mr. Weed because didn't understand why it
should be so; was in months Of August
September, October and November, thlnf,
Mr.. Weed was President Of State Bank and a
Director of this BraAch There are by laws
prescribing duties of officers of State Bank
the Vice President to visit the Branch in
| which the President was interested duty Of
Inspectors to examine all the books, balances,
checks, count money, &c. When the books
of this bank showed an amount in New York
city bank, there may not be anything to show
that amount on their books, while, on the
other hand, there might not be anything on
the books here, there might be the amount of
a prior date on the books of the New York
bank. In our business, we debit the New
York correspondent at the time we send draft,
and do not wait to learn whether it has been
naid Mail fails sometimes -Snrnefinac thar,