New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-07-17

PRICE FOUR CENTS.

Of Bayne Co from the Comptrole OF the Currency who
time mentioned owed to the bank ss35eo IS which wa
reduced the returns S 900 the difference being
bonds the bank President HoyeK Is suspected
made these e statements in the books OF the bank at night
with the assistance Il tie bookkeeper
II appears by The testimony tset mIst 9eGoos ss e
nection Mr. King Of the directors ava MI
H. o. FAINT by which they undertook 10 procure ospos
pubic money by discussing officers for which MI rant ano
Mr. King compensation of interest upon
the deposits Of those ocers whom they claimed 10 na'e IN
special friend and bOndsman for Paymaster Psuding Mr. L.
Bay o. ne house Of Bnyas Co seIs ne Oae 5oss e
appear by any testimony that the officers making the deposits
Lad knowledge Of this Of interest on he
On the contrary the parties concerned expressly declare
whose acts thew tbus made the Of profit themselves
Other paymasers, beside Col Panldng dep9sted pup.c
The view Of giving assistance the First National Bank Of
Washington which known TO be In trouble While inc
other deposits made with the same knoWieoge of
on the 2on Of April the bank in great difficulty on
account q the impending failure Of Bayne Co.. ana vss
Iegaeed BY Mr. Oscar King that TG r SSOns BsHs
Mr Huntington cashier bank. desired to re.
commend such transfer but he deelned having anything to
had already deposit e several h hundred
BANK At the request Of Col Pauiding, Mr.. Huntington
made Inquiries respecting the condition 81 me Merchants
debt Of Bayne Coz and TO satisfy him in regard TO the
responsibility OF that firm Mr. Lawrence Bayne was tee
more hat evening TO make representation the condition
Of his affairs The statement OF Mr. Bayne was verbal bus
ron said be- was ncned to recommend the transfer if the
statement Of Bayne Co.'S condition could be relied upon as
On reflection however this not satisfactory so he con-
suited Toe Oi n o 20 apy or to
take any responsibility in the matter lie then sad 70 ISone
he must act on his responsibility On hat day Colonel
Pauldngs checks for $4,000 were presented at the First
National Bank by Mr. sherman cashier Of the Merchants
National Bank and in accordance with Mr. Shermans
quest $4,000 was placed TO the credit Of Bayne Co. WIN
Bayne Co, with Hoyt Anthony Douglass Co, Of New:
York $4,000 in check on New York which was delivered
afterwards by Mr. Sherman Oscar King, for Bsyuo Co
the remanD $4,000 paid IN currency Of which 10000
was used 70 Tue M S % f he Se
National Bank to Beyne Co thus making Total Of ssos
directly for the benefit Of Bayne Co.
The Board OF directors OF tina Merchants National Bank
Sherman the cashier says the Board
from the there until the 9th Of January last Mr.
Boser SAYS that since January e6 when he appointed
President of the bank there have not three meetings
Of the Board Of Director and whenever quorum happened
them do Finance Committee composed Of the Pres-
dent Mr. Huyeki the Vice President MT Boseler and tho
duties Of the Board Of Directors. Mr. Boteler finding that he
was not consulted when Tory %9i 0ass or Other important
Directors rbddng money TO be loaned except BY unanimous
~ continued TO act as though the bank was hs own
and neither informed MI Sherman Mr. Bceer Of his trans
When the bank organized the OF Mr. B. Stew
appeared as one Of te orsina subscribers TO the Aer
scribed cent IN any shape He represented
without bis consent at the organization Of The bank BY Mr.
Stephens who also represented him before Notary
Public when the organization certificate was sworn TO-
As soon as the eaRS commenced %. business ME- stewart
draw for money as he may require H. deposng $50 shares OF
pany collateral security for any money lie might owe the
bank also that he made special deposit for safe keeping in
Company which be held in trust In March last he dis
covered that those bonds bad been sent by Mr. Huyck the
President Of the bank Messrs Bayne Co.. and by them
used collateral security ior loans obtained banks
in Baltimore without bis knowledge authority; that he did
Not 1 81 ss 9ss Huy S ns
% OF o e aiS G & e Issa %
and the appointment OF receiver he notified pay his
debt to the bank when he offered make the and
asked for hundred shares Of railroad stock he had
deposited collateral security he found that they had likewise
been distracted and bad been disposed Of 10 the
No Institution cOud be safe in tie hands Of men so reckless
and aud the lure Of this bank involving so
considerable loss Of public attributed wholly
to the dishonest and criminal conduct OF the men who con-
The only other loss Of public money deposited in national
bank that has come to the knowedge Of the comwttse
yana which failed Oh or about the ssh Of March was
depository bank with in bonds and treasury notes as
bank s3ss3 u to the credit Of the Treasurer and Ca
siss drsf Of that bank on cuver Pean Co for sssc1
which sent the 2h OF January last TO transfer that
the Sub Treasury in The draft has never been
paid the bank claims that responsibility
the draft received OF tire payment u
amount and protested for noGpayment Tbsre
is said to be sufficient security for this draft in the possession
The capital venango Natioua Bank was $4,000
1t seems 70 have been managed for the benefit Of Culver Penn
Co OF New. YORK who had nearly all OF the funds Of the
bank their debt to the bank being $4,000 Under such
circumstances the failure Of Culver Penn Co. necessarily
involved the failure OF this bank The law limiting the max
Hrm Of the aggregate loan Q, any party to
as was the case Of Bane Co. by the Merchants Nation
al Bank This excused in both by the specious pre-
parties SoDa ce,e Prom
Co.'S debt for Government bonds which, appeared by
the testimony before the Committee the bank were de-
posted BY them for safe keeping bat we're used by them with
out the authority Of the bank
State banks do not make proper eIerton to withdraw their
old circulation and in many instances pay tske
measures to continue In circulation thereby receiving the
benefit Of the old circulation and of the national currency
notes received from the Bureau of the Controller
stated TO the Committee that there instances Of banks
having reported to the Controller thst the circulation
asa Of saf p5s i m . the
Quoted seems right TO give in ais report all the testimony
the Committee had on this subject though is not definite
The Committee have also inc into the affairs Of the ma
10 Providence r. L. the Chemung Csna Bank Of Enirs n
u some Of the national banks q New Jersey and New
ona Bank Of Michigan Marsna and opinion that
they not conducted tue strict letter Of law
duty them ia the The HSus 5,
examination into the affairs Of the nsons banks 90 far q
demand they hsT. examined and reported on Tie facts s.d
circumstances connected with the failure Of the MsseA
money deposited and BY whom IN that bank and the e.sss Il
i!s failure The bill to regulate the deposits Of public oss
ported to the Netona Currency act embrace the legislation
es to o n Y 70 the
In regard to the gross abuse Of their trusts a. Of
isswen Of those Of rs Who are Responsible Tor Sss
ssry to recover any portion the money and as was mostly
money iprusted asbusug officers the War Department.
duty OF nstung and conducting these proceedings should
be committed to the War Department.
The Committee close this report by submitting the annexed
RF That III. Secretary OF War be directed to institute such