Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1866-06-20
THE CULVER FAILURE.
StupendOus Fraud Developed.
The state df Pennsylvania ImpIieat-
ed-Ex.AudffOr General Slenker
Taken Improbable Responsibility
of the State for sI.5OO,OOO-Arrest of
Culver, Penn a Co

From the Pittsburgh Commercial, JuneI9.1
A new phase in the failure of Culver,
Penn & Co, has Just been developed at
the Auditor Generals office, which the
Telegraph of Saturday afternoon states
thus The Petroleum Bank at Titusyille,
Crawford county, and the Venango Bank
of Franklin, VenaHgo county, had de-
posted with the Auditor General some
thing like a million aud a half of United
States securities, as security for their cir
culatiug medium. By q rule in the Au-
ditor Generals office, as the notes of these
banks were sent 10 that department for
cancellation, such securities were returned
TO the officers of said banks in amounts
equal 10 the notes cancelled. 1t is al
legged, now, that Mr.. Culver, with others
implicated, who were neither officers nor
agents of the Petroleum or Venango
banks, procured from the Auditor Gen
erals Office the securities thus deposited;
that the officers connected with the Audi
for Generals Office could not have but
known that these securities were not being
possessed by the officers of said banks,
rom the very fact that they We're sent
there from the Auditor Generals office to
the branch banking house of Culver,
Penn * Co, New York city. And Gen
erslSlenker assumed a fearful response
bility, when he thus permitted irresponsi-
bic parties to carry from the Auditor
Generals office, a million and a half of
money, to which they had no claim. The
Question now arises whether, by the act
of the late Auditor General, the state is
not made responsible for this loss. If
Culver, Penn * Co. we're officers con-
nected with the Petroleum or Venango
Bank, in drawing this money and send
ing it TO New York, as they did,
they were acting under false pre-
fences. If they were not officers, then
they were clearly guilty of embezzle-
ment.
The people of the oil regions, by the
failure of Culver Penn & Co, have lost
six millions of dollars. To the loss thus
entailed, the reckless mismanagement OF
the Auditor Generals Office while under
the control of Democratic officials, q mil
lion and a half of dollars is likely to be
added, unless the Commonwealth can be
made responsible forthis Encouragement,
when the amount will come out of the
pockets of Taxpayers.
0DSf "a1 III III
type, we learn that the Auditor General
has appointed Messrs. H. G. Alleman, E.
G. Williams and Thomas j.. Jordan. Of
this city, Il commission L examine the
affairs of the Venango Bank. The Audi
tor General, in the official paper announc-
ing this appointment; declares that this
bank has committed an act of insolvency,
of which he has been furnished with salts
factory evidence. The members of the
commission will proceed to Venango
county, on Monday next to discharge the
duty devolved upon them.
The Titusville Herald of Saturday
morning, announces the arrest of Culver,
Penn Il Co, as follows Yesterday
morning Messrs. c. V. Culver, l.. II
Culver and John X. Penn, comprising
the firm of Culver, Penn & Co. were ar
rested at Franklin, by the Chief of Po-
lice from Harrisburg, upon a charge of
embezzlement and fraud. The warrant
was issued at the instance of the Petrole-
UNI Bank of TitusvilIe. At last a~ccconts
they had lot succeeded in obtaining the
requisite bail.