The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-07-25

testimony proves conspiracy between
Baync, Huyck, and King to obtain this
amount of public money from Colonel
Paulding.
A sharp trick was practiccd by Mr..
Hutchinson, cashier Of the National Bank
of the Metropolis. He held note of the
cashier of the Merchants Bank, some
shares Of the stock Of that bank as COL
lateral, and number of its checks. Find
ing from an examination that its affairs
were in bad way, he advised Brigadier.
General Robinson "a depositor with his
bank) to make deposit of $50, 900 in the
Merchants Bank, saying that it was in
need of currency, and it was the habit OF
the banks to aid one another. A& Gene
raj complied with the request, giving his
check on the Bank Of the Metropolis to
the Merchants Bank. But when this
check came to Mr.. Hutchinson, instead OF
currency, he paid Mr.. Cashier Sherman, OF
the Merchants Bank, thus: $4,000 in a
note Of Sherman's; two hundred shares of
the Merchants Bank, which he had given
as collatcral $4,000 in memorandum
checks of the Merchants Bank, and $4,000
in currency and thus Hutchinson worked
finding pcrhaps with the help of Hutch
inSon) that his funds were not safe in the
Merchants Bank, transferred all Of them
to the credit Of the Treasurer of the United
States, and got his receipt for the same =;
but before they were withdrawn the bank
blew up!
Huyck, as treasurer of tho Washington,
Georgetown, and Alexandria Railroad
Company, issued two thousand eight hun
dred and fifty shares Of the company to
Baync & Co., with the understanding that
they were to be returned in genuine stock.
This has never been done, and therefore
this is an over-iSSue Of the company
amounting to $2S5,0O0.
In organizing the bank it appeared
that the name of j. B. Stewart was en-
rolled among the stockholders for six hun
drcd shares without his authority, and the
proper certificates were prepared to show
that he was bona .fdc stockholder! This
fraud was employed in order to make up
the amount necessary to get the benefits Of
the Bank act
The same Mr.. J. B. Stewart opened an
account with the bank, dcpositing nine
hundred and fifty shares of the Washing
ton, Alexandria and Georgetown Railroad
Company as collateral security for any
money he might owe, and also a special
deposit of SlG9,000 in bonds of the Union
Pacific Railroad Company which he held
in trust. Upon the failure Of the bank he
was requested TO pay what he owed il.
He asked for his shares and bonds, when
hc found that they had been put III the
hands of Baync * Co., and had been sold I!
The committee in the case OF the unior-
tunatc deposits by public officers acquit
them of receiving any benefit from making
those deposits, or OF having done so for
any unlawful purpose.
The committee comment upon the NAL
practices of some other national banks.
The only one of these, however, by which
the Government loses money is the We
mango National Bank OF Franklin, Penn
sylvania, by which the Government lost
$50 900. 1t was managed for the benefit
of Culver, Penn 4 Co., of New York.
Its capital was only $500, 900 yet Culver,
Penn & Co. owed it 100000, notwith-
that the law requires that not
more than ten per cent. Of the capital of
a bank shall be loaned to any one person.
The committee show many little short
cuts by banks to keep out their circulation
and do large business. They report bills
for increasing the stringcncy OF the bank
regulations and diminishing the danger of
public deposits.
The committee conclude with u rcSolu-
ton directing the Secretary of War to in
stitutc legal proceedings for the punish
mcnt of the managers of the Merchants
National Bank, and others who may have
aided and abetted them.