The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-11

Of his accounts diyuged the fact that he had regularly
genius for stock gambling, until he short nearly
10000. This Of itself should have caused
tion, where the hard earnings Of the frugal arc
at his mercy but find nothing OF the kind he was
T. sn rich and
quence that he raised from his friends nearly the
amount required HIS residence was nyslerioesly
tial friend OF the President Of the bank There was
still deficiency Of $4,000, which an OLD Citizen be-
son ana shs iscss have been very carefully su.sds1
from the public They leaked oot however in business
s1trs nasardous" oasds Of Detroit however TIE
not known and this bank has as goc<
. reputation ~ others In the State. -
RANKS MILWAUKEE s't fsf'
There are four National banks In Milwaukee, none q
which are doing very good business. The old banks
aSa n,o nnbc sd nav
generally patronized In preference 70 the National ben
whose boards OF management are moro or less new .
they are 60 much in disfavor that in Milwaukee the
National Bank system 10 considered failure and many
favorable opportunity presen, itself As general thing
they are conducted with considerable Caution AZ they
not in condition 70 permit their officers 70 take
heavy outside risks There are vague rumors afoat Of
Irregularities in tho interior working OF some OF the In
sttutions but hurried investigation 70 led 70 confirm
reports, excepting In instance. The usual
dividends have about twelve fourteen per cent
per year. now come to
A
which feel warranted exposing, as 1t appears to be
clear Of breach Of trust If not OF fraud synopsis
OF which have already sent you by telegraph am
assured by OF the most respectable business Of
Milwaukee that the facts are as follows
Among the banks working under the State law was the
Farmers and Mllers' Bank Of milwaukee,. Shortly
after the passage OF the national banking law ring Of
Western stockholders was formed, the affairs OF this
bank wound up, and national bank organized on its
basis The capital stock in the meantime had
duced from $500 900 TO $3.50 600 When the bank
wound up the stockholders at distance who are in
min nrifv ~
full ignorance OF it, and the Western ring have controlled
Each year they through us;ar, the farce Of
are under the impression that the bank ID
still in existence. There seems TO have been sys-
tematic plan concocted by the Western ring TO de-
ceive the unsuspecng shareholders and with this end
in view figures mystihed as TO make them be-
ye the stock was worm es MY o osh sb On
lowing circular after the bank had become an institu-
ton Of the past suppress the name attached 2 ne
To the Stockholders Of the Farmers and Mers Bank Of
Al the late election held in Wisconsin determined
n @ 2. hs % p 70 e mae Of a
S~ner the shares Of ali bank well gem
and Miners Bank under this win be liable such tax
y bank learn, il such shape % require =
@ three sn mns then Of % u
Claims and effects may have been sold auaon before
ac a' rannins on considera,on q these
interested be FROM ask the Board Of Directors
bank speedily possible By dsp0s1g Of I. assets
dev psS.G aaa after discharsas sses
dividend Of the residue TO the shareholders take the
of all having shares IN the bank viii DO
winding o p e 81 sSs S
this or 10 give the officers OF me BANK the @
s1ar views upon the subject referred " an '''
After this gloomy statement OF the situation and ths
depreciation or the stock ring their agents East
to purchase stock at thirty thiry-Gve and forty five
cents on dollar and they have already secured much
at fifty cents and less whom 1t will really command IL
mar value am assured number OF respectable bust
ness of tho city, who had got into the secrets Of the
ring consulted 70 the proproty Of uniting in crcu
lar stockholders exposing the trick but the
idea abandoned lest 1t should njure their business
relations with the banks. Chief amongst these nanc,
conspirators two prominent officers Of certain ma
tonal bank Ono Of the ring few weeks ago boastsd
ha. he would realize forty thousand dollars profit BY the
ilbany, Troy. Poughkespsis and the New England
Sssass. 49, s u. :. .-.-<,s , 49, = -
80" 7ar BANKS OF CHICAGO. --.11ssl -
Next TO Now YORK, perhaps the bulls and bearu
q Chicago who have quite reputation as bold and
shrewd operators. For an entire week have been In
4as tas cIcle, on Change, everywhere and must
upon the heels Of wall street. This City.
y the great centre Of all operations q
the West, and what Chicago bankers and jobbsfs do
not know is worth knowing This Milwaukee master
stroke was conceived here and executed theYe Stil
and the management of OF the national ban1s n
in the hands Of hRhtoned, honorable gentlemen, v6
do strictly legitimate business and are not open 70 thu
thirteen banks working under the national bank system.
with total capital stock Of 900 and circulation
81 000 the First National having the largest ana
the Third National the smallest sum-
rsa,v rotten Condition. / Am ipformeS of manv
startling acts that call for full and prompt invss-
tigation. Among the many grievances complained
corporations. The legal interest OF this State =
ten per cent, beyond which tho national law
xt,.lo Nho han tr Ia
ignore the law and charge 70 one per
cent in the Of commission exchange in addition
10 the legal rates. The law further provides that these
banks shall not charge above the usual at tho time
for sight exchange which Is usually one-tenth In this
particular too they do not conform TO the spirit OF the
Law, and make from fifteen to twenty-five per cent But
the most reprehensbe acts Of all the reckessnesa
with which the officers OF some OF the banks use the
funds that they commissioned TO guard for purposes
OF speculation In three four cases the presidents
had controlling interest In the coYporations and II in
not unusual practice to appropriate the funds for
gold, stock and mining speculations The president OF
OF the banks am Informed, has used from $40 600
to $50 900 Of the funds Of his bank in shaving notes ct
the rate Of from two TO three per cent per month and
his estate Is indebted to the bank this amounts but the
bank probably protected these specuatons are sue
cessful and the estate Is valuable.
The presidents OF two other banks have been largely
specializing In oil the credit Of their banks and have
been unsuccessful Whether the banks are secured I
have not learned.
Another president has been operating extensively in
mining stocks and general business, but he is the
bank which established for this especial object he
no doubt ees justified in using It for his individual
benefit.
the cashiers too arc moro or less gambling in stocks
and the funds for their benefit One who has in
variably failed in all his financial operations Is doing
heavy business. Indeed, It is impossible TO tell to
what extent officers appropriate the funds for
their individual benefit government onicer
makes a periodical examination OF the condition
of all these institutions, but skiifu figuring can
easily cover up Declarations 10 defy detection
for months gentleman who had been a cashier for
ten years informs thai he could mystify his
counts for months 10 be dcfauer 10 tho tune OF
$4,000 and defy detection by the most skilled account
ants unless suspicious we're aroused and attention
especially drawn TO him.
FAT oFrTcK.
In this connection / will give you piece Of news
The debt OF Chicago is funded, and consequently tho
bank account Of the city very large item. There
has been great competition among the national banks
TO secure the city funds deposit and four per cent
has.been offered on deposits by several banks The
city treasurer deposit where he sees IT. He keeps
his account with Of the banks and no doubt he car
ries over four Nor cent IA cash frcQuenflv