The New York herald., 1867-02-08
THE FAILURE or Culver, PENN & Co.
Liabilities Estimated at $5,COO.OOO 10
SlO,OOO,OO0.
Trial ofC. v. Culver and James 8. Austin,
at Franklin, Pa, on Charge Of
Conspiracy to Defrand.


--'''~~'
FRANKLIN, Pa, Feb l. 1857
Il win be remembered by the readers Of the HssAIp
that about the end Of March, 1866 an announcemeu,
was made that tho firm Of Culver, Penn Co., doing
business bankers and brokers at No. 10 Nassau street
had failed In consequences Of speculation in oil and
railroad stock. with liabilities estimated at the time
though perhaps somewhat prematurey and exceeding
the soual nssros-as nom s5.o09ooo 70 $4,000, 900
region by the ssnior member of the rn Hon. G. " Cu
ear gentleman who sstablshed himself In that portion
u the State In tAesszly period Of shs c fever and
Who from his shrewd ard snccessl spsculatona In OIL
stSeks and railroad enterprises ws - remarkable
business talent and energy. soon became the. leading
nnancisr OF that already thriving and wealthy
community, controlling probably not less than
SIS, 100000. So great vns the public confidence
In his financial and commercial tact and integrity
that he rapidly became criterion Ia tho eycs OF the
majority Of the weahest people Of this section Of the
country, and persons invested largely and readily in
almost any scheme enterprise with which his tails.
manic namo connected. Ho projected new methods
Of developing the oeaginous and earthembow olled
sources Of the country. and presto, stock in the
bryo was bought by eager and confdng pur
chascrs, many Of whom invested their 'slP' In the
sche mes.
II well known fact that the excitement occasIoned
by the discovery or oil In Pennsylvania far exceeded
fornia IN lis paniost days The earth tapped and
oil spouted ronSthe wells wealth into their owners
pockets and she fever" the deiirium Of ava
"Territory!" sRcom for derrck!" was the
cry, and the very. rocks were penetrsted
in search OF tho liquid II found Of
the wells yielded, high tWo Thousand barrels per
diem and tanks and barrels in many cases could not be
procured in sufficient quantities to retain the OIL that
overfowed the country and, running into the various
creeks and rivers found It's way intothe here incpient
luleyhany, such quantities that s0uRo who
enterprsinG enough actually made fair profits by COL
lecting the floating oil from the surface OF the river
noted mauiy for is stsrility: MANY wondered VIVA,
purpose II created for; IL vaiueless agri-
cultural distnct It's mineral resources were comprised
mainly In few almost Improbable btuminons coal
mines and small products Of iron ore, and nothing
aboundcd rocks hills and scrubby pine ses The
Sy
ators from Now York and other large cities and in
easesabuous prices were offered for leases claims Ac
er their hitherto unproductivc land and In twinklng
hundreds Of them suddenly, as II by magic, found
themselves elevated 70 the pecunary condition of mil
Honares Immense fortunes were realized by some Of
the moro fortunate spectators; immense suns we're
lost by the less fortunate. who put down .dry hoes,
and both classes 70 great extcn for Obvioas vsa-
sons Quilted the OF their reverseS
Affairs began 10 qucteF aspect, after period
Of hroe or four years and the yield OF OH began pal
Culver put forth Of his projects for the purpose OF
en6ovoring ostensy a. least 10 revive ths commercial
sS q ss SS 9seI s q y
ssve oil Shipping depot about half way between this
place and Oil City, to be called Reno and tho construc
ton OF railroad TO connect the latter place with Pit
hole, tne fountain head" Of the oil producing
territory. This latter Improvement was one much
numerous or sxpedi,ious, and great Inconvenience
iot consequences Of the dehccnt means OF trans
porta.icn. Money was needed for these purposes Mr.
Culver large stakeholder, and considerable
ber Of the residents OF this place stockholders and
deposers in the vensngo National bank well a. other
banks In the immediate vicinity Of the oil region. G. v.
Culver's uame was considered good for almost any
amcunt, besides "h he was st0Ckh0lderr y himself,
sns 70 s &
and pushed vigorously. In the spring Of 1855 OIL
stock deprecated to alarming sxtcnt the yield Of the
oil wells gave uumistakeabie evidences Of being nearly
exhausted no one cared about Investing, business came
almost to dead lock throughout the oil region the
expectations were not realized Insolvency followed
With their collapse the venaugo National bank
me National Bank p.:soss o. "'GsS nt county rs,v me- 1
and the firm Of A. d. Cotton Co., of Pc.
oleum Centre, closed their doors The total capital OF
the more prominent losses sustained BY private ndivdu
ais in Franklin were :--John Lynn, 500 900; A W.
sas x1s En1sS sscSS % Gos
$40 900; r. r. Grey, so 000 - Hoge, $50, 900; Sam
ue Dale, $4,000 The Indignation OF the community
rose tremendous pitch against q. v. Culver, whom
they looked upon the solo and only OF
all their dsasiers and in immediate measures
,yere instituted for tho and Indictment OF that
gentleman Warrants were different issued for
his arrest and he confined in Jail After being twice
confined and often released on furnishing security for
bis appearance Mr. Culver in order TO avoid the
tnuous prosecution OF other creditors who caorsd for
a rearrest complaints esch time be regsned his
nrsnSca N n. county a Hs remained % IN aaranco
vile' until tho assembling Of the present Con.
Sress, when tho sergeant-at Arms Of the House
al Washington, made q formal demand on the
sheriff Of tnis place for the body Of Mr. Culver,
and conducted him ~ Washington 10 take his
this place 70 stand his trial on charge OF conspnng
To defrnud together With James Austin, the former
cash OF tho vsnangc National Bank, who, y Is al.
sged By many Ia collection with Mr.. Culver, and
paid moneys Into his hands which he (Austint
had legal control and without authority. Tho com
plants are drawn In the names of Thomas Hoge and
John Dnflesd. This afternoon the case called up
for trial before the Court OF Quarter Sessions Mr. Jus
toe Turnkey presiding. IAmberton and Mccormack as
socates The following gentlemen appear counsel in
the :-Messr- Hancock and akey, Of this place;
Thomas Marsba and Colonel }. K Kerr, Of Ptsbura,
srict Attorney Myers Charles Taylor l. D. Rogers and
Messr. Myers and Kinnear, Of franklin aud T. A. Pur
visnce and II Swartzwcder OF Pttsburg for the Com
monweath.
The CcmMonveaM c. r. Culver ma Jamv =
Autin The jury called and sworn ss three o'clock,
when Colonel /. d. Rogers, ESQ.,, Of counsel for the
Commonwealth proceeded 70 open the and read to
the jurors tho bill Of ndctmsns for conspiracy to de-
samuel d Fay, the arst witness for the Common
wealth, being duly sworn, deposed as foliows:-I was
ant counsc on eSand that the record Of the hank
must be produced 70 the existence OF the Bank
Counse for commonwealth aumlt tnnt tney nave no re-
c3d hut propose prove that she letters patent
lost Legal proof corporate existence held BY the court
for consideratlon.l
Examination rosuned--1 was cashier from ---- 10
July 1868; James S AnsNn then became cashier; DO
not know by whom he was appointed 10 the position
Cross exsmncd--f was not turned ous Of the Bank;
lett u voluntarily.
Auditor General.
xamnatsn rrsumcd--T have q copy or the let
ter notifying Mr.. Culver Of my resignation.
y. ~ kinnesr for tne prosecution being sworn tess-
ae5 II was director n the venango Bank in the
fasl os 1852 when first elected believe that book
b. the minute book Of the bank the bank
had place Of business IN Franklin, and reccyed de-
oslfs and issued bills; the bis hank bills; do not
know where they csme from; they counserslwncd
or supported be. by the Auditor General OF the State
Of fsnnsyivanla Mr. Culver had account In the
bank and . stockholder; Mr.. Austin was cashier
cannot tell whsn ks assumed the duties Of that ccc
The directors bad meetings. there wore moro meetings
of directors hold than the minutes show; attended M
the meetings; vas present when Austin was MADE
casher the minutes were kept on loose sheets, and
handed TO the cashier OF them we're noa recorded
the hank was changed national bank IN July, 1S0s
i notes would bc payable TO tho cashier do not know
whether any cf them lost; was elected president
In October or November 1862. have been president