New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-02-11

From Our reJa Correspondent
FRANKLIN, Pa, Feb ?, 1851
This trial. hs the telegraph has doubtless informed
Won. was terminated last evening by verdict OF
Not guilty" the prosecutor John Dufheld to pay
the costs.
The history of Dir. Culver, in his connection with
this region for the last six years, Of his unparaed
success and of his failure is the history OF the rlse
decline and fall of the empire OF Petroleum SliSe IL
to say that in 1861 Mr. Culver opened banking olnce
i'm this town. on small capital, and subsequently,
Others at various points in this region, all OF which
yery soon, from the exigencies of business became
ncorpOrate banks under what was known as the free
Ranking Iaw he retaining the general financial man
apenent and dispensing Presidencies and Director
ships as Andrew H. disPenses Consuaes and C9llec-
torship of Customs, and probably with quite as large
a sense of the eternal fitness OF things"
or these banks, the Venango bank, at Franklin
and the Petroleum bank at Titusville had cTeula-
ton The former of $GO00O0 the latter OF 100000,
secured by the deposit of a Ike amount OF Govern
inent bonds with the Auditor-General at Harris
| hmrg And when Congress passed an act forbddlng
reissue of the notes of State banks after july !,
| 1896 these banks about to become National banks,
il became necessary to retire their circulation, anu 10
| do this gradually was measure OF prudence. Nj.
| Culver accordingly made arrangements with
National bank at Pittsburgh in May, 1865 for the re-
demption and cancellation OF the notes the fugGs
| re0nired TO be drawn from Culver, Penn q 20,
| 1.-THE New-York branch), and the respective banks
certified by drafts on them, which, when forwarded
TO Culver Penn a. CO., were charged to those BANKS
The Goyernmet bonds released by the return OF the
Cancelled circulation to be sent to Culver, Penn
& Co., and placed to the eedt OF the banks s.
In the meantime, in the year 1854 and 1860, the oil
fever had reached its ciss and speculation rushed
on to tho confines of madness. This state OF
| things inevitably led TO accommodation loans,
| from the various banking institutions under
| Mr. Culver's control, secured in the usual man
ncr; aud whet i'll March, 1865, the terrible tood as
| will be remembered by the readers OF the TRIBUNE
DESTROYED property in the valleys OF tins FeglOn 10
the value of millions of dollars followed immediately
by the close of the war and the consequent check OF
all speculation, by these combined causes the lir Oh
| Culver Penn a Co. lost very heavily.
Shortly prior to this time, the firm became largely
interested in an enterprise called the Reno Oil and
| Land Co with the object Of making Reno the depot
for the trade of the oilproducng districts; and when
! the oil business had somewhat recuperated, lail
road was built to carry the purpose INTO ERECT III the
\ face of determined opposition from Ilyal interests
| which made il necessary, at heavy expense, to
choose circuitons route, ana overcome, serious
engineering difficulties. BY the energy and tact OF
| MIR. Culver however, two rival railroad companies
were consolidated with this under his control III the
Winter of 1866; and nothing was required but a
final meeting which was appointed for March %,
1866 to approve the consolidation. In lew days rs
he alleges, he would be entitled TO receive, q
immediate liabilities in the form of the flrst-mort-
| gage bonds of the consolidated road but he claims
that INSCRIPTIONS men, opposed TO this PROJECT ere,
! ated run upon the New-YoTk house at this critical
period by malicious runoIs that 1t Gad iaied OF was
about TO fail; and, burthened beyond their capacity
TO bear the 21th Of March they Jailed with haol-
tiles estimated at 100000 The consequence was,
of course the failure OF the consolidation, and there
fore Of the Reno enterprise TO which all MrCulyers
energies had been lent and that with which We are
more immediately intercsted-the closing Of all the
hanks which had been controlled by Nh. Culver
ihnong them the Ncnanco National Bank, whose cap
ital, rs have shown above, had passed into his
hands during the progress OF the retirement OF Its cir
| culation.
Of Sir. HOgc YicePpsideut aud Director OF the We
| mango Bank Ia member OF the Pcnnsylyana Senatel;
on charge of conspiracy 20 dCirand Nessrs and
Kinnear the latter the President and both Directors
! OF the bank joining IN the clargc-all three having
made private loans 10 MrCuycr 20 further his rall-
f,,l1 ftf1 ~
the same charge but bail TO very large amount was
obtained and he was discharged, lie was Also ar
rested on q charge of obtaining the bonds deposited
az Harrisburg under false prctcncos; and upon Civ
ing the required bail was Immediately TuauestCd
upon the the application OF MI Myers, charged with
making false representations m regard 10 fcnangO
| Bank stock given that gentleman rs collateral seCu-
rty for his loan; DcspArlng IN regard 10 Iightlng
bc,impendmg Mr. Culver went 20 jail in june OF last
year, whore lac remained until IN January last the
qui,t little village of Franklin was astoundod by q
visit hom the Sergeant at Arms OF the National
House of representative with poss- oo7idiHsj and
thg prisoner was libcmicd.'
With characteristic energy Mr.. Culver pushed the
matter 20 90 uiil, and on tho ev9ning OF Thursday,
Jan. Sd h-appelrcd with counsel 20 answer the COM
plant of lAys Iloge and john Dufic.d, IN the case
Of The Commonwealth agt. &. !. Culver and James
: Austin Cashier of the NenangO Bank in the
Court Of Quarter Sessions Of Neuaugo CO., before
Judge Turnkey and Associate, judges l.smberton and
| Nenango National Bank. John Duited, and divers
persons % tho jurors unknown IN which matter the
4
Tie CQnnouweglth had secured the assistance OF
Gen. 4. y. MctalmQnt Chas. Taylor, esq. and Col.
/. d. Rogers. all d Franklin. Messrs. Culver and
Austin were defended ly Hon. VIZ. T. Corbctt Of
Clarion; Col. james X. Kerr, OF Pittsburgh; A. b.
RichIbnd. esq. OF Meadville; and Col. A. Bakeley
Gep. " Blakeley, aud - Hancock, esq Of this place.
Mr. Roger opened the case 10 the jury Tor the Com
Sir l. D. Kiupeor, formerly President and Director Of
Inst Austin was me brotqrinaw - Culver was ap-
u that minutes kept Of the meetings OF Directors
loose sheets - paper which were handed 20 Austin 90
meetings than shown by the book which was produced
that Culver was member " the firm OF culver Pom *
dispatch FROM that firm, on Tie 2Ih Of March, on hs own
IoponsOty that auerWatd, on the same day he KIN
ceususc Austin; 10 one 70 blame but myself that
SsnH fS dsI ofr ia lose ad I eg m N
immediately that The bank had made published state
mcnts quarterly or scmtanuuay, ono OF which lac identi
fed; that The baui, WAS IN building 4wncd By Culver
that shortly before the close Culyer VINO had owned
HE stock ,iat Culver had been Inc fmapcia agent,
was directed 10 buy the bonds for deposit, sug-
maze it. on ciossSXaanati ,G he tcstfsd that
Culver originated tie Bank selected HIM for President
for engraving the circulating notes aud ordered them
purchased aud deposited the bonds ia not know who
profits and statements. lie testified TO various other
Of the BSSk ,oS OF Th We're anholea bg the dec
tors others he thought not lie had been aware OF the
been no pror suspicion Of Austlus dishonesty but he
had been considered too easy; had had great confidence
Richard L. Irwin, who Ind been general boolkeepcr Of
the bank up 20 the close testified 10 TIE condition Of the
books and TIC Indebtedness Of Culver PENN Co. to the
bank; cCialn entries 10 account current with Culver
Penn & Co. made from statement furnished 10y Aus
tu prior % entry the firm owed bank S2g4g 50; after
ward, Si50Oi tic Reno OilaRd Land Co. had oyerdrawn
Harvey Henderson, Who acted as receiver Of the bank
otter failure testified that about $4,000 remained ON
made their balance DUE about 100000.