The Ebensburg Alleghanian. [volume] (Ebensburg, Pa.) 1865-1871, 1867-02-21
The Culver Case---Interestins
History.

causes which eliminated In the failure of
the firm of Culver, Penn & Co., apd
which led. to the prosecution Of Mr.. Cul-
yer on charges of criminal nature. We
quote:
The history of Mr. Culver in his con-
nection with this region for the last six
years. of his unparalleled success and OF
his failure, is the history CT the rise, de,
cline and fall of the empire of Petroleum
| Suffice 1t TO say that in 1861 Mr. Culver
opened q banking Office in this town on a
small capital, and subsequently others at
various points in this region, all of which,
very soon, from the exigeDeie of busi-
| ness, bec4me incorporate banks, under
what was knowb as the Free Banking
Law, he retaining the general financial
management, and dispensing PresideDcies
and Directorships as Andrew II dispen-
Ses Consulates aud Collectorship of Gus
toms, and probably with quite as large
sense of the "eternal fitness of things"
| Oh these, the Venango bank at Frank
| lin, and the Petroleum bank at Titusville,
| had circulation, the former of 5000 900,
the latter of S9G0, GOO, secured by the
| deposit of like amount OF Government
| bonds with the Auditor General at Har-
rIsburg. Aud when Congress passed an
act iorbdd;ng reissue of the notes of
! State banks alter July l, 1866, these
| banks about to become Natioual banks,
il became necessary 70 retire their circu-
lation, and to do this gradually was a
measure of prudence. Mr.. Culver accor-
dinghy made arrangements with Nation
al bank at Pitts5urg in MAY, 1865, for
the redemption and cancellation of the
notes, the funds required to be drawn
from Culver, Penn & Co., (the New York
branch), and the respective banks certi6-
&c by drafts on them, which, when for
| warded to. Culver, Penn 4 CO., were
charged to those banks. The Govern
ment bonds released by she return of the
cancelled circulation were to be sent TO
Culver, Penn q Co., and placed to the
credit of the banks.
In the meantime, in the year 1864 and
! 1865, the oil fever hal reached its crisis !;
aad speealaties rushed en to the CON foes
OF madness. This state of things iBeyi-
tably led to accommodation loans, from
the various banking institutions under
MT. Culver's control, secured 10 The usual
manner; !; aud when, in March, 1865, the
terrible food destroyed property io the
valleys of this region 20 the value of mil
lions of dollars, followed Immediately by
the close Of the war, and the consequent
check OF all speculation, by these com
bined causes the firm of Culver, Penn &
Co., LOST very heavily.
Shortly prior to this time, the firm be-
came largely interested in an enterprise
called the Reno Oil aud LaCd Company,
with the object of making Reno the depot
for the il-producing districts; aud when
the oil bu,iness had somewhat recupera-
ted, railroad vas built 0 carry the pur-
pose into effect. in the face Of deter
mined opposition from rival interests,
which made it necessary, at a heavy ex-
pense, to choose circuitous route, and
overcome serious engineering difficulties
By the energy aud tact of Mr. Culver,
however, two rival railroad companies
we're consolidated wish this, under his
control, ia the winter Of 1866; and
nothing .sas required but fnal meeting,
which was appointed for March %, 1866,
to approve the consolidation. In few
days, as he alleges, he would be entitled
70 receive large sum, sufficient to meet
all his Immediate liabilities, in the form
OF the first mortgage bonds of the cousof-
dated road but he claims that unscrupu-
lous men, opposed to this project, crea ed
a run upon the New York house at this
critical period by malicious rumors chat it
had failed, or was about to fail and bur-
thened beyond their capacity to bear, on
the 9th of March they failed wis h liabil-
tiles estimated at S5.000,000 The con-
sequence was, of course, the failure Of the
consolidation, and therefore, of the Reno
enterprise, to which all Mr. Culver's ener-
ges had been lent, and that with which
we are more Immediately interested-the
closing of all the banks. which had been
controlled by Mr.. Culver-among them
the Veaango National Bank, whose capi-
tai, as | have showD above, had passed
into his hands during the progress Of the
retirement Of its circulation.
Mr. Culver was soon after arrested at
the instance of Mr.. Hoge, Wise Presidents
and Director of the Venango Bank Ca
member of the Pennsylvania Senate, on
! a charge of conspiracy to defraud Messrs.
/ Myers and Kinear, the latter the Presi-
dens and both Directors of the bank Join
ing in the charge-all three having made
private loans to Mr.. Culver to further his
railroad enterprise. This arrest was fol-
! lowed by Others, on the same charge.
but bail TO ID very large amount was OBJ
| taiued and he was discharged. He was
also arrested on charge of obtaining the
bonds deposited at Harrisburg under false
pretenees; and after gi7ihS the required
bail was Immediately re-arrested upon the