The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-01-06
cont bonds CD 500 500; of soven per cont
bonds (NlD 1867 600; of eight per cent. bonds

|
Exhibit 80? shows tho real estate owned by
the bank, including the banking house. The
| real estate consists OF the banking houses at
Charleston, Columbia, Camden and Abbevile,
and one tenement, one brick building, one lot
and building, and one house and lot III Charles
| ton.
Exhibit "P'' is a statement Of domestic OK
change protested and lying over. rhis
| amounts to SOB, ,426 63.
| Exhibit CO. Shows tho protested foreign cx-
| change. Tnis amounts to $5,997 7o
Exnlblt N is statement OF the costs Of
suit, &C., paid by tho cashier since May 1868.
| 1t will DO observed that in this exhibit there is
an item Of $3.50, paid to Simons Il Sicgling as
counsel fees in a suit against the bank. AS
this seemed novel procedure to your commit
tee, an expIanaio was asked for. In response,
Colonel Gail!aru acting President, who was
| present, said
"I. Y. Simons & r. SaislnS represent some
'ol the Fire Loan >rcdltors. They, as wcIl as
''thc counsel for the bank, have drawn some
timing for their fees. Slnons Il SoSllng rcp-
resent Mr.. Dawson, who is one of the largest
'holders of The Fire Loan. Under the imprcs-
! ''slOn that this would eventually be assessed
s'on tho fund, and under the advice Of coun-
''Scl, fec WAS paid Slmons e Scgln. 1t
may be called retainer III advance, OF q pay
"mcnt OF fees in advance. 1t was understood
/ that Mr.. Dawson should not be bound lor the
! common defence, but the retainer aud coun-
''sc fees should be bound by the common fund,
mot only as matter of justlc' but Of agree
"ment OF all concerned. II was so recognized
|
',that the bank was authorized from the assets
ITO pay counsel fees tor conductin. The de-
"lcncc." [Ihe total amount is s364Ol
| Your committee saw and counted all the as
sets IN tho bank. In doing this they found
printed Oh the back of all the securities mon
toned in Exhibit 81" the following endorse
| mCnt:
caution.
:" This bond constitutes u portion Of the as
'sscts of the Bank of the State of South Caro-
II 1n NrfIny Of fl,n (tN,,rt of
"Chanccry OF the said State, of the date Of
March B, 1868, in the case of Dabncy, Morgan
~ Co. VS.. the Bank of the State of South Caro-
'lina and others, and cannot be legally trans
ferred except by order Of said court, or the
written assignment Of Charles Nj. Furman
"and Thomas Z: Waring.
In roply to questions 10 when aud why
thus cndorsoment was printed upon the socuri-
ties OF the bank the cashier said: '"rhc en-
"dorsement ..dsl1 was put upon tho bonds on the
18th OF August, 1868 by the direction of the
'''presidcnt and directors, un lcr the advice Of
counsel Messts. 1. w. Hayne and J. b.
Campbell. The president being present with
:. sthe ne eounsel, prefer that the reason
''ment was prepared by the counsel, I. ".
''Haync and j. b. Campbell"
Mr. Gaillari, acting president, made the fol-
lowing statement
on the bonds ana stocks, [ would state that
.sit was put upon them under the advice of
scounsc.'
Question -sWhat was the foundation of that
advlce, or what was the Object of it? Was 1t
ITO injurc the bonds OF prevent their nesotia-
''blity ?"
Answer-'1t was to preserve the bonds to
await the ruling OF the Court of Equity III the
case OF Dabney, Morgan j. Co. In other
words, 1t was done to prevent their being
transferred or neg gotiatcd except under order.
"of the court and by written assignment of
"Charles nj. Furman and Thomas r. Warino."
han in LOT t,iIy vii b,
found on the debtor side OF Statcm:nt s'A.''
with regard to the circulation the cashier
makes the following statement: ''On the 1st Of
October, 1860, the circulation was estimated
''at about 1925, 900. We had in the vaui&About
$500: 900. These last were subsequcnyRnAput
I'm circulation. At the request The
committee, furnish an estimate Of what I
think is near approximation to the present
.sclrculation; it is contained in Exhibit -
= he estimate of lost notes may be considered
Large, IL IS based upon the long time the
"bank has been in existence, the large proper
''tion OF issues OF one dollar and under, anl
the probable losses attendant upon four yeas,
''of war. offer it merely as an estimate Of \
''ot the bank for anything CONNECTED" With the
war, know OF none, but such of the issues
.as nay nave been loaned the government or
used in purchasing Confederate stock and It
would be impossible to distinguish now the
".notes' that were used for either purpose"
The profit and loss account consists Of re-
celpts IN issues of the bank for interest on
~,
Item state Treasury for sinking fund" is
made up Of the profits of the bank to 1865.
Item State Treasury for loan for rebuilding
the City of Charleston is the balance due on
the Fire Loan debt of the State in Europe,
f1U9,0O0, and about s31900O OF stock in this
country.
In reply to question, the cashier Tays he
''dOcs not know what portion OF the clos, 600
is owned by the Barings, and has no means Of
knowing" He further says: "Thc bank
had considerable amount of bonds in
"London and Liverpool, held as security
''ed previous to the 'c war W with Hambro o0 &
''Son and the Bank Of Liverpool. These ac-
counts have been closed, and all the bonds
brought over except those left with tho Ba-
rings, as security for the punctual payment
''ot the interest on the State debt"
Item $42, ,2O3 SO is the balance due Barring
Bros. & co. for advances.
Item $4529 IS bond given for a piece OF
property on East Bay, Charleston; the proper
ty is described in Exhibit ''O."
Item $4,136, 489 Al is the personal deposit
account. The cashier says: ''rhcsc deposits
were to great extent made during the war (al-
most entirely. They we're made in nothing
but Confederate money!
Item $25, ,O56 O3 consist Of drafts and checks
outstanding between the parent bank and the
branches. at the close Of the war, IN Confcder-
Item SIS, $40 So consists of balance due tho
Farmers and Exchange Bank of Charleston,
and banks out Of the State.
IL VIII DC seen that Exhibit -" contains
list OF the available assets Of the bank at
their par value, which, III round numbers, may
be put at about 5000, 900. OF course, if placed
upon the market now, nothing like this
amount could be realized upon them. AS an
offset to these, are the Fire Loan debt Of the
State and the bills OF the Bank Of the State is
sued prior to the war.
In dismissing this portion Of their report,
your committee cannot fail to notc3Awo facts
developed by this investigation. Thoy refer
in the rrst place, TO the fact that the bank is
made to pay counsel fees for the defence of in
dividual interests, simply because those inter-
ests happen to be identical with those OF the
bank. Dabncy, Morgan & co. ask that tie
bank moy be restrained from carrying out the
act of 1865, which devoted the assets OF the
bank to the payment of the Fire Loan debt
held IN Europe. Thereupon, Mr.. a. V. Daw-
son, large Fire Loan stockholdcr in this
country, by his counsel, Simons & Sicgling.
joins forces with the Barings and tho bank to
resist this suit; and the bank by the advice of