New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-02-22
RANK OFFICIALS CENsURED.
GRAND JURY PREsENTMENT AGAINST Exe
CONTROLLER HULBURD AND THE OFFICERS
OF THE WAIKIKI NATIONAL BANK-A SERIES
OF IMPORTANT RECOMMENDATIONS.

GRAND JURY PREsENTMENT AGAINST EXt
CONTROLLER HULBURD AND THE OFFICERS
OF THE WAIKIKI NATIONAL BANK-A SERIES
OF IMPORTANT RECOMMENDATIONS.
The Grand Jury of the United States Circuit
Court for tho Southern District of New-York made,
yesterday the following presentment, charging the Late
Controller Of tho Currency, a. r. Hulburd and all Of The
officers OF the Waikiki National Bank, except a. A
Bromley one Of its examiners, with gross, though not
under the technical statute, criminal conduct II man
aging the affairs OF that institution:
The Grand Jurors for the District aforesaid, their
oath present in their Investigation II complaints
against certain officers Of the Waikiki National Bank GER
tain facts were elected which, IN the opinion Oh inc
Jurors aforesaid make 10 proper that they should call
attention to the gross neglect OF duty DOh on me part
and certain directors Of the said bank It appears from
the evidence aud from the letters OF MT Huoru 10 the
President and Cashier OF SAID OanK that as early as teD
pears 10y the the Controller bearing date
Feb. "a. 1871, that the reserve OF the bank was
then S262s0 Snort and that the cashier committed Tor
gerry in statements rendered 20 the COntrOierO he Cur
rency ana that the egal tehuer money ia tno 9s Wts
Si,7lJ less tAu the amount required Dy Jaw NOtwlth-
standing these facts, attested by the signature or the
Contributor ana the report CT the ahA eXaAeI heItler
officers ~ the bank nor any OF The directors tOoA any
effectual measures TO correct them.
Tie law provides that such a efficiency in the bank
serve Is good ground 10 forfeit the charter Of tue
Citations and. while it may be that such penalty should
not inflicted in the OF temporary Or accidental
dtceucy N this nature yet had the Controller nc that
time performed his duty, he would have found SUCH
condition OF things require stringent measures on
his part. Not only did the Controller not take any
holders anu IeP1Ii,C' t5at ne sct,o seised tb
President and cashier in cOnceang the real condition
OF the Association from the Directors As result, the
bank failed few weeks siuee and invest CATION shows
that only IT'D entire capital been dsslpacd. but
that deficiency exists which the stockholders must
make good while large sums have been lost by special
II rppears that the affairs Of the bank conducted
in very loose. unbusIness-ke and negligent manner
the cashier, dcauiter AID fugitive from Justice,
being frequently absent from the bank for days at
time, and the affairs OF the institution ell IN charge or
f.IIar ms of %
banking business. The President appears 10 have been
9irctIe INN rnted with fhe cashier In embezZug and
converting the funds OF the association The ycepres-
ident and directors composing the examining committee
appear have been tSgent 10 their duty 70 An unc
EQUITABLE degree The clearly shows that for
period OF years the Association was entirely Odnk
rlipt and that the superficial examination OF the
affairs bank by the examining committee must
have made it entirely clear 10 any ordinary MIND hdt
the Association was ns0yent; yet that commit
tee claims 70 have examined the bank twice a
year without discovering anything wrong or III
proper. We also wish 10 call attention To the eX-
IRENE apathy and indifference displayed by the directors
and other persons interested IN prosecuting the prcS
dent and cashier OF the BANK with one eACeptlOh A. A
Bromley, who 10 have done his fun duty They
appear have rather wished 10 shield the dsh9n-
officers than 20 prosecute them Tor her crimes the
pauk examiner appointed by the Controller OF the Cur
rency 10 have regarded himself rs having 10 duty
In conclusion we are compelled to say that while there
has not as vet, been evidence submitted sufficient TO
make the late Controller OF the Currency ana UAe uIec
tors bank amenahe 70 the criminal sections OF the
Banking get yet IN our Jnngmonl' 1ey are 1rlS re-
spOnsDe Tor the losses raining on the inhoGeht leaeS
and special depOstOrs OF the bank with this example
before leel ODuged 10 feCOMncuu 70 tue Jou-
troller OF the Currency, TO all national bank
examiners and especially TO the Directors OF National
banks careful supervision Of the interests
ded TO their care and stringent measures in tho
discovery and correction OF any nfracuon OF the law
Aud we earnestly recommend that the National Banking
act be amended. defining more directly and explicitly
duties OF persons appointed under said act anu
known as National Bank Examiners. And 70 that elect
we make the folio wing suggestions
First That said Examiners DO made officers or the
United States and such officers, subject 10 the
visions OF general statutes OF the United States de-
hnng their responsibilities and Furnishing any ofenses
they commit
Second That said Examiners be required, whenever
they any violation OF the penal sections OF the
Ranking act proceed forthwith before the United
states Attorney for the District in which such violation
NAV occur aud lodge u complaint against any aud all
persons committing such violations.
THIRD: That said Examiners be paid by the Govern
ment and by the banks they arel appointed to
anime.
Judge Blatchford directed that copies Of this pre-
sentiment be to the Controller OF the Currency the
Secretary the Treasury, the Chairman OF the Com
mttee Banking Of the United States Senate and 70
the Chairman OF the Committee Banking Of the House
OF Representatives. The jury also indicted Charles H.
Horton, the President, and william NJ. Graham, the
ASHER OK the WAIKIKI National Bank.