The New York herald., 1873-11-27
A BANK PRESIDENT I'm COURT.
Criminal Conduct i'm tho Management
of a Bank at Petersburg, vn.


RICHMOND, Va, Nov 25 1873
This evening there was concluded before United
States Commissioner Mathew i. Peasants
OF this city, the first examination OF a criminal
case which has arisen in Virginia under
the national banking laws. From the high
social position ana arstocratic associations
of the accused, and because of his,
until lately, supposed great wealth, more than
usual public attention has been attracted to it, and
the business men OF the Commonwealth have
looked on its progress with an interest that was
heightened greatly by the remarkable develop
ments expected.
September came, Mr.. +. 7. Brooks was President
OF the Merchants National Bank Of Petersburg.
He was the great fnancier OF that city
and was o man in whom the merchants
trusted and to whom capitalists looked
for advice, and his sway In commerce
and business was little less than absolute He
was not only President of the Merchants Bank and
director in two or three other banking iDstitu-
tions, but was partner in Blk or seven OF the
largest mercantile firms Of the city and was con-
nected with nearly every enterprise that needed a
name or money to sustain it. He seems to have
been goOd-natured, easily nattered, proud of
his financial abilities and wlthal reckless as to
whose money he used. BY much specuating
in common railroad stocks and other securities,
and by princey style OF living, Brooks brought
nected into debt, and Tor twelve months or more
ran the bank TO hide his and their insolvency.
oow q Ms to
and was placed in the hands Of orson Adams as
receiver
After nearly two months of careful investigation
Mr.. Adams concluded to have Brooks arrested,
charged with embezzling 500, 900 OF the money,
has shown that the charge was mild one. For it
has been proved that Brooks owes his bank, as
payer, $25s,es4 4e;. as endorser SPAS 800 90; for
unrdr rolf a hQr
firms OF which he was o. member owe, as payers
and endorsers, s4eo,s76 81. Their assets win not
probably realize twenty per cent Of the whole
Indebtedness. All are now IN bankruptcy,
SO sublmely was Brooks trusted that ms
Hhy bSoR
year at regular intervals OF two weeks falsely and
iraudulenty entered minute IKE this March
IL, '73-At meeting OF the Board OF Directors
paper discounted BY the President. Present-T!;
Further. Broocks had time drafts to the amount
Of $4,000 drawn by himself upon nom
existing houses, or houses with whom he had nc no
credits, discounted and placed to his account and
would never allow these drafts to be forwarded for
acceptance. Paper OF his firm was carried year
after year, and the ring with which Broocks was
surrounded got all the money they wanted by . ex.
changing notes and drafts. Their accommodation
thousand dollars, although the bank was only
authorized by law to carry $4,000 OF this klnd OF
On the evening OF the suspension OF the bank, to
straghten his account somewhat, Broocks diseov-
cred two notes OF his own, endorsed by Peters
burg firm amounting together to $4,000. On
TUESDAY, the 28d OF september, when the news
from New York came by the mornings HERALD,
excitement In Petersburg became intense,
and depositors, mstrustng this bank mos {
and first Of all, made rush upon IL.
They soon exhausted Its small amount OF
currency, and the bubble burst carrying ruin to
the homes Of many farmers mechanics and honest
and neglectful directors to see that all went well
inside the bank.
The capital stock OF the bank was 100000. 1t
owes depositors S75000O, and for rediscountcd pa
per $350,000. Its assets consist OF $4,000 cash,
$4,000 real estate and $i35o,O0o in bills receivable,
oil worth say 100000.
The failure Of this bank came near bringing gen.
era ruin to Petersburg and but little OF the deficit
can be made out OF The stockholders. Broocks'
offence Is grave one and the wall OF the Wiz widow
and orphan robbed Of their sustenance, Will pc
o sound that only death will hush rom MS
ears. The directors, who gave up everything
to him. and allowed him to rule ana ruin, are re-
garded as scarcely less responsible. The commits
sloner, after full hearing, sent Brooks on TO the
United States Court, at its April term, for indlct.
ment, and allowed bail In the moderate sum OF
$4,000. Brooks Is completely broken In spirit
and is almost deserted by his old friends Like
Tweed he ls finding that the way OF the trans
gressoT Is hard In the end.