Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1873-11-29
A BANK PRESIDENT IN COURT.

RlCHMOND, " A., NOV. 20, 10! 0.-l nlS eVeu-
iug there was concluded before United States
Commissioner Mathew f. Peasants, of this
city, the first examination of criminal case
al banking laws. From the high social position
and aristocratic associations of the accused. and
because of his, until lately, supposed great
wealth, more than ususal public attention has
been attracted to it, and the business men OF
the Commonwealth have looked on at it's pro
gress with an interest that was heightened
greatly by the remarkable developments ex-
pccted.
For eight years. and until the great panic of
September came, Mr.. T. T. Brooks was Pres
ident of the Merchants, National Bauk of Pc
tcrsburg. He was the great 6nancier of that
city aud was man 10 whom the merchants
trusted and to whom capitalists looked Tor ad-
vice, 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 institutions, but
was q partner 10 six or seven OF the largest mer-
cautiIe firms of the city aud was connected with
nearly every enterprise that needed name or
money to sustain it. He seems to have been
good natured, easily fattered, proud Of his
financial abilities and withal reckless as to
whose money be used By much speculaliog
in common railroad stocks and other securi-
ties, and by princely style of living, Brooks
brought himself and all the firms with which
he was connected into debt and for twelve
months or more ran the bank to hide his and
their insolvency. When the panic Of Septem
Der came the bank, weak and hollow thing,
was forced to suspend and was placed III the
hands Of Orson Adams as receiver.
After nearly two months OF careful lnvestlga-
ton Mr. Adams concluded to have Brooks ar
rested, charged with embezzliog 100000 of
the money, funds aud credits OF the bank The
examination has shown that the charge was a
mild one For it has been proved that Brooks
owes his bank, as payer, $3.50 ,6S4. 46; as eudor-
ser, S243, 999 90; for overdrafts, SIS, l0Oi alto.
gether, S5Os, ,764. &c. The firms OF which he
was member owe, as payers and endorsers,
$4e9,97 81. Their assets will not probably
realize twenty per cent OF the whole indebted
ness. All are now in bankruptcy.
So sublimely was Brooks trusted that his
directors only met once q year, but Brooks
kept the record book of the Board, and during
the past year at regular intervals of two weeks
falsely and fraudently entered minute like
this :-''March IL, '73--Ata a meeting of the
Board Of Directors held this day, we hereby
ratity and confirm all paper discounted by the
President. Present-T T. Brooks, +. u.
James and W. G. Lumsden." Further, Brooks
had time drafts to the amount OF S84, goo draWn
by himself upon non existing houses, or houses
with whom he had no credits, discounted and
placed to his account, and would never allow
these drafts to be forwarded for acceptance:
Paper fhis firm was carried year after year, and
the ring with which Brooks was surrounded
got all the money they wanted BY exchanging
notes and drafts. Their accommodation bills at
all times amounted to several hundred thous.
and dollars, although the bank was only au-
thorized By law to carry SAC, 900 of this kind OF
paper. o.,
On the evening ofthe suspension OF the bank
to straighten his account somewhat, BROOKS
discovered two notes Of his own, endorsed by q
Petersburg firm, amounting together to $50,
600. On Tuesday, the 23d of September
when the news from New York came by, the
mornings Herald, excitement 10 Petersburg
became intense, and depositors, mstrustine
this bank most and first of ALL made rust
upon it. They soon exhausted its small amoun
of currency, aud the bubble burst, carrying
ruin to the homes Of many farmers, mechanics
the unfaithfu and neglectfui directors to see
that all went we'll inside the bank.
The capital stock of the bank was 100000.
It owes depositors $3.50, 900, and for rediscount,
ed paper $35O,OO0. Its assets consist of So,
500 cash, $4,000 real estate and 81, ,350,0OO IN
bills receivable all worth say $4O0,UO0
The failure Of this bank came near bringing
general ruin to Petersburg, and but little of the
deficit can be made out of the stockholders.
Brooks offence is grave one, and the wall OF
the widow and orphan, robbed of their susten-
ance, will be sound that only death Will hush
from his ears The directors, who gave up
everything to him, and allowed him to rule and
ruin, are regarded as scarcely less responsible.
The Commissioner. after full hearing, sent
Brooks on to the United States Court, at its
April term, for Indictment and allowed bail In
the moderate sum Of $4,000. Brooks is com,
pletely broken in s. pirit and is almost deserted
by bis old friends Like Tweed be is indlng that
the way of the transgressor is hard in the end.