, 1874-01-14
The Truly Interesting Way in Which
Stock Was Transferred.
How He Did Business as a
Trustee.
Fraudulent Entries Discovered on the
Books.
of Real Estate After
the Bank Closed.

The following is an abstract Of portion OF
the testimony Of S. 4. Briggs. the managing
map of the Franklin Dauk. The evidence is
very yoluminous, covering nearly 1.0oo pages OF
legal cap and much OF it is eras'vo,
but Mr, Briggs threw much light on many OF
the crooked dealings Of the bank. and has ma
terially aided II the discovery Of apparently
fraudulent sales and assignments. 1t IL
thought now that. il portion OF
these fraudulent Gales can bo set
aside, the bank nay pay 80 per
cent of its liabilities. 1t reveals most lncred-
lbe state Of facts, and it is difficult to believe
that such a family party could exist 30 long and
not be discovered. There is slight con-
ncction shown plsu with the National
Life Insurance Company, similarly
managed institution, with nearly the same OIL
GERS. at least at one time, al the Franklin, and
it is surnised that tue connection was much
closer than is HOW known. Only te" Gays ago,
it will be remembered, complaint was neo on
WHICH to have tho Attorney-Geueral commence
proceedings for winding up thls INSURANCE COLL
Fany.
In reference to the stock, which amounted to
s100,O Briggs stated that he held 55o SHARES
OF stock as Trustee OF tue Franknn hAnA-
There was no evidence that it WAS leld III trust;
it WAS transferred from Benjamin Lom-
bard to him. Only forty-four shares were
held BY outside parties. Mr. Eddy, the
Cashier, hariug tle..remalnins one. some stocR
Ras taken by the bank from the National ,Ee hlie
Company. because Mr.. Lombatd agreed TO tako
1t. Witness Kept the stock in the vaults OF tue
bank and never leaned it, nor lent it az security.
No dlvideuds weto declared On 1t, because It was
held BY the bank. Only one dividend was de-
cured on tho stock after TINS was oousns .t' ps
the bank. When questioned Is to the
amount Of stock OF tho Real Estate, Loan aud
Trust Company, owned by Benjamin Lombard
whom the book was closed preparatory to turn
ing the Company into the Franklin Bank, Bnsss
got toggy, and said the stock-ces tihcate book
was not the place to find the location OF stock.
nor yas the record book lie finally stated that
benjamin Lombard held 200 shares when
the book closed, which he transferred TO tho
National Life. He then bought thirty shares
from Josiah L. Lombard, which amount he held
a. the time the bank susI ended. Witness here
made moro calculations, and announced that
Lombard only held 100 sha1es when tho Loan
Company changed into the franklin Bank; thas
tie remaining 100 had been transferred TO MN
a. Trustee, aud finally announced that Lombard
did not own 200 shares at tue above tine
BENJAMIN LOMBARD.
BRIGGS thought Benjamin Lombard received
first $4,000 wolth Of stock OF the Franklin
Bank-no. $4,000 stock OF the bnnk, Jan. II,
1873. transferred from Josiah L. He subse-
queptiy, on Feb. 8, transferred 1oo shares to the
National Life Insurance Company. April 5, lie
transferred another LOO shares to the same Com,
pauy, both representing certificates Of the Heal
Estate Loan aud Trust Company. Ihese rep
resent previous transfer maae IN
1872, the certificates for which we're not de,
mapded until after the change. Tie National
Life Company holds now S20. .0oo Of STOCK OF
thoreabouts. It also held at ono time 13o shares
more 100 Of which we're transferred to witness as
Trustee. For tart Of it no certificate WAS Issued
IRREGULARITIES.
Briggs testified that in lnany cases STOCK
was issued to parties or transferred By
| them without the least note OF it on the
hooks. It seemed as though the certificates
! we,e issued when the bank was disposed to give
them. In tracing the stock OF the Life lusur-
ance Company down the witness was asked to
| turn to the minute on the stub Of the where
abouts Of the stock issued on ceItlhcase o1' anu
the folio wing conversation took place:
A-Meanwhie to keep the record CLEAR
| Q.-Yes, 90 on mud state oil you know hbout thus
| certificate before going any further
Al yaut to 70 i1ck to one year past.
Q-we will come to that in trAnsfer from the Mt
! All right--what il the point, Dirt
Q.-Certlhtate a.
4:-Two Tfs i,1s Hundred shares.
| u.-1ecciv.d from whom7
| A.-yenjamiu Lombard.
Q.-Turn 70 certificate s1' zoo shafes
| Q.-Kcceived from whoms
| A.-Subdiviston Of 49.
! Q.-Subdivision Of IL
A--yes, kir.
! Q.-SuIe Of that
| Alt says Sc.
Al .h;rk there is smother one the SANS ws5.
O.-A subdivision Is dividing up, Is 1t not3
o.-1s zoo o. subdivision Of eco?
| Mot mnch-a1itbneticallj
Q.-E1plain that please-what reatson one n7s eo'
| to the othet-What that Ruod1s1sloa Ae'a1s+
| 6.oGo T. eT'. on. III. Briggs. :, >, y,
Al trying to state The thing 80 you "ons aA's
TO ask ME too nlAny questions.
FALs1F1ED RECORDS.
| Witness then stated that the word e'1bdlv1eaon
did not mean subdivision at all. but substitution.
| Having 'hatched this fecitous explanation lie
went On swimming!y for time. He was the
Treasnrer Of the National Life when the stock
was issued, and receipted forit: 1t was not out
J of the possession of the bank more than ten
minutes, mud then turned over to Lombard -
/ was surrendered and Cancelled when o1 was
iasued. IL,
Of Is was July 81, 1911 Now, what does that mean'
this subdivision ..,su-,.;r,
Al dfdnt make IT, sir thats not NY oAuo"A4141s
UMWhoze 1uA hove handwriting Is that7
! Alt looks to me- like Mr. Eddys. Perhaps Nc cao
! explain it.
! Witness insisted that the two certificates wert
! not issued the same dav.a5 security to be put ul
t BY the National Life Insurance Company ano
| reiterated his former statement.
/
/ 1-Wel, sir, an net responsible for the entry.
| O-Docs the record state what IL false? Eepe&
| the question. ,... ~ +ta e,,rre,,
tn july s. ISL" as should read it. II don't makt
any difference whether It vas July > Of o4s; u;
| NO think that's fnil. =.
O-Aud it states what il untrue?
| 1-That record states what know is not 80. .
Mr. Briggs explained that certificate 90, datee
Jnly 81. was wed9ed in between certlhcates =
and 81. dated June &c, By eta5lng that - some
| BODY. in turning over those pages, tarhed one
that had no business to have beeu-" Ce1tlticate
81 vas q substitute CT 43, 81 OF 81, o3 o.
s. and, finally, 30 Of 5s He understood that thi
stocK was used 81 collateral in connection will
/ NT Lombard's name in some shape to &c
soo 0Cfl. The National Life Insurance Compan.
len. it's account with the bank while Mr. BF1ss
Uas Treasurer This certificate WAS issued Y
Ar Scoyille as collateral for money borrowed 10
the National Life Insurance Company.
o-The date Of the surrender Of this certlhcate i
March l. 1871 eight nine months a11ef lts ISSUE
and 1t tie bottom the figures 'nunpess o. ees
tiiIcates 81, IS, &c. and 81" What do thtse hgufo
meant .> ,..,.a IN 13a,
| Of
O-.Eew eert1fcates7 :
i Anew certificates. .sA .,o,,. ror