The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1874-06-28

have received had he served as re.
ceiver iF0m the beginning Of She re-
ceivership system until the 6nsldistri-
button Of the assets. At the best.
every dollar paid in commissions be.
yond the commissions paid to Mr..
Courtney, is direct loss to the credit.
ors, aud, through them, to the people
of .hs State. Mcrccvc.. !. is p-oYca
that the receivers claimed, and we're
allowed, full commissions on property
which was never in their possession,
which they never managed, and for
which they were not responsible.
2. Lnrge counsel fees iiuve been al
lowed, out Of the fund, to counsel rep
resenting not the bank but the credit
ors of the bank, and the effect of this
is to make tho debtors, the taxpayers
OF the State, bear the cost Of q lisigs-
ton in which they have no interest.
The committee think, and We agree
with them, that such fees should be
paid to each solicitor by his own client,
out Of his share Of the assets. It may
prove practicable to ratify this when
the assets are finally distributed.
3. The tabular statements compiled
| by the committee from the report Of
Receiver Gayer show that the amount
OF loans to individuals. in January
last, was 1894 993. Some of these
loans nre secured by mortgages OF real
estate, aud among the borrowers finure
Gov. Moses for Sl2,021, Registrar
Carpenter SO. 5S3, and State Senator
Andrews for S7.784. Gov. Moses also
borrowed 1920 on tho security of
State or County claims, (perhaps they
are some OF the pny certificates of his
own issuing,) ex.Clerk OF Court Rich
uond borrowed 1920. and Sheriff
Bowen borrowed $5,073. This does
not exhaust the list OF Republican
borrowers. United States District At
torney Corbin borrowed S2l,lS3;
James Graham. (the father OF Judge
Graham, who ordered the loan to be
made, borrowed S3A. 1875; Representa-
tive Joo Crews borrowed $26. $50:
Comptroller General Neagle borrowed
$40. .4S9; Hardy Solomon. Of Columbis.
came in for $40, ,G03. and County Trea-
surer Gnrney disposed Of SlO,777.
Republican total. Sl97,337.
4. The committee do not pass iudp-
ment upon the propriety OF particular
loans; bot they say distinctly that
S284, ,626 have been loaned on securi-
ties such as no court would allow pri-
vate trustees to invest trust funds in.
1t is shown, also. that money borrow.
ed from the fund has been allowed to
be repaid in bills of the Bank of the
State at par. which bills could be
bought at forty or fifty cents on the
dollar. This is positive loss to the
fluid to the extent of the discount at
which these bills sell. in greenbacks,
IN the open market. The committee
further say: "But whatever conclusions
may Justly be drawn as to the pro-
priety, sutficiency and desirability Of
the loans and Investments which have
bcen made, the orders in the cause dis
close the fact not only that. in several
instances, interest-besring securities
in which the fund was already invested,
were sold to procure the money order
ed to be loaned by the receiver to in
dividuals, hut. what is more startling,
that most OF the loans were made with
out reference to ascertain the title Of
the borrower to the property offered as
security, and the suf]iciency of the
security; without notice to the credi-
tors entitled to the fund, or their So
licitors, or the Attorney. General, rep
resenting the State; frequently at
chambers, upon orders that do not
show that they were made on motion
Of any solicitor or the Attorney. Gene
ral."
And who must be held responsible
for the loose manner in which the
assets of the bank have been mana ased !:
for the appointment of receiver after
receiver; for tho repayment of loans
in bills of the bark; for the invest.
ment of the fund in securities of
doubtful value and difficulty of renliza-
ton? The one person responsible for
this is the Circuit Judge by whose au-
thority and upon whose order these
things were done. Judge Carpenter
appointed Rcceiver Courtney, and the
sumo Judge set the example of lend
ing out the assets to impurtnnate APP
pllcants, among whom was his brother,
tho registrar in bankruptcy. Judge
Graham gave tho custody of the fluid
successively to Receiver Gayer, Clerk
OF tho Court Whitman and Receiver
Puifcr, and ordered the lending ont of
the fund to oil manner of applicants,
including his own father, upon any
kind OF security and insecurity, with
out tho consent or knowledge of the
counsel representing the creditors of
the bank or the Attorney. General, who
represents tho State. In word, u
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