, 1874-01-11
Examination Of an Unfortunate
Banker Named Jones.
earch Of she Assignee Of the Frank
lin Bank for Information.
Gigantic Ignorance Of Mr..
Jones.
How the Concern Was Run for Lon bard
and Briggs.

The Books Show Jones Owes $40, 900,
but He Denies All but SIS, 600.
The following is an abstract Of the testimony
VI Fernando Jones, the President OF the
Franklin Bank. The first examination in Octo-
her was reported in TIE TRIBUNE, but it WAS
rafterward conducted in private, SO that one
officer would not be able to know what another
sIad testified Messrs. Lombard, Jones, and
briggs have been examined. The testimony Of
1he former two is not so rich, showing
thei- ignorance more than anything
,ese: bnt the eridance of Air. Briggs, the active
manager, which Was concluded Saturday, will
give acme revelations OF the way banks books
ka1e kept. This is not yet transcribed from the
reporters notes, but will be given as soon as it
is accessible.
HOW JONES GOT IN.
Fernando Jones was further examined, Dec.
29, and tha following is Ell abstract OF the most
important parts OF his testimony in answer 20
questions I Was President OF the Franklin
Bank at the time it cloeed business. was
etockholder or Trustee at the time OF
Its organization as the Real Estate Ioan
nnd Trust Company. took 5000 Of stock !;
have been stockholder under both names Of
the bank H1nce its organization, and e. Trustee
during tie whole time. I was elected Presl-
dent about tho time the name WIS changed to
sthe s' Franklin Bank" T was elected without
my consent or knowledge, and only accepted it
ssonue time afterward
i Here 5lr. Jones YVES shown tie record-book
sof the Real Estate Loau and Trust Company and
asked if he recognized it as such. He supposed
1T Was, but did not know. On showing him his
signature to the minu tes be acknowledged that
lit wa3 tho record-book.
H1a CoSJEcTUREs AS TO HIS DUTIES.
Question-What was your duty Trustee
sof the Company--what had you to perform as
such Trustee?
hnswer-Why, I suppose it was mainly for
Che purpose Of continuing the organization and
to attend to the general interests of tie cor
{,oration-
Odd you not understand that the Trustees
If this organization had the full control-airec-
1ion-of the management of 1ho bank?
c1nLDLIKE FAITH OF III. JONES.
A.-Why, thought at the time that the-that
,t1o Trustees, appointing managers, and agents
10 continue the business c. the bank, it would
pc done mainly by those parties: experts in the
business OF banking, and necessarily not very
much under tie control Of tho Trustees 60 far
as III nniDg the business of the corporation was
BOARD OF TRUSTEES.
Q.-Do you recol1ect what steps were taken to
xh1nge the Board OF Trustees from seron to
:dye7
Al dont remember when it was done, but
i remember that it was done aud that NO acted
under it in that way. How the record was made
mp 1 dom: know.
Q.-Nhat was the duty Of this Board of Trus-
tees. as you understand it, in the management
-t,f the Franklin Bank? To have the general
management: and control Of the hnainess OF the
banr, and to direct the manner in which tho
business should be continued?
A.-No, don't suppose that that as, as you.
gtate it.
Q-Well, state what it was
Al suppose it was to elect officers to take
the management of the bank, who understood
the business, or were supposed to, and, through
them, to manage and carry on tie business OF
the bank, tho corporation
MONTHLY MEETINGS.
The following bylaw OF the Company Was
then read to Mr. Jones: THE regular meet
ting of the Board of Trustees, c maiority Of
whom shall be quorum to do business, shall be
month at the Office of the Com
PAM" In answer to the question
whether euch meetings were SO held, Mr.. Jones
formally and make a record Of them but the
Yice-president, Who wns Manager of the bank,
tie Cashier himself. and one or two OF the
other Trustees, were able to consult in any cases
suggested by Alr. Briggs the Vice-Prosldcnt, or
py The Cashier, without having q formal meot-
;np Of the Board and making record of If,
TheT were not in the habit OF it, since it was
small Doard, and they could talk IN these mat
ters without making a record of meetings. He
did not consider at the time, nor now, under the
circumstances. thnt it was the duty Of
each Trustee to SEQ that these regular
meetinee 7;are held for tho protection Of them
selves and the public. It would have been
troublesome and OF no essential use to have had
o formal meeting when they we're together fre- !
quently. Mr. Lombard, when he Was President |
and Manager, and Messrs- Briggs and Eddy |
afterward, had the control Of the affairs Of the |
9,.nE Some one man had the general super-