The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1876-03-30


lively demanded. The committee can
arrive at no other conclusion than that
the failure grew out of long-continued
mismanagement, misappropriation of
funds, and iQegitimate and unlawful
transactions. In the face of all the dis
closures made by the books, MIR. Solo
mon withholds full confession of the
reasons which prompted the failure of
the bank or the necessities out of which
it arose, and offers no explanation which
would show that he is not the
SOLE BENEFICIARY OF HIS WRONGFUL
ACTS. ..-
In addition to Justification of the books,
there are found many entries, during the
ten days Immediately preceding the fail
ure, that necessarily awaken suspicion
and confirm the opinion that, whether
the failure was premeditated or simply
unavoidable, Mr.. Solomon was studiously
and skillfully at work in so manipulating
the affairs of the bank as that he might
reap the largest practicable harvest while
the impending catastrophe was being
made correspondingly disastrous to the
creditors. During that period, State pay
certificates for large amount and of
questionable value were made to supplant
other and better assets; an outlawed
note, which was never bankable, was
made to absorb its amount in cash ac-
counts were transposed; large sums were
drawn on the presidents individual ac-
count; and nine thousand dollars was
taken by him for three years back salary,
when the books show that only two years
were due, and that his salary had never
before exceeded one thousand dollars a
year. The transaction of the bank with
Col. G. G. Pufer, late receiver of the
Bank of the State, particularly, is fraught
with suspicion. While both the. presi-
dent and cashier testify that the certifi-
cate of deposit for $4,000, held by Col.
Puffer, was issued in December, 1874, and
represented a sum of money of that
amount deposited at that time, the books
of the bank show that the deposit was
made and the certificate issued on the
Doth day of April, 1875, and represented
an equivalent amount of bills of the
Bank of the State, which, instead of
being counted as cash, were; entered on
the abond account The palpable mis-
statement of the officers of the bank, or
| the equally false entry upon the books,
with the special reasons for the variance,
together with the purpose of any deposit
being made at the time, stamps. this as a
transaction outside of justification or de-
fence.
Among the special subjects requiring
consideration are the following: Retire
ment of the capital stock, the charge of
legislative expenses, and the action Of
the board OF deposit.
RETIREMENT OF CAPITAL STOCK.
Passing by the abstract right of the
officers Of bank to retire its stock with
out the authority of the stockholders, it
seems beyond doubt that, no retirement
can be valid and binding upon creditors
which is effected by money of depositors
when the liabilities exceed the assets.
While depositors must'submit to the con-
tingencies of legitimate investments by
the bank, they cannot be called upon to
contribute to the refunding to the, stock
holders of the very capital which gives
vitality to the bank, and upon the faith
and credit of which they were induced to
become depositors. At the time of the
failure, almost the entire stock had been
retired, and the bank had become mere
pocket concern. of the president. But
the testimony of Mr.. Solomon shows that
the retirement of the, stock was still more
reprehensible and unlawful, for, by his
own admission, he purchased the stock
as president of the bank, for the use of
the bank, to q large extent at 55 per
cent. but instead Of giving the bank the
benefit of the purchase at the reduced
price, he sold it to the bank at par and
covered the profits of the transaction to
his individual credit. For such conduct
as this there can be no defence. The
claim made by Mr.. Solomon that the
bank was crippled because the large
amount of stock taken by Governor Scott
and Mr.. Parker was paid for in State
bonds, which realized only 20 per cent,
is untenable, even supposing the retire
ment had been made in good faith for
the benefit of the bank for the stock
cost the bank nothing to issue, and was
resold by both of these parties to the
bank at 55 per cent, net gain to the
bank of fifteen dollars per share besides
interest. -. r.i f.'..'. t' 70.
LEGISLATIVE EXPENSES. H-r.a'
=.