The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-24

direction Of the bank and q holding Il. management and
Of making the stock valuable which we purchased.
Being asked whether he informed the Bank
Of Commerce Of the actual stnte Of aiIars--ot
the fact that he had not paid for any of the
stock which he proposed to hypothecate. he re-
piled:
did not tell Mr. Vail or Mr. Russell or anybody else
In the Bank q Commerce how much owed on the stock
me to have done so when wanted TO borrow million
And again.
not likely that would show any evidence Of weakness
loan don't Know that impressed itu upon Mr. Russell
that was matter OF HE or death TO them but mat II
made PLAIN to Mr Russell and II brought out the remark,
" You a~k me n am willing Rs President OF the Bank Of
BANK Of The swie Of Missouri as security say, No;
But when the proposition returned in q dlf-
ferent form-when Eads asked loan OF 81
100000 to the bank with the seven gentlemen as
the Bank OF Commerce was remarkably willing
TO do something OF the Kind.
That the seven directors used the credit OF
their bank to get loan for themselves and to
keep themselves in power s clearly apparent
from the following extract from Eads's testi-
mony:
were pending was there any occasion that the sum Of
slooooo OF any sum should be borrowed for any pur.
Eaas-Tse hank wa: not in need Of that amount Of
!9a, time which REQUIRED / 20 borrow the sum Of
Esd:cSo. q don't dE PHI PshinS & ,SsSs iST 'S% %a.
Nevertheless. the money which the Bank OF
Commerce would not loan to the individuals.
but would and did loan to the bank was imme-
diHtcly absorbed by the individuals. The seven
directors took every cent OF the 81 100000. ap-
piled y 70 their personal accounts. nnd rem-
bursed the bank which they msmanaged by
giving their individual notes Tor the amount.
This paper is now among the assets Of the
Bank OF the State OF Missouri. and is worthless
paper. for the simple reason that every one OF
the surviving directors is unable to pay his
debts.
More than this. The notes which the Eads
directors put in the bank In return for the cash
which they took out were unendorsed and un-
secured. As Directors they voted them
selves discounts TO the amount Of l.O0QOO0
q loan to u st. Louis butcher wanting seventy.
five dollars TO repaint his wagons / quote
Eads's testimony uRain;
Q-D he notes gin. havs any sdor'sr' 0v 'ees
Eads-No. sr
As fast us the different members OF the Ring
put up their stock Ito SECURE. not the Bank o
Missouri. but the Bank OF Commercel the pro-
ceeds OF the loan to that amount went TO the
credit OF each individual. One more extract
hero from Eads's testimony under cross-ex
animation:
o-DM y.u Individually receive the berent Of any por
ton NJ tho a. u.D.uUO loanf
o-now much In round figures. as near as you car
Esds-some thing over $4,000
HOW THE EADs MEN MANAGED THE BANK.
With such a. beginning. II can be imagined
how the Ehds Hing employed its ten years o
power in the Bank OF Missouri. As soon a.
| the seven directors were firmly established by
| the aid OF the Bank oi Commerce they began L
| improve the opportunity to vote discounts L
| Themselves as individuals. and they improved
| II until they had thereby hankrupted the insti
| tuition.
The accounts Of the wrecked bank record tn,
| following Individual notes of james B. Eads
discounted during the first half year OF hi
I management: