The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-11-04
THE NEW ORLEANS DEMOCRAT TUESDAY, NOVEMBER d 1879
10 pay the iepostors ID full II was aafe @ DO
clare tho bank n safe one TO aeppalt IN.
IL n Palmer. President.

~ i. 8, fAI,MGa. President.
Provision having by tg's transfer bsen masia
~ penu,c new capital direct special n'tanttnn,
NJ hoaline very f"rf'hlY on nn tmpnI,nn. leh
ita entirety from minutes ~ June "a, 1874
Wheroas, il il impnasihe 81 aRehr'ain tho
nrasani value ~ thn naeala uf 'hiR bunk, ma
NboraaR Ill IL the desire 81 nil rHltios inter
eafa,l i, nhrnln lilo ful1 valno tbernnf.
iteselrsd That the utesden' and 'ashter IN
anthort77, II 10 open suah rsew books es mnF DO
Iseeasanry 10 knau M Interest rnrreaan'ei ny
Nh. new aioek entirely aopatata from NE elh,
~ nrnnnrd ~ convert The assets o. fast ~ rsrHRl
bic without unnecessary snnrifae Rnd Epnly
tho prnoenda To tho payman nf tho iehtR of tho
old stock ~ TO tho credit of tho i,oliera thereof
upan VA. new stock aa Der aEtaamen'"f We
Rlork ioldara IA m inrranaa WI atunk.
Now beating III mlnd III Tho fahia w tln Tlh
etnet must fret no paid out If the aas'Na nf tho
old bank whom eollented, ! proceed " nnalK5"
transferred 10 now hRnk Ra rnnrnar sting hnW
capital
Hnwr n Macy s9aaR Oh good for s6pn 40
Notes aud bi1la dis ~, ~
counted .-...-, Ann, III hp good lor AltaeN 40
Nntra protna,nh .Hfp IN good for ARGs np
raaaa . 4ap,p ~ good for 1929 10
Htneks aud bonds ipl.G77 ~ good for
sundry accounts t2oah 's go"u 'ot
Total seas tnR a1 geod for sGE anp ~
Nav vi sGs4 ton ID. All the aaHrta ara only good
Cor tGE sap 70. how much loaa valuable Ia tho
amount tranaferrad whom In this amaller
amount figures the various nntnnE'h|e ttena
al long kent among the aEEata. Allowing the
nn sinum valuation If assets 10 ~ MN ssa h',
md then ,apryinR tho agreement ~ W nc
a2ye rnnnlona " rasins n1 ,h ha o' d' bann
Palmer, ssh. sph. giving only the valuation OF
stn,bpB 10 aaonre &lbn.noo This amount. how
ever II aueoen.iible " at'l' further reduction
III aorka ana hUnda. owing To the low mark ~
valua then Taking the average value Of forty
oenta whiah ia liberal. we have
rHH aArtrAr RHrREaEN'rNn ~ EEPo.
after paylng ralmar'a elaim
Now pr.oaed ~ chow how this largo amour,
(tspH NV, Ia reduced 10 s4i,aoo, From July /.
1914. and prior thereto, IN every statement
figures Van Noraon'a large, increased debt 81
which will ahcrtly refsr Of thoae debts over
egi2. 600 Ia atil unpaid. Now very serioua point
here presenta itaelf. In THE lat Of notea and
bills discounted figures are ~ follows: Die
counted May a lsJs u. q. Palmer n o., note
inintHa,l hy Van Nnrdan foT $40 200. Note aaii I'd
ha loaned 10 Van horde az All accommodating.
Palmer 4 Co. note Of a152g, favor Of the bank.
discounted June ~. la11 with the list proceeds
NJ large, amount ri other discounts was
nlao 10 w. A. Weeds note favor Of H. ~ Palmer
4 TO-, discounted Ootoher al ia7t; FOR sioaG 81.
Thoan notes all discounted tn tho iatoreat Of
Mr. Palmer directly and indlrattv, not one was
paid nnd MI wsra constantly kept ~ good as
aete. Tbcae amounts are AL charged up to
profit md loss June u. lsIp hy Mr.: rwngm} .'
demonstrated with Mr.. Palmer on
hla attitude In this matter. Inmmenta are IN
naeeRaary beyond tho fa't that thia ~ one "
TaE MoHr OUTRAGEOUS AcTB
Ut all. Money obtained from tho bauk on hta
nwn noea of Palmer Il Co. which he rsfuaed to
my hraupa thny were an accommodation for
Vim Norann when the s'baa was daridadly not.
may b regarded simply ma crime ngalnat
right.
/ note the inceasaut complaints made by Mr.
Palmer 81 tho manner IN which 10 WAS drawn
In tho bank but nlan nnta the circumstances
which antisiiea mo that IN WA not AZ ignorant
Al he appealH to porRuade himaelf. Hta retlsn-
Iona on Mr.. Van Norden and the deceased caeh
er srp rnthar uugeuefoua. hacauHn the s17h,n
which forma a part Of the large debt due tho
lrofHrya and hlmaelf was made solaly br Tho
and advice Of Mr; Van Norden
md white Mr.. Van N. was culpable In using tho
unds nf the bank. yet the use without ha con-
sent of the direaors waa tho only rerrehnnaiblo
portion 1T Y. because 81 the.e funds c3natitn,-
anger w Mr.. Palmer by interest additions tvl
swell tho apparent proiital was so1ely to assiAt u
nrge drainage corporation In whose future It
g reneonah TO auprosr Mr.. Van N. ha, gr.at
~ morn howavor, thnn did Mr., |
Il diner who was continually hia adviser anil
anl who hss ftll Ia" moat unlimited
In tho warrants
During tho Van Nortien administration tho
looks show thnt Mr. pnlmera account WINS fro |
Nnrden Withdrew III knrt bla account with the
row bnnk III to May. lBT0. two years after he
yas supposed To have separated entirely from
he bank his account shows largo overdrAfts |
,at,aeculiyoy, by pormaaIon Of Mr.. Palmer.
rhia classification Of interest VI those two gen |
lnlnsn with drainage matters eventually pre- |
tented two 1ehi,s Of Van Nordan: q Duo tho |
ransnd by interest charges Of s4n,sas IL; total
aht due bank February ~, 1870. f34a ga3 90. |
ll All unknown amount due Palmer. nlihs tho |
iraaalayE.
Tho directors werc ptea1lly apprehensive ro-
arding the large debt. secured M they nlways
4 a "A.
ranrhian ana machines. and the subIact boiug
r.uuenty discussed they We're
MUCH rLEAsED
. see Mr.. Palmer outer tho dreotors' room and
resent 4 large number Of drainage warrants,
atariy VII VIII Norien \ iii mud arow.. III yoa
MI them" For this aonlimant I refer to
leaers. Wing and Jackson for eorroboratlon.
]onery and Keller. and Mr.. Walton. TINT tho
lain was secure; nnd futthNr. tho dry after
~ bank failure Mr.. Palmer told me personally
VITA through hia efforts that this amount due
y Van Noraen was secured
Fhis statement was male TO tho directors
bout juno, 1876. 1T tho limo Van Norden sold
a9o 600 III warrants ~ parnnt h,forn Lngu anre.
rotary public, and which Mr.. Van Nordon will
ully pnve to Mr.. Palmer.
MIR. Palmer reported no amount to the diraa-
ON. hut aimply that IL WINS secured
Now thn hirortors and ovnry one else aro
ary much snrprisad to find TINT this snmo
"
heir property, documentary proof Of which.
hey claimed was la their possession and was
surprise IL Massra. Walton md Jackson In
latr recent yiait ~ England III the interest OF
Npcsitors. They then found what was always
ons,derad the property Of the bank was
laimed by tho Crosslels.
Now II all these warrants wore tho Eroparty
I the hank then II was not nsoyont: III they
zero not. thon
No ONE KNEW BETTER
han Mr. Palmer that the bank was always sail
M under false coors. Hnnca repeat that MIR
'Hmrr deceived THU directors and through
hem, ,.ceivsd the public. But 10 amount III
eeeption practiced on them can shiold them
rom cnlpnhla neglect In not knowing evory-
hing that tranaproi In tho bank. Unfortu-
Rtey the sequel proves that they were ~ liz
orait W amy outsider 81 everything respect
w the bank. and Ia this they are very eulpable
Dur ng the past six years of the existence
I tho bank there appeared an UNDER
urgent n apprehension o. tho part
H the old cashier. now deceased. and 1
~ strongly impressed with his desire
q correct abuses which either wenkness
T some cause of inability rendered him power
ass To check. have before me letter book No.
, containing many lectures from Mr. Walton
4 MT. Palmer, from July. 1875. through July