The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-05-17
THE GRAND JURY.
Special Report in the Case Of the New Or
leans Savings Institution.
GIanng Irregularities, But No Law to IndIct-
A Reconmendatio to the Convention,

Since the suspension OF the New Orleans
Savings Institution, the grand jury has made
most searching investigation into its man
agement, and yesterday presented the fol-
lowing special report as their finding:
To the Hon, W. X. Whitaker. Judge Of the Su-
perlor Criminal COURT. Parish Of Orleans,
La.
The case OF the New Orleans Savings In
stitution having been presented to US, the
grand Jury, now i'm session, and having made
q full and exhaustive examination OF Its ar
fairs, and the conduct OF the president and
trustees OF said institution, we have the
honor to respectfully report
I. That we find that the president and
trustees have for many years past persistent
ly and habtually violated sections |, & and 8
Of the charter.
we were by them informed that there Is no
penalty prescribed under the law Of the State
for such violation Of the provisions OF char
ter, consequently there was nothing, on which
q criminal charge could be based for this
dereliction of duty.
g. We find that the trustees, as rule, have
been evidently negligent OF the interest con-
fided to their care; In some Instances showing
utter Ignorance OF the charter, In others hay
ing little or no knowledge Of the conduct Of
the business Of the institution, and generally
exhibiting an Indifference to It's success by abb
sence from the meetings OF the board, and
deegating all powers to the president which
1t Is reasonable to believe they could not
have shown in the management OF their 1ndt-
vidual business. We cannot too strongly
condemn their action in accepting positions
as trustees, when they were unable or unwill-
ing to give their time and attention to the
conservation OF the interests they were pre-
sumed to represent.
8. The monthly and annual statements
published, while doubtless correct transcript
Of the books are calculated TO mislead the pub
lie instead OF affording correct information OF
the financial condition Of the institution, as
they are presumed to do. In the last statement
published February %, ITO appears under
the head Of resources the item OF real estate,
S511 ,692 81, which real estate when valued by
expert appraisers appointed by the deDositors
was shown to be worth but $183, 100. This
property had without doubt cost the institu-
ton the figures given In It's statement, but
we submit that such al item should not
appear under the head of resources" unless
the property was actually available to the
amount given.
From the evidence before us 1t could not
positively be ascertained whether the several
statements published, which pnrported to
sworn to. Mr.. Theo. Guyol, the notary pub
lie OF the institution, testified that he might
have sworn one or more Of the trustees, but
could not recollect having done so.
He says, 'Ihey sometimes called at my Of
flee and In some instances took 1t to theirs"
to the sworn statements testified that they
had never been sworn. Mr.. GuyOl claimed
that he knew their signatures and attached
his jurat without having admin stored the
OATH We beg to call the attention OF the
court to this glaring frregularfty, which we
are reliably informed Is habItually practiced
by notaries and commissioners In this COM
munity, and which, In our judgment, Is q
gross violation Of their oath OF Office.
We have examined into the reports that
have been rife that some preference had been
shown in payments made to certain deposit
ors, but In every case brought before us we
In conclusion, we respectfully desire through
the court to urge upon the State Convention
now In session the enactment OF laws pro-
viding-
/. A penalty for the violation of the pro-
visions OF any charter under which d corpo-
rate body is working.
2. That all corporations that under the law
OF the State are required to publish monthly
or annual statements, shall be compelled to
show In such statements the actual nature OF
their assets, instead of giving the original
cost, as Is now the custom, or placing upon
them fictitious value.
VIM. PAGAN, Foreman
New Orleans, May 16, 1879.
Judge Whitaker, after the reading of the
report, ordered the same filed and certified
copies to be issued to his excelency, Gov
Nichols, and to Hon. l.. A. Witt, President
OF the Constitutional Convention.
On motion OF District Attorney Finney, the
bond which Mr.. David UIquhart the presi-
dent OF the Institution, was required to give
in anticipation Of the action of the grand Jury
was Cancelled.