The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-11-08
THE FIRST NATIONAL BANK.
Its Presidents and It's Liquidators-A Long
Looked-fcr Dividend.

Toshe Editor of the Democrat:
IN May, 1867, Just twelve years and half
AFRO. tho Fret National Bank Or this city was
seized by John Jay Knox the Controller of
tho Currency, when II was placed In the hands
oil Charles Case az receiver, for liquidation.
Benjamin d. Flanders WAS the first president,
and A. q. Graham cashier during hs admin
tstration. MI. Flanders retired from the
presidency of the bank, owing II about $1,000.
which was never paid. Recently the claim
was sold at public auction for the paltty sum
or $Ia0o. Mr. Flanders Is now United states
suh-treasurer for Louisiana.
"A. ca. Graham, the cashier. was then ele-
waited 10 the presidency IF the bank
Up. May was United states cub treasurer
for L5uisIana, Heresigned that position and
was appointed president OF the bank. y. H.
May IA the enc who was defaulter to the
government of over million dollars. 80
subsequently left the bank, owing It from
$4,000 Do sFoo.ooo.
John 3. Walton. the next succeeding Presi-
dent, was also United States sub-treasurer
fur Louisiana: he who was city Administrator
oh Finance In Warmoth's time. and at last
cashier Of the bankrupt Louisiana Savings
Bank. Mr.. Walton, when he left the presi-
dsncy or the First National Bank. owed for
overtirafts between $4,000 and $4,000.
DR. Forbes was the last president nf the
bank for 1t was during his administration
that the bank was seized DR.. Forbes had
alao like his predecessors, illegally ahstraeted
moneys from the bank. and loft owing $4,000
The agents Of the government camo here In
Ft.,t,f inv fitrafi II Tui
of the bank declared that 1t was ifiudictoasig
managed and irregular In Its transactions.
Upon the agents report tho bank was seized.
During the years 1857 to 1874. q period OF
seven years three dividends We're declared IN
favor of the deposltora, amounting In all to
about 60 per cent. Since that time no further
dividends have been made, although Control
Ter Knox admitted More than eighteen months
ago that he had funds sufficient To permit an
other dividend. but the unfortunate creditors
.of the bank have waited anSt0usly Ia the vain
hope that Mr.. Controller kRoS would pay "
the depositors the money so cruelty detained
oy him to their prejudice.
1t was vainly supposed that when the suit
against the Carrolton Railroad Company for
over three hundred Thousand dollars was de
cidnd adversely 60 the bank. that there was
no reason to delay the final adjustment. In
May last Judge Billings, he Of the United
States court gave an order for the sale " ali
the remaining assats Of the bank. On the
fifth day of July last the entire Assets, In ae
cordance with the order Of the court were
sold at public cutlery, and yet IN to this hour
mo dividend has been declared. The liauida-
tIon has been meanderjng through term of
nearly thirteen years. ct a gain te the
liquldators Of many thousands. yearly,
And at cost to the dafrauded deposit
tors OF over $15o,0no, and independent
or this extravaganza expenditure there
still remains In the hands Of John J. Knox
about $1na, oep TO the credit Or the liquidation.
I'm addition to that sum be It known that
checks for Se0, 900 to $40 900 were issued to Ger
tain persons for dividends, which checks, for
reasons not easily explained, remain to this
day unclaimed; consequently " addition 70
the $100, 900 before mentioned there must be
at this time fully $4,000 In the hands of
Mi. knox that ought to BE- paid to the cred
itors, and as the entire assets Of the bank
have been realised since May last. now over
six months, Mr.. Controller KNOX car have no
valid excuse I'd withhold from the lawful cred
itors the moneys which he appears 50 reluc-
tant to part with. Before closing these re-
marks, / shall mention single instance zone
OF many TO show the hardship and improper
conduct Of the government management Of
this bank liquidation, and how Southern
creditor is handled by the Federal govern
ment, for IL can hardly be credited that North
ern claimants would be treated with the like
Injustice and cruelty.
When the infamous Durell was Judge OF the
United States court. and only three months
before the bank seizure, gentleman Of this
city had O suit In the United States court re-
garding a plantation. While the suit was
pending Durell ordered the plantation to 10
sold, and the amount resulting therefrom he
directed to be placed In the First National
Bank for safety, The suit decided. che
moneys remained in the bank. the owner
thereof being made by Durell's order 4 forced
depositor. The bank, as we hase already
stated, had scarcely got hold OF this money
before 1t was seized hv the United States gov
eminent, and the government, regardless Of
common justice, actually compelled this
forced depositor TO remain unpaid, while
government officials here and elsewhere were
made preferenced creditors. ask MT. John
Jay Knox, the United States Controller Of
the Currency. to pay to the creditors, with
out further delay, the money now held by
him, and thereby relieve the unfortunate de
positors who have been So cruelty robbrd by
the bank presidents, orders Of the United
States court and the extravaganza mismanaRe-
ment OF lquidators and those who control
the residue of the banks funds.
ONE Of MANY SUFFERERS.
n