Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1880-05-19
NO. &c.

signed by them at his request although
they did not receive one dollar of the
consideration. The maker of one OF
these accommodation notes, amounting
to between four and five thousand dol
lars, was law student of Mr. Greer
at the time the note was signed, and
his position in the Office was taken ad-
vantage of to get his signature to a
note for this amount of money That
student is now just entering upon his
professional life, loaded down with
this judgment, prisoner at the gal
leys as with ball and chain fastened
upon him by his tutor If the money
for which the note was given had been
borrowed for legitimate purposes and
had been so used that the property
purchased would have been some
protection to the maker of the paper, it
would at least have been some justifi
cation in favor of Mr.. Greer although
no vindication, but it was borrowed for
the purpose of specializing in oil, very
dangerous speculation, and no JUS
tifcation can be made 1t is true that
Mr. Greer offers the excuse that he
was drawn into the speculation by
another, but it does not sound well to
hear the baby act plead by man of
MIR. Greer's inches or age. 1t would
certainly be wrong for his constituents
to place such an infant again in the
clutches of the alligators of that politi-
cal Ganges of America, Harrisburg,
where so many innecents have hereto
fore been sacrificed. Now Mr.. Greer's
motives, in getting mis- friends to make
notes for him for the purpose of dis
count in the National Bank, requires
soma comment so as to be more read
lily understood.
One of the wisest provisions of
the National Banking law provides
that the liabilities of any one per-
son to an association shall not ex-
ceed the one-tenth part of the capital
stock of the Bank ANY banking asso-
citation faithfully adhering to this pro-
vision is not likely to be seriously in
jured. No failure could endanger the
Bank, nor could ten failures do more
than injure the stock The creditors
would still be safe. 1t was the failure
of the managers of the Butler Bank to
regard this provision of law that prin-
cipally accounts for its insolvency. In
order 10 get around the act they con-
strued it's meaning to be that no man
should be the maker of paper discounted
for more than one-tenth of the capital
stock, but it made no difference how
much paper he endorsed. This con-
struction violated both the letter and
the spirit of the law, but its effect was
to place the funds of the Bank in
the hands of two or three individuals.
Greer knew all this. He knew that he
could borrow no more money from this
Bank as maker of paper, and he de-
termined to violate the law by induc-
ing others, whether they were good
financially or not made no difference,
to sign notes for him he would then
endorse them and take the money out
of the Bank
Here then was a bold fraud perpe-
trated upon the creditors of the Bank
by Mr. Greer, and the money obtained
by this fraud has never been replaced.
but is still due the Bank.
The total liabilities of the National
Bank amounts to about one hundred
and twenty-five thousand dollars.
There has been about 81, 800 of Mr..
Greer's liabilities to the Bank paid,
and no more, and none of Mr.. Robin
sons The remaining liabilities of both
of them to the Bank, is therefore about
$2l, 900, or about one-sixtb of the lia-
bilities of the Bank, so that these gen.
tlemen owe every creditor of the Bank
about one-sixth of his claim.
1t is true, that these Honorable gen
tIemen claim to have defence to these
claims of the Bank against them, that
of usury, and Mr.. Greer has gone so
far as to set it up in the Circuit Court
of the United States. They evidently
do not agree with Judge Paxson of our
Supreme Court, who says that very
large class of honorable and upright
men would regard it as dishonest to
repudiate contract for the payment
of more than six per cent. interest.
They seem to forget also, that accord
ing to Judges Strong and McKennan
of the United States Courts, it is
neither wrong nor unlawful in Penn
sylvania for a National Bank to con-
tract for more than six per cent. inter-
est
An effort was made by Mr.. Cullum
to make collection from Mr.. Robin
son, but after an execution had been
issued and a levy was about to be
taken, Mr.. Cullum received orders to
do nothing further with it for thirty
days. This would carry the matter
over until Mr.. Cullum was out of Of
fee, and his successor in, when it was
supposed Mr.. Robinson might be out
of danger. Who had this done, | do
not know; 1 can only guess. 1t
seems strange though that all efforts
to collect from these gentlemen for
the creditors of the Bank, should be
opposed by politicians, over whom, by
reason of favors conferred, Mr. Robin
son and Mr. Greer are supposed to
have some influence. 1t is charged in
the article referred to in the Eagle,
that 1 procured Messrs. Robinson
and Greer to be indicted so as to in
fuence the nomination of Mr.. McJun-
kin for Congress. Even if | had pro-
cured these informations to be made,
vet SO far is the reason assigned from
the truth that when the informations
were made / did not know that Mr..
McJunkin contemplated being candi-
date fcr any Office, nor do / think he
did for 1t was long after that and only
after repeated requests from numerous
friends fro IN many parts of the county
that he consented to stand Tor the
Office.
These informations were brought
ohor, in this way and no other. Mr..