Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-06-17
BANK OFFICERS INDICTED.
The German American National
Bank.


PRBETISS.
To-day the grand jury of the Crinlina, Court
presented the following report The grand
jury for the March term OF ISL, In presenting
Indictments against John Httz. president, and
Charles z. Prentiss, cashier, OF the late German
American National Bank, beg leave to say that
they have been for several weeks engaged Ia
the Investigation OF the affairs OF said bank:
have procured Information from all available
sources. and owing to the fater st felt By the
pubic In this case have deemed 1t proper TO
present this report with these indictments.
The German American National Bank SUI
ceeded In business the German American saw
lngs BANK, which at its close presented TO Bhe
various kinds. $605 635:G6; resources do
1905, $500; showing, IL this statement were
true. a very healthy CONDITION OF ITS finances.
Mr. b. u. keyser examiner, made By direction
OF the controller. Mr. Knox. an examination OF
the affairs OF the German American Savings
Bank, ana finding them satisfactory recom.
mended that the cnarter az a national bank be
granted as pet1tioned for and said charter was
issueo In May, 1877. Stock to the amount OF
$ 81 eco was ostensiply taken, though we ara
sat- LED that nearly or quite one third was
was made until April, 1878, when q Condition
satisfactory was made TO appear.
A crisis. however. had been reached In Feb
luaTy, ISIS, when the reserve fund with the
Importers and Traders National Bank OF New
YORK, the designated depository, was found to
nave been exhausted. To prepare for the com.
the 1st of March In the discount and loan
logger, charging the Importers and Ira 1ers'
Bank with SIC, goo cash. Tnisentry was carried
during the last eight months Of its existence It
never had at any one time with its New York
depository cash TO the amount Of $4,000. This
resulte In deceiving the examiner In April fol-
lowing when the condition OF the bank Was
u ade 20 appear satisfactory to him.
This case clearly shows, we think that the
law should In all cases require an examiner to
IL ny fol
graph or otherwise, the amount OF reserve fund
held on account Of any bank undergoing ey
animation. Had this been the case the exam
1her would have found that demand note
made and signed by all the directors, and sent
about the 6tn of March. 1878 to the Importers
ard Traders Bank, constituted the total re-
serve fund Carried on the books and sho Hn In
the statement for the month OF March, pub
ished ard sworn to by the cashier, Charles e.
PrentiS5. This $4,000 note, never honored,
was left In New York till October, few days
before the failure, when 1t was returned to the
German American National Bank. This note
constituted almost the entire reserve fund
SHOWN In the statements OF the bank during
the last eight months of its existence, pup
lished and sworn to by Charles E Pfentiss
cashier. as correct. Had the examiner d.scov-
cred ills deception In April, the closing OF tue
baHk you'd have followed Immediately. With
the Ierfod extending from March 1st 10 october
Both, 1878. we Will particularly deal, as this
was the most memorable in the annals of the
bark. During these eight months no meeting
OF the board OF directors eau be shown to nave
taken place, the stupendous transactions were
golLg on under the control entirely Of ths
Of aas During Ts0 these saa evso
ful months paper to the amount OF
sl6o coo and over was discounted for John ultz.
Among the discounts may be mentioned the
following: On the 9th OF March four notes OF
Miss S. L. Crane. endorsed by Chas e. Prentlss,
for s12 $50. 01. on the 18Th and &c b OF May one
note CT Miss 5. l. Crane, endorsed by Jno. HitZ, |
for s. "a o.; one note OF Stephen Pfenti's; en-
Or t,r,S
ehafies L. PreDtiss, endorsed b; John Hitz, for !
IS, SILT; one hole OF JOAN Hiz endorsed bg |,
+ F. Haistead. for S., los IS; one nole OF John |
I'll Hitz endorsed by Charles Prentis5. for !
81, 4l5so.s The transactions for these tnrea |
days reached nearly forty Thousand dol. |
lars. and were without shadow OF authority. |
aIr. Keyser, receiver found the account o. John !
HitZ overorawn s95 e0G: OF Charles E. Prentlss |
oyerdTawn SIS. 000; OF Randolph BereStori over |
drawn $1,000; of E. p. Halstead overdrawn |
s53 042-roral, sl5S 042-aH In violation OF Sec
ton zee, paragraph as page 20 or the national
bank act and amendments which declares tn It |
10 ones account shall be overirawn TO an.
amount exceeding 10 per cent The amount Of
the capital stock in that case $3.50 900. On the
was overdrawn SCOOPS o.. OF which 81 500 was
to pay for stock OF this bank, purchased,
be says, az the request OF the president
or cashier In order TO enable the directors
to reduce the capital stock to 100000,
AUD escape the government TAX. lie purchased
from dlsaf1ected stock holders at from 10 to 25
per cent discount, about SO 600 worth OF stock,
for nearly or quite al OF which he gave his
checks On the bank without any regard to the
condition OF his account. 1t would also seen
to ave been his custom to buy notes and
have them discounted at the bank. thus using
the money or the cank in his private business.
OF his discounted notes the receiver holds
s2l ,023 worth. The amount due by Randolph
Beresford was for the most part used Ia pay
Il ent OF printing Office, fitted up IN German
American National Bank building, az the sag
gestion OF Ei'Z and Prentlss, who allo wed him
to check On the bank TO pay for same. It viii
reacily be seen that The bank was run almost
exclusively In the interest OF John HitZ Cnas
E. PreHtiss, Randolph Beresford and E P Hal
S: cad. ID This connection We would say that
We are satisfied that neither Miss Crane nor
Mr.. stephen PrentisS ever derived any benefit
from the notes herein mentioned or any othor5
discounted In the bank. While we fad the oil,
rectors-Wm. F. Mattingly, r. B. Donaldson, j.
Heurteh-innocent of any criminal completely
In he management Of the bank, We feel th 1t they
must be held morally responsible for its failure
Had they In conducting its affairs betrayed the
same ssgaclty and vigilance which they did In
their private affairs, they would have saved
themselves, TO great extent, from censure and
from loss Had they been faithful to those
trusts which on accepting their positions they
had sworn dutifully and honestly to administer,
nearly all the disastrous consequences resulting
from the crim1na! acts Of The president and cash
Ter wOul have been prevented. 1t Will be seen
that neglect OF duty On the part Of the di
rectors, as well as criminal operations on
the part OF the president and cashier OF the
bank caused the disaster. II Is evident from
the facts In connection with this bank that The
national bank act Is imperfect, and should be
amended or its provisions more rigidly enforced,
so as TO relieve the government OF the stigma
OF fostering banking institutions which are
alike corrupt and unsafe"
Washington Market. Retail Prices.
MEATs.-Beef sirloin. lSa20c. per 10. do. porter
house Csc; RIB roast. 129a20c.; steak, 124a2Oc.;
C,Ornpd Reef Saf1c. Dried Reef chfnnai o5a2ec
DO. sliced, 2oc.; Lamb, 1sa20c.; Veal, 12Ha2Oc.;
Mutton, 1214aZ0c.; Pork. 1Oal24c-; Sausage,
l24c.; Bacon Hams sugar cured, 12}4al6c.;
FRUITs.-Oranges SOa40c per doz. 90 (Florida).
50a6ec.: Lemons. 20a3Oc. per Coz; Bananas, 4Ua-
SOC. per doz: Pineapples 2)a25o.; Apples. 4oa6oc.
per peck: Cranberrtes, 10al2 cts. per quart:
traWberries, 5a10c. per quart: Cherries. 90
10c. per quart; Gooseberrie5 l0c. per quart
Raspberries-red, SOC. per box; black, 80 per
box; Peaches. sc. per basket.