Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-08-08
PETERSBURG'S SENSATION.
PLANTERS AND MECHANICS BANK
History or the Case--Addrcss or the Grapd
Jury-SeveTnl or the Bank Oficers Pre-.

lust tnFte uays DeiOTe tue Uunlcfpal tle.-
ton, the Planters and Mechanics Bank, Of
this city. closed It's doors and suspended
business.
There had been run on the bank on
the saturday previous. which would have
tfectually stopped by the suspension. Com
paratvsly few Of the deposiiors, however,
had drawn out their funds.
The suspension OF course caused a great
deal Of excitement in the community. The
great body Of the people were surprised
ssionished. The failure was looked upon
as disaster. II was given ont AZ coming
from the officers OF the bank that the
suspension was only temporary, and
that the bank would pay out. This
statement p,ci6ed public feeling to
some extent, but there were vague rumoFS'
in circulation 10 the effect that the bank
was "rottcn TO the core" that there had
been vast amount OF over-checking, with
but little security TO guarantee the loans,
and that really there was but little money
left in the vault Of the bank. Rumors
went so far as to give the names oi many
persons, more or less prominent in busi-
ness and society, who had thus drawn mo-
ney from the bank.
IN ASSIGNMENT MADE.
On Tuesday morning tie Goth the DE-
rectors OF the bank made an assignment 70
Messrs. w. Il. Mcllwaine and Robert Gil.
hsm. .jr.. trustees. The deed was GENE
raj one. placing all creditors upon an eqni-
table footing, and giving preference TO no
one. This assignment gave rise 10 yigor-
Gus comment, and confirmed the public in
the opinion that the affairs OF the bank had
been badly managed, and were "lnextri-
cably mixed"
The state had on deposit i'm the bank
about Sl3J, 600, and the Norfolk md West
orn Railroad Company about $4,000. The
individual depositors were very numerous.
ACTION OF THE CREDITORS.
On the night OF the 23d Of May largely
attended n Getting oi the creditors Of the
bank-depO and stOckhoders-wa
held in Mechanics Hall to take such action
as might be deemed necessary for the pro-
lection OF their interests.
Resolutions were adCp,pd for the au-
rointmont Of a committee Of five to selec,
an expert bOoL-kecper in no way connected
with the bank, with the request that said
expert be employed ly the trustees 20
make careful examination cf the books OF
the bank, and make out In detail statements
Of the assets and liabilities OF the bank at
the dates when the two last dividends were
made, and on the day the bank suspended
and conveyed al it, assets 20 the trustees.
Said expert was also directed TO prepare
the account Of each director and olic7r Of
the hsnk on the dates above mentioned,
showing The amount due by each aud how
evidenced. &c.
a committee was also appointed to OK.
anime the minutes Of The Board 0i D-
rCctoIs Of the Lank from i,s Orgar.zltion
TO the day Of suspension, the expert and
the committee TO report 10 m adjourned
meeting OF the creditors. Mr.. !. GRAY
McCandllsh was appointed qud accepted rs
the eXport book-kceper. Ills report is not
yet ready, and consequently there has been
no second meeting oi :hc creditors. when
it will be held is not known.
The GRAND JURY TAXES TIE NATTER II
HAND.
On the third Thursday in July The IIus-
tiDgs Court met in quarterly term. The
charge Oi Judge Mann 10 the grand iury.
While not directing the case Of the Planters
and Mechanics Bank, was yet so broad. so
positive, and so pointed, that there could
be no mistake IN the fact that il covered
the management Of This bank should IL b.
established that crimnaliiy lie attached 10
any one. The grand jury was an ilteln.
gent body OF men, composed Of the follow
pg citizens Hugh Z. Smith Qoromanl X. !
{. scott. W. y. Walton. ". T.. Dcaton, J. /
A. Parker, j. {. Wool. ". r. Parham.
John c. Griffin. Joseph +. Ford, John !. /
Cain, John B-ewer. =. :. Dridg5rs, =. :.
Thrift, David Bailey. Aug. Wright, G. B. |
StaIke, W. E. Badger, james u. Bowie, j. !
4. Blick, and john Berry.
After disposing of several minor cases |
tbc grand jury took hold Of the bank, with /
1 view to thoroughly investigating iis AZ |
airs. establishing the truth or falsity ct The |
reports publicly circulated about il, and % |
placing cIiminality, should there be any, !
where Il belonged.
TIE REPORT OF TIE GRAND JURY.
The grand jury met this morning at 10 |
o'clock and Immediately retired 10 their /
room. At u O'Clock they came into court |
md submitted the following address and |
list OF presentments:
ADDRESS OF TIE GRAND JCRY TO TIE
COURT.
To Hon. Z. w. Hcna. Jud1e Of the Hus-
t'ngs Court 81 The Cifgot PetcrSbVrq;
The grand Jury attending your Honor's
'ourt al its present term July term, lSSf.)
beg leave 10 state 10 your
Honor that Tor several days they have been
ncaged in iuvestiga;inF The transactions Of
lie officers sud clerks Of the Planters and !
Mechanics Bank Of Petersburg, The sus-
leTsiCn and failure Of which bank on the
9,h day OF May. 1881, within less ihsn five
Months aitCY committee II it, directors |
lad reported 10 the stockholders 81 the
lank at their annual meeting the affairs of
/. D a.. B
ion, suC said bank hid declared a diYi-
lend 20 the stockholders O; the bank, was
Circumstance attracting public attention,
md sufficient 20 JUSTIFY the suspicion tha,
om7 penal law Of the Comm0nwc iith had
)fCn violated ~ those lately in charge Of
be lsnk.
Having Lad before their body all OF the
lOoi and IgpcIs q the bank. aud many |
Witnesses who testified touching the sub
ect Oi investigation. the grand jury have
made a careful and thorough Investigation
nto the acts and doircs Of tlose III charge
u ihe bank ~ TO the 10th day Of May, 1881,
nd have found several violations 0i the
rimina laws Of the state, which are for
nally BROUGHT 10 the atteHtiOn OF your
ionor in the i've several prcsentment,
made by the cTard jury and brought into
Out along with this report.
In making this Investigation the grand
ury have found q system OF management
N the pnrt Oi the officers ot thc bank loose
nd Negligent In tbs extreme, and IN many
ases have discovered acts wrongful and
10 tie stockholders aud de-
'ositors OF the bank buI after dllicent
INQUIRY could find 10 statute oi the Com
nOnweath or other provision Of law under
winch these acts could be made the .ubiec,
# criminal proceedings, except in the cases
n which the presentmonts above mentioned
ave been made, anG il j. to call public at
ention 10 this fact that the grand jury now
make this staiemelt 10 your H0nor-a
luly which they feel they owe to the peo-
lie OF Petersburg and 10 the public gen
rally. As great as has been tho loss and
injury which the failure oi this bank has
ntailed upon the stockholders aud tho de-
'Ositors directly, and indirectly upon the
public by impairing confidence in the secu-
ity Of cur State banks "a places OF deposit
on money, II will in the end result in good,
I IL serve the purpose Of directing the
icreral Assembly. soon 20 convene. 70 the
necessity OF amending the existing laws OF
he Commonwealth regulating banking IN
tilt,tions. with view 10 securing b3tter
lroiectiou 10 depositors. With more strln-
'eBt lava than those now on our statute
look, such a condition Of things as
t has been the duty OF the grand
ury 10 inve'tigate at the present
eTm Of your IloIoz's court would
indeed bn rnre H. on the other hand, no