Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-08-28
WHERE THE MONEY WENT
REPORT ON THE BROKEN BANK

Large Sums Lent Governor Cameron and
Other Leading Readjusters-rhe Govern
or's Testimony.
In the House OF Delegates yesterday
Mr.. Pollard, from the Finance Commit
tee, presented the following report OF the
committee in the matter OF investigating
the States deposit IN the broken Planters
and Mechanics Bank Of Petersburg:
To Charles Z. Stuart, Speaker Of House Of
DELEGATES;
The Committee on Finance. 10 whom was
referred the following preamble and resolu-
tons
Whereas IL appear rs by the books Of the Trelsu-
| rcr of Virginia thst on the goth Of September,
| lss2. the sum OF o,0O0 Of the moneys Of the
| Commonwealth was deposited In the Planters and
Mechanics Bank Of Pet. rsburg. and that on The I'd
| day OF December, oe2 the furiher sum of s50,-
n positcd I'm said bank and whereas it is repre-.
sented that, by reason 81 the insolvency OF .lid
bank and - sureties thc grSaes part OF said sur
| Offl5O,0O has been lost 80 the State
| ResOir6d. That the Committee on Finance be
instructed to inquire and ascertain and report
| /. The amount or amounts Of tbc- moneys Of the
| Commonwealth heretofore dero.led In SAID
| Planters and Mechanics Bank OF Pelersburg and
| the dates Of such deposits respectively.
=. The names of the persons by whom and at
whose solicitations aud requests said deposits were
| procured.
3. The names OF the persons to whom and
| among whom the moneys deposited as aforesaid
| were laid and distributed through the agency Of
| said hank and It's officers. by oyorchecking dis
| counting, loan, or otherwise.
4. Kind ana value OF The securities. and rights of
aciion or slit. II any, available 10 the Common
| wealth rs means OF recovering said sum of $780,
! 600, or anN part thereof.
| 3. The names Of all persons who have received
! and converted 10 their own use any part Of arid
| deposit. and who aIc liahl, 20 criminal prosccu-
! tion in connection herewith.
"A tt,aft a. pltafl ff.Ia Ia.
| necessary for the protc ton Of the State a.ainst
further loss by reason OF similar deposits In other
And ,, II further resolued, That the commit
toe have lcHye 10 sit during the aession ot the
| may dCcm advisable, from Time 10 time, and be
| authorized L. send Tor persons and papers. and u
| employ an expert accountant and stcnographor,
/ If necessary in tho judgment Of the committee.
beg leave TO report that on the Goth OF
August they proceeded to take testimony
relative TO the several inquiries directed bv
the House. That after an examination O;
| several Witnesses the committee deemed
an examination Of tue books Of the bank
| important. and dispatched sub.
! committee TO The city OF Peters
burg. who made an inspection OF
The books and papers Oi the bank.
! While the investigation has not been as iull
| and thorough a. they desired. on account
oi the limited time in which twas necessary
! for The committee TO execute the order OF
the House, yet important facts relative to
the Transactions between the officers OF the
| state and the bank officials have been
elected.
|. Tie committee have ascertained that
the following sums were placed upon de-
posit in the ahOyc-named bank. pursuant TO
the order Of the Governor al the tunes
stated: ol00, 600 on September 20. 1882;
r.n AZ IL. - - Es.Ir AIa
April &. 1884.
The amount due the State bv this bank
on account II said deposits was increased
| by the accumulation Of interest from time
10 time. and diminished by drafts OF the
| Treasurer. $4,000 April /. 1884. and 3d.
| coo Apri 3, lSS4-SO that there was due on
| lst Of Ilav. 1854. S13j.373.34. (See State
| ment .. page -. Of manuscript testimony.
By the original contract between the
| Governor and this bank. the bank was TO
| pay per cent. interest per annum.
| No part OF the above deposits made in
Septemborau Deccmbes 1882, was drawn
| out until AUnl. 1884, and it is TO De OBJ
| served that three days after the draft OF s2j,
| coo was drawn by the Treasurer on the 9Th
| April. 1884, that amount was replaced in
| ths Planters aud Mechanics Bank at Pc
| torshurg bv order Oi the Governor, by
transfer from the First National Bank OF
| Lynchburg. The Governor in his state
mont, at PAGE 20 Of the manuscript copy OF
| the testimony, explained that he endeayored
TO equalize the drafts upon The deposits in
! the banks in each community, in propor-
ton TO the amounts on deposit there.
Your committee find that this does not
| sufficiently explain the transfer OF this
| S95.OCO from the First National Bank OF
! . to, no hophxnipa
! Bank O, Petersburg, inasmuch as $4,000
! had already been taken out Of the First
/ National Bank at Lynchburg, in March,
| 1884. as appears from the evidence Of
| Treasurer Barksdale. at page 81 OF manu-
script evidence, and Statement filed there
with.
/ II. We are unable 30 far TO ascertain the
NAMES Of the persons by whom, and at
whose solicitations and requests, the money
O. the State was deposited in this bank.
The deposit Of $4,000 was made, a. the
/ Governor states at page 73 OF the manu-
| script evidence. III pursuance on commu-
/ nication which he addressed to the Plant
/ crs snd Mechanics Bank and other banks
| in the state he thinks, in November. 1881
| The committee has no information as to
! how the S100, 900 happened TO be deposited
/ there.
III. The committee finds that the money
| Of tie state deposited III this bank was so
/ MINGLED with the other funds OF the bank.
and % used az to make it impossible FOR
! the committee. in the time. and from the
! sources Of evidence at its command. to
! ascertain the precise use which was made
| of the identical money deposited by the
| state. The greater portion Of the deposits
seem 10 have hecn transferred TO the Chase
! National Bank of New York. or 10 have
! been left with the First National Bank OF
| Richmond. and 10 have been ultimately
! raid out through those banks, with the
| execution Of something over $1,000 re-
| naming in the Chase National Bank when
the Planters and Mechanics Bank at Peters
burg closed its doors.
| While the committee has not traced the
identical money deposited by the state into
| tie hands Of individuals, they hnd that the
| books Of the bank show, what must strike
| the mind a. a startling fact, that, with u
| capital stock Of only Sll9,5j0 TIE enormous
| sum OF SllI ,s1043 had been allowed to be
| drawn from the bank by ocerdrdftS at ths
! time the bank closed its doors, In addition
| 20 very large suDs previously oyerdrawn
| hy the favOrites OF the bank. which had
! been covered 10y notes upon which no Sc
| curity had been required. and most OF when
| notes are utterly WOrlnltss. As viii 10
seen from the testimony OF j. GRAY Nc
Candlish, the expert accountant employed
by the creditors and trustees OF the bank
to investigate its affairs, at pages 30 TO ~,
the following are the largest OF said over.
drafts and the names OF the parties upon
whose checks they were drawn:
Stth Boiling. trading under the name oil
Stith Boiling 4 Co., Sl9, ,121.Q; Stita Boil
hing, sl,l70.33; William +. Cameron.
| e3,gS7.S SO; s. W. Ferguson, e2,IO2.2z
W. f. Gaines, senator from Notloway
county. SG09s Gl; Inge & Mahone (hr:
Malone Of this firm being sOn OF General
William Mahone), sl4.oi0.O2; General
William Malone. S3,973.1i; &. +. Perkln.
son, s1,S4.l4; Thomas Whyte, cashier of
the bank, SI5,G10.15; and X. A., Young
es.077.07. A complete list OF the over
drafts is filed with the evidence a. EX-
hbit a.
In addition to the amounts due tue DanS
on account OF overdrsits there seems 10
have been some 5000, 900 due the bank upon
notes and bill, receivable; OF these as'en
very large proportion is represented D!
the notes OF persons who are hopele'siy III
solvent and supported by no security, OF
by insufficient security; prominent shohs
these are the following: 49,, ,,.
Stith Boiling, trading as Stlth boiIlns !
g. Co., call loan for 3l0,OU; WI
liam l.. Cameron, sundry notes, ssl'-
| 400: Inct 4 Malone, sundry notes'