Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1884-08-29
THE PLAN rERS AND MECHANICS
BANK OF PETERSBURG.

LING DISCLOSURES-A CARCASS UPON
WHICH POLITICAL vULTUREs FEED.
The Committee of Finance, who have
been investigating the affairs of this bank
presented their report Wednesday. and
disclosed a most remarkable and startling
condition of affairs. Below we give
synopsis Of their report:
/. The committee has ascertained that
the following sums were placed upon de-
posit in the above named bank pursuant
to the order of the Governor at the times
stated: 100000 on September Goth, 1882;
$50, 600 on December I'd, 1882; $25. 200 on
April Sth, 1884.
The amount due the State by this bank
on account of said deposits was increased
by the accumulation of interest from time
to time, and diminished by drafts of the
Treasurer: $50, GOO April LIST, 1884, and
$25 900 April 5th, 1884; so that there was
due on the 1st of May, 1884, $135 1884.
By the original contract between tie
Governor and this bank the bank was, to
pay per cent. interest per annum. No
part OF the above deposits, made in Sep
TENDER and December, 1882, was drawn
out until April, 1884. and it is to be OBJ
| served that three days after the draft of
$25 600 was drawn by the Treasurer, on
the 9Th of April. 1884, that amount was
replaced in the Planters and Mechanics
Bank of Petersburg, by order of the Gov
ernor, by transfer from the First National
Bank of Lynchburg.
While the committee has not traced the
identical money deposited by the State
| into the hands Of individuals, they find
| that the books of the bank show, what
must strike the mind as startling fact,
that with capital stock of only Sis, $50
the enormous sum of Sill, 8l0.43 had been
allowed to be drawn from the bank by
overdrafts at the time the bank closed its
doors, in addition to very large sums pre-
viously overdrawn by the favorites of the
bank, which had been covered by notes
upon which no security had been required,
and most of which notes are utterly worth
less. AS will be seen from the testimony
of J. Gray McCandlish. the expert ac-
| countant employed by the creditors and
| trustees of the bank to investigate its af-
fairs, at page SO to A, the following are
the largest of said overdrafts and the
names of the parties upon whose checks
they were drawn: Stith Boiling, trading
under the name of Stith Boiling & Co..
$40, 127 "a; Stith Boiling, ST. ,179 33; Will
| liam E. Cameron, So ,9S7.33; S. w. Fer
| from NottOWay county, $6098.61; Inge &
Malone, (Mahone of this firm being son
of Gen. VIM. Mahone), $l4,94O02: Gen.
VIM. Malone, So 972.14: G.. E. Parkinson,
| $1.S64. A; Thomas Whyte, cashier of the
bank. 5,610.15; and r. A. Young,
| $9,077.0 7.
In addition to the amounts due the bank
on account of overdrafts there seems to
have been some 5000 900 due the bank upon
notes and bills recei vable. Of these assets
very large proportion is represented by
the notes of persons who are hopelessly
| inSOlyeEt and supported by no security, or
| these are the following: Stith Boiling,
trading as Stith Boiling & Co., a call loan
for $4,000; VIM. E. Cameron, sundry
notes, $31 400; Inge & Malone, sundry
notes, &C., 1885; George E. Parkinson,
SIS, 225; Thomas White, $500; Attorney
General Frank s. Blair, 81 $780,; D. G.
Miller, note endorsed by Frank S. Blair,
$3.50; j. g. Drake, $10,710; Davis, Drake
& Co.. So 1000; Stratton & Co., of which
firm Edward Whyte Is the only member,
$5S 900; R. W. Thompson, $3.50, and G..
| W. Spicer about $40, 900.
Nothing has been paid upon the amount
| due by Gov. Cameron upon his notes, ag-
gregating over $50 900. which have been
renewed from time to time, but the trus-
| tees of the bank hold as collateral for said
notes 900 Of sureties in telegraph COM
pany bonds, worth perhaps as much as
| SLY 900, one hundred and fifty shares of
| stock of Washington Improvement Com
pany, of uncertain value. 1t is proper to
say that these collaterals were considered,
| at the time the respective loans were made
to Gov. Cameron. good for the amount of
his notes, but have since greatly depre-
ciated.
The note for $4,000 (last renewal) of
Gov. Cameron, will fall due in October
next; his other note for SIS 900 became due
during this investigation, but the commit
tee has received no evidence Of any pay
ment having been made upon it. The
SEE, 900 note of Gov. Cameron was origi-
n tally the note of W. E. Cameron and A.
W. Jones, but is recognized by Gov. Cam
eron as his debt. 1t is a significant fact
and one which has not been explained to
the satisfaction of the committee, that the
above-named persons who were permitted,
in the extraordinary manner stated, to
overdraw their accounts and to receive
enormous loans from the bank without
any security, were Readjuster-C Coalition
lists, except Edward Wythe, and he is
brother OF the Readjuster cashier
The committee find that the only
security which the Commonwealth has
now for the above deposits is a bond of
idemnity, executed by the bank, and sew
eral securities, on the 26th December,
1882. 1t will be seen that the State had
prior to that time $3.50, 900 deposited in the
bank, of which 500, 900 had been deposit
ted as far back as the goth day of Septem-
Der, 1882, and $50,C December I'd, 1882.
This bond is so drawn as to cover monies
| at it's date deposited in the bank, though
| executed after the deposits were made.
| Gov. Cameron and Gen. VIM. Malone
| have paid the amounts of their Overdrafts
| to the trustees since tie affairs of the bank
| were put in their hands, and VIM. E.
Gaines has paid 81 900 upon his own over
draft of SIS ,098 81.
From the evidence before the committee
| we are not satisfied that the Governors
| impression as to the history of this trans
action is correct; but the committee are
at loss to decide which is more culpable,
| to have failed to require bond of indem-
nifty before the deposit of any money of
the State or to have surrendered or can
| celled bond executed for money which
remained at the time of the surrender in
bank, and which now remains due the
Commonwealth, and which will probably
prove loss to the extent of fifty per cent.
or more of the same.
The committee is clearly of opinion that
if such bond existed, and was surrendered
by the Governor, his action would be ultra
ulres, and that the State still has the right
of action upon such bond or bonds.
The bond now in possession of the
Treasurer will prove almost wholly una
valuable to the Commonwealth as securi-
ty for the large amount of public funds
upon which the bank has Debated. So far
as the committee has ascertalned from
the evidence of witnesses most conversant
with the facts, it is not likely that more
than 5000 will ever be realized upon
! this bond. A dividend of forty or fifty
| per cent. may be paid to depositors out of
| the assets of the bank.
The committee have been unable to as
certain with any certainty what the facts
were as TO the execution or surrandor of