Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1884-08-28
THE REPORT ON THE PETERSBURG BANK


THE REPORT ON THE PETERSBURG BANK
AFFAIR.
The report of the Committee on Finance
to whom was referred the investigation OF
the Petersburg bank affair was presented
in the House OF Delegates yesterday.
There was perfect silence on the floor OF
the House when the report was being read,
and everybody seemed DESTROYS OF catching
every word contained therein.
The report is as follows
To Hon. Charles E. Stuart, Speaker Of The
House of Delegates:
The committee to whom was referred the
following preamble and resolutions hereto
fore published), beg leave to report that on
the 10th of August they proceeded to take
testimony relative to the several inquiries dl-
rected by the House; that after au examina-
ton of several witnesses the committee
ceemed an examination of the hooks
of the bank importannt, and dis.
patched a committee TO the city OF
Petersburg, who made an inspection of the
books and papers of the bank. While the
investigation has not been as full and thor
ough as they desired on account of the linn
tied time in which it was necessary for the
|
House, vet important facts relative TO the
transactions between the officers Of the
State and the bank officials have been
elected.
/. The committee has ascertained that
the following sums we're placed upon de-
nosit in the above named bank pursuant to
the order of the Governor at the times
stated: 100000 on September 90 1882; 500
GOO on December 2, 1882; $25, 900 on April
s, 1851. -, ,,.
on account of said deposits was increased
by the accumulation of interest from time
to time, and diminished by drafts Of the
Treasurer, $2O0O0 April /, 1854, and SO, :
600 April S, 1854; so that there was due on
the lst of May, 1851, $l35 1884.
By tho original contract between the Gov
ernor and this bank the bank was to pay 4
per cent. interest per annum. NO part OF
the above deposits, made i'll September and
, December, 1882, was drawn out until April,
1854 and 1T is to be observed that three
, DAYS after the draft of 900 was drawn
by the Treasurer on the 9Th OF April, 1881,
, that amount was replaced in the PLANTERS
, and Mechanics Bank, Of Petersburg, by
order of the Governor, by transfer from
: the First National Bank, of Lynchburg.
.
j, 70 of the manuscript copy OF the testimony,
e explained that he endeavored to equaIlZe
; the drafts upon the deposits i'll the banks in
e each community in proportion to the
e amounts on deposit there. Your commit
D tee find that this does not sufficiently ex'
plain the transfer of this $25, 900 from the
8 First National Bank, of Lynchburg, to the
: Planters and Mechanics Bank, of Peters
burr, inasmuch % $4,000 had alread,
e been taken out of the First National Bank
5 of Lynchburg, in March, 1881, rs appears
D from the evidence Of Treasurer Barksdale
e We are unable so lar to ascertain the
names of the pc so Is by whom and al
b whose solicitation aud request the none!
D of the State was deposited in this bank.
The deposit of $4,000 was made, "a thu
t Governor states at page IS of the manu-
c script evidence, in pursuance of Il communl
It cation. which be addressed to the Planter
l and Mechanics Bank and other banks ii
: the State, he thinks in November, 1SS2.
: The committee has no information rs t.
e how the 100000 happened to be deposited
: there.
y III. The committee finds that the none,
y of the State deposited in this bank was s.
c mingled with the other funds of the bank
- VIC CUrlIfnrruco TIC rTnio' 1iurT7v'hl"ta
, sources of evidence Mt its cammaud, to as
l. certain the precise Use which was made {
|. the identical money deposited by the State
l. The greater portion Of the deposits seem t
t have been transferred to the Chase Nations
i Bank of New York, or to have been lei
S with the First National Bank of Richmond
n and to have been ultimately paid OH
= through these banks, with the exception c
e something over $1,000 remaining in TIL
:. Chase National Bank when the Planter
: and Mechanics Bank at Petersburg close
e its doors.
e While the committee has not traced TIL
q Identical money deposited by the State int
q the hands of individuals, they find that tn
:. books of the bank show, what must styik,
the mind as startling fact, that with &
e capital stock of only S119, $50 the enormous
: sum of Sill ,S1043 had been allowed to b
l drawn from the bank by overdrafts at tn,
time the bank closed its DOORS in addition
: to very large sums previously overdrawI
by the favorites of the bank, which haC
been covered by notes upon which no So
4 curity had been required, and most of whicl
notes are utterly worthless. As will be
seen from the testimony of J. Gray Nc
Candlish, the expert accountant employed
by the creditors and trustees of the bank te
investigate its affairs, 'at pages sc to ID, the
following are the largest of said overdrafts
| and the Games of the parties upon whose
checks they were drawn: Stith Boiling
trading under the name of Slith Boiling &
Company, Sl9,l27.34; Stith Boiling, 81 ,179..
SO; William E. Cameron, $685.. 80; s. w.
: Ferguson, S2,702.22; w. f. Gaines, Senator
from Nottoway county, S6O9S 81; Inge &
Malone tMahone of this firm being a son of
General VIM. Mahone), Sl4,94O02; General
VIM. Malone, 1892. II &. F.. Parkinson,
81, S64 A Thomas Whyte, cashier of the
bank, $l5,6l0.15; and H. A. Young, sS,O77.-
OF. A complete list of the overdafts is filed
with the evidence.
In addition 10 Inc amounts due the bank
on account of overdrafts there seems 10
have been some 5000, 900 due the bank upon
notes and bills receivable. OF these assets
a very large proportion is represent ted by
the notes of persons who are hopelessly in
solvent and suppOrtel bY no socnrtu or hu