Daily Republican., 1884-05-17
D,r.c,ors VINO d. No, Direct


Directors VINO d" Not direct
The late bank suspensions should
open the eyes of depositors and lead
them tv make some inquiry IN regard
to the solveucy Of banks before theN
put their money in them. 1t will not
do to look at the organization, and the
neputed solidity of the men who COM
nese the directors and other othcers
alone, there is something else needed
Tn to the time when the Marine bank
.closad there was not shadow of ooubt
M to its solvency and the strict lHteg-
rity and honesty of its officers. 1t had
the confidence of the public, as its 80
OOO, 900 of deposits show its stock the
day before the failure sold at Sl90 per
share, the par value being only Sloo
the government examiner had only a
few weeks previously overhauled 1t,
and given it clean bill of health !; in
short, one of the largest and most pros
porous banks in the city which on al
Monday possessed the full confidence OF
the public, on the following Tuesday
closed its doors. Underneath all thls
apparent prosperity there was some
thing rotten, something that had been
going on wrong for long time before,
and when that fatal Tuesday came II
required but the slightest moving OF a
cobblestone in the structure ~ make
the whole fabric fall.
Somebody must have been to blame
for all tins AID the question arises upon
whom must it fall ? We have not far
to look for at least one and the leading
6ne who is to blame, Though there were
Others who had their arms elbow deep
in its vaults, engaged in Illegal and ex-
tremely risky speculations. The mead
officer of the bank, the President, turns
out to have been large speculator IN
real estate on his own account, but De-
sides was the silent partner in a firm OF
brokers who have made one OF the most
gigantic failures of The age. This man
seems to have had unlimited an! uir
questioned control of the funds or tie
bank. No one seems 10 have even III.
uuirpd into the manner in which ne
manipulated the affairs OF the large IL
nancial concern of which he was the
head The bank had u hoard of dlrec-
tors but no one Stcln4 TO nave Deeh
aware that they allowed u single firm To
overiraw its account hrer-Q"arters! OF
a million Of dollars. The President
seems to have been the head and tail
of the concern, owing no responsibility
to any one.
The directors. good, innocent souiS,
seem to have known nO'hIng abou'
what was going on. They met regularly
to pass upon the paper offered tor dis
count, and il is the truth rs well a5
cutting satire 10 say that only an honi
before the bank closed its doors theS
were in session discounting notes. 81
far as is known that wa the only par
of their duty to which they paid any
attention. Though the President is th'
man who took the money and spent II
these easy, confding directors are tn
really guilty parties, and upon thtn
must rest the most of the responsibllit.
for these gigantic failures. Foollai
men Lulied into security by the sup
posed high standing Of their Presl
dent, thev left the management OF tn
banks affairs almost exclusively in hi
hands. They no doubt thought, II th'
ever took time to think, that thing
were running along very prosperousl'
and smoothly Evidently it seems T.
have never entered into their head
that it was their bounden duty to IN
a1r,ire whether the funds of the conccrl
were safely managed or not.
The great difficulty was that theH
directors were like other directors ever,
where: they were directors who did no
direct. 1t seems hard TO say that thes
men were moving frauds, for perhap
they never cheated anybody out OF
penny, or perhaps would never do s1
but how do they appear to the puoli
as directors of the great National bank
They were put there on account
their wealth and their repufed honesty }
The millions of dollars that were on dt
posit in the Marine bank We're put tier
by intelligent and observing bushes
men who were aware Of the characttl
wealth and high standing of the dire'
tors Tney confded in these uen, b.
cause they were well known by ever;
body, and they no doubt thought 'hel
would be an intelligent and car"fl
supervision when they had control, an
that their money might be safely el
trusted to their keeping. In the ligt
Al, L.; ;,I, fDk nj
what were these men? We're the
really honest or were they 10" \
not these directors primarily r"sp"nr
BILE for the losses Of those who le
thcir money in that bank and lost
all.
Bat then this is the old story ov
and over again, and the puhiic i. 'irt
hearing it. Something more than
nrre rnural obligation is wanted
na4e bank dir rtorS direct as the
should. As it is now, in many case
'hry only appear as Respectable tigu
hrahs to deceive the public. Bar
directors should be held personally l
hvOnsthir FOR the manner il whicn tn
pcri0rln their duty, and, further, tn
should be held personally rrsp"nsit
for the money lost through their neg
g"nce.
=
TUE btu,0cr- TIC organ III TINS city
exceedingly anxious to let the peol
Know that the city Council is ID nSurl
nf power by not yielding possession
thr Wafer Department Of the city a
permitting the Water Commission
-l.11.nI. { Ii rl.ntrnl rEhH nrnln LIE