New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-08-28
ffoft
RUINED BY OTER-DRAFTS.
HOW LYNCHBURG BANK WENT UNDER-AN IN
vEsTIGATION BY LEGISLATIVE COMMITTEE

l.
vEsT1GAuON BY LEGISLATIVE COMMITTEE
RICHMOND, Va Aug. PIN the House of
Delegates to-day Mr Pollard chairman OF the Commit
tee on Finlnc submit ted report Of that committee
on the investigation OF the Planters and Mechanics Bank
OF Petersburg, which recently failed, and tne
status OF the state funds deposited therein. The rep III
saws that the au cunt due MAY l. 1884 was
s135,373. The committee find that the money OF the
State was so mingled with other funds OF the
bank and 80 u.ed as to make it impossible
for the committee TO ascertain the precise
use made OF the identical money so deposi ed. Inc
greater portion OF the deposits have been trans
erred TO the Chas ,tiOnal Bank OF NewIork. or ef
With the FIRST National Bank of Rchm N and to have
be n ultimately pail out through those banks
While the committee has not traced the identical state
money deposited in this bank into the hands Of any ind
vidnal ev nd that tn books OF the bank snow W'a
must strike the mind startling fact that WIN chp
ital stock OF only S11955o, the enormous sum
of Sill $40 had been allowed to lie drawn from Tue
hank bv oyer-drafts at the time the bank closed iis
,ors I'm addition to very largo previously over
drawn bv avores Of tho bank which had been covered
bv notes upon which no security had been required and
most of which notes utterly worthless Among tAe
names of those upon whose cheeRs 'he
LARGEST Of these oyerlrafta wer' drawn
are stith E,ling 4 CO.. $4,000 william T. Cameron
Governcr. nearly $4,000; state senator W. T. Gaines
seooo Ineo d Malone. the latter the IN of General
Malone $4,000: General william Maho1c. nearly
"a 600, Thomls wuye. ca'hier ot the b'nR
Ri5. 600 aud r. A Young over F~ooo
In add ion to the amounts duo he bank on a'count 81
oynr. drafts. tbprr 10000 due upon hn'of Rll
bi received Of hose aauctA very large prnp r'h a
trpr,arurt hy uutra OF 20 Huna nope easily laoV'ul
Among Tho tto 20 tn. EoltuE Co ,raU loan lo flu
UnVrrnnr william o. Gamer ~. SUI dry no o. fil W"
ing q dnhlnr ~, 500 Gr1rlr Ffluua no, uvrs r1hNN
rhnnta Whytr. ot-hrf, nrhrl. 81 oll state Attnt CO.
ornrt o. n u ntr, ~ ,Huoi l. g. Drake. lhFon h'Na,
brhe y Co, 70 600 Ffatou N Go, "f whitu uin l'lr
ward Whitt la thc mlj mtmbrf fhr,ooui g. W Npir'r
iue committee says tht q GIycrlr Cameron
and General Mdhoue have pii the amounts
or their oyrrtrhfiS GO he HuH crH since 90
afu airs of tho bans nave benu ptr'i lu tur irusrrt
hands, sruaor Gaines has paid - OlO of his oycrdrW
$4,000 NOT IN hth been paid on the amounts dur
by Governor Cameron upon h- uOes t5srrEa int over
$4,000 the trustee of the bank hol ~ collateral
$4,000 OF -oujhrrI Telegraph Co updny bon - worlh
perhaps, $1,000, and fifteen shares or the
stock Of the w t-h ngt'u Impr0v m'ut COM
pany, Of uncertain value. Il ~ proper
10 say that Clateal- cOnsid red al the time
tn. loans male To Governor Cameron, gnoi Tor
the amount of hs notes but they have s'nce
greatly deprrc' at a. Tn c0mml tee says II
l. not satisfied Governor Cameron stat me ~
u the security y .ch shO i'd have been required
from the bank before the posits we're made
The bond possess OF the Treasurer VIII prove
almost wholly unavailable ~ the stat" security tor
the large of public fun Is upon which n Dank
has defiulte The committee has not We ne ertan"d
that anv person able 20 Grim a prosecute "a Tor con
version o. the states money deposit q IN tue bank