Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-08-28

utUt.
II is significant fact, and one which ha,
not oeen explained TO the satisfaction OF
| 'he committee. that the above-nsIned per-
| sons Who were permitted in the extraor-
binary manner stated No oyerdrAw their
accounts, and 70 receive enormous losns
from the bank without any security, were
| Rtadluster Cohltionists, except Edward
| Whyte, and he 10 a brother OF the Resd-
evidence.)
Nv. The committee find that the only
security which the Commonwealth has
now Tor the above deposits II q bond OF
| indemnify executed by the bank and seye'
raj sureties on the 2Sth December, 1857.
IL will be seen that the State had prior to
that time $150,000 deposited in the bank,
OF which 100000 had been deposited az
Tar back as the 10th day OF september
1882, and s50, 900 December 9. 1882. This
bona is 40 drawn as TO cover moneys already
at lis date deposited in the bank, though
| executed after the deposits were made.
This by no means satisfies the express man.
date OF the law, which requires that the
Governor shall before any deposit Is made
| require a bond to be executed with sufh-
cient security in penalty sufficient to
cover the amount OF public money to he
deposited. (V. c., chapter So, section 2D)
The Governor is under the impression
that one or two bonds were executed by
| the bank before the deposits were made in
| the bank, one OF which, he thinks, was in
| the penalty Of $4,000, and that any such
bond was surrendered 10 the bank al the
time the bond Of the 2sth Of December,
1882, wss accepted and approved by him.
From the evidence before the committee
we are not satisfied that the Governors i'm
preston rs TO the history Of this transae-
ton IL correct; but the committee are at a
| lots TO decide which is more culpable 10
| have failed 10 require bond OF indemnity
| before the deposit OF any money Of the
State, or to have surrendered or cancelled
| bond executed for money which rcmain-
| ed at the time OF the surrender In the bank.
| and which now remains due the Common
wealth, and which will probably prove
| loss to the extent OF 20 per cent. or more OF
| the same.
The committee is clearly OF opinion that
| il such bond existed, and was surrendered
! by the Governor, his action would be ultra
| CiTes, 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
| Vaiabe TO the Commonwealth rs security
! for the large amount Of public funds upon
which the bank has deflulted. So far az
| the committee have ascertained from the
! evidence OF witnesses most conversant with
the facts. it is not likely that more than
$4,000 will ever be realized upon this
! bond. A dividend Of forty or fifty per cent.
may be paid to depositOrs ont OF the assets
Of the bank.
The committee have been unable TO as
certain with any certainty what the facts
= ia tho qNCgiIfion az enrPanIar ~
| any bond other than that Of the 2Sth OF De-
cember. 1899, and they deem this matter
Of sufficient importance TO justify further
inquiry upon that subject.
Responding TO the fifth inquiry, the CON-
mIttee have not ascertained that any person
is liable tc criminal prosecution for the
fraudulent conversion OF the States money
deposited IN the bank; and the comm m.ttee
desire further time for the consideration Of
the legislation necessary TO meet emergen-
cies Of this char acter, a. directed by the
9th clause OF the resolution adopted by the
House.
In conclusion, the committee deem ii
proper 10 state that their investigation OF
the affairs OF this bank demonstrates that 10
was conducted with a reckless disregard Of
the interests and rights OF the State and of
the other depOstors Of the bank; that its
luDuk stem W UhNf Dtlu NJ Tue us
posal Of u coterie Of political favOrites, who
were allowed TO consume ihe money OF It's
depositors without stint and without secu-
rity, or with inadequate security, aud that
in the conduct Of its affairs its managers
present an example Of shameless pronigaey
which deserve. and should receive the un-
qualified condemnation Of the representa-
tives Of the people.
The committee feel that their duty would
not I've discharged did they fail to express
their earnest disspprobatiOn Of the deal
ings Of the Chief Executive OF the Com
monvealth with this bank: First, In taking
bond insufficient in amount for Pie
protection OF the State, IL his impress
sions are correct, or il he Is mistaken
in his impressions, in taking no bond for
months after the money was deposited. and
in accepting large iayors from the bank,
borrowing large sums upon security OF
doubtful or speculative value; and finally,
when the bank was almost coerced to close
its doors by reason OF the recklessnes, aud
dishonesty which had characterized its
management, in transferring $4,000 from
depository which was undoubtedly SOL
vent one. upon the solicitation OF party
associate and an officer Of the bank, in
order TO relieve the embarrassment.
IL iAs Il PfsifAi'D
!. c. GIBSON,
j. $. KELLY,
T. 5. CROCKETr,
Il. X. N0BLN,
j. B. LyFTwICH,
GEORGE T.. GRArTAN.
THOMAS 4. CHAPMAN,
THOMAS J. EVANS,
DAVID MEADE,
WILLIAM A. ANDERSON.
Mr.. Gibson moved that the committee be
allowed further time 20 investigate, TO send
for persons and papers. TO appoint sub
committee. and to sit during the recess of
the Legislature.
Mr.. DufT Green favored this and wanted
full investigation.
Mr.. Gibson withdrew his motion, and
moved to pas. 10y and print.
Mr.. Muniord moved that the Superin-
tendent Of Public Printing be instructed
to forward ten copies OF the report to
each member OF the Legislature.
Nes.rs. Banks and HUBBARD opposed the
| resolution.
Mr.. Buniord finding that the House yes
| terday had passed similar resolution. wi,h-
| drew his resolution, as did Mr.. Gibson.
Mr.. Hubsrd said that this idea to print
was intended for pa tisan purposes, and IL
| INDUCED IN. he would warn the opposite
party that he would meet them on every
| stump IN the State on this question.
Mr. Gibson replied that there was no.
| thing partisan about the matter, and as Tor
| the threat that Hdbard would take the
| stump 1t was "a light as the gentleman's
reasoning. There was not respectable
| Democrat in the State that would not meet
| the gentleman willingly, and when he
| 0Iubard) took the stump he would dirty
| The stump, small though it be. IL he under
| took to cover up the conduct OF the con-
spirators in this bank failure.
| The report will be printed and ten copies
sent to each member OF the Assembly.
Governor CamssOu's Explanation.
The testimony taken by the House oom-
| mittee in It's various secret sessions was
| quite yoluminous; but the main points are
embraced In the conclusions OF the COM
mitfee gwen above.
| The following is Governor Camerons
deposition
Governor William f. Cameron exam
ined by Mr.. Anderson
| 0. Governor Cameron, the committee, III
executingth the order OF the House directing
this committee TO investigate the a1,'rs Oh
the Planters and Mechanics Bank Of Peters
burg, in reference to the loss OF the none!
deposited by the State In that bank nave
ascertained that 800, 600 OF the States iunds
were deposited in that bank on the 2Oth OF
September, 1882, and ej0,OcO on the 20 oi