Savannah morning news. [volume] (Savannah) 1868-1887, 1884-08-28
RUINED BY A BAD CLIQUE.
THE SECRET OF THE PETERS
BURG CRASH REVEALED.

6ole Among the Fultures-Eaflure of
a Xenia Bank and Commercial ATisfor-
tunes.
RICHMOND, VA, Aug. 27.-In the
House of Delegates to-day Mr.. Pollard.
Chairman of the Committee on Finance,
submitted a report of that committee on
the investigation Of the Planters and Me-
chanics Bank of Petersburg which re-
Gently failed, and the status of the State
funds deposited therein.
The report, after giving the various
deposits made in the bank and other
| details connected Herewith, says that the
amount due the State May l, 1884, was Sl35, ,373
The committee find that the money Of the
State deposited in this bank was so mingled
| with the other funds of the bank and so used
| as to make it impossible for the committee in
| the time and from the sources of evidence at
| its command, to ascertain the precise use
| ade of the identical money so deposited.
Inc greater portion OF the deposits seem to
have been transferred to the Chase National
! Bank of New York and the bank at Rich
mond, and to have been ultimately paid out
| through those banks. While the COMMITTEES
have not traced the identical State money
| deposited in this bank into the hands OF any
| person, they find that the books of the bank
show what must strike the mind as q
startling fact that with a capital stock
| of only $ll9,55O the enormous sum of
! Slll.SlO had been allowed TO be drawn
from bank by, overdrafts at the time
| the bank closed It's doors, in addition to very
| large sums previously Overdrawn by favortes
Of the bank, which had been covered by notes
! upon which no security had been required,
and most OF which are utterly worthless.
SOME OF THE FAVORITEs.
Among the names of those upon whose
! checks the largest of these Overdrafts were
| drawn out are Seth Boiling q Co., SI9. 600:
Gov. William F. Cameron, nearly $1,000;
! state senator W. f. Gaines, $4,000; Inge &
! Malone, the latter the son of Gen Malone,
nearly $4,000; Gen. William Malone, nearly
J $1,000; sThomas Whyte, Cashier of the
! bank, Sl5,600; and r. Il. Young over S. OO0
/ In addition to the amount due the bank on
! account OF over drafts, there was $309, goo due
| upon notes and bills receivable. or these as
sets very large proportion is represented by
| notes OF persons hopelessly insOlvent and
| supported by no security, rbv insufficient Sc
! curlty. Among these are Seth Boiling 4 Co.,
| a call loan for $4,000, Gov. William f.. Cam
! eron, sundry notes for $3I, 400; Inge & Malone,
! $500; George Perkinson, over $4,000: Thomas
| Whyte,, Cashier, nearly $4,000; State Attorney
General 81 f, 5. Blair, $l,3JO; j. G.
| $1,000; Stratton q Co., of which frm
| Edward Whyte is the only member, S5S. 600;
! and 9. w. Spicer 100000. The committee say
! that Gov. Cameron and Gen. Malone have
| paid the amount Of their Overdrafts to the
| trustees since the affairs of the bank have
| been placed in the Trustees hands. Senator
| Games mas paid $4,000 of his overdraft of
! $4,000. Nothing has been paid on the amount
| due by GOV. Cameron upon his notes, aggre-
| eating over 100000, but the Trustees of the
/
| Telegraph Company bonds, worth perhaps
| $l7, 90, and Is shares of stock of the Washing
! ton Improvement Company of uncertain
! value. 1t Is proper to say that these cOllate-
rails were considered at the time the loans
| were made to Gov. Cameron good for the
| amount OF his notes, but have since greatly
! deprecated.
DASH OF POLOTICs.
The committee further say that it is a
/ sign llcant fact and one which has not been
| satisfactorily explained that the above narties
| who were permitted in such an extraordinary
| manner to OVerdraW their accounts 81 ~:
/ ceive enormous loans from the bank without
| security, were Readjuster Coalitionists. ex-
| cept Edward Whyte, and he is a brother of
! the Readjuster cashier. The COMMITTEES are
| not SATISFIED with GOV. CamerOn's statement
| as to the security which should have been
! required from the bank before deDOsits were
! made. They are in doubt as TO which is moro
| culpable, to have failed to require a bond of
! indemnity before the deposit of anv of the
| state S money or to have cancelled a bond ex-
! eculeu Ior money winch remained at the time
| OF surrender IN the bank, and which now re-
| mains due TO the commonwealth and which
! Wlli prove II loss Of 80 per cent. or more Of the
same. Inc bond now in possession of the
! treasurer Will prove almost wholly unayail-
| able to the State as security for the large
amount Of public funds upon which the bank
| has defaulted.
The committee have not yet ascertained
| that any person Is liable to criminal prosecu-
tlon 1or conversion of the States money de-
! posted in the bank.
| BLAMING THE MANAGERS.
In conclusion the committee state thatther
| investigation of the affairs Of the bank dem
onstrates hat it was conducted with .reckle
! disregard of the interests and rights of the
| State ana the other depOsitors of the bank;
| Jhat It's FUNDS seem to have been placed at
| the disposal OF coterie of political favorites
| VINO were allowed to consume the money of
It's depositors without stint and Sc
! ty and that in the conduct of its
| AFFAIRS its managers present an example
OF shameless pronigacy, which deserves and
| should receive the unqualified condemnation
| of the representatives of the people. The
| committee feel that their duty would not be
| discharged did they fail to express their dis
| appreciation of the dealings OF the chief ex-
| ecuJlYe OF Che Commonwealth with this bank,
| first In taking bonds in small amount for the
! protection OF the State. and In accepting
| large fayors from the bank, borrowing large
! sums on security of doubtful or speculative
| Value, ana finally when the bank
was almost forced to close its
| doors by reason of the reckIessness
and dishonesty which characterized its man
! agement IN transferring $25.000 from an un-
| uOubtedly solvent depository, the First Ma
! tlOnal Bank OF Lynchburg, upon the soicta-
| tlon OF party associate and an officer of the
| bank, in order to relieve their embarrass-
| ment.
The report was ordered printed.
XENIA BANK FILCHED.
XENIA, o., Aug. 27.-The Second Ma
tion Bank of this city closed its doors this
| iiOl ui1l5s NO IGdSOHS were assigned IOf
the suspension. The President is j. p,
TOwnsley and the Cashier Jno. S. Ankle
! ny. The paid up capital is $150000, the
surplus at the last statement in October,
1883, $4,000, and the undivided profits
! $4,000. 1t has two New York correspond
! ents-the National Park Bank and the
! First National Bank.
CAUSE OF THE CLOSING.
There was run on the Xenia bank
! yesterday, but payments were made
so promptly that confidence was
| deposits. Cashier j. S. Ankeny has
| gone West. The bank to-day is in the
hands of an officer detailed by the Comp
! troller of the Currency, and no statement
| OF its condition has yet been made. Cash
! ier Ankeny had been engaged in grain
| transactions with r. NJ. Smart, to whom
| the bank, through Mr.. Ankeny, recently
made large advances. Smart gave a
mortgage to secure this money, but the
| directors were not satisfied and demanded
Ankeny's resignation. He went West
next day and this caused the run of yes
! terday. The stockholders are regarded
as able to meet all liabilities.
1t is said late tonight that the bank ex-
amner has found that the Xenia banks
! losses tsAAgh Aukeney, its Cashier, do
not eXceX4Nk 900. A late special from
| Aenia saySSs8 lat the run was caused by
| the suppGs&# &#rregularities of the Cashier,
and theIF citement was great when
Aukeney resigned and went West.
| The bank examiner sent by the
| Comptroller of the Currency to examine
| the bank, says that hehas not made COM
! piete examination, but thinks that the
| capital stock ($15O,O00) will be somewhat
| impaired. A meeting of the stockholders
| has been called for Saturday next, and it
is thought that arrangements will be made
for an early resumption.
THE LADNER CRASH.
PHILADELPHIA, Aug. 27.-No state
ment has yet been made of the collapsed
| banking firm of Ladner Bros. Several
| creditors to-day secured warrants for the
arrest of VIM. II. and Louis j. Ladner.
members of the firm. They were both
! taken into custody, and in some cases
were held under bail for a hearing on FRI
| day. In one case they waived a hearing
| and were held to bail.
FATE OF FRANCES CROOKED BANKERS.
| PARIS, Aug. 27.-The trial of the direc-
! tors and managers o the Banque of LYONS
! ct Loire, which failed two or three wears
| ago was concluded yesterday. NJ. Sava-
70, eX-Deputy, and at one time Under Sec
| retary of State, was sentenced to five
| years in prison, to pay a fine of 10000
| francs and to suffer for ten years a sus-
| pension of his civil and political rights.
| Nj. Zielinski, the manager, was sentenced
! to five months imprisonment and to paya
fine of 5000 francs. NJ Bellantin. sub
| manager, was sentenced to four months
| in prison with fine of 1000 frames The