Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1884-06-10
PLANTERS AND MECHANICS

/ PLANTERS AND MECHANlCS
BANK OF PETERsBURG-ITs FAILURE-THE
| STATES DEPosIT-MAHONE AS A BANK
ER-PoLITICAI FINANCIERING.
| CONDENSED from The Campaign extra, I'd inst.
When Senator Malone, with utter con,
Tempt for all moral principle, undertook tc
debauch the people of Virginia and form a
| party of all the freebooters and political
harlots in the State, thinking men knew
| there could be but one result Those things
which it was known must happen, have
| happened, aud some of them are beginning
to come to the light of day.
| There have been two business failures
in the city of Petersburg within the past
! two weeks. When the salient facts o1
those failures are grouped they reveal the
blackest page that has ever yet been ex-
posed to view in the history of Virginia.
We propose to group those facts to-oay
that the people of Virginia may see what
the Readiuster- Coalitionists may do fol
them if they are allowed to have their
way.
Three or four years back firm of to-
bacco manufacturers commenced business
in Petersburg under the name of Inge and
Malone. The Malone was son of Sena-
| tor Malone. 1t was given out that they
had a capital of some twenty or twenty
| five thousand dollars, given to young Ma
hone by his father to start him in business.
Last week this firm failed and assigned all
| it assets to a trustee. From that assign
ment it appears that Gen. Malone had not
given his son the money upon which he was
doing business, but that he had lent him
$26, 900.
MAHONE FIRST, THE BANK LAST.
When the firm failed it owed $48, 900,
| four thousand of which was due in small
sums to various business houses, $4,000 Of
which was due to Gen. Malone, and $1S,-
! 900 of which was due to the Planters and
| Mechanics Bank of Petersburg. Their as
sets are valued at $4,000 The deed of
trust provides that the four thousand dol
lars due to various parties shall be first
paid; that Gen. Malone shall be paid next,
and the bank last.
| Just about the time that Inge g. Ma
hone failed the Planters and Mechanics
Bank failed also. Its failure is very bad
one. Positive data cannot yet be obtained,
but those who have the best opportunity OF
knowing estimate its liabilities as high as
$500, 600, while the highest estimate that
we have heard put upon its assets at $75,-
Geo; 1t may p,7 possibly pay its creditors ten
Petersburg being Gen. Mahone's home,
it has been her curse to have an essentially
Readiuster party. There was the Read
iuster drug store at which good Readjusters
bought their drugs, the Readjuste milk
man from which good ReaJjusters took
their milk In all departments of business
there were special Readjuster headquarters,
and so, of course, there was a Readjuster
bank. This was the same Planters and
Mechanics Bank which, as all Readjuster
enterprises must do, sooner or later, has
come to grief.
THE STATES MONEY IN THE READJUsTER
BANK.
Some months back the Governor of the
State. in the exercise of an authority to
designate what banks shall be repositories
of the States money, designated this bank
as one, and $154, 900 of the States money
was deposited in it. A few weeks back the
Treasurer of the State checked out SAC, ,O9C
of this sum. Immediately an officer OIL
employee of the bank came here and had
an interview with Gov. Cameron, after
which he ordered $3.50 of the States
money on deposit in a Lynchburg bank to
be put into the Petersburg bank.
It is hot out Of place to pause here and
ask Cow Cameron why he did this. Il
thet officer represented to him that the tax
ing of $4,000 of the States money from
the bank lad caused the bank to want
$25, 900 very badly, ought it not to have
occurred to him that thatNwas not the bank
to put s25. Goo more of the States money
into?
GLARING FACTS.
First and foremost stand out the glaring
fact that Gen. Mahene's will is supreme il
every department of the State Government
controlled by Readjusters. That the Gov
ernor who has the power to order the States
money where he will is a Readjuster, az
much under Gen. Mahone's order as any
one else. That young Malone got $1S, 0O(
of the States money out of the bank into
which Cameron had ordered it. That hi
fails with Just SIS, 900 of the property, ant
Immediately transfers $i4, 600 of this to his
fathers pocket.
We are not prepared to deny that young
Malone owes his father $26, 600, but there
are those who, when they consider that this
young man has been doing business for sew
eral years with the impression prevailing
an impression necessarily known of by Gen
Mahone-that he had given his son money
! to start in business-there are those We
say, who do not believe that there is any
bona fde debt due by the son to the father
Nor do we charge that there was a conspir
acy between Gen. Malone and Governor
Cameron to p1t money into the Petersburg
bank so as to enable young Malone to ge
$14, 900 of it for his father. But we dt
charge that if Gen. Malone had one mo
ment's regard for anything that is decent
for lnything that is high, for anything tina
is manly and honorable, he would be man
gled on the rack before he would touch ;
dollar of this money. He would be fiayet
alive before he would allow his son to stant
before the world in the position of con
duit of the States money from her Treasu
ry to his pocket.
A word now regarding some of the othe
parties amongst whom the States none,
seems to have been divided up
OTHER BENEFICIARIEs.
Those who ought to know think tha
Cameron has secured the bank the money
which he owes it 1890, 000] by deposit 0
sufficient collaterals. But if that be so, on
naturally inquiries where did Cameron ge
good collaterals for a loan Of between $40,
900 and $4,000.
/ But whether the Governor has glvel
goou collateral for what he borrowed or ha
not, the fact that he borrowed money from
that bank cannot be too strongly con
demned. The law has clothed him with {
trust, that of designating banks into which
the States money is to be kept, and if he i
faithful to his duties that trust must b.
exercised with an eye single to the State'
interest alone, and without a thought o
making it subserve his own, private inter
ests. The Governor cannot go to th'
Treasury and borrow the States money
Bat if he may order the States money to b
put into the Petersburg Bank, and then @
to the bank and borrow that money, wha
is that but to extort a loan from the Stat
under the guise of exercising his officia
functions? He cannot be too strongly con
demned for having borrowed money from
this bank under these circumstances.
\ If the Governor may order the State
money to be deposited in certain bank
and then borrow that money on terms t
be agreed on between himself and tn
; president of that bank, why may he nc
borrow it without collateral as we'll a
with collateral? Why may he not orde
a hundred thousand dollars of th