Savannah morning news. [volume] (Savannah) 1868-1887, 1885-03-08

At the time of the recent failure of the Bank
81 Augusta the stockholders appointed q com
mlttee 70 make thorough examination 81
the afTairs OF the bank. The committee was
instructed to employ an expert accountant
To review the books and ascertain the exact
condition Of the institution. For
heafly Two months this eXamina-
ton has been going on. 70 has at
lergih been Completed. The expert
LAY. ln his report. "Uppn,an examination Of
the hloks ul the Bank ~ August D.. I flnd they
lave been Gept IN very lose aui rick e-s
InaHuers tn many cases false entries have
been made and fO0tIugs Of a counts changed
10 carry aud cover up irregular transactions.
FecplnE ID IA from the kuOwi dye Of the di-
rccturs. With but few executions. the state
mentz made Co. the stockholders and directors
iur the pact three YEAR were incorrect as
also were the daily statements pr par for
the U-e : the directors and finance commit
tee. hud errors in tn cash hook, making IN
an q shortage of Si.Z14.16; amru units charged al
trl0us times 10 the reQi- count aC cunt
leaving debit balance 10 the account OF SOL
ei6 -, THIS account shOu d balance. There
also apps ars errors in notes and bills dis
counted ot Si,si5 3. hnd the President Of
the "anh mas MS name individually and IN
hrm names represented by him. a maker "r
lnd0rsfr "n paper held by the bank amount
-ng To Ss3.siS u6. and that the bank holds nnte-
Of A. j. Twlggs, amounting 10 4Q.75} OF -
lac committee consisted Of L. Daniel, ".
". Bus.ey. John ". Clark amt Chas II. Har-
per. In announcing the completion Of the
work. the three nrst mentioned call meeting
Of stock holders for March IL, but express no
opinion CODccralng the re possibilities of the
officers of the bank for S Wrecking. Charles
W Harper. however. sub uits a minority re-
port WhCh reads as follows: i deem the fore
going report incomplete and unsdtislactor
IN that IL latl-, in nv Judgment, To meet th-
require meut- Of the resolution appointing the
committee. The expert employed having
made Eis report as 10 the condition OF the
books the committee, bv resolution, eNtct ded
an Invitation % the President and Cashier To
appear before Them 70 explain the apparent
deere .auclez. omissions and irregularities re
fcrred TO. Those officers availed themselves
Of that privilege. / think the explanations
thEs given should be embodied In the com
mitt rs report. and an the f.Cts set forth. to-
geIher with the conclusions Of the committee
based thereon II thosc explanations were
satisfactory. ] think Justice 10 those officers
drmau led a frank statement % that
Ell az; If unsatisfactory, / think the
report should SD state 20 tar as
know. there is not single member OF
the committee Who believes, or Is willing 10
state over his signature. that a single collar
of tine funds OF the bank have been useti 10y
ANY officer for his own purposes. ID thc duty
of tile committee consisted in merely reccIy-
IN thc report ~ the expert ms iU the I tct or
thu book. aud forwarding the same % the
stoe sh0'aers, 1 fGii TO sec their appointment.
or tnc object the committee hHd ln view IN
extending Il lac invitation referred tu ana near
Ing such cNpiar atfun-. For myself. ] desire
10 saw that. yshiI. the entries on the booi do
lrs como. ~ a. the standard Of boos5ee 5ing,
s- ! Nulltucft bv experts a~ proper, aiu sailS-
tt-.. after hearing tile exclamation OF lhc 0fh-
GERS lu tie reference thereto. LAhN MtAdlFfGE
u-aN uaV- been tne nl-mHnaS- incht OF lto oi
judgment displayed, there has been no 0eial-
alton ON their part, or misuse OF the funus
Of the bank. The pres mt unfortunate con
aition OF the corporation. la my opinion,
has resulted from lIiudlciOus loans. 10
ainUle Individual on tecuTues
which afterwards proved insufficient.
r. H. " alton. Cashier of the bans. then pub
l-hes the following; II respectfully ask at
she hauts OK the stOc holders OF the Bank Oi
Augusta and the public generally suspen-
sion of their Judgment ln reference 10 the re
port of the committee appointed by the stock
f holders to examine into the condition OF the
bank uutll lu impartial irVestIcHtiou can be
. hai. Wuicn VIII I'm due time be made and
r.tcu tp the public. The committee have
se.n iit q exclude from their report my eX-
. p.auatran of the entries referred tl by e -pr.
+ B II. smith. Jr.. sud 10 present his report
alone. although they have admitted IN private
conversation that they wee eatI-ie j
that mo- money OF the bank hod been
m -aupiied. The fact that the commit
. t-r w.ts mainly composed Of directors Of
On bank, two OF whom Were on 10, Finance
committee. uuu are now being sued as
such. renders their findings and report omen
To the criticism % having been made n their
own interests and tp prs tcct thcW- Ives from
liability hy SarIl co OF myself such q
I C1mmittt can hardly dc considered an lm-
partial one. OT it- report entitled % the cou-
I -i.ier.ti1u or ttl-at That would be a. oruet
+ one upc affected by pending litigation. Con
. sci us oi lhe rect.tu be Of my conduct in the
administered the trust committed t1 my Keep
Iug 90 the best of my ability. and that not a
cent of Dee h1ub r. money has been M isappr0-
Or utcI uY me- am UuWlilinr e tp be sacrificed
or % REMAIN silent, that The directors com
prisinE the committee may escape"