Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-06-04
RANK MANAGEMENT.


appears to have been the man
agement of the broken banks.
For instance Assistant Cashier NC
CLURE, in his testimony regarding
over issue of stock, his talks with PreSi-
dent KENNEDY about it, his notification
of the directors, and the Justification OF
the presidents books, stated that ne
then and there rendered his resignation
To the directors, whose next meeting
consisted of but two directors, YOUNG
and ToRLAND. Those gentlemen and
President KENNEDY begged him not to
resign. The report of the trial contin-
ueS:
Kennedy said that if he would stay his
position need be only nominal ana that ne
need sign no certificates. AfterwarqS ne
met Messrs Kennedy. Young, and Nelson
T. Evans, another director, all OF Whom
begged him to stay, but witness refused
and insisted on resigning, as he ala not
like the way the bank was being run
Then Geo. w Shuler, the discount clerk.
testified that the following amounts were
charged to the accounts of Young, Ken
nedy and Evans on paper discounted by
the bank:
Ephrain Young as maker. ......sl, ~ ,o0s
AS lnd0rSer. .................'. ff'oooo0
+. w Kennedy, as maker. 62,OoO
AS lndOrSer. ........-. -.....''. o0o'O00
Nelson +. Evans, as maker. o''ooU
AS indOrSer. ACKNOWLEDGEMENTS. llt'oV
Ont of eleven notes charged TO Evans
three were never submitted TO the Board,
and only one of Kennedy's notes-a de-
mand loan for S32, 000-was submitted 10
the Board. OF Young's paper only about
half of it reached the Board. Notes to the
amount of 1891 900 were traced. in which
f. w. Kennedy was presumed to have an
interest
After considerable more testimony Of
the same sort, Clerk SHUTE testified
that
On Feb II last, he was keeping the indl-
yidual ledger account. f. w. kennedys
account at the time was overdrawn to the
amount of SOL 900, and the entry so showed
in the book. The Bank Examiner was at
the time examing the bank, but before he
arrived at witnesses book Cashier Henry
II. Kennedy came to where he was work
ing and altered the date to the day pre-
ceding and then brought him some deposit
slips for about ST., 600. These slips witness
entered TO the credit of +. w Kennedy,
thereby making it appear that the bank
owed Kennedy about $4,000
Directors Robert c. THOMAS, NATI-
AN MIDDLETON and EPHRAIM ToRLAND
showed by their testimony that they
knew practically nothing of the affairs
of the bank. EPHRAIM YOUNG, one Of
the directors, who is largely indebted to
the bank and was supposed to have an
intimate kno Wedge of its affairs, testi-
fed that beyond what was told him by
the executive officers, he knew nothing
of the statements sent to the Comp
troller. He had given accommodation
notes to President KENNEDY to the ex-
tent of $4,000 and to EVANS about
$780, 900. OF the proceeds Of these notes
he never received cent. He did not
know of the over-issue Of stock,
and, in fact, seemed to know
nothing at all about the bust
ness of the bank. With such
an easy going Board of Directors it is
no wonder that the dishonest bank
officials had an easy time of it in rob-
bling the depositorS. Two of the direc-
tors who are more directly implicated
in the steal will probably be arrested,
but that wont restore to the depositors
the money stolen from them. 1t does
little good to lock the stable door after
the horse has gone. DepoSitorS in
banks should have more protection than
they have. Bank examiners and ex-
aminations should be decidedly more
numerous and frequent than they are
and considerable more responsibility
should be placed upon the shoulders OF
bank directors. That is the moral Of
the Philadelphia scandal.