The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1893-09-28
could be made to a state bank, and they

could be made to a state bank, and they
succeeded.
In the change the capital stock of tie
bank remained as it was, but G. c.
Barnes's stock was increased from $6,CCO |
to 49,, O00--and later to $40, OO0-a change
OF no consequence as the stock was
worthless The many names OF outside |
parties who figured as stockholders were
dropped, their stock evidently having |
been taken by G. G. Barnes.
It appears that dividends were declared |
and paid after the condition Of the bank |
was such that its earnings should have |
been used to take up worthless paper |
which 1T held. In one instance the divi- |
dend was used to take up bad paper |
held by the bank. A note of Mrs.
Conley which was given in 1889 amount
ing to S1,O15 was partially paid by a
dividend declared in 1889, leaving a
balance of S265. The dividend was suf-
fcient to fully discharge the note, but In
stead the balance of 1865 together with
other small notes which with this balance
aggregated S409, was charged to profit
and loss. The stockholders at the time
received a partial dividend. A note given
by - de Garmo for 5000 was also
charged to profit and loss in 1889 and the
dividend then declared was used as far
as 1t went in making good this note. The
de Garmo note, however had been used
to take up q note given by Ed. Conway,
the last note being charged to profit and
loss; but it seems not to have been allow
ed to remain there, as it figures after
wards as live paper and is now part OF
the banks assets. A note of G. L. Barnes
for $4,000, given in 1888 to take up note
of G. q. Barnes made in 1886 for 81 800,
presumably for stock, was assumed by
G. G. Barnes before the failure and de-
stroyed. A note of q. b. Burnet for
81 900 for purchase OF Benefits stock
given in 1888 was dropped when the State
Bank was organized, in which he was not
a stakeholder.
There were notes given by parties for
single day, charged to bills receivable
and credited the day following to bills re-
ceivable; notes were taken and certificates
issued therefor and re-exchanged the next
day. No money passed in these transac-
lions but it was done simply to make it
appear the bank was doing large bust
| ness when under examination by the bank
examiner.
| There were many reports in circula-
| ton which have no basis of fact. Certain
alleged shortages IN the assignee's report
| have likewise been explained. The bank
il its dealings with the Waterworks Co.
used different names sometimes "MOttitt
| II. & Co." and sometimes "Waterworks
| Co." A note would be charged to the
one and credited to the other and thus a
certain account would seem to be open
and an amount due. It was found that
| these accounts balanced. A note given
by the Waterworks Co., of $500 had been
lost, but on receiving bond dupli-
cate note was given by the company
and is now part Of the assets. The
bond account which was supposed TO be
short $1,000 was DOT SO in fact, as it was
satisfactorily shown at the examination.
The d. B. and O.. Co. seemed to owe the
bank $1,000 but the account balanced
when double credit given to an indivi-
dual connected with the Go. was placed
where it presumably belonged. A note OF
J.W.Barnes, for $1,000, was balanced by a
corresponding credit, though the reference
in the item OF credit was faulty, which led
to the surmise that the account was still
open. The 100000 account with Joseph
Villas as President of the Lake Shore road
secured by railroad iron, upon which it
was said but nominal interest was paid
is found to be all correct, and the inter
est and principal all paid.
There is a note on the books, however,
which appears to have been gwen by j.
W. Barnes Co. for $500 in 1876. This
note is not satisfied on the books. Mr..
Barnes says he never gave any such note
and MIR. Mulholland says the firm never
did and had no need to, and shows by
their bank books for the month the note
seems to be made that they had sums
ranging from $4,000 to $4,000 to their
credit in the bank.
There are various accounts with parties
under fictitious names, such asa. B. G
&C., but these accounts are all closed up
properly. The bank appears to have mad
Indirect ways of doing business in many
particulars which naturally threw suspi-
cions on the deals, thought managed in
the usual way they might appear to be
| lr