Capital journal. (Salem, Or.) 1893-1895, 1893-10-23
HAMILTON, JOB & co.
Interesting Object Lesson in Crude
Banking Methods.


CORVALLIS, Oct. 22.-W. T. Branch,
the expert appointed to examine the
books and accounts of the banking firm
of Hamilton, Job & Co., for seven years
past, has presented his report. The
books of the firm were found to have
been very carelessly kept. No trial
balance of the general ledger had been
made at any time, and any effort to
balance accounts was made daily by
computing the amounts received and
the amounts disbursed, and any discrep-
ancies were charged to the ''long and
short" account, which account, at the
close of business June 8, showed debit
of 81, ,63S.32. The capital stock Of the
house was $4,000, SIS, 400 Of which was
to the credit of Zephin job and S2l 600
70 the credit of B. r. job. The former,
however, is Indebted to the bank In the
sum of $l7 ,454, and the latter $7OO2 10.
The expense inthe conduct of the busi-
ness from January l, 1887, to January
8. 1893, and chargeable to the expense
account, is $2S, ,925 Al, and losses on long
and short account are $2638 80. The
revenues derived from the business
were: From the interest fund. $685.
los. l6; from the discount fund, $955.57.
This amount (3S,662 73) shows the ne,
profit of the bouse for 81 years to have
been $7O9S.96.
All accounts or notes of the bank.
whether good or bad, have been treated
as good. There was invested in real
estate $26, ,246 13, 10 which is included
81, 976.SS for which the books do not
give any information. The Niagara
Mill company owes the bank balance
OF $43, ,634.84. The Messrs. Job were
the largest holders of stock in the mill
and advanced money freely. The mill
property will most likely realize very
much less than it cost.
The bills receivable account calls for
notes to the amount of$l02, ,7O9.77. An
inventory of the notes found in the bank
amounts to only SIS, 8,3S4.34, shortage
of $24, ,3l5.43. No records were kept of
these notes, so it is impossible to tell
what notes are missing. 1t is believed,
however, that two notes, amounting to
$l3,500, given by Jacob & Neugass,
were used to purchase half of the lot
and building adjoining the bank build
ing. The property was bought for $l7,-
600 and these notes used in payment,
but no record was made of the transac-
ton. The same may be said of the
purchase of the Cauthorn warehouse
aid the property mortgaged by t. ].
Blair to secure certain notes, and which
was sold lnder execution to Messrs.
Job. No entries were ever made of
these matters. These notes, together
with few hundred dollars of outlawed
notes, will practically make up the de-
ficiency.
The expert is satisfied that no funds
were diverted from the proper care of
the bank by either of the Messrs. Job,
except in the purchase of the mill pro-
perty and its subsequent account, aud
the purchase of the real estate men,
toned. The valuation set upon the as
sets of the firm by the assignee is upon
the supposed depreciation always oc-
casioned by the closing of any business,
and shows a large deficit. The ulti-
mate result as to the amount of the div
ideRd, says the report, will depend large
ly upon the careful administration of
its affairs.