The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-06-05
.RAMSAY'S BANK BOOKS
An Expert investigation Shows
Them in Bad Shape.
MUCH MONEY NOT ACCOUNTED FOE.

For Ten Years the Institution Was Run
without ANY Capital Whatever, and Do
ing "A Losing business ON Borrowed
Money-Accounts Manipulated at the
WIZ of the Banker, Who Died Hope
Iessly i'm Debt.
CARLYLE, Ills June BE. p. keshner,
the expert employed by the court 10 eX-
amino the books of the late II. y. Ram
says bank, has filed his report with the
county clerk here. The examination ex-
tended back twelve years prior to Ram
says death and. according to Mr.. kesh-
ncrs report, the system of bookkeeping
vas one of the rottenest ever con
ceived The banking system seemed
a case Of rob Peter 10 pay Paul from
beginning to end. The bank was
run for ten years without any capital
whatever The report shows that the net
earnings of the bank during 1881 amounted
TO =, ,5SS. ~, From that year to 1921 the
net loss aggregated $50, 1912, the annual
| loss ranging from SSSl97 To S9,SlS.0a
Ramsey paid from q 10 per cent. inter
| est on time deposits and on some as high
Us 10 per cent. On some loans he re
| ceived from to S per cent, according 20
the borrower. During this period Ram
| scy paid s7S, 81 interest on deposits
Amount of Assets Doubled.
Among the assets Of the bank was real
estate TO the amount of 81, $500. some
| of this was sold years ago and the bank
given credit for the amount of the sale
| without giving an offset on the real estate,
| thus doubling the amount of the assets ON
/ the books As sample of the manner
| i'm which the books were kept. sigh
| draft was drawn May s. 1889, 10y Philip
| Frank. for SlG25; the stub in the draft
/ book calls for Si.25. and was charged IN
| the cash book $500, hut when paid May
~. 1889 was charged Si625. A
another instance May l6 lSs9 "A tim,
certificate deposit, payable TO j. y Walk
err for ESQ was issued. The stub called
for SOS. and was charged the same In the
cashbook, but when paid was $3.50, Oh
MAY II. 1893. two time certificates of de-
posit for $50 each were issued to Mis-
Lizzie Nighswander The cashbooE
shows that only one time certificate OF dc
post for $50 was ISSUED aud charged e
heron that day There is an expense nc
count of S6087 II on the books, with moth
ing TO show what the expense Is Tor. In
discrepancy i'm the bills receivable ant
bills paid amounts to Sl7,5li.SS. If th
books did not balance thay were forced.
Balance out of Line SiG.Ooo.
On one occasion the books lacked - on
of balancing and Rlmsey issued his indi
| | yidual check for that amount and dcpo'
| tied il as cash On May ., lSSS, the ba
r ance was out of line Sl6,0OO. Severa
months from that date sl6OO wa
I | charged To addition in the cash boo
0 and the same amount deposited To the II
| diyidual credit of r. Y Ramsey, whic
| made the books balance. Money dcposit'
in 81. Louis banks was charged To his 4
dividual credit here. He seldom charge
d exchange for cashing checks yet the repo
+ shows where the foreign banks aiwa,
g charged him for cashing them. Durli
: the past twelve years Ramsay has borro'
; cd and given notes To hanks In Chlcas
= and st. Louis for his banks of 81 ,l2s,bl3.'
: and nearly n much more outside oil the
n cities. paying from 10 per cent. lnte
, est, he using money ON deposit to pay l
n terest on these loans. He borrowed mon'
for : pcr cent. and loaned il at >. Ran
saws business with Henry setter of Len
non. Ills. amounted 10 s5lS,3l5l1
II number of drafts were issued 10 straw
sc men. which always turned up indorsed
n setter "in "A very feeble hand.
z Undiscovered Assets
n The und scoNercd assets not inventor
rs by the administrator are Henry Setter
ii Co 81. .l6G.l3: B. II. Mchotf Ss.il.Sl;
IL Y. Nighswander. sill G2; f.. j. Holden
ct SlO9 46: II G. \orcross, 81 "; Nelh'
le * Norcrnss Sis.G1; Major johnson, s3l
G. and f. Mchling. Sl95.S Ramsc
campaign expenses in ls92 amounted
over $4,000. which was paid into the DE
ry ocratic campaign fund. After he
ne elected state treasurer accounts began
Dn change The personal orindividual accoV
ce | of r.. y Ramsey was ovcrdrawn tr'
10 oct. 3. 1892. 10 Jan. rs, 1898, at times
he | much as S54 201 81 After that IL began
he grow up. and ON March 20 1894, his in
b. yidual account amounted To slO3, i36
hc The general balance of the Ramsay ha
at the time of Il y. Ramsay death, \
10. 1884, was Ss0,50O out of line.
total amount of deposits was slS3'9'5
"A | total claims filed S.lS. .OS7 .26; claims :