The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1905-12-13
]. c. YRIMBLE
WRITES OF
His Connection With
the Exchange Bank
WRITES OF
To B,Aom II NAY Concern.

/
MT. STERLING, KY, Dec. 9, 1905.
There having been some unjust criti-
cism in reference to my connection with
the Exchange Bank, deem it my duty
in justice to myself, as we'll as for the
purpose of correcting any erroneous i'm
pressions that may have been made, to
make plain statement of facts in vim
dication of myself which cannot be con.
troverted, and which beg leave to sub
NIT to you for your consideration.
The Exchange Bank of Kentucky was
chartered in 1856 with capital stock of
$4,000, with clause inserted therein,
authorizing the Board of Directors at
their discretion to increase the capital
stock to $4,000, which was done in
1881.
By the Misrepresentation of its officers
and by the false and fraudulent reports
OF its condition, which was published
and circulated semi-annually, and
sworn to by its cashier, and which I
believed to be true, was induced to
purchase for myself on the Idth of Tune.
1882, 100 shares of the increased cap
ital, the first that was sold, at the price
OF Sos per share, and at different times
thereafter, until the 9TH of January, 1884.
l purchased for my relatives las shares
OF its stock, including IS shares for my
son-in-law, ]. Taylor Day, at the average
price of $II6.6635 per share, amounting
IN the aggregate to the sum of $40
$50, which now constitutes part of the
capital stock, and for which | have re-
ceived no consideration except the de-
livery of certificates for a3s shares of
stock in an insolvent bank.
was elected one of its directors and
president of the bank in May 1884. and
continued acting as such for four years,
and during that time sold the stock
had purchased for my relatives, and
most of my own to different persons.
After those sales were made and during
my administration there were many
errors found in the books of the bank
which greatly deprecated the value of
the stock
There were old insolvent and worthless
overdrafts which had been carried on the
books as part of its assets for many
years amounting to nearly $500 There
was also a discrepancy Of a similar
amount between the individual and gen
eral ledger-lacking that amount of
balancing, which deprecated the value
OF the stock to that extent.
Under the head of note and bill &C.
count, the books show and called for
thirty odd thousand dollars of notes
more than were in the bank, either good
or bad and never have been found to
this day
The errors and insolvent overdrafts
and other items which were charged to
profit and loss Amounted to the sum of
ISL ,626.I3 as shown by the directors
minute book on pages 90 to 1856 inclusive
to which refer. The amount charged
off entirely wiped out every dollar of
the original capital of $50, and
Sr626.I3 of its surplus, which the bank
to have, and shows conclusively
the insolvency of the bank before pur-
chased any of the new stock.
The directors of the bank, before I |
was connected with it, held no meeting
in their official capacity nor elected any |
officers for a period of u consecutive
years. If they did, have been unable
to find any record of it, which is evidence
Of how the business of the bank was
There were eight suits instituted
against me in the Montgomery Circuit
Court, by parties TO whom I had sold
stock and all of them recovered judg-
ment for the difference between the
value of the stock as shown by the books
Of the bank when sold the stock, and
It's value after the errors were corrected.
amounting to several thousand dollars,
which l had to pay. then brought suit
against the bank within five years from
he time the errors were discovered, to
recover the amount of judgmement l had
paid. The bank for defense, plead the
statute of limitation. But secured
Judgment in the lower court, which was
appealed to higher court and reversed,
he Court of Appeals ruling that it was
ny duty as President of the bank, to
'now its condition, and that the statute
# limitation commenced running from
he time Twas elected President, instead
# when the errors were discovered.
All the new stock was sold, for which
he bank received in premiums about
2 1000, and with the exception of the
uits instituted, there has been but one
nit brought against the bank for dam
ges, and that was for only four or five
hares, and the small Judgment rendered
herein is all the bank has had to pay to
hose who purchased the stock.