The advocate. [volume] (Charleston, W. Va.) 1901-1913, 1911-06-01
Found by The Receivers 10 Have
Existed in True Reformers
Bank
Depositorl Robbed
BENEFIT OF CASHIER HILL.
AND BOOKKEEBER WHO GAIN
ED LARGE SUMS BY FELON-
IOUS TRANSACT hon.
Hill Got $3,OOO.00
And Giles Jackson + Called Upon to
Explain for Wha1 Purpose Checks
Agsreeating ove4 $4,000 Were Is-
sued to Him.

Explain for Whad Purpose Checks
Agsregating ove4 $1,000 Were Is.
sued to Him.
Richmond, Va, May 2l-Reports
filed yesterday In the Chancery Cour
by VIM A. Moncure and Edwin Pill
cher, receivers for the Savings Bank
of the Grand Fountain, United Order
Of True Reformers, show that, con.
trary to the generally accepted state.
ment to the effect that the great Ne
gro insurance order had been embras-
sed by failure of the bank, the real
facts were the other way. The bank
the report says was carried to IN
sOlVency by the operations of the var
ious branches Of tho True Reformers
organization, to Which it extended
credit, as we'll as by the speculatiOns
Of Cashier r. T. lib and Bookkeeper
Agnes Reese
The report holds the officers Of the
insurance order responsible for the
failure Of the banks and asserts that
they are liable to it, for the losses 1t
has sustained by the diversion of the
banks funds for the promotion of va
rious departments under the direct
control Of the Grand Fountain.
Ask an Accounting.
1t is Recommended that a strict
accounting be hads with the" Grand
Fountain from the time Of the orga-
nization OF the bank. It is stated
that while the bank had large sums
on deposit, and was apparently pros
porous, it had but few of the ordi-
nary loans and discounts of a profit
able nature, but had loaned a large
part OF its funds on small security
and without. interest to various
branches of the Grand Fountain, es-
pecially the Reformers' Mercantile
and Industrial Association.
Some hope is held ont to the de-
positors through the listing of a
large amount Of real estate. in many
cities belonging both to the bank and
to other branches of the Order. The
value Of this real estate can only be
apprOXimatcd
"A special report shows that on the
day the receivers took charge of the
bank Cashier Hill attempted to- de-
posit certain Of the banks funds in
the Broad Street Bank Of Rich.
mond, and did deposit $1,631.46 in
the First National Bank. Judge Grin
nan entered an order directing the
First National Bank to show cause
why this money had mot been turned
over to the receivers on demand.
Hill Got $4,000.
The receivers report that from an
examination Of the books it is shown
that r. II. HILL cashier Of the bank,
obtained from the Dank "by false en-
tries and -erusuTps OH ffIig pGTsUuat ar=
count, and by failure to charge HIM
self with checks which he drew on
the bark, the sum Of $2l ,0OO.44. OF
the money SO obtained twenty four
checks aggregating $6,757O2 appear
TO have been paid by him to Giles 3.
Jackson" The receivers say that it
is due to Jackson to state that the
last item Of 81 900 received from
Hill was properly received by him, to
be used as Hills attorney. But as
to the other items the report con-
tinues, 'your receivers are unable 10
learn for what purpose the money
was paid Jackson, or how used" The
report goes on: %lWQ
From the investigation by YOU.
receivers, they are Of the opinion
that the disaster that came to the
bank is due largely TO the 1905 mado
by the Grand Fountain, Unitel o.
der Of True Reformers, Of the banks
funds for Grand Fountain PURPOSES.
and TO the gross negligence and ms
management. Of the officers OF the
bank to such an extent as to reader
them personally liable for sucl, neg,
lect and mi6mGnagement.
Funds Diverted.
The funds Of the bank appear to
have been used when needed for
any department Of the Grand Foun-
tain and Of the Reforti:er3' MerCan.
tile and Industrial Association, and
for the Old Folks Homo. so in.
terest was actually paid by any of
these departments for tn money &c
used. While the bank apparently
had large sums Of many oa Gtposit
there was always compar1t,vc!y
small amount of money loarel ont tc
borrowers in the regular course U1
business. and consequently the in
come of the bank from interest or
| loans was very small. ~. t.
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