The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-25
Report Of r & ceiver RS
Throws New Light
on Situation.
HILLS S HORTAGE
REACHES $4,000
Funds Of Big Colored Banking
Institution Were Used by
Gross Negligence and Mis-
management to Garry On
Operations Of Grand
.i. Fountain.

Reports filed yesterday in the Chan
Gerry Court by William A. sfoncure AMI
Edwin Pitcher. receivers for the Saw
!ngs Bank OF the Grand Fountain,
United Order of True Reformers. show
that. contrary to the generally ac-
cepted sta tement to the effect that the
great negro insurance order had been
embarrassed BY the failure Of the bank,
the real facts were the other way.
The bank, the report says. was carried
TO insolvency by the operations of the
various branches OF the True Reform
ers' organization to which It extend :
cd credit. rs well az by the pecula-
tions of Cashier r. T. Hill and Book
keeper Agnes Reese
The report holds the Officer. OF the
insurance order responsible for the
failure OF the bank, and asserts that
they are liable 10 It for the losses II
has sus tanned by the diversion OF the
banks funds for the promotion of va
cious departments under the direct
control Of the Grand Fountain
Ask mn Accounting.
II Is recommended that strict ac-
counting be had with the Grand Foun-
tain from the time Of the organ!zation
OF the bank. 1t IS stated that while
the bank mad large sums on deposit.
and was apparently prosperous. IL had
r
counts OF profitable nature, but had
loaned a large part OF its funds on
email security and without interest TO
various branches OF the Grand Foun-
tain especially the Reformers. Ner-
4 cant'ie and Industrial Association.
some hope IS held out TO The deposit
tors through the listing OF large
amount Of real estate in many cities
belong!nS both TO the bank and ~
other branches OF the order. The value
O. ms real estate can only be approsi-
4 special report shows that on the
Gay the receivers took charge OF the
bank Cashier Hill attempted to deposit
certain OF the banks funds in M
broad Street Bank OF Richmond ana
ga DEPOSIT sl.63l.+6 In the First Ma
uonai Bank Judge Grinnan entered
m greer directing the First National
tSank to show cause Why this money
had not 5een turned over TO the re-
ceiyers on demand
Hill Got $4,000
ne receivers report that from an
examination OF the books ii is shown
that r. 7, Hill. ca asher OF the bank.
obtained from the bank by false en-
TRES and erasures on his personal ac-
count. and by failure to charge him
self with checks which he drew on the
bank. the sun: OF 3l.00O44. or the
money SO obtained twenty four checks
aggresating s8.757.02 appear 10 have
been paid by him TO Giles b. Jack
SON" The receivers say that II is due
TO Jackson TO state that the last Item
OF $1,000 received from Hill was prop
erly received by him, to be used as
Hills attorney. But as to the other
items" the report continues. your re-
ceivers are unable to learn for what
purpose the money was paid jackson.
or how used" The report goes on:
From the investigation by your re-
ceivers, they are OF the opinion that
the disaster that came to the bank
is due largely to the uses made BY
the Grand Fountain, United Order of
True Reformers. of the banks funds
for Grand Fountain purposes, and to
the gross negligence and mismana ge-
ment OF the officers of the bank to
such an extent as TO render them
personally liable for such neglect AVID
mismanagement
Funds Diverted.
THE funds OF the bank appear to
have been used when needed for any
department OF the Grand Fountain and
Of the Reformers' Mercantile and In
dustrial Association. and for the Old
Folkes' Home. No interest was ac-
tualiy paid by any of these depart
ments for the money SO used. While
the bank apparently had large sums
.
a comparatively small amount OF
money loaned out to borrowers in the
regular course of business. and con
sequently the Income of the bank from
interest on loans was very small
when notes of the Reformers
Mercantile and Industrial Association
were given to the bank on July !. 1910
there was an entry made of interest
amounting to s16664S.65.
Ne int
that the present and past officers and
directors Of the hank. who are the Off
GERS and directors Of the Grand Foun-
tain, and the Grand Fountain. are liza
bio to the bank for the losses II has
sustained by the diversion of the funds
for the promotion OF the various de-
pnrtments under the direct control al
the Grand Fountain.
.N Grand Fountain IinbIc.
3."Your receivers recommend to the
court that q strict accounting be had
between the bank and the Grand Foun-
tain from the organization of the bank
down to and including the 26th day OF
October, 1910, when the bank was
closed. and that the relationship OF the
Z Grand Fountain to all of the depart
ments appearing on the books of the
bank be ascertained, together with the
responsibilities of the Grand Fountain
for the expenditures OF the banks
money. especially the finance depart
( ment OF the Grand Fountain. the en-
pense fund. tho mortuary fund, the Old
Folks Home, the Reformers' depart.
lment. the hotel department and real es-
tate Departmental
The receivers stat, that if any min
utes were kept of the meetings OF the
{ stockholders Of the bank they have
/ been unable to locate them. suggesting
l that they were probably kept With the
minutes OF the Grand Fountain, the
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