The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-23
Commonwealth Discrep-
ancy to Form Subject
Of Special Report.
RECEIVERS FILE
COURT STATEMENT
Impossible to Estimate Amount
That Will Be Realized From
Assets, Which Must Be Han
died Carefully to Avoid
Sacrifice and Loss.
Gives Much Detail.

Report No. on the condition OF the
defunct Commonwealth Bank. fled yes
tcrday in the Chancery Court by tho
receivers, John B. Lightfoot and James
w. Gordon, serves notice that n care
full auditing OF the accounts reveals
discrepancy amounting 10 sl3.4oo.s9 be
tween the individual ledger balance
and general ledger control The short
age war brought TO light by the
American Auditing Company. which has
been engaged for several months in
checking UP the banks transactions.
The discrepancy Is noted in the an
dir company's statement OF the banks
assets and liabilities at tho close ri
business OH August 20, loi3--the day
the ins3itution was ordered closed by
Bank Examiner Barksdalc. II is
again referred TO In the summary that
precedes the audit company's cXhaus-
tive 176page report.
fuller statement from the recciv-
crs with regard TO the responsibility
for the shortage could not yesterday
he secured. Tho matter ia temporarily
dismissed In the receivers report To
the court with a statement that a
Ing with the discrepancy
Annirs Complicated.
on the question that is uppermost
in the minds OF the 5000 or more de-
positor:' anNiously awaiting Zip on
the probability OF their getting their
money back. the receivers report
throws little light The diniculty ~
answering this question at this time is
indicated in the following excerp: from
the brief report that accompanies the
exhaustive statement OF the audit com
pany.
An inspection OF the report a., tho
American Audit Nuil1
tho complicated nature OF the admins
tration In which yuur receivers arc
engaged. They have been attempting
ever since their appointment To asccr-
tain The relationship between the bank
and the various debtors shown On the
schedule OF assets attached To tho re-
port, and to collect and secure those
assets for the protection OF tho crcdi-
tors OF the bank.
Many OF the assets shown on the
report are OF such n character that IL
VIII require careful handling over a
considerable period OF time to avoid
tho sacrifice OF the same owing to
various contingencies. il is almost i'm
possible for your receivers to tell at
this time what amount they Will prob-
ably be able To realize out OF the as
sets as shown by the report but they
Will from time TO time make further
reports to tho court in regard to spe-
cifc items or assets as Investigations
progress"
Presents Detailed Statement
The latest report of tho receivers
derives interest chiefly from the fact
that through the medium OF the audit
company's statement, which forms par;
OF IT. It presents for the first time since
the failure complete statement of
the banks resources and liabilities The
last statement fled by the bank was
on August g.
Tho audit company lists in detail,
schedules of time loans. demand loans
past due notes real estate loans and
other asset classifcations representing
the banks resources. Makers and in
dorsers OF obligations are In every case
named.
On the liabilities side the audit com
panys statement presents complete
list of tho banks stockholders and nu-
merous schedules showing It's obliga-
tions to individuals, corporations and
other banks. Deposits are summarized
under the heads: main office. branches.
savings and commercial. but a list or
depositors and the amounts to individ-
ual credit does not appear
Total Deposits, $500, 2,S50.00
According to the American Audit
Companys statement, the Common
wealth Bank had, at the close of busi-
ness on August %, commercial and
savings deposits ageregating 1892
Sb990. The sum includes the s13,4OOS9
shortage already noted. There were
also certificates OF deposit amounting
to s3l.6S9.70; cashiers checks totalinG.
si.249.12, and certified checks aggre-
eating S1,79S.2G.
The assets on the same dav accord
ing TO the audit company. included as
chief items: loans OF various kinds ae-
gregating SS72,441.75; overdrafts, So
a2743; stocks owned s174,SS0. and real
estate owned, S5.173.70. The vaults
contained cash amounting to s4,11435,
and guaranteed notes worth $4,000
Moncurc Approves Report y
Judge Moncure, of the Chancery
Court, entered decree accepting the
report of the American Audit Company
and the schedules of books, papers.
furniture and fixtures. as an inventory
by the receivers OF the assets of the
bank. The decree approves also the
action of the receivers in disposing Of
minor business matters connected with
the liquidation of the banks assets.
The vault at the main Office on Ninth
Street, the receivers report, was found
much congested with old papers and
books. After making list OF such
books rs were not in active use. the
receivers stored the collection in the
vault They disposed also, on equitable
terms, OF the uneXpircd lease of the
bank premises at 1914 williamsburg
Avenue. and sold the railing and stand
ing desks that formed part of the equip
mcnt OF the Commemorative Twenty
fifth and Broad Street branch.
The transactions are described in de-
tail in the report to the Chancery Court
and were all approved by Judge Mon
cure In his decree. Th, American Audit
Company, whose employment was au-
thorizcd by the courts decree Of Sep
tomber 3, the receivers report. has about
completed Its task. although there are
Continued on Fifth Page.)
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