The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1918-12-24

no security. Excessive and disaster
GUS loans have been made to cor
porations In which Messrs. Pingree
and Ford were interested person
ally. Corporations have been
financed from the bank funds, with
out security, the bank having to
stand the loss should the venture not
prove successful. Officials Of the
bank have been permitted to borrow
large sums from the bank without
i the loans being secured ,as required
by law. Officials of the bank have
been permitted to use the funds Of
the bank without paying any inter
est therefor. False and misleading
statements have been made by the
bank officials to the bank commits
sioner of this state, relative to the
financial condition Of the Merchants
bank. The executive committee do
not appear to have exercised any dis
erection in celebrating upon the
loans made by the bank.
Allege Gross Negligence
"As to the directors of the Mer-
chants bank, other than John Pin
gree and George e. Ford, we cannot
too severely censure for their lack
of interest and their gross negligence
and inattention to their RESPONSE
bility as directors. We are unable
to satisfy our minds that the direc-
tors of the Merchants bank, other
than the parties above mentioned
are guilty of criminal conduct, and
therefore have. refrained from in
dieting these gentlemen. II 1t were
in our power, however, to give a
judgment in fact or of the depositors
Of the Merchants bank, growing out
Of the negligent act so fits directors
we would unhestitatingly return such
arVerdict against the directors which
would make them pay every dollar
which the depositors will lose in this
bank. The banking laws of the
state of Utah regarding the criminal
responsibility of directors are very
inadequate.
1--WE find, however, that a condi-
tion exists in the Merchants bank
appears to the members of the grand
jury that the Merchants barfk was
indeed one-man bank. and that the
board of directors of the Merchants
bank were only serving as directors
for the prestage which such position
gave them or for the benefit which
they hoped to derive from the bank
for being directors.
Taken Into Account
eve have also taken into account
in reaching the conclusion that we
have in regard to the directors of
the Merchants bank, other than Pin
gree and Ford, that the directors
were entitled to place more or less
confidence in the reports and state
ments which were furnished them as
to the condition and soivency of the
bank by its president, John Pingree
and its secretary, George e. Ford,
and these statements furnished by
these gentlemen to the directors al
ways showed the bank in a prosper
GUS mad solvent condition; they even
going so far in 1917 as to recon-
mend that the bank go on a dividen-
paying basis and representing to the
directors that the bank had made
a profit, from which it could legally
pay dividends. In addition to the
reports of Messrs, Pingree and Ford,
relative to the bans condition. the
directors Of the bank also had the
assurance Of the state bank commits
sioner of the state Of Utah that the
Merchants bank was in a safe and
solvent condition, SO that in reach
ing our conclusions as to the GRIM
inal responsibility of directors, other
than Pingree and Ford, we are of
the opinion that the other directors
were entitled to place more or less
credence in the active management
of the bank and in the statements
of the bank commissioner, whose
duty it is primarily to protect the
interests Of the depositors.
Report on Jails
We have Investigated the city jail
of Salt Lake City and the state
prison, the Murray, Jail and Garfield
jail, the Midvale pail and the county
jail at Bingham, which we found to
good management. We found the
food to be clea.l and Wholesome.
1--WE also investigated the county
jail Of Salt Lake county and the
Bingham city Jail. We found the
Salt Lake county jail to be in a con-
dition that needs immediate atten-
ton by those who have charge and
Of the same, as we find
that the portion of the Jail which is
consigned especially to the prison
ers to be in an insanitary and un-
clean condition; that dust and dirt
have accumulated in the cells and on
the bars and windows, showing the
lack Of thoro cleaning. We also
found that the food at the county jail
was not of the best quality.
las to the Bingham Jail, we can
not too severely censure. The Jail
was not lighted at all; the floor was
covered with dirt and debris of vari-
GUS kinds, and vomit on floor; the