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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Michigan. Bank Commissioners. Title: Report of K. Pritchette, Banl< Commissioner... Place: [n.p.] Date: [1 839] Q5-^;^^-i3-5- .ft MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD Business D730.767 Michigan. Bank Commissioners. Report of K. Pritchette, Bank Commissioner, relative to specie certificates, issued to create banks, &c. c 183 83 50 p. At head of title: State of Michigan. No. 25. In Senate, March 6, 1839. ^Senate docu- ment no. 22, reprinted with additions^ n RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE : Z>^rtfr\ TRACKING # : REDUCTION RATIO: IX,< IMAGE PLACEMENT: lA ® IB MB DATE FILMED: ^'^'^"^'^ INITIALS: wW AK^H- fiilD^ FILMED BY PRESERVATION RESOURCES. 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Pritchette, Bank Commissioner, relative to spe- cie certificates, issued to create banks, &/C. To the Honorable the Senate of the State of Michigan : In obedience to the resolution of your honorable body, directing the Bank Commissioners " to furnish the Senate with a list of the specie certificates, issued and loaned by individuals, banks or other institutions, for the purpose of creating banks under the general banking law of this state, by whom and to whom issued ; also the names of the officers and directors of the different institutions that have been placed under injunction ; and furtlier, that the Com- missioners furnish the Senate with copies of the affidavits and other testimony taken by them in their investigations, calculated to exhibit the manner and by whom said bankrupt institutions have been organized," the undersigned has the honor to present the following REPORT: The general scope of the resolution seems to contemplate a detailed statement, exhibiting at one view, the method and agency [Sen. No. 25.] 1 1 2 [Senate by which, the numerous institulions under the general banking Jaw were set in motion. A full compliance with the object of this resolution, is not with- in the power of the undersigned. The Bank Commissioners appointed under the act of Dec. 31, 3837, with a view to facilitate their labors, divided the superin- tendence of the banks between them, according to their location, which division corresponded with the three judicial districts. Many institutions were put in operation, and several were bank- rupt before their appointment took place. The minutes of the examinations within the limits of the third judicial district are not at hand, and the information- here supplied on the subject, is drawn from recollection of disclosures made from time to time in the mutual interchange of the results of the official labors of the Commissioners. The specie certificates, however, hereafter mentioned, undoubtedly existed, and the amounts are believed to * be accurate. There have been certificates issued and used tem- porarily, and afterwards been withdrawn, and others withheld from exhibition to the Commissioners after the knowledge (deriv- ed from the example of others,) that they would be considered as inadmissible. Institutions likewise have been set in motion by the direct loan of specie, which passed from bank to bank for this pur- pose. The Commissioners guarded their intention of visiting in- stitutions both as to time and order of examination, and yet the most scrupulous care was sometimes insufficient to prevent spe- cie from preceding them in the hands of agents, in anticipation of their coming. Even the conviction of the fact was unavailing, met as they were, in such cases, by direct and positive denial un- der oath, to every query. The indisposition of individuals to pre- sent themselves openly as informers, and the want of power to enforce their authority to examine those not connected with the institution under oath, made this information of the Commission- ers in many instances useless, except as a stimulant to increased vigilance. Frequent and unexpected visits subsequently made, developed the insolvency of such institutions. But it will be plainly per- ceived, that a series of trifling and corroborative circumstances, discrepancies in the statements of the officers of diflerent banks as > y f I i ^A f W / o V "■'"■■■ \ iP iiniiii) o 5" ^ ^ U • e J^o. 85.] 3 >i to their mutual transactions, casual conversations, confidential suggestions, and various other kinds of information too slight for detail, may become important guides in action, and yet be entire- ly inadmissible for want of legal certainty into an official report. Much of the information obtained regarding the loan of specie and its use, is of this character. The same is in some degree true, concerning the projectors of many of these institutions. The following list of specie certificates, &c. is formed by an abstract from the minutes kept by the Commissioner having in charge the banks comprised within the limits of the first judicial district — a memorandum furnished by Alpheus Felch, Esq. which is principally drawn from the reports heretofore made, — and the recollection of the undersigned, of such as occurred in the exam- ination of the Commissioner within the third district. By a careful examination of this list, it will be seen, that in some instances banks put into operation by fraudulent means, were themselves, in turn, the parents of similar offi?pring. The transactions of fraudulent institulions and their modes of proceeding have, in many cases, been concealed with the great- est care and ingenuity. A complete development can only be obtained by a vigorous and uncompromising investigation in the courts of ^ law. Without this, all examinations are comparatively useless. The singular impunity heretofore enjoyed by the actors in the shameless frauds which have been committed, has encour.iged and extended »he evil. Some legislative provision, through which the severest penalties of the statutes can be inflicted upon the oflfen- ders, will alone prevent their repetition, and aflford an adequate protection to the public. In compliance with the second requirement of the resolution, a list of the officers and directors of the several institutions under injunction is hereunto appended, as flir as they are within the knowledge of the undersigned. Where the directors are not known, a list of the stockholders is substituted, whit;h of course includes the names of the directors, although not spfcified. The concluding demand of the resolution is c: mpiied with bv the transmission of all the affidavits in the possession of the un- dersigned. They have all been, heretufore, it is believed, present- ed to the legislature in the several reports of the Commissioners. 384^2 7 r 1 r 4 [Srnate The report is as complete as the materials in the possession of the undersigned have enabled him to present. All which is respectfully submitted. K. PRITOHETTE, Bank Commissioner. \ : # ■'• i V I \.- SPECIE CERTIFICATES, &c. BANK OF GIBRALTAR, Exhibited on examination, Feb. 1, 1838. Jan. 1. In State bank, F. H. Stcevens, 23. Farmers' and mechanics' bank, H. H. Brown & Co. 1. Bank of Brest, Theodore Romeyn, Feb. 1. State bank, Joshua Howard, 1837. Sept. 29. Farmers' and mechanics' bank, Jacob Vreeland's check accepted. 81,000 00 1,000 00 1,000 00 388 00 600 00 83,988 00 Total, DETROIT CITY BANK. Exhibited on examination the following specie certificates which had been received by Abram C. Truax, treasurer of the bank, as specie paid in on instalments of capital stock, to wit : 1837. Nov. 15. One specie certificate from Michigan state bank, signed Thos. 0. Hill, in favor of Cullen Brown, Dec. 18. One specie certificate from Bank of Mi- chigan, signed by H. Sibley, in fa- vor of E. Brooks, for Nov. 15. One specie certificate from Thos. C. Sheldon, to the credit of A. T. Mc Reynolds, for 81,000, and to the cred- it of the president and directors of Detroit city bank for 81,000, (This last certificate was endorsed as satisfactory by E. N. Bridges.) 81,000 00 4,000 00 2,000 00 Carried forward. t 6 Brought forward, Dec. 22. One specie certificate from Thos. C. Sheldon, in favor of the president and directors of the Detroit city bank, for $2,000, " being at my of- fice in Kalamazoo," for Feb. 5* One specie certificate from Thos. C. Sheldon, subject to the order of F. H. Harris, cashier of the Detroit city bank, for [Senate 82,000 00 11.678 86 820,673 86 FARMERS' BANK OF OAKLAND, Exhibited on examination, May 10, 1838, the following specie certificates, to wit : 1837. Dec. 29. One from Farmers'and mechanics' bank Pontiac. signed G. W. Williams, cashier, for 810,000, deposite by Sherman Stevens, payable to the order of the cashier of the Farmers' bank of Oakland, 810,000 00 1838. Jan. 30. One from the Michigan insurance com- pany, Detroit, signed " H. H.Brown secretary," deposited by Alfred Wil- liams to the credit of the Farmers' bank of Oakland, for 15,000 00 825,000 00 BANK OF OAKLAND, May 11. Exhibited on examination a receipt for specie given by R. F. Stage, cashier of the Genesee ct)unty bank, for spe- cie borrowed by him to the amount of 84,679 64 This specie was sworn to as the property.of the bank, and at a subsequent examination ten days afterwards, had been returned. i • No. 25.] ' 7 OAKLAND COUNTY BANK-^Chartered. The following appears to have been the materials which were used in putting this bank into, operation, to wit ; A specie certificate issued by the Bank of Pontiac ^\ 810,000 00 85,000 of specie borrowed from the Clinton canal bank and paid in thrice to create a credit of 15,000 00 CLLN TON CANAL BANK. This bank was put into operation by means of specie, princi- pally borrowed in Detroit. FARMERS' BANK OF GENESEE. This bank was put in operation by stock notes, and used the followmg specie certificates, in making statements. One from Farmers' and mechanics' bank of Detroit signed by John A Welles, for ' ^5^000 00 One from Bank of Oakland, signed by Daniel Le Roy, for One from Clinton canal bank, signed by William S. Stevens, One from Farmers' and mechanics' bank of Detroit, signed by John A. Welles, for This bank had also in Detroit city bank, a certifi- cate of deposite for 10,000 00 10,000 00 5,000 00 1,500 00 rpu ..n r 835,600 00 The specie certificates from John A. Welles, with ten thousand dollars in specie carried from De- troit, by Rufus Brown, jr., and Delos Davis, ob- tained of the Farmers' and mechanics' bank, on the check of Rufus Brown, jr., made the basis of the report to the legislature in reply to the interrogato- ries addressed by them to the banks, and were re- turned again to the Farmers' and meclianics' bank in the course of a few days, by the same hands. EXCHANGE BANK OF SHIAWASSEE, Was put in operation by the fbllowing specie certificates, to 8 [Senate > V One from Farmers' bank of Genesee, for 812,000 00 One from do. do. do. for 12,000 00 One purporting to have been from the New Haven bank, for $2,000, but having been sold, was return- ed as a forgery. BANK OF KENSINGTON, Appears to have been put in operation principally by the liberal use of stock notes, and specie checks. BANK OF LAPEER, Was put into operation by a specie certificate from the Farmers' and mechanics' bank, Detroit, for $15,000 00 WAYNE COUNTY BANK.* One from H. H. Brown, & Co. *' to the credit of the Wayne county bank," for $15,000 00 One from H. H. Brown, & Co. " to the credit of the Wavne county bank," for 15,000 00 These cerlificates were " subject to the older of the cashier thereof," signed hy H. H. Brown & Co., and were obtained by the president, J. D. Davis, through C. H. M'CIure, cashier of the Bank of Clinton. SAGINAW CITY BANK, Put in operation by a loan of specie from the Bank of Clinton, of $10,000 00 Also a loan from the Farmers' and mechanics' bank at Detroit of 5,000 00 On the withdrawal of the specie, its place was sup- plied by stock notes of the directors for $10,- 864 62-100. The bank also holds a certificate signed by Mackie, Oakley & Jamison, for specie deposited in New York, payable on demand, for the sum of $15,000 00 On this certificate $1,701 has been drawn for and paid. ♦This bank was put into operation by checks for specie drawn on Micliigan state bank, by the stockholders, but never presented, acknowledged or paid. No. 35.] 9 V f s \ ' FARMERS' AND MECHANICS' BANK OF PONTIAC. Borrowed specie and exhibited it to the Commis- sioners as capital stock, to the amount of $12,000 00 JACKSON COUNTY BANK, Held a specie certificate from H. H. Brown & Co. for $10,000 00 FARMERS' BANK OF SANDSTONE. This bank had a credit on its books of a certificate of specie deposite, but it was withdrawn. The bank and amount are not known. The bank was put in operation by a loan of specie from the Bank of Clinton. BANK OF BREST. This bank had a specie check, Farmers' and me- chanics' bank Detroit, (accepted,) for $1,146 00 An individual specie check, for 2,000 00 Specie to the amount of $7,497, was received in gold, from Lewis Godard, the day previous to examination, and subsequent- ly withdrawn on a discounted note for $7,500. BANK OF SALINE. This bank had a specie certificate from the Far- mers' and mechanics' bank at Detroit, dated Dec. 2d, 1837, in favor of Doct. D. O. Hoyt, signed by John A. Welles, cashier, and endorsed payable to the order of W. Curnutt, cashier, for $15,000 00 This certificate was left a day or two after the bank went into operation, and the amount of specie taken out ; cashier supposed it was taken, in part at least, to Coldwaier, BANK OF LENAWEE. Immediately after the organization of this bank, on or about the 30th day of December, 1837, the sum of $30,000 which was paid in on the capital stock of, was refunded and the promissory note of one of the stockholders, Edward Bissell, residing in the [Sen. No. 25.] 2 1^ [Senate state of Ohio, at Toledo, with endorsers, was taken for the said amount of $30,000. BANK OF ALLEGAN. This bank was put in operation by a specie certificate from H. H. Brown to the amount of 820,000, obtained by the president, A. L. Ely, from C. H. McClure, cashier of the Bank of Clinton. BANK OF ST. JOSEPH. This bank had a specie certificate from T. C. Sheldon, for $19,000 00 BANK OF MARSHALL. This bank bad specie certificates as follows, to wit : One from T. C. Sheldon for $10,000 00 One from Michigan state bank for 7,500 00 BANK OF COLD WATER, Had specie certificate, the amount and by whom issued not known. BANK OF CLINTON. This bank had a receipt of C. H. McClure, dated July 31, 1838, for $7,500 in gold. This gold was taken to Detroit by the said McClure and delivered to Lewis Godard, who gave his receipt for the same. BANK OF GOODRICH, Had a specie certificate for $15,000, but it was not exhibited among its assets. The 30 per cent was paid in, one half in spe- cie, the other half in bills of the banks of Jacksonburg, Manches- ter, Washtenaw and Lapeer ; as many of Lapeer as any other. No. 25.J 11 w BANK DIRECTORS, &c. Henry Fiske, President, Henry Fiske, A. A. Dwight, A. M. Brown, N. F. Butterfield, F. Hutchinson, BANK OF KENSINGTON. March 22, 1838. Frederick Hutchinson, Cashier. Directors, B. P. Hutchinson, E. F. Cooke, C. L. Crouse, S. D. Dix. BANK OF OAKLAND. March 9, 1838. Daniel LeRoy, President, J. R. Bowman, Teller. G. O. Whittemore, Cashier. Directors, Daniel Le Roy, G. 0. Whittemore, O. Chamberlin, Francis Darrow, A. H. Peck, A. Bagley, L. W. Mann, C. C Hascall. R. Le Roy, G. W. Williams, ) ^ S. Hodges, \ Removed. BANK OF GIBRALTAR. January 1, 1838. Joshua Howard, President, Joseph C. Ringwalt, Cashier. Directors, Joshua Howard, Henry B. Lathrop, Enoch Jones, Nathaniel T. Ludden, Benjamin Porter, Eldredge Morse, Alanson Sheeley, Griffith H. Jones. Theodore Romeyn, m^ 12 [Sbnate FARMERS' BANK OF OAKLAND. March 19,1838. James B. Simonson, President, G. H. Broadhead, Cashier. Directors. Jona Chares, David Hubbard, David Chase, John W. Hunter, S. C. Rose, G. Broadhead, John F. Keyes, James B. Simonson. E. Vandewenter, LENAWEE COUNTY BANK. February 29, ISSS. Daniel P. Heman, Cashier. F. E. Whiting, Directors. L. T. Thayer, G. B. Harris, G. E. Pomeroy, V. Spalding. W. Spalding, President, L. C. Daniels, R. Robinson, J. Field, J. G. Loomis, Daniel Pitnam, BANK OF BREST. H. S. Piatt, President, George H. Tracy, Cashier. Directors. H. S. Piatt, T. Whelpley, Lewis Godard, John Pierson, W. W. Prentice, James B. Fairman, Abel Godard, George H. Tracy. M. L. Collins, WAYNE COUNTY BANK. March 8, 1838. Benj. F. Hall, Cashier. Directors. C. Harrington, A. Y. Murray, E. Woodruff, J. D. Davis. J. D. Davis, President, Cullen Brown, C. L. Bristol, C. Ten Eyck, T. Lyon, H. A. Noyes. ' 11 ' No. 25.] 13 EXCHANGE BANK OF SHIAWASSEE. Februaiy 23, 1838. A. Morehouse, President, G. W. Clark, Cashier. Dh^ectors. John Pearson, A. Morehouse, L. Brown, Aaron Swain, H. Baker, J- Castle, G. W. Clark, H. Row. FARMERS' & MECHANICS' BANK OF PONTIAC March 10, 1838. Schuyler Hodges, President, G. W. Williams, Cashier. B. C. Whiitemore, Teller. Directors. G. W. Williams, William Phelps, Schuyler Hodges, M. LaMont Bagg, James A. Weeks, Horace C. Thurber, JACKSON COUNTY BANK. February 19, 1838. Paul B. Ring, President, Porter G. Hughes, Cashier. Charles H. Van Doren, Teller. Directors, A. F. Fitch, Allen Bennett, William Ford, Phineas Farrand, Jira Payne, Paul B. Ring, Walter Burlington, Porter G. Hughes. IraC. Backus. FARMERS' BANK OF SANDSTONE. March^ 1838. L. D. Smith, President, H. N. Baldwin, Cashier. A. Clark, Clerk. Directors. H. N. Baldwin, S. F. Hooper, Giles Bloomfield, A. F. Fitch, Gould Butler, P. B. Ring, L. D. Smith, P. Farrand. A. Clark, BANK OF LAPEER. Norman Davidson, President, (until Feb. 1, 1838.) ' 1 i| 14 [Senate T. J. Benedict, President. Alvin N. Hart, Cashier, (until 12th Feb, 1838.) S. T. Cady, Cashier. Directors, Norman Davidson, Silas D. McKeen, Aaron Goodrich, Benjamin F. Town, Alvin N. Hart Oliver B. Hart. FARMERS' BANK OF SHARON. Ruel Ambrose, President, Allen Baldwin, Cashier. Directors, Ruel Ambrose, Almond R. Fitzgerald, Nathaniel Ambrose, S. R. Draper, B. Miller, William A. Crocker, David Fitzgerald, Samuel Brown. Calvin Thompson, MERCHANTS' BANK OF CENTERVILLE. Thomas W. Langley, President. Directors, Adams Wakeman, James Van Buren, Wm. S. Stevens, P. Riley Tull, Thos. W. Langley, W. B. Brown, Daniel Hogan, Wm. F. Moseley. Amos C. Hubbard, BANK OF GOODRICH. Enos Goodrich, President, Aaron Goodrich, Cashier. Directors. Moses Godrich, Enos Goodrich, John Vantine, Charles Vantine, Levi W. Goodrich. SAGLNAW CITY BANK. Norman Little, President, Nelson Smith, Cashier. Directors, Charles L. Richman, E. S. Williams, Wm. L. P. Little, Nelson Smith, T. L. Howe, t \ No. 25.] 16 BANK OF SALINE. S. Finch, President, W. Curnutt, Cashier. S. Finch, A. Godard, J. S. Ware, O. Howe, Directors, Thomas Wood, O. Parsons, D. D. Wallace. FARMERS' BANK OF SHARON. Ruel Ambrose, President, Allen Baldwin, Cashier. Directors, Amasa Gillett, Isaac Godfroy. R. Ambrose, A. H. Burdick, Fr. A. Gillett, BANK OF ALLEGAN. Henry H. Clarke, Cashier. Stockholders. N. Abbott, J. L. Shearer, Joseph Fisk, L. Winslow, Benjamin Eager, Wm. Finn. Alex. L. Ely, Alex. L. Ely, Elisha D. Ely, Jacob B. Baily, Harvey J. Clark, David B. Stout, L. Lyons, Henry H. Booth, BANK OF UTICA. Jacob Summers, President, John James, Cashier. G. C. Leech, C( Pay he K. Leech, jr., John James, D. W. Philips, Ephraim Calkins, A. G. Finden, G. Hanscom, E- Endres, J, S. Fletcher, Stockholders, C, S. Madison, A. Keeney, S. Ladd, A. B. Adams, Wm. A. Davis, 0. Sheldon, Steevens, L. D. Owen, > I ^ mm G. C. Leech, J. Lister, Sheldon Owen, 16 A. Bond, J. Summers. BANK OF MANCHESTER. Stockholders. [Senate No. 25. J 1*7 k George Howe, President, Barnabas Case, Marvin Howard, Oliver Kellogg, Nicholas Bicker, John A. Sloat, James H. Fellows, Danl. A. Mills, John Wain, Lewis Dodge, Nathan Morse, Josiah R. Stout, R. L. Fellows, John Weltz, Anthony Poucher, Thos. Morgan, Wm. S. Carr, John Miller, Andrew G. Irwin, Cashier. Thos. J. Faxen, D. Willson, A. Hughes, George Howe, C. M. D. Bull, Emanuel Chase, W. D. Clark, James Perrin, C. C. Cotton, Caleb Clark, David G. Gilbert, Albert Howe, Lorenzo Higgins, W. T. Alderman, Alanson Case, S. & J. H. Fargo, M. D. Higgins. CLINTON CANAL BANK. March 9, 1838: Wm. S. Stevens, President, A. Treadway, Cashier, David Paddock, President, W. W. Davis, Cashier. Stockholders. Benj. P. Wixom, Andrew C. Walker, Warren Messenger, P. J. Perrin, J. M. Coonley, Samuel Powers, Hezekiah B. Smith, N. J. Daniels, Elijah F. Cook, E. B. Comstock, J. E. Beers, D. H. Parker, Wm. A. Nelson, A. B. Newcomb, S. C. Munson, Charles Hubbell, W. S. Stevens, W. H. Adams, Wm. Phelps. Stockholders, June 29, 1838. David Paddock, J. M. Coonley, G. W. Wisner, P. Van Every, E. B. Comstock, E. F. Cook, Isaac Paddock, A. B. Newcomb, Samuel Power, Tobias Love, W. S. Stevens, Alfred Judson, H. B. Smith, N. J. Daniels, A. C. Walker, FARMERS' BANK OF GENESEE. December 30, 1837. R. M. Morrison, Cashier. Directors, A. Miller, Curtis Bellows, W. Davis, Simpson Buck. H. R. Jerome, President, H. R. Jerome, T. J. Drake, R. M. Morrison, Lvman Stow. E. R. Ewing, January 4, 1838. R. J. S. Page was appointed cashier. Thos. J. Drake, Lyman Stow, R. M. Morrison transferred their stock, vacated their seats as directors, and R. J. S. Page, Benj. Bowers, Levi Gilkey, were appointed di- rectors in their stead. [Sen. No. i^.] % INTENTIONAL SECOND EXPOSURE «P!«i^nn G. C. Leech, J. Lister, Sheldon Owen, 16 A. Bond, J. Summers. BANK OF MANCHESTER. Stockholders. [Senate George Howe, President, Barnabas Case, Marvin Howard, Oliver Kellogg, Nicholas Bicker, John A. Sloat, James H. Fellows, Danl. A. Mills, John Wain, Lewis Dodge, Nathan Morse, Josiah R. Stout, R. L. Fellows, John Weltz, Anthony Poucher, Thos. Morgan, Wm. S. Carr, John Miller, Andrew G. Irwin, Cashier. Thos. J. Faxen, D. Willson, A. Hughes, George Howe, C. M. D. Bull, Emanuel Chase, W. D. Clark, James Perrin, C. C. Cotton, Caleb Clark, David G. Gilbert, Albert Howe, Lorenzo Higgins, W. T. Alderman, Alanson Case, S. & J. H. Fargo, M. D. Higgins. CLINTON CANAL BANK. March 9, 1838: Wm. S. Stevens, President, A. Treadway, Cashier, David Paddock, President, W. W. Davis, Cashier. Benj. P. Wixom, Andrew C. Walker, Warren Messenger, P. J. Perrin, J. M. Coonley, Samuel Powers, Hezekiah B. Smith, N. J. Daniels, Elijah F. Cook, E. B. Comstock, Stockholders, J. E. Beers, D. H. Parker, Wm. A. Nelson, A. B. Newcomb, S. C. Munson, Charles Hubbell, W. S. Stevens, W. H. Adams, Wm. Phelps. fio. 25.] 11 Stockholders. June 29, 1838. David Paddock, J. M. Coonley, G. W. Wisner, P. Van Every, E. B. Comstock, E. F. Cook, Isaac Paddock. A. B. Newcomb, Samuel Power, Tobias Love, W. S. Stevens, Alfred Judson, H. B. Smith, N. J. Daniels, A. C. Walker, FARMERS* BANK OF GENESEE. December 30, 1837. R. M. Morrison, Cashier. Directo7's. A. Miller, Curtis Bellows, W. Davis, Simpson Buck. H. R. Jerome, President, H. R. Jerome, T. J. Drake, R. M. Morrison, Lvman Stow. E. R. Ewing, January 4» 1838. R. J. S. Page was appointed cashier. Thos. J. Drake, Lyman Stow, R. M. Morrison transferred their stock, vacated their seats as directors, and R. J. S. Page, Benj. Bowers, Levi Gilkey, were appointed di- rectors in their stead. fSen. No. 25.] S ■^e* ■r jaj^ ' j,-^ 18 [Senate AFFIDAVITS. ss. (No. 1.) Oakland County Bank — Affidavit of Seth Beach. State of Michigan, Oakland County, Seth Beach, of said county, maketh oath and saith, that he was one of the original stockholders of the Oakland county bank, and was elected treasurer, and subsequently cashier of said bank; and the deponent further saith, that he was familiar with the pro- ceedings of the stockholders of said bank at the time of the open- ing of the books of subscription to the capital stock of said insti- tution ; and that so far as his knowledge extends, an opportunity was afforded every person who was so disposed to subscribe to the capital stock of said bank ; and the deponent further saith, that upon the final distribution of the said stock, each and every person received their proper proportion. The deponent further said, that on the 27th day of March last p'ist. vvliile ricting as cashier, fifteen thousand dollars in specie, was Mctn.jlly paid in, pursuant to the said charter ; and that there beiiiL' no banking-house belonging to the Oakland county bank, the money was directed to be placed in the h:inds of William S. Stevens, for sake keeping, who gave a receipt therefor to said bank, and held the same subject to the order of the proper ofl[icers of said bank ; and the deponent further saith, that the said books of subpcription were opened by him, and continued open for and during the period [)rescribed by the charter. S. BEACH. Sworn and subscribed before me, this 24th day of August, eighteen hundred and thirty-eight. CLAIiK BEARDSLEY, Justice of the Peace. No. 25.] 10 ss. (No. 2.^ Affidavit of W. 8. Stevens. State of Michigan, County of Wayne, William S. Stevens, being duly sworn, on oath says, that on the twenty-seventh day of February, A. D. 1838, he purchased of 0. D. Richardson, William Draper, and Seth Beach, of Pon- tiac, all or nearly all, of the shares of stock in the Oakland county bank, for which he paid a bonus of ten thousand dollars. In this purchase the stock was taken by him, as if nothing had been paid upon the same. The bank had not then been put into operation. William Draper was the president, and Seth Beach, cashier of the institution. On the twenty-seventh day of March, A. D. 1838, deponent borrowed all the specie which was at that time in the Clinton canal bank, and directed his hired man to take it down to a room prepared for the Oakland county bank. Deponent does not re- collect the amount, but thinks it was five or six thousand dollars. "Jhis specie was taken to the bank, was counted by Mr. Beach as cashier, and credited on the books as paid in on the stock of the bank. After being thus counted, the same was taken immediate- ly back to the Clinton canal bank and again sent to the Oakland county bank, to be again counted and credited as before. This was repeated until the whole amount so counted and credited made the sum of fifteen thousand dollars. After this was done, deponent, at the request of said Beach, gave a receipt for the amount (-$15,000.) to the Oakland county bank. This deponent does not know that any other specie was ever paid in to said bank ; the amount above mentioned was never returned to it. This payment was made to secure the charter merely, and was not in- tended to remain in the bank as a bona fide payment of stock. At this time deponent had no interest in the Clinton canal bank, but borrowed the specie as above stated, of the president and cashier of said bank, for the express purpose above mentioned. Deponent further says, that some time in the early part of April last, he sold and transferred five hundred shares of stock which he had in said Oakland county bank, to Mason Converse, and one thousand shares to M. B. Sherwood. Said Converse was to pay deponent three thousand dollars for the same. For ^ 20 [Senate this, he gave a draft on the Bank of Brest, endorsed by Lewis Godard, which, however, was dishonored. By these sales the stock was to be taken as it then existed, nothing having been paid on the same, and said Sherwood and Converse were to pay in upon the same their proportion of twenty thousand dollars, (be- ing in all $15,000,) in specie. Said Converse proposed after- wards to put in for his share instead of specie, five thousand dol- lars of bills of the Bank of Coldwater, but this deponent refused to receive the same. Nothing was paid by said Converse, but he soon afterwards assigned his stock to Messrs. Brooks and McKey- nolds. The proportion which was to have been paid in by said Sherwood, to wit : {§10,000 was paid by a certificate of specie de- posite, issued by the Bank of Pontiac. This certificate was cre- dited to said Sherwood, on the books of the bank, but in fact never went into the bank, and was taken away by said Sherwood, or some of his friends, to Buffalo. While said Converse and Sherwood held a majority of said stock, as above mentioned, Geo. N. Keeney, of Buffalo, was elect- ed president, and William Kortz, also of Buffalo, was chosen cash- ier. The bills of the bank were obtained from the engraver about this time, and notes to the amount of eight thousand four hundred dollars were signed by said Korlz and Keeney, and were taken to Buffalo by them. A receipt was left for them, in bank. Deponent was afterwards informed, that of this amount, five thousand four hundred dollars were afterwards obtained from them, and returned to the bank. During the time when said Con- verse and Sherwood owned a majority of the bank, there was no specie or other available assets belonging to the institution. Some time in June last, deponent sold the remaining portion of the stock owned by him in said bank, to Edward Brooks and Andrew T. McReynolds, of Detroit. They were to pay him for the same, the amount paid by this deponent therefor, but have as 3'et paid nothing. They were also to take the same as it then was, knowing that nothing had in fact ever been paid in on the same. The safe was broken open by deponent, to shew said Brooks and McReynolds, the actual situation of the bank, and deponent expressly told them, that not a cent had been paid in on the stock, and that said bank had never issued a dollar, excepting No. 25.] 21 the amount above mentioned, which was taken away by said Sherwood. This amount in the hands of said Sherwood, was taken without the knowledge or consent of tliis deponeni. On the day of said last mentioned sale and transfer of stock, deponent resigned as director in said bank, and knows nothing of its transactions since that time- Deponent further says, that after he had purchased the stock above mentioned, he was informed that the requisitions of the charter of said bank had not been complied with in the original subscription to the stock thereof, inasmuch as the requisite no- tice of the time and place of opening the books of subscription had not been given. Deponent gave notice of the fact to those to whom he sold said stock, and told them that the same might de- feat all interest under the charter, and also gave them copies of a correspondence between the cashier, (Seth Beach,) and M. J. Bacon, Esq. then the Bank Commissioner. W. S. STEVENS. Subscribed and sworn to, this eleventh day of February, A. D. 1839. A. FELCH, Bank Com. (No. 3.) Affidavit of On in Parsons, a Director of the Bank of Saline. State of Michigan, i ^^ County of Washtenaw, ) " ' Orrin Parsons, of said county, being duly sworn, on oath says, that he is a director of the Bank of Saline, and has been in that capacity for about seven months ; that he attended a meeting of the board of directors at the banking-house in Saline, on the six- teenth day of August instant, according to deponent's best recol- lection. Deponent was sent for to attend said meeting. The following directors attended said meeting, namely : Abel Godard, Silas Finch, Daniel D. Wallace, Orrin Howe, and this deponent. Said Godard informed the board, at the meeting, that an injunc- tion had been made out against the Bank of Brest, and that he ■> i 32 [Sbnatb feared there would be an injunction against the Bank of Saline. Deponent does not recollect that he said an injunction was served, but supposed there was one out against the Brest bank, and sup- posed there would be one against the Bank of Saline. He said, moreover, that the Bank of Brest had made an assignment of all its effects previous to the service of the writ of injunction upon it, and he advised the board of directors of the Bank of Saline to do the same ; but said that the board must, nevertheless, do as they thought best in regard to it. Said Godard further stated, that he thought the bank would have to wind up its concerns, and that it was best to do so by making an assignment of all its property and eifects for the benefit of its creditors ; that it was better to have it go into the hands of an assignee than of a receiver. After consultation, the board passed a resolution to assign, for the bene- fit of creditors, all the property and effects of the bank to Alex- ander D. Fraser, Esq. of the city of Detroit. The assignment was written previously, and lay on the table when deponent went into the room where the meeting was held. Deponent docs not know when or by whom it was prepared. The name of Mr. Fraser, as assignee, was suggested by Mr. Godard, who stated that he was the assignee of the Bank of Brest, and it would be less expensive to have him, as he could attend to both ; but said, if the directors preferred, they could make an ap- pointment in the immediate neighborhood of the bank. The as- signment was executed before the meeting adjourned. *0n the next day, deponent went into Detroit with the president and cashier, and one of the directors. The assignment was given to Mr. Fraser by the president, Silas Finch, Esq. The books and property and papers were also sent to his office. Very little conversation took place with Mr. Fraser on the subject. The assignment was made for fear of an injunction, and to avoid being closed up by a receiver appointed by the Chancellor of the state. It was thought better to close up voluntarily by assignment than to have it done by law. Deponent believed that they had an undoubted right thus to close up the concerns of the bank and to pay its debts. Some time in the early part of August instant, post notes were issued bv the Bank of Saline to the amount of fifteen or twenty K r \ r No. 25.] 23 thousand dollars, for the purpose of obtaining a loan, payable in one year with interest. They were endorsed by Lewis Godard and this deponent, and a part of them by Daniel D. Wallace. The post notes were taken by Lewis Godard, to be transmitted to Lyman A. Spalding, of Lockport, for the purpose of effecting a loan. I Deponent did not know that any bills of the Bank of Saline were in the hands of Lyman A. Spalding, until he was told so some time after the transaction is said to have taken place. On the day of the assignment, a vote passed the board of direc- tors to redeem bills in the hands of an individual to the amount of six hundred dollars, in specie, which was accordingly done. Eight hundred dollars in specie was in like manner paid to one of the depositors. ORRIN PARSONS. Subscribed and sworn to, before me, this thirty-first day of August, A. D. 1838, A. FELCH, Bank Com, ss. (No 4) Affidavit of S. Finch, President Bank of Saline. State of Michigan, County of Washtenaw, Silas Finch, of said county, being duly sworn, on oath says, that he is and has been for about seven months last past, presi- dent of the Bank of Saline ; and he is and has been during the same time a director of the same. That he was present at the last examination of the affairs and condition of said bank, made by A. Felch, one of the Bank Commissioners of said state of Michigan ; that no material change, to the knowledge of this deponent, took place in the affairs or condition of said institution after said last men- tioned examination, until the 16th day of August inst. On said 16th day of August a meeting of the board of directors of said bank, was called and held at the instance of Abel Godard, one of the directors; said Godard came to Saline on that day, ami at said meeting of the 24 [SsilATfi directors informed the board that an injunction was made out against the Bank of Brest, and that he feared there would be an injunction againsl the Bank of Saline. He said, moreover, that the Bank of Brest had made an assignment of t.11 its effects previous to the service of the writ of injunction upon it, and he advised the board of directors of the Bank of Saline to do the same, but said that the board must nevertheless do as they thought best in regard to it. Said Godard further stated that he thought the bank would have to wind up its concerns, and that it was best to do so bv making an assignment of all its property and effects for the benefit of its creditors ; that it was better to have it go into the hands of an assignee than of a receiver. After consultation the board passed a vote authorizing the president and cashier to make a general assignment for the benefit of creditors, of all the property and ef- fects of the bank to Alexander D. Fraser, Esq. of Detroit. The assignment was written previously and produced about the time of the opening of the meeting, bui deponent cannot tell by whom. The assignment was executed agreeably to the resolution of the board, before the meeting adjourned. Mr. Godard suggested the name of Mr. Fraser as assignee, and stated that he was assig- nee of the Bank of Brest, and could attend to both without much extra trouble, but said if the board preferred it, they could use any other name. On the next day this deponent, in company with Orrin Parsons and Daniel D. Wallace, two of the directors, and A. Mandell, cashier, went into Detroit and took with them the assignment aforesaid, and also the property, effects, books and papers of the bank ; and all were delivered over to said A. D. Fraser as assig- nee. Deponent saw Mr. Fraser, but had no conversation with him on the subject of the bank or the assignment. Deponent handed the assignment to said Fraser, and the papers, property, books, and effects were sent to his oflice. He has had no conver- sation since that time with Mr. Fraser, on the subject. The inducement to make the assignment was the statements made at the meeting of the board above mentioned, and the expec- tation that an injunction would be issued against the bank. There was not, to the knowledge of this deponent, any other in- ducement to make the assignment. The board were led to be- i r f No, 25."! 25 licve that that was the best way to close up the bank. This opin- ion was adopted on mature deliberation. About sixty dollars in specie belonging to the bank was deli- vered to said Fraser as assignee. On or about the fourth day of August instant, said Bank of Saline issued post notes of five thousand dollars each, to the amount of twenty thousand dollars, for the purpose of negotiat- ing a loan to that amount. These notes were payable at the Phoenix bank in the city of New York, in one year from date, with interest, and were endorsed by individuals in Michigan, and were sent to Lyman A. Spalding of Lockport, in the state of New York, but they have been sent for, and it is expected they will soon be returned. Nothing was ever received by the bank for them. They were not endorsed by a Bank Commissioner. They were received by Lewis Godard at the bank of Saline for the purpose above stated. Some four months since, the bank sent to Lyman A. Spalding, bills of the bank of Saline amounting to fifteen or twenty thousand dollars, which were in sealed packages, and were to remain seal- ed, as collateral security for certain drafts which were to be made by the bank on said Spalding, for the purpose of redeeming bills of the bank. Drafts to the amount of about ten thousand dollars were made by said bank in accordance with such arrange- ment, but deponent does not know whether any thing has been paid on them by him or not. Deponent does not know whether the bills last above mentioned were entered on the proper books exhibiting the amount of issues of said bank or not, nor does he know whether the same were exhibited in any manner as issued, on examination of the affairs of the bank by a Bank Commis- sioner. Deponent believes that there is no charge or other evidence of debt against Lyman A, Spalding on the books or among the pa- pers of said bank. At the time of said assignment, there was in the hands of Lewis Godard for exchange purposes, seventeen thousand dollars in bills of the said Bank of Saline. Deponent believes that the amount is now secured by endorsed notes. Deponent does not recollect whether this amount was entered among the circulation of the [Sen, No. 25.] 4 26 [Sekatb bank or not, nor does he remember whether any charge was made to said Godard of the same on book. This advance was made to Mr. Godard by votes of the directors in December last, according to deponent's best recollection. On the day of the assignment aforesaid, by vote of the direc- tors, said Lewis Godard was permitted to take from the bank five thousand dollars in bills of the River Raisin and Lake Erie railroad company and to substitute for the same his own paper with good endorsers lor the amount, payable in four months with interest. S. FINCH. Subscribed and sworn to, before me, this 31st August, A. D. 1838. A. FBLCH, Bank Commissioner, (No. 5.) Lapeer Bank-^Affidavit of Cashier. Bank op Lapeer, ) March \m, 1838. J The capital stock of this bank is fifty thousand dollars. The books of subscription were opened on the 19th day of October, A. D. 1837. At that time the whole amount was subscribed, and on distribution of the stock, the ten per cent on the several shares was paid in specie. Some of the subscribers did not pay in their full amount, but others overpaid, so that the ten per cent on the whole stock was paid in. This was paid in as the property of the bank, but a part was withdrawn by the subscribers and paid back to them. The bank went into operation on the 6th or 8th of December last, previous to which lime the full amount of thirty per cent on the capital stock was paid in ; a part of the amount was in gold and silver, but the greater part of it was in specie certificates, issued by the Farmers* and mechanics' bank, at Detroit. There was but one specie certificate, and the amount was applied on different subscriptions of stock. The certificate was obtained and brought forward by Aaron Goodrich. This T / No. 25.] 27 certificate was in the bank several weeks, and was finally with- drawn and taken away by said Goodrich. The amount of the certificate was fifteen thousand dollars. There was at the time the bank went into operation, I think, less than one thousand dollars. The certificate was taken away by Goodrich on or about the 12th or 31st day of January. No entry of the certifi- cate on the books of the bank now exhibited, was made ; but on a small book the amount of checks drawn by said Goodrich was made and entered, but I cannot say that any entry of the certi- ficate was then made by me. That book was handed over to the present cashier, D. S. Cady, and I have not seen it since Mr. Cady left Lapeer. I think no entry was made on the books, and no paper or draft received from said Goodrich when he received the certificate of deposile. Said Goodrich also, at different times, received on his own individual check the bills of the bank to the amount of forty thousand dollars, or thereabouts, for which no- thing had been received by the bank when I resigned as cashier. He had, however, a small bill for services, &c, against the bank, amounting to a sum less than a thousand dollars, as I should think. Said Goodrich was a director, and took the bills for the purpose of exchange. While cashier, I bought some gold and silver, which went into the bank — the amount was small, cannot say how much. I was cashier from the commencement of operations until the twelfth day of February last, and Mr. D. S. Cady was appointed cashier. Mr. Norman Davison was appointed president when it went into operation, and sold his stock and resigned on the first day of February last. Mr. J. T. Benedict is now president. The issues of the bank while I was cashier, amounted to sixty- four or sixty-five thousand dollars, including bills in the hands of Aaron Goodrich and H. H. Brown & Co. of Detroit, for exchange. The amount of discounted paper was twenty or twenty one thou- sand dollars. None of the issues were destroyed. After the thirty per cent was paiil in, there was an understand- ing that the stockholders might draw out on their own checks to the amount of their capital paid in, in the bills of the bank. Ma- ny of them did so ; and I was afterwards directed by the direct- ors to obtain for the advance to them their notes with endorsers. I obtained notes covering the amount of such advances, with se- 2H [SlNATE s I No. 25.] 29 curity. These notes are a pari of the discounted paper above mentioned. I left with H. H. Brown & Co. tsventy-five hundred dollars for which I was to draw upon him, payable in country funds. vVhile checking I drew for three hundred and seventy-five dolIars,which was paid. I do not know of their paying any thing more to- wards it. I have drawn several drafts since, none of which, so far as I have been advised, are yet paid. At the time I left the bank as cashier, there were remaining in the bank, in sheets, bills of the bank signed by Mr. Davison as president, and myself aa cashier, to the amount of about ten thousand dollars, or thereabout, according to my best recollection. Most of them were not filled, other than by signing. There were in the bank, returned from circulation, when I left the institution, about eight or nine hundred dollars in bills of the bank. At the time I left the institution, the resources of the bank were as follows, as near as I can now ascertain, viz : Bills discounted, $20,893 00 Specie, 1^01 77 Cash in the hands of H. H. Brown &. Co. 2,125 00 Aaron Goodrich on checks, say 40,000 00 $64,219 77 The liabilities of the bank were as follows, as near as I can now ascertain, viz : Capital stock paid in, $15,000 00 Circulation, say 65,000 00 Expense account, say 1,000 00 $81,000 00 The papers, books, notes, &c. belonging to the bank, were all transferred by me to the present cashier. A. V. HART. Subscribed and sworn to before me, this 13th day of March, A. D. 1838. A. FELCH, Bank Cam. M I # V ^ (Na 6 Affidavit of Teller 1 and List of Subscribers and Steckholdersm State of Michigan, ) Lapeer County. ) Personally appeared before the undersigned, a Bank Commis- sioner of said state, Hiram B. Lyman, who being duly sworn, on oath says, that he is teller in the Bank of Lapeer, to which station he was appointed on the eighth day of the present month, at which time he entered on the duties of his office, — J. T. Bene- dict was the president, and Dennis S. Cady, cashier. On the day of my appointment as teller, the president and cashier both left Lapeer, intending to go, as I understood from their conversation, to Jackson county, for the purpose of obtaining funds with which to redeem the bills of this bank, expecting as they said, to return to Lapeer on the 13th or 14th instant. The bank was lelt in my charge. I do not find the original book of subscription to the stock of the bank. The annexed is a true list of the stockholders, and amount held as well as transfers, as exhibited by the stock ledger. There is no other book of stock account in the bank, and no list pcstsd up. The cashier and president, and also myself, are di- rectors ; the others I do not know, and there is no book in the bank exhibiting it. There is no book showing any statement of the affairs and condition of the bank. It seems from the books, that on the twentieth day of Decem- ber last, notes of the Bank of Lapeer issued to the amount of twenty-two thousand dollars. No other issues appear by the books, to have been made. The books shew the capital stock to have been paid in to the amount of fifteen thousand dollars, in specie. This amount appears to have been on hand on the se- cond of January, and by the daily entry, to have remained in bank until January eighteenth. On the evening of that day, it is stated in the books, as $14,560 59 On the evening of the 17th January, 12,177 59 18th do. 10,093 59 19th do. 7,802 59 22d do. 7,802 59 Y 30 On the evening of the 24lh January, 29th do. 80th do. 31st do. 1st February, 10th do. [SenaT* $6,363 59 5,017 09 3,405 09 1,250 09 1,200 09 1,200 09 After which no entry of specie on hand is made. The specie now on hand, and which was here when I came into the bank, amounts to twelve hundred and one dollars and seventy -seven cents. The following is a list with the amount of bills discounted, as appears by the books, to wit : No. 1. Dec. 12, 1837, B. B. Hutchinson. A. A. Dwight and A. Hubbard, 90 davs, due 12-15 March, amount, $500 00 ; in- terest, $6 81 ; proceeds, $493 19. No. 2. Dec. 28, 1837, B. F. Towne, A. N. Hart, and F. Pettis, 90 days, 28-31 March, amount, $1,000 ; interest, $16 68; proceeds, $993 32. No. 3. Jan. 3, 1838, O. B. Hart, Dr. Stebbins \ V I No. 25.] 43 R. Jerome was president. The notice filed in the Secretary of State's office and published, named the location of said bank as at the Flint rapids, a place about six miles distant, the intended place of residence of the p»-esident. That the bank never went into operation at that place, but all its business was transacted at the Flint village. The capital stock was one hundred thousand dollars. The amount of fifteen hundred dollars or thereabouts, principally in silver, was in the bank at the time he took charge of the business as cashier. This sum he sent to Detroit at the request of Delos Davis, one of the stockholders, to meet a specie certificate of that amount, from the City bank of Detroit, which had been sent to him by the said Davis. The certificate was for the redemption of the notes of the bank ; that he does not know whether the thirty per cent required by law previous to the bank going into operation, was or was not paid in ; that he, the said cashier, was made a director when appointed cashier, and was alone at the bank, and had not it in his power to consult the direct- ors or president in regard to transmitting the specie to Detroit to meet the certificate aforesaid. That if the aforesaid thirty per cent had ever been paid in, it had been withdrawn from the bank previously to his taking charge of the bank as cashier. That Horace R. Jerome was appointed by the applicants un- der the law as the treasurer of the bank. That he, the said Page, was one of the original subscribers to the stock of said bank ; that the manner in which he paid in his first instalment often per cent was as follows : He received froui the treasurer of the bank a specie receipt for $500 for which receipt he gave his note, for $500, payable to the cashier of the Farmers' bank of Genesee, in specie. This took place previously to his subscribing for the stock. When he subscribed for his stock, he presented to said Jerome, treasurer of the bank, the said receipt, and received from him the note given by him to the said Page as aforesaid ; that this stock was taken by him, the said Page, at the request of the said Jerome, expressly for the said Jerome, he not intending to take any stock on his own account, and that he accordingly transferred the said stock to the said Jerome as agreed upon, im- mediately afterwards. That when he was appointed cashier, the said Jerome transferred to him one hundred shares of stock, upon ^r- \ 44 [Senate Na 25.] 45 which no per centage had beeii paid in, and that he gave his note for fifteen hundred dollars, payable to the cashier of the said bank, as his instalment of thirty per cent on said stock, since which time he has taken up the said note by paying into the bank fifteen hundred dollars in the notes of said bank. Stock notes of a similar character were given in at the same time in the same manner, by all the stockholders, and so far as he has any know- ledge, he has reason to believe that the receipts to the stockhcjlders now in the bank, from H. R. Jerome as treasurer, were taken for the original instalment of ten per cent as specie, in the same man- ner as his own was taken by the said bank, with the exclusion of the sum of fifteen hundred dollars or thereabouts, which was in the bank as before mentioned in specie. Whether this was paid in on the stock notes or not, or whether it came into the bank af- terwards, he does not know. No specie was paid into the bank while he was cashier, except the sum of sixty dollars by Albert Miller of Saginaw, a stockholder and director, which sum was endorsed on his stock note in part payment of the same. A few days since, W. W. Gitt of Detroit, transferred to him, the said Page, fifty shares of stock, on which nothing whatever had been paid, and the stock note of the said Gitt was given up to him. Forty shares were likewise transferred to him by E. R. Ew- ing of Flint, on which no instalment had been paid, and his stock note was likewise surrendered to him, the said Ewing. On the 17th February last, at a regular meeting of the stock- holders, agreeably to notice given according to law, for the pur- pose of choosing directors and tiansacting the general business of the bank, he, the said Page, had powers of attorney covering a majority of the stock. At this meeting James Cummings was ap- pointed a director in the place of E. R. Ewing, whose place was vacated by iransfer of his stock, and Peter Stiles in the place of R. J. S. Page who had resigned as director. That he took the transfer of the said stock at the request and solicitation of the said Gitt and Ewing, but that he did not consider the transfer a legal «ie, and therefore neither entered the transfer on the books of the bank nor gave any stock note of his own for the said shares. After he became cashier of the bank, bank bills to the amount probably of twenty-five or thirty dollars, signed by H. R. Jerome as president, and R. M. Morrinon as cashier, were burnt bv the said Jerome, after having been redeemed by the bank, not wish- ing to have bills in circulation with the names of diflferent cash- iers ; that he has no means of knowing what issues of notes bear- ing the signatures of Jerome and Morrison were put in circula- tion, there being no entries on any book of the bank, designating the issues. That since he has been cashier he has signed bills to the amount, he thinks, of one hundred and fifty-five thousand dol- lars. Of this amount, he has put in circulation on discounted pa- . per of others, and the ordinary expenses and business transactions of the bank, probably about ten thousand dollars. Of the amount signed as aforesaid, the president, Horace R. Jerome, took into his possession about fifty-four thousand dollars expressly for ex- change purposes, for which he left a note, which he thinks is in the hands of Delos Davis of Detroit. There remains in the bank re- deemed bills to the amount of between three and four thousand dollars. There is also the sum of fifteen hundred dollars in the Detroit city bank redeemed by it by the specie deposited ihere as aforesaid. The balance of the said amount signed by him as aforesaid was placed in the hands of Delos Davis and Rufus Brown Jr. of the city of Detroit for the purposes of exchange, those persons being agents for the bank. That he knows of no other indebtedness of the bank except it be for the engraving of the bills and the service of the officers. That at two QifFcrent times certificates of deposite were given by the bank to the Exchan A I \ ! I 46 [Senate the Farmers' bank of Genesee. The second by written instruc- tions from the same director. No entries were made of these transactions in any book uf the bank. To meet the liabilities of the bank, there is in the bank dis- counted paper to the amount of between six and eight thousand dollars, as he thinks. There are leceipts in the bank given vari- ous directors and stockholders for various sums, amounting to probably about two thousand dollars, which sums were taken by them for exchange purposes. Notes for the amounts taken by Horace R. Jerome, Delos Davis and Rufus Brown, Jr. were given by them for the respective amounts received by them for exchange purposes as aforesaid. No returns have been made of exchange paper, or otherwise, from either of the aforesaid per- sons. The notes given as aforesaid by Jerome, Davis and Brown were left by mistake in Detroit. That he prepared a statement early in January of the affairs and condition of the Farmers' bank of Genesee,' as cashier, in which he showed an amount of twenty thousand dollars of specie on hand. This was made up of certificates of deposite as fol- lows : One from the "Bank of Oakland," signed by Daniel Le Roy, president, for the amount, he thinks, of ten thousand dollars; another from the Clinton canal bank for ten thousand dollars, he thinks— this last was signed by Wm. S. Stevens, president. These certificates were loaned for the ;jurpose of enabling a state- ment to be made. No deposites were actually made. The cer- tificates were both returned on the same day on which they were received. This transaction took place, and the statement was made up at Pontiac, where he went for that purpose. Mr. Je- rome was with him, and received the statement and took it him- self to Detroit. This statement was signed by the president and cashier. In Detroit the president supplied a deficiency of thirty thousand dollars, which was necessary to make the exhibit of ten thousand dollars, (the thirty per cent necessary to be paid in.) The statement as filed with the commissioner must have been signed b> himself alone; as it exhibits thirty thousand dollars, be- ing the full amount necessary as aforesaid. He also prepared a statement of the condition of the bank dated the first of February-, and also an answer to the interroga- / - j# ( / \ ti ^^ y- No. 25.] 47 tories of the legislature. • The statement and interrogatories were based upon the following facts : The specie in bank and personal property of the bank, which was considered as specie, was two thousand dollars. Ten thou- sand dollars in silver was brought and paid into the bank at the time by Davis and Brown, (Delos Davis and Rufus Brown, jr.,) from Detroit. Two certificates of deposite, one of five thousand and one of fifteen thousand dollars. The last certificate of fifteen thousand dollars was from the Farmers' and mechanics' bank of Detroit, and signed by Jno. A. Wells, as also was the one for five thousand, as he thinks. The specie and certificates were there for four or five days, and w^ere taken away again by the same persons, with the express understanding that they were taken by them as agents for the bank. That he went in with Messrs. Da- vis and Brown aforesaid, to Detroit, and there signed and filled out all the bills mentioned above as signed by him, as cashier of the Farmers' bank of Genesee. This was about the sixth of Fe- bruary ; he thinks the bills were all dated the fourth day of Ja- nuary. The deponent further states, that on the tenth day of March instant, Delos Davis, a stockholder of the bank, came to him at the bank and stated that the Bank Commissioners would proba- bly be there on Monday or Tuesday, and that he had on the way ten thousand dollars to place in the vaults of the bank, for the purpose of examination by the Commissioners. He said it was in charge of Dr. Scovel, of Detroit, and would be at Grand Blanc that night, (the 14th.) That he, the said Page, refused to receive it unfcss it was the bona fide property of the bank, and to be used for its business, and toid him unless it could be so considered and used he must take it away again. He, Davis, replied, that if I thought it was best to do so, it should be done. He, Page, told him that the exhibition of this money would give an increased currency to the bills, which, under the circumstances and condi- tion of the institution, he was not willing to countenance, and should not receive the money except in the manner as above sta- ted He knows nothing further of this specie. He further states, that there are no set of books open in the bank and never have been. That the papers are in the bank in the charge of his wife, with directions to give the key of the bank to / u^ ' «■■ '^y »,' 48 [Senate the uommissioners. That he has no papers with him here to re- fer to, to correct his recollection in regard to sums and dates, but that the same are as accurate as his recollection now enables him to present. R. J. S. PAGE. Sworn and subscribed in the presence of the undersigned Bank Commissioner. K. PRITCHETTE. (No. 12.) Bank of Lapeer-^Affidavit of A. Goodrich. Goodrich, March 14, 1838. Aaron Goodrich, a director and stockholder formerly of th e Bank of Lapeer, being duly sworn according to law, deposes and says, that he was one of the original subscribers to the stock of said bank ; that he, to the best of his recollection, was subscriber to the amount of one hundred shares, which was reduced in the distribution of the said stock to the number of seventy-six, as he thinks ; that he was not present at the payment of the first ten per cent, but that his own instalment was paid in as he believes, hav- ing requested another to do so for him. That he was not present when the appointment of directors was made, but was present at a meeting of the directors within a few days afterwards, when he was informed that he had been chosen one of the directors. At that meeting Norman Davison, Esq. was elected president, and Alvin N. Hart was elected cashier. That he does not know whether the thirty per cent required by law, previous to going into operation, was or was not paid in ; that he was present pro- bably four times or more, at subsequent meetings of the board of directors ; that during the sittings of the board at which he was present, notes were laid before the board for discount. Exchang- es to a small amount were made, but to what amount, he does not know. When at the bank on one occasion, he was given to un- derstand b> the president, cashier and B. F. Towne, one of the directors present, that he was to consider himself as agent for the exchange of the bills of the Bank of Lapeer for other funds ; that 1'- \ f \ \ I -X ') 1^0. 25.] 49 there came into his hands at different times, as agent for exchan^ es and loans to himself, exceeding the sum of thirty thousand dol- lars ; that he made exchanges to a small amount, and passed over a portion which he received for exchange purposes to B. F. Towne, one of the directors, who was better able to leave home for such purposes than himself. At one time, he passed over to him bills of said bank to the amount of sixteen thousand dollars. He has receipts from Benj. F. Towne for that amount, for the purpo- SOS of exchange, and he thinks he has evidences of receipts from him to a greater amount, probably to the amount in the whole, of nearly twenty thousand dollars ; that he drew out the sums he received for exchanges on checks. He thinks that when he paid into the bank exchange funds, he received the like amount from the bank in its own bills, and that the exchange funds paid m did not materially aflfect the sums drawn out by him of the bills of said bank in the checks aforesaid ; that he thinks besides the sum above stated handed over to B. F. Towne, the bank has his note for five thousand dollars. It has also other evidences of debt from him to cover the remainder of the sums which came into his hands either as agent or on loans ; that about the time the bank went into operation, he heard the cashier say, he acknowledged the receipt of fifteen thousand dollars paid in ; that he thinks he saw four or five thousand dollars in gold, about the time of the subscribing of the stock, as near as he could judge, not havina counted It, which he presumes was the specie paid in on the sub""- scription of the first ten per cent of the stock of said bank ; that he does not know if the specie was subsequently withdrawn by the stockholders or not , that at or about the time of the paying in of the thirty per cent on the capital stock, he did not pay in any gold or silver on his stock, but that he handed to the cashier about that time, a specie certificate from one of the city of Detroit banks, to the amount of fifteen thousand dollars. This city bank was the Farmers^ and Mechanics' bank The certificate of depo- site was signed by John A Welles, cashier, pavable he thinks7o hm; that the certificate was cancelled by a check drawn by him on said bank for the amount of the said certificate of fifteen thou- sand dollars ; that the certificate and check were given and re- ceived on the same day ; that no specie in fact was deposited in [Sen. No. 25.] 7 INTENTIONAL SECOND EXPOSURE h< 48 [Senate the t;ommissioners. That he has no papers with him here to re- fer to, to correct his recollection in regard to sums and dates, but that the same are as accurate as his recollecticn now enables him to present. R. J. S. PAGE. Sworn and subscribed in the presence of the undersigned Bank Commissioner. K. PRITCHETTE (No. 12.) Bank of Lapeer — Affidavit of A. Croodrich. Goodrich, March 14, 1838. Aaron Goodrich, a director and stockholder formerly of the Bank of Lapeer, being duly sworn according to law, deposes and says, that he was one of the original subscribers to the stock of said bank ; that he, to the best of his recollection, was subscriber to the amount of one hundred shares, which was reduced in the distribution of the said stock to the number of seventy-six, as he thinks ; that he was not present at the payment of the first ten per cent, but that his own instalment was paid in as he believes, hav- ing requested another to do so for him. That he was not present when the appointment of directors was made, but was present at a meeting of the directors within a few days afterwards, when he was informed that he had been chosen one of the directors. At that meeting Norman Davison, Esq. was elected president, and Alvin N. Hart was elected cashier. That he does not know whether the thirty per cent required by law, previous to going into operation, was or was not paid in ; that he was present pro- bably four times or more, at subsequent meetings of the board of directors ; that during the sittings of the board at which he was present, notes were laid before the board for discount. Exchang- es to a small amount were made, but to what amount, he does not know. When at the bank on one occasion, he was given to un- derstand by the president, cashier and B. F. Towne, one of the directors present, that he was to consider himself as agent for the exchange of the bills of the Bank of Lapeer for other funds ; that mnw J I .> No. 85.] 40 / there came into his hands at different time., as agent for exchnng. es and loans to himself, exceeding the sum of thirty thousand dol- lars ; that he made exchanges to a small amount, and passed over a portion which he received for exchange purposes to B. F. Towne, one of the directors, who was better able to leave homo for such purposes than himself. At one time, he passed over to him bills of said bank to the amount of sixteen thousand dollars. He has receipts from Benj. F. Towne for that amount, for the purpo- ses of exchange, and he thinks he has evidences of receipts from him to a greater amount, probably to the amount in the whole, of nearly twenty thousand dollars ; that he drew out the sums he received for exchanges on checks. He thinks that when he paid into the bank exchange funds, he received the like amount from the bank in its own bills, and that the exchange funds paid in did not materially affect the sums drawn out by him of the bills of said bank in the checks aforesaid ; that he thinks besides the sum above stated handed over to B. F. Towne, the bank has his note for five thousand dollars. It has also other evidences of debt from him to cover the remainder of the sums which came into his hands either as agent or on loans ; that about the time the bank went into operation, he heard the cashier say, he acknowledged the receipt of fifteen thousand dollars paid in; that he thinks he saw four or five thousand dollars in gold, about the time of the subscribing ot the stock, as near as he could judge, not having counted It, which he presumes was the specie paid in on the sub- scription of the first ten per cent of the stock of said bank ; that .h. r^r,. "^ "'" ''*"■' ""^ subsequently withdrawn by the stockholders or not , that at or about the lime of the paying m of the thirty per cent on the capital stock, he did not p«y i„ IZ^fZ "'' ^'' '"^^' ''"' ""^^ ^ handed to the Jashier about that time, a specie certificate from one of the city of Detroit banks to the amount of fifteen thousand dollars. This city bank was the FarW and Mechanics' ba„k. The certificate of depo^ Sm "SI ^-^ ; ^- '^'"^' ""*^' P'*y^'"« »>« 'hinksTo nl^iH K 'tT'^f"^' ^ '^^'^dkd by a CM drawn by him on said bank for the amount of the said certificate of fifteen thou- ceived on the same day ; that no specie in fact was deposited in [Sen. No. 85.1 . 7 ■ "III •-i^^ •^. 50 Sknate said bank by bim, on whicb the certificate of dcposite was given ; that the specie certificate above mentioned was received from the cashier of the Lapeer bank by him ; whether it has been return- ed to the bank from which it was received in Detroit, he cannot say ; that he has sold his stock in the Lapeer bank, and ceased to be a director of said institution about the first part of the month* of January last. He sold his stock to Samuel J. Searls, and H. H. Harris, and to D. S Cady, the present cashier. He transferred his stock to them without any specific compensation, except an understanding that he should have a seasonable time to pay up his liabilities to the bank ; that the majority of the stock was subscrib- ed for and owned by himself and his friends, for whom he acted as agent. - A. GOODRICH. Sworn and subscribed before the undersigned Bank Commis- sioner, this fourteenth dav of March, Anno Domini, 1838. K. PRITCHETTK / Errata.— On page 5, read John Truax, for « Abram C. Truax f and for « H. Sibley," A. H. Sibley. On page 8, for « $2000," in the fourth line, read $3000. . Jkk iJ^Bf iiHIf!-^^ ^ i i . '>< J 1 COLUMBIA UNIVERSITY LIBRARIES This book is due on the date Indicated below, op at the expiration of a definite period after the date of borrowing, as provided by the library rules or by special arrangement with the Librarian in charge. DATE BORROWED DATE DUE DATE BORROWED DATE DUE 1 '1 AT«=: 'F- ,A *=»■ *■; >IIE C?" T' AFTER *■■■ ' „T^RETU. :0. [ ri C28<10-53) lOOM MS'M o^ioi' f E8 1 4 1995 nm /! •/■ D7oO,767 I J D73(t.7G7 iv'iichip!;an. Bank Gom< ivi58 miSoioii'^rs. Report of K. Pritchette . ! COLUMBIA UNIVERSITY LIBRAR^^^^ 0044248288 I 1tO¥ 2 » T955 i^^ \4 -C 1 9 1955 END OF TITLE