Historical Newspapers of South Carolina

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' ^ * . y - . THE 4MDE!V JWRJflE^... j; .... ; . . < VV' .JT : K"*- * 'J' ?' - " **' ' iSffcjVf!: *it'l V> r ' ' ' . ' [NEW SERIES.] VOL. II. CAHDEN, SOUTH CAROLINA, WEDNESDAY, MAY 5, 1841. NO/90, e . L - ii i - ' -? ?' ^ ... . i. air.' [/?!,<?? . REPORT OF THE INVESTIGATING COMMITTEE. [concluded.] An account of the settlement with Messrs. Jaudon, Cowpcrthwaite and Andrews, accompanies a report made by the Exchange Committee, to the Board on the 21st of August, 1840. That Committee remark in their report, "Your Committee are unable to say, if any authority was given by the Board under the charter from Congress, but are very certain that the Boards, under the present charter, have never sanctioned such loans or settlements, and they cannottoo strongly condemn such acts. The power of making loans and settlements must be reserved to the Board, while the Officers must be content with being the executive of its decisions." The accounts of these officers, are herewith submitted together with some others. (Appendix G.) In order to inform the Stockholders, not only of the character of the Assets, but of the mode bv which they came to the possession of the Bank, there is attached to this report, a statement showing the particulars of the Stocks on hand at the Bank, the amount taken in settlement of debt, purchased or subscribed, and a list of the Stocks in possession April 1, 1839, (Appendix II. I.) Of the whole amount of Stocks and Loans, wlrch the Bank has received since its re-charter, including those since disposed of, it appears have been taken in settlement of debts and advances. In the course of their investigation, the attention of the committee has been directed to certain accounts, which appear on the books as "Advances on Merchandize," but which were, in fact, payments ^ 4 A ? n/1 a! lint* nv/?flllAA JOr CUllUU, UJUili/tw, auu wm<~i |/j uuuuv, purchased by the direction of the then President, Mr. Nicholas Biddlo, and shipped to Europe on account of himself and others. These accounts were kept by a clerk in the Foreign Exchange Department, this department being under the charge of Mr. Cowpcrthwaiie, tnftil September 22, 1837, when ho was elected Cashier, and of Mr. Thomas Dunlap, until March 20, 1639, when he was chosen President. The original documents, necessary to enable the Committee to arrive at all the facts in relation to these transactions, were not accessible, having been retained, as was supposed, by the parlies interested, as private papers. A succinct view of tho whole matter, sumcicm to convey 10 the stockholders a general idea of its character, may he drawn from the report of a Committee of the Board of Directors, appointed on the 21st of Jnlv, 1840, for the purpose of adjusting and settling these accounts, and who reported on the 21st of December, 1840, which report, with the accompanying accounts, is spread at large upon the minutes. The first transactions were in July, 1837, and appear as advances to A. G. Jaudon, to purchase cotton for shipment to Baring, Brothers & Co. of Liverpool, the proceeds to be remitted to their house in London, then acting as the agent of the Bank. The amount of these slfpments was 2,182,998 dollars 28 cents. The proceeds were passed to the credit of the Bank, and the account appears to be balanced. The results, as to the Profit and Loss, do not appear, and the committee had no means of ascertaining them, nor tlio nnmrs of the narties interested. In the autumn of 1837, when the second of these transactions commenced, it will be recollected, that Mr. Samuel Jaudon had been appointed the Agent of the Bank to reside in London. About the same time, a copartnership was formed between Mr. May Humphreys, then a Director of the Bank, and a son of Mr. Nicholas Biddle, under the firm of Biddle & Humphreys. This house was established at Liverpool, ar.d thenceforward acted as agents for the sale of the produce shipped at that place, which comprised a large proportion of the whole amount. In explanation of these proceedings, the Committee annex to their Report a copy of a letter dated Philadelphia, December 28, 1840. to the President and Directors of the Bank, from Mr. Joseph Cabot, one of the firm of Bevan & Humphreys, and who became a Director at the election in January, 1838. This let tcr was read to the Board, December 29, 1840, but was not inserted on the minutes. [Appendix K.] This arrangement continued during the vears 1837, 1838, and 1839, the transactions of which amounted to 8,969,450 dollars, 95 cents. The shipments were made principally to Biddle & Humphreys, were paid for by drafts on Bcvan & Humphreys ?the funds advanced by the Bank, and the proceeds remitted to Mr. Samuel Jaudon, Agent of the Bank in London. It appears there was paid to Messrs. Bevan & Humphreys by the Bank in Philadelphia during the months of March, April and May, 1839, the sum of eight hundred thousand dollars, and the account was thus balanced. The committee have reason to believe, that this sum constituted a part or perhaps the whole of the profits derived from the second series of shipments. How, and among whom, it was distributed, they have not been informed, but from the terms of the final settlement to be adverted to presently, each one will be at liberty to make his own inferences. The third and last account, amounting to 3,241 042 dollars 83 cents, appears on the books, as "Bills on London, advances S. V. S. W." These letters stand foi ' the name of S. V. S. Wilder of N. York Messrs. liumpnrics <x Jtsiddie, to wnom these consignments were made, continued their accounts in the name of Bevan and Humphreys, but without the knowledge of that firm, as appears by Mr. Cabot's letter of December 28, 1840. The lesull of these last shipments, was a loss of 962,524 dollars 13 cents. Of this amount the sum of 553,908 dollars 57 cents were foi excess of payments by Messrs. Humphreys & Biddle to the London Agency beyond the proceeds of sale, with interest thereon. The parties interested, claimed and were allowed a deduction for loss or 526,000 dollars of Southern Funds, used in the purchase of cotton, when at a discount, the sum of 310,071 dollars 30 cts. and also this sum, being Bankers' Commission to Messrs. Humphreys & Biddlc on advances to Samuel Jaudon, Agent 21,061 dollars, 86 cents, making 331,132 dollars, 16 cents, and leaving to be settled by the parties the sum of 631,390 dollars 97 cents. Before proceeding to state the particulars of this settlement, it will be proper tc precede it by the remarks of the CommitI tec of the Directors, by whom it was ef| footed. They say: "A long and difficult ! negotiation has resulted in the settlement !of three fourths of the Balance, and an ; agreement for the settlement of the re; maining fourth. The payment of hall the amount, and the agreement for one ! fourth, are neither of them such as the committee labored to obtain; yet the i terms are better than at one period of the negotiation they could reasonably have i I.I ? cxpeciea, ana annougn unsausiaeiorv m themselves, are acceptable under the peculiar circumstances of the case." The settlement reported to the Board on the 21st of December, 1S40, was aj follows: With Mr. Nicholas Biddle for one half amounting with interest to $321,220 IS For which there was received from him in payment, three bonds of the Republic of Texas, for five thousand dollarscach,and an order on Gen. James IJam'lton, then in London, to deliver to the Cashier, or his order, a bond of the Republic of Texas, payable in London, for 10,126/. 13s. 4d., and also Ninety Bonds of the same, for two hundred and fifty pounds each: these with interest due ar.d Ex change, according to a calculation made by Mr. Samuel Jaudon, amount to $201,G42 20 Leaving a balance of $119,577 93 For this balance Mr. Biddle agreed tc deliver to the Bank within one month, Texas Bonds, and on the delivery of the last mentioned Bonds, the Bank agreed to give him a full discharge from its claim . upon him for his share of the loss on these operations. This contract has been perj formed. The Committee of the Board say, in reference to this settlement:?"Aware that the Tcxian securities were mucli below par in the market, the Committee reluctantly agreed to the settlement, under the belie! that a better arrangement for the Bank could not be (at least amicably) effected, and in the hope founded on general information, that the Bonds might, at a distant day, be disposed ol ivitKnnt cr>rir?i*c )nc? " The Committee also settled, with Mr. Joseph Cowperthwaite, for one fourth of the loss, 8157,847 74 For which was received in payment, Mr. Cowperthwaite's share in certain Dauphin county Coal Land, which cost SI20,000, less a mortgage thereon of 810,000 110,00C Land in Cataraugus co. N. Y. which cost, 5,00C Land in Lycoming co., Wisconsin and Michigan 20,00C Boston & Illinois Land Co. Stock, 17 shares par 17,00C Commercial and Rail Road Bank of Vicksburg, 350 shares par, 35,00( Planters' Bank of Mississippi, thr 59 shares par, 5,900 ing West Feliciana Bank, 100 cot shares par, 10,000 the Germantown and Norristown the Rail Road Co. 500 shares '* Ge par, 25,000 cas Camden and Woodbury Rail in i Road Co. 100 shares par, ' 5,000 the I Loan of Camden and Wood- pei bury Rail Road Co., 15,000 tor ; bo< i $247,900 me i And a cash payment, the tor Committee say of "about" 16,000 mil sivi i Making altogether; $263,900 sor I pri I Ihe Committee state, in reterence to nai s their settlement with Mr. Cowperthwaite, gei that it was made on the ground, that "with the t the exceptien of a few thousand dollars coi retained to pay other debts, the agree- on i ment comprised all his remaining pro- inc perty." sal The Committee also settled ma , with Mr. S. V. S. Wilder the rei t remaining one fourth, amount- hei I ing with interest to 8161,793 33 me i For the purpose of enabling 28i I Mr. Wilder to settle this am't. am in cash the Bank of the U. S. tee , in N. York, loaned to him the to I sum of 8112,000 on the secu- of ; rity of "F , 1. Real Estate at 6,2 I Green Hill,' Philadel- tee I phia county, 820,000 rec ; 2. Five thousand tee five hundred acres of (A "Iron land," and two > furnaces in Columbia me county, Pennsylvania, sal in operation and pro- cie : ducing a rent equal to gei ; 6 perct. on 820,000, 79,000 we i 3. On his claim up- the on Wm. II. Robert- ser r son of Mobile, 7,500 Se s 4. On' his claim on "M 1 r XT _ tL. UUI JUSl LCiiSUiu wiiu .... I By the Thirteenth Standing Rule of the tee Bank, it is provided that the Committee Di on the state of the Bank, composed of pu ) five members, and elected by ballot every *?I1 4 ' Mr. iiigciow 01 i\ew uit ! York, 5,500 112,000 00 ad , lisl s The balance was settled by pia i receiving the whole amount 18 from Mr. Wilder in cash, 49,793 33 ma an< I 8161,793 32 Ai > >Ir. Thomas Dunlap, of Philadelphia, for guarantees under date of December 21, Il? 1840, the faithful and punctual payment pu of the loans to Mr. Wilder. The Com- we I mittee of the Board add "Under this ar- sm rangement we apprehend no loss to the Co bank." 18 Upon the presentation of the Report of St; the Committee on advances to the Board, ing on the 21st of December, 1840, a motion kei was made, to recommit the same for the the purpose of having inserted therein the hui name of the party really interested in the the one fourth part for which the settlement lar was made with Mr. ?. Y. S. Wilder.? M< This motion did not prevail, but the Re- Di port was accepted and the committee dis- pui charged. shi Alter the Report had been read, the fol- rot lowing Preamble and Resolutions were sht submitted by Mr. James Martin, and the unanimously adopted by the Directors 13 1 present, who were Messrs. John R. Neff, ws Joseph Cabot, Lewis Wain, John Con- the ! nell, Manuel Eyre, Richard Price, Law- 18 rence Lewis, James Martin, George Han- Bo ? dy, and Robert Taylor; Mr. Neff acting Ra bv denotation as President pro tem. in the Mi ' ~J ~~l m _ , ! absence of Mr. Dunlap. 50 I "As it appears by the Report of the (al i Committee on advances, that large trans- ha' i actions have been going on for several coi years without the sanction or knowledge 80 I of the Board of Directors, and as it further rio appears, that these transactions were most- do! i ly if not wholly for the account and to the wl : Profit and Loss of the executive officers 27: of this Bank at those times, it is due from ass I this Board, that their just condemnation unj of such things, should be fully expressed, tee 1 and recorded: it is therefore gu: i "Resolved, That the business of loan- las f ing money exclusively and of right belongs the to the Board of Directors, and that all dr( loans or discounts made by a Committee tw of the Board, in concurrence with the the officers, should be duly reported to a re- nai e gular meeting of the Board. coi "Resolved, That the loaning or dis- gui counting, on the deposite of collateral se- the curity or promissory notes of the officers U| of the bank is unauthorised, and contrary gui to the proper administration of the affairs pui of the bank. the > "Resolved, That the large advances for made by the officers of the bank, in the to I l periods of 1837-8, and 1838-'9, being for totally unauthorised, and unknown to the int< I Board of Directors, merits and receives thr ?- onrt rnnHemnntinn." the ce months, should "at least once dur ; their time of service, examine ant int the discounted notes, and compart amount thereof with the balance o amount of \bills discounted in th< neral Leger. they shall also count th< ih, and the printed and unprinted pape: the possession of the Cashier?exanaint ; evidences of the public debt and pve rty of the corporation, make an inven y of the same, to be compared with th< i>ks, hi order to ascertain their agree nt and report to the board," The cus n appears to have been for this com Itee to confine their examination exclu .v. j CJy Iyj IIIC easily JJ11I3 UI3CVJUULCU UU|HT ial and other security, the issues, and th< nted and unprinted bank paper 01 id. The account, however, of thi leral state of the bank, submitted t< 5 Directors at every stated meeting itained the items of "Bills Receivabli Bank stock and other security," whicl Juded as well the bills receivable fo e of branches as the loans made in th< inner heretofore adverted to, and "Fo gn Bills of Exchange," under whicl ad was contained the advances on ship :nts of merchandize. Thus, on th th of June, 1838, on which day an ex lination was reported by the Commit : on the state of the Bank, there stoo< the debit of "Bills Receivable," the sun 13,106,074 dollars 55 cents, and o oreign Bills of Exchange," the sum o ! 16,109 dollars 34 cents. The commit i annPT tn ihic Rpnort n list of thfi Di itors and the several Standing Commit ;s of the Board since the re-charter.? ppendix L.) Not only in regard to loans and settle mts, but in relation to the purchase an< e of stocks, the establishment of agen s, and other important measures o neral policy, the Board of Director ire not regularly consulted. Of thi i committee must be permitted to pre it some instances as illustrative. Ii ptember, 1836, the Bank purchased thi ferchants' Bank of New Orleans" o i capital of 1,000,000 dollars for ai ranee of 76,250 dollars, and estab ied it, as the agent of this Bank at tha ice. On th3 eighth day of Novembei 36, in like manner a purchase wa ide for 384,000 dollars of "The Insur ce Bank of Columbus, Georgia." li igust, 1838, arrangements were mad the purchase of the charter of "Th imilton Bank," of Baltimore, and th rchasc effected, but as the Bank neve ;nt into operation the advance was bu all. There was taken from Mr. Jos wperthwaite, on the 1st of MarcF 38, eighty nine shares of Bank Unite' ates Stock, at 120 dollars, the Bank sell ; the same day at 118 dollars, less brc rage; and on the 8th January, 184C sre was received from him as cash on ndred and thirty shares at 100 dollar' i market price of that day being 85 do! s 75 cents. On the 4th of March, 183? 2ssrs. Joseph Cowperthwaite, Thoma mlap, and Joseph Cabot, agreed ti rchase of the Bank two thousand ires of Philadelphia and Reading Rail id Co's. Stock, at forty five dollars pe ire, on a credit of two years, and oi i application of these parties on thi ih February, 1840, the said contrac is annulled. It is stated in a Report o > Exchange Committee of August 26 40, and entered on the minutes of thard, that the Philadelphia and Readinj .ilroad Co., had made a contract wit r. Joseph Cowperthwaite for a loan o 0,000 dollars in his individual capacity though supposed by the company i( ve been on account of the Bank,) to bi nverted into sterling Bonds at 4 dollar cents per pound sterling. At the pe d of that report, the sum of 326,00( liars of this loan had been taken up, o lich the Bank was then the holder o 2,000 dollars, and on that day, [with th< icnt of the Board,] assumed the balanci paid of the contract* Upon the eigh mth day of August, 1838, the Banl aranteed a contract made by Mr. Nicho Biddle in his individual capacity, fo purchase of two thousand five hun ;d Bonds of the Slate of Mississippi, o o thousand dollars each, amounting ii : whole to 5,000,000 dollars. The sig " T\-_l lure ot Mr. i nomas jL/umap, nrcii avi id assistant Cashier, was affixed to thi arantee, on behalf of the Bank upoi i verbal authority of the President.>on the 29th January, 1839, the Banl aranteed to the State of Michigan, tlx nctual fulfilment of the obligations o ! Morris Canal and Banking Company the purchase of Bonds of that State the extent of 3,145,687 dollars 50 cent, 2,700,000 taken at par, and including erest on the instalments payable ever} ee months up to January, 1843. Oi i 29th of April, 1839, the Bank guaran d a contract entered into by Mr. Thos inlap, in his individual capacity, for tin rchase of one million of dollars of th< linois and Michigan Canal Stock," It ., SB k - regard to these transactions, the eormffit* 1 tee can find no authority on .th? mifluUfc 3 of the Board, and have been referred dd f none, by the President upon whom tl&y 3 called for information/. : " * * ' r .) 3 The Committee submit herewith ?A|Jr pendix M.] a statement of the. Profit &d 3 Loss Account of the Contingent Fund, and - an abstract of the losses caargable^therom r to. In this last account there wa charge 3 under date of Jane 30, 1850,- of 400JKX} - dollar^ to "Parent Bank notes account/^ - which has not been explained to the satis/ - factionof theCommittee. It must be also- ? mentioned, thai among the expenditures - of the Bank, there is entered, at various 3 date9, commencing May 5, 1836, fctims i amounting in all to 618,830 dollars,-15 3 cents, as paid on the "Receipts of Mr. N> 3 Biddle," of "Mr. N. Biddle and J.'fco w-' perthwaite," and "cashiers vouchers."1 b As the Committee were unable to obtain i satisfactory information upon the subject r of these expenses from the books or offi. e cers of the Bank, application was made by letter to Mr. Biadle and Mr, CowIt perthwaite, from whom no reply has been received. ^ e The Committee have now performed: - the task assigned them by the stock hoi d ers. They have endeavored to select 1 from the mass of materials submitted to t * their examination, only such as seemedf sufficient to illustrate the general coorae f of the administration of the Bank. To - have gone more into detail, would have - required more time than was allotted to ; - the Committee, and to have accompanied - each particular with full explanations, would have extended their report beyond - all reasonable limits. They have riven 1 the simple facts without comment; but - endugh has been presented, it is believed,. f to enable each stockholder to form a judgs ment of the manner in which the interests . s committed by him to his trustees anda-... - gents, the directors and officers, have been . managed. To satisfy mere idle curiosity, e the Committee had no inclination, and f would have gladly omitted many of the n facts and explanations they have given, - would such a course have been reconciled t to their sense of duty, to those by whom "> they were appointed. a inaniTA i TPPTisirnTT * ?r WIJIV4* JLIIA M. m w JL MOSES KEMPTON, CHARLES MASSES jr. e EDWARD COLES; e JOHN BACON, e JAMES S. NEWBOLD. r Attest? it George Sharswood, Sec'yi , ' >. Bank of U. S., Philadelphia, April 3, 1841. d Courting Scene No. 2.?"Jonathan, I- did you read that are story about the man i- as was hugged to death by the bare?" >, "Guess I did! Sewke?and it did make' e me feel so bad." s, "Why?how did you feel, Jonathan?" I- "Kind'er sort'er as if I'd like to hug you I, earnemost to death tew, you tarnal, nice, s plump elegant little critter, you Sewke." a "O la! go a wav?you Jonathan." * 1 ? CounTtiva Scene, No. 3.?"Ah! Sewke, r you are sick a slick gal?heighoP 1 "La! ain't you ashamed, Jonathan?" e "I wish I was a ribbin, Sewke." t "What for?hey?" f "Cos, may be, you'd tie me round that f, are nice pretty little neck of yourn?and e I should, like to be, darned if I shoulden't." nr ?0 la! there comes mother?runP h f A Good One.?A newly appointed watchman of a bank, a few days ago, was 3 accosted in the street with "halloe Joe, 2 has the bank been robbed lately?" The s quick retort was, "No, it is not worth rob bingP 3 f "Pa, is dogs gots wings?" "Wings! no . f child?don't you know better than that?" ? e "Why, thunder and scissors, pa?tfiis ere e newspaper says a big dog flew at a man - and bit him?so I guess dogs is got wings > k too." r If you wish to secure the reputation of i- being an honest man?pay your debts, f If you would avoid bringing disgrace 1 upoti the religious party you belong to? - pay your debts. If you are anxious to be good, and be 2 charged a low price for your goods, never i fail to pay your debts. If you wish obtain such credit as your 1 business may require?be sure to pay your 2 debts. f If you would avoid embarrassing , others who are depending upon the settlg, ment of your account?pay your debts, s If you wish to prevent mistakes and r litigation keep your accounts well, adjusted, and pay your debts. 7 ? 1 If in the expectation of death, you - would like to leave your affairs in a satis. factory condition?pay your debts. ? If you wish to aid in the circulation of 2 money, never let cash remain by you? i but pay your debts.