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lection, charged to his account.

4,740 00

$17,065 00

There remains unpaid on stock, as follows, to wit:
From George B. Martin, $300 00
D. F. Webster,

600 00
Mrs. C. Webster,

15 00 L. H. Pratt,

1,875 00 S. H. Pratt,

1,875 00 J. T, Hatch,

4,500 00 S. White,

5,400 00

$14,565 00 The stock ledger does not exhibit the amount paid in on each share, being kept so as to exhibit the number of shares only. "Circulation,"

$64,325 00 The engraver's bills are not to be found in bank, nor any minute of the amount of bank bills received from the engraver. The bills were furnished on two different orders. Engraver's packages of bills unbroken in bank, 1000 sheets, 5, 5, 5, 10,

$25,000 00 Engraver's packages of bills unbroken in bank, 600 sheets, 5, 5, 5, 10,

15,000 00 200 sheets, 1, 1, 2, 3, signed by cashier and not by president,

1,400 00 100 sheets, 1, 1, 2, 3, signed by cashier and president,

700 00 700 sheets, 1, 1, 2, 3, do

do and not by president,

4,900 00 600 sheets, 1, 1, 2, 3, not do.

4,200 00 1,200 sheets, 1, 1, 2, 3, signed by cashier, and not by president,

8,400 00 200 sheets, 5, 5, 5, 10,

5,000 00

Bills unexecuted,

$64,600 00 Bills executed from Feb. 7, 1837, to Oct. 19, 1837, as follows, to wit:

$79,993 00 Deduct mutilated bills,

14 00

79,979 00 Packages of bills in bank, redeem

ed from circulation, One redeemed in specie from the

person who served the injunction,

$3,015 00

16

One marked on wrapper,

6 of Bank of Michigan, 14 Dec. 1838."

1,385 00
One marked on wrapper, "20th
August, 1838,"

1,892 00
1,460 00
272 00
347 00
139 00

588 00
2,363 00

131 00
139 00
14 00

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$11,745 00 Add $3,800, sealed in Commer

cial Bank of Buffalo, and credited to that bank,

3,800 00

$15,545 00 Add also $109, unaccounted for, 189 00

$15,654 00

Circulation as exhibited per statement, $64,325 00

Mr Vandervoort is indebted to the bank on paper given to the Bank of Macomb, of which he is a stockholder and director, to upwards of $20,000. An arrangement is made with him, to take up a portion of the circulation, by drafts on him, &c., which is, on the perfection of the said arrangement, to be received by the bank, in liquidation of his indebtedness to the bank. For this purpose, he has given a letter of credit to Henry N. Walker, the attorney of the bank, a copy of which is hereunto annexed, marked (B.) Heny N. Walker has authorized C. A. Emerson, the cashier of the bank, to draw, agreeably to the above mentioned letter of credit. Bills of the bank to the amount of $8,000, and upwards, have been taken up by drafts on the said Vandervoort, and are now in the hands of Henry N. Walker, and on deposite in Detroit. By a private arrangement with John Norton, Jr. cashier of the State bank, made by Mr Vandervoort, between 16 and 17,000 dollars have been taken up by said State bank, and are now in its vaults.

Mr. Emerson, the cashier, has, however, since the service of the injunction, taken bills from the bank in sheets, signed by C. A. Emerson, cashier and A. Weeks president, to the amount of $40,000. These notes, it is said, were intended to be used as collateral security, in the negotiation of a credit in Buffalo, and not to be used until the injunction was removed and the bank again in operation. These bills are not charged, nor do the books any where show any entry or minute of them. "Profit and loss."

$5,532 22 Discounts received,

$5,306 86 Premiuni and exchange,

225 36

5,532 22 “Deposites."

Individuals and post-office. «Due banks,"

$166 27 This amount is due the Commercial bank of Buffalo. "John Ward & Co."

$2 25 As per entry for protest. From this analysis of the items composing the above statement, a just idea may be formed of its character. There was no statement book in the bank. A list of the stockholders and officers of the bank, exhibiting the changes which have taken place from time to time, is hereunto annexed, marked (C.)

The charter of the "Bank of Macomb county," was granted by the provisions of an act entitled "An act to incorporate the Macomb and Saginaw railroad company," approved Aug. 24th, 1835. The capital stock is $100,000, divided into 2,000 shares of $50 each, with authority to increase the amount of said stock to $500,000.

The charter provides that “One-tenth part of the amount of each share shall be paid in specie, at the time of subscribing, and the balance shall be paid in such instalments, and at such times as the directors for the time being may require ;" *Provided, that no note or evidence of debt shall be discounted or received by the directors, in payment of any instalment called in or required to be paid, with intent of providing the means of furnishing such payment, or with the intent of enabling any stockholder to withdraw any part of the money paid in by him, on his stock.” That “no loan or discount shall be made to the directors of such corporation, or upon paper on which such directors, or any of them, shall be responsible, to any amount exceeding the capital stock actually paid in and possessed by the corporation." That if the bills and notes issued by the bank, are not paid when the same are due and demanded, at the banking-house of the said bank, within the usual banking hours, in the legal money of the United States, the said corporation shall be dissolved, subject to the benefits and provisions of the act relative to banking institutions,' approved April 23, 1833.” That “unless the sum of ten thousand dollars in specie, shall be paid in said bank, within two years from the first Monday of July next, (August 24, 1835,) and unless ten miles of the said railroad, commencing at Mount Clemens, be made and put in operatiun, within six years thereafter, this act shall become void and of no effect."

How far the above stated provisions of the charter of this bank have been adhered to, will be the next subject of inquiry.

The original subscription book is not to be found in the bank, and from the sta:ement made by the former president and others, hereunto annexed (marked D,) it is to be presumed that it is destroyed. No book was to be found in ihe bank detailing the proceedings of the directors. By reference, however, to the foregoing part of this report, and the evidence annexed, the following facts may be deduced. The majority of the stock appears originally to have been subscribed for by Gen. John Stockton, of Mt. Clemens. The bank was not put into operation until upwards of a year after the charter had been obtained. As a preliminary to the commencement of business, early in October, 1836, the controlling amount of stock was sold and trans.erred to William Vandervoort and L. H. Pratt, both of the state of New York. At this time, John Stockton was chosen president, and an appointment of directors took place. If any previous directors existed, they do not appear to have transacted any business whatever. About the first of February two instalments of ten per cent each are said to have paid in. a part in specie, and a part in the bills of other banks. Bills of the bank were then executed by John Stockton, president, and C. A. Emerson, who was about this time appointed cashier. On Saturday the 11th day of February, 1837, or on the day following, as the first business transaction, forty thousand dollars of the bills of the bank were taken away by Vandervoort and Pratt. For this sum they each left a note for $10,000. Ten thousand dollars each was likewise taken, without any evideuce of indebtedness, to be loaned, as averred, on paper payable at the Commercial bank of Buffalo, to create a credit for the bank in that institution.

By reference to the annexed statement marked (D) it will be seen :hat this transaction took place without the knowledge or consent of the board of directors, and contrary to the provisions of the charter, which requires the action of the board in making loans or discounts.

Three further instalments on the capital stock of ten per cent each, were subsequently called for, payable on the 7th, 8th, and 9th days of June, 1837; and on the 2d day of October of the same year, a new board of directors was created, and C. Clemens chosen president, in the place of John Stockton, who was removed. William Vandervoort and L. H. Pratt were members of this new board of directors. The statement of the condition of the bank furnished by the cashier, C. A. Emerson, and left in the bank previous to his departure for Buffalo, a copy of which is

was

presented in the opening of this report, bearing date January 5, 1839, exhibits the capital stock paid in at $35,420. Had the five instalrnents called for been actually received, the capital stock paid in would be

850,000 And yet by reference to the above

statement and analysis, it appears that

$17,065 00 was paid in by Wm. Vandervoort and others, in stock notes and checks, which, together with the sum of $14,565 00

of instalments on stock, due and unpaid, makes

31,630 00

of said capital actually unpaid, and still due at the time of the examination by the Commissioners, thus leaving only the sum of

818,370 00 as the real capital of the bank, paid in according to law, being less than the amount of the two first instalments presumed to have been paid in at the opening of the institution.

By the testimony of A. Weeks, the present president, one of the stockholders, Enoch Jones, who was likewise a director, paid in a portion of his instalment (being those last called for) in bills of the Bank of Brest. He likewise left in bank a certificate of deposite for $5,000, which, on the sale of his stock to Mr. Vandervoort, was taken up and discharged. It is, therefore, presumable, that it was paid in on his stock. Whether any equiva. lent was received by the bank, in lieu of this certificate, does not clearly appear.

If the facts above stated are accurately set forth, and the actual payment of the several instalments by the minor stockholders, be likewise taken into consideration, the deficit of actual capital (it being even less in amount than the two first instalments said to have been paid in,) certainly requires explanation. The presump: tion is strong, and almost irresistible, that a part of the original instalments upon which the bank went into operation, were withdrawn.

If these inferences be just, it will be manifest that the indebtedness to the bank by Vandervoort alone, which, as testified by Mr. Weeks, is upwards of twenty thousand dollars, exceeds, indepenpent of the debt of Pratt, the amount of capital actually paid in and possessed by the bank. At the time, therefore, thai Vandervoort and Pratt became directors, and until the date of the ex. amination, their indebtedness extended beyond the amount authorized, and in direct violation of the provisions of the charter, limiting loans to directors.

By the testimony of some of the former officers, as will appear by their statement above referred to, the credit in Buffalo, for

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