lection, charged to his account.

4,740 00

$17,065 00

There remains unpaid on stock, as follows, to wit:

From George B. Martin,

D. F. Webster,

Mrs. C. Webster,

L. H. Pratt,

S. H. Pratt,

J. T. Hatch,

S. White,

$300 00

600 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 min

The engraver's bills are not to be found in bank, nor any ute 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 presi

dent,

700 00

700 sheets, 1, 1, 2, 3,

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

Add also $109, unaccounted for, 189 00

Circulation as exhibited per statement,

$15,654 00

$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

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

As per entry for protest.

$166 27

$2.25

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, com

mencing at Mount Clemens, be made and put in operation, 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 statement 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 the 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 transferred 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 evidence of indebtedness, to be loaned, as was 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 that 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

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

And yet by reference to the above statement and analysis, it appears that

was paid in by Wm. Vandervoort and others, in stock notes and checks, which, together with the sum of

$17,065 00

$50,000

$14,565 00

31,630 00

of instalments on stock, due and unpaid, makes

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

$18,370 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 presumption 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, that Vandervoort and Pratt became directors, and until the date of the examination, 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