(No. 2.)

Affidavit of W. S. Stevens.

STATE OF MICHIGAN,

County of Wayne.

SS.

William S. Stevens, being duly sworn, on oath says, that on the 27th day of February, A. D. 1838, he purchased of O. D. Richardson, William Draper, and Seth Beach, of Pontiac, 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 recollect the amount, but thinks it was five or six thousand dollars. This 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 immediately 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 cre dited 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 intended 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 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, (being in all $15,000,)

in specie. Said Converse proposed afterwards to put in for his share, instead of specie, five thousand dollars 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 McReynolds. The proportion which was to have been paid in by said Sherwood, to wit: $10,000, was paid by a certificate of specie deposite, issued by the Bank of Pontiac. This certificate was credited 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 elected president, and William Kortz, also of Buffalo, was chosen cashier. 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 Kortz 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 thou sand four hundred dollars were afterwards obtained from them, and returned to the bank. During the time when said Converse 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 yet 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 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 this deponent.

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 notice 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 defeat 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 Commissioner.

(No. 3.)

Affidavit of Orrin Parsons, a Director of the Bank of Saline.
STATE OF MICHIGAN,
County of Washtenaw.

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SS.

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 sixteenth day of August instant, according to deponent's best recollection. 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 injunction had been made out against the bank of Brest, and that he 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 supposed 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 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 resolution to assign, for the benefit of creditors, all the property and effects of the bank to Alexander 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 does 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 appointment in the immediate neighborhood of the bank. The assignment was executed before the meeting adjourned.

On 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 by the Bank of Saline to the amount of fifteen or twenty 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.

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 di rectors 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 31st day of August, A. D. 1838.

A. FELCH, Bank Commissioner.

(No. 4.)

Affidavit of S. Finch, President of the Bank of Saline.

Silas Finch, of said county, being duly sworn, on oath says, that he is and has been for about seven months last past, president 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 exam

ination 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 exchange, to the knowledge of this deponent, took place in the affairs or condition of said institution after said last mentioned examination, until the sixteenth day of August instant. On said sixteenth 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, and at said meeting of the directors, informed the board that an injunction was made out against the Bank of Brest, and that he feared there would be an injunction 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 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 effects 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, but 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 assignee 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 assignee. 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 office. He has had no conversation 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 expectation that an injunction would be issued against the bank. There was not, to the knowledge of this deponent, any other inducement to make the assignment. The board were led to be