which the $20,000 was taken by Vandervoort and Pratt was never created. Of this sum (as testified by Mr. Weeks,) $15.000 was loaned on notes, payable at the Commercial Bank of Buffalo, of which a large proportion are unpaid and in suit. If this violation of their engagements to create a fund for the bank in Buffalo, is to be considered as the assumption of an indebtedness for this additional amount, the breach of their chartered privileges becomes still more apparent. No security for this sum appears in the bank, and if they are not liable, the loss falls upon the bank, should the notes said to be given for the greater proportion not be collected.

It appears by the testimony of Mr. Weeks, and by the books themselves, that stock notes were in some instances received on instalments, contrary to and in direct violation of the provision of the charter, which declares "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."

By the provisions of the act of April 23, 1833, above referred to all the banks were allowed the privilege of a refusal to redeem their bills for sixty days, without being dissolved for such refusal. That act having been repealed, a refusal to redeem its bills on demand, would render the bank liable to a dissolution of the charter. The unjunction under which this bank at present lies, was for such denial.

The time allowed for the completion of ten miles of the railroad, which is a requirement of the charter, is rapidly expiring, and the work has not yet been commenced.

Since the service of the injunction, the president declares, that no paper has been discounted, nor any bills put in circulation. Some collections have been made, but no redemption, except by the stockholders. Several hundred dollars, however, of the bills of the Bank of Western New York, were received by the president, of Mr. Hubbard, and put by him into the bank. This sum is not credited on the books, nor on discounted paper, and yet, was shown to the Commissioners as a part of the assets of the bank. This fact was elicited on subsequent inquiry, and the explanation made, as set forth in the previous part of this report. Since the injunction likewise. Mr. Emerson took out of the bank bills to the amount of $40,000, in sheets, signed by C. A. Emerson cashier, and A. Weeks president. These bills, however, are not charged, nor in any manner entered on the books of the bank. How far this is a violation of the injunction, is for the Chancellor to decide. These bills were intended to be used, (as is said by the president) to negotiate a credit in Buffalo, as collateral security, and not used intil the injunction was removed, and the bank again in operation.

Connected with the intended future operations of the bank, is the causing to be engraved, by Wm. Vandervoort, a plate of bills for the Bank of Macomb county, payable at Tonawanda, in the state of New York. An impression of these bills was shown to the Commissioners. The sheets, Mr. Weeks thinks, are in Buffalo. They have never been at the bank, nor has he signed any bills of this kind.

How far it is competent for the bank to issue bills of this character not payable at its counter, is at least very doubtful.

The foregoing statement wili enable the legislatare to decide how far the conduct of those having the management of this institution previous to the service of the injunction, is in conformity with the provisions of its charter; and whether the proccedings of its officers subsequent thereto, and their contemplated arrangements are calculated to inspire and to justify the confidence of the public.

All of which is respectfully submitted.

K. PRITCHETTE, Bank Com.

(B.)

Letter of Credit from Wm. Vandervoort and Stephen White. Tonawanda, October 29, 1838.

TO HENRY N. WALKER, Detroit:

Sir-I hereby authorize you to draw on me, or to authorize others to make drafts on me, (you giving me advice of the same,) for any sum not exceeding fifteen thousand dollars, which, under your direction, shall be expended to redeem the circulation of the bills of the Bank of Macomb county, in the state of Michigan, said drafts to be made payable at the city bank of Buffalo, at 90 days, and the bills of the said Bank of Macomb county to be held by Mr. Welles, cashier of Farmers' and Mechanics' bank, as security for the fulfilment of the agreement between us in reference to said proposed redemption.

Your ob't serv't,

WM. VANDERVOORT.

Tonanwanda, October 29, 1838.

TO HENRY N. WALKER, Esq., Detroit:

Dear Sir-I hereby guarantee the payment of the drafts authorized to be drawn on Wm. Vandervoort, Esq. under the authority here given.

Yours, &c.

STEPHEN WHITE.

(C.)

List of Stockholders, Officers and Directors.

The original subscription to stock not to be found in the bank. List of Stockholders.

2,000 shares at $50 each.

Brooks trans

ferred to E. Jones.

15 over, not transferred to the proper account.

Third directors are the present ones, elected Oct., 1837, and re-elected at the annual meeting in Oct. 1838.

(D.)

Statement of C. Clemens, E. Hall, I. J. Grovier and William

Canfield.

To the Hon. A. FELCH and K. PRITCHETTE, Bank Commissioners of the State of Michigan.

The undersigned, citizens of the village of Mt. Clemens, Macomb county, and stockholders in the Macomb county bank, having been informed that you have been appointed by the legis lature at the present session, to investigate the concerns of said bank, believing that a full and complete investigation of the same is required by the spirit and letter of the resolution providing for your appointment, have felt it their interest and duty they owe to the public, to forward you the following statement, the truth of which, they believe, can be substantially if not literally verified.

The statement herewith submitted has relation to the management of the institution by Messrs. Wm. Vandervoort and Lucius H. Pratt of the state of New York, and Aaron Weeks, of Mount Clemens.

The said Vandervoort, Pratt and Weeks obtained the controlling interest of said bank by false pretences, and in their manage

ment of the same acted with duplicity to the public, and the other directors.

They gave a solemn pledge at the time of obtaining the controling influence, that so far as depended upon themselves, the institution should be not only respectable but solvent. This they have violated, as the institution for more than a year past has been unsafe and the bills below par, causing a great loss to the bill holders,

They pledged themselves that the Michigan directors who signed the bond as collateral security for the redemption of all the issues of said bank, until ten miles of the Macomb and Saginaw railroad should be completed, or the bond cancelled, should be and remain permanent directors.

This pledge they have forfeited, and within a short time after the institution went into operation, having the power, changed the directors, and left those who were on the bond at the mercy of those who resided without the limits of the state.

Vandervoort and Pratt, as stockholders, took ten thousand dollars each. They also took, as they said, for exchange, twenty thousand dollars, as they gave the public to understand after they left, for the purpose of creating a fund in the Commercial bank of Buffalo, in favor of the Bank of Macomb county. No such fund was ever created in the Commercial bank of Buffalo in favor of this institution. The forty thousand were taken from the institusion with the knowledge of the said Weeks and Emerson, the cashier, and without the knowledge or consent of a majority of the directors, particularly the undersigned. The arrangements for the same were made and the money taken from the institution upon the Sabbath; and the said Vandervoort and Pratt, after taking the money, left the county on the Sabbath, and a knowledge of the transaction for a long time was kept from a majority of the directors.

The original subscription book of the capital stock was by them destroyed, as we are informed, and do believe, without the knowledge or consent of a majority of the directors, as will appear by an examination of the present stock book.

That part of the charter which provided that no note or other evidence of debt should be received in payment of any instalment due or to be paid in on the capital stock, has been violated.

They have made use of deceptive means for the removal of officers of the bank, who could not be made subservient to their own purposes.

There would have been no necessity for the injunction under which the bank has remained for a long time, had its affairs been managed with good faith and upright intentions by the said Vandervoort, Pratt and Weeks.

They have permitted the injunction to remain on the bank long