the validly of the recommendations which you have done me ^
favor of enclosing, and if they are satisfactory, and the arrange<^
foeni now on hand, (I refer to one contempkted with an 'eastern
bank,) be not consummated, I will enter mto a negotiation witl^
yoq.

In baste, but very respeetfoUy, '

Yonr obedient servant,

T. ROMBYN."



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HOUSE DOCUMENTS. 9St

. At tUt Urns I did noC know Mr. Rawtoo, exoepc vdty slightly.
A note of Mr. Rawson's^for some amount, had beeo put into my
bands the day before as collateral^ security for an endorsement,
hot I took a guarantee from the person delivering it» and made
Tory slight inquiries as to Mr. Rawson, and did not retain the
note but a short time. As to his history and occupation, I knew
nothing. The letters of recommendation which he enclosed,
were of a satisfactory kind. I shall allude to these more particu^
larfv hereafter.

Before iearing Detroit, and on the above day, I saw Mr. Raw.
son, who told me that he was poor, but that he had been acting
for some time as agent for some highly respectable men, who were
desirous of en^ging more extensively than they had done in
western operations ; that he had purchased large amounts of flour
and wheat, and other produce in Ohio, and latterly in Michi^^an,
and that he had experienced great difficulty from the inability
and nnwillingness or the banks to discount drafts for him ; that
some of his friends and those for whom he acted, had formed a
company, and were desirous of concentrating their means in a
bank and operating through it, and that he could advance 820,000
in caik towards sustaining the bank after paying for its stock. I
replied that I would think over the matter and would write to
him from Buffido. Accordingly I did write from that place, as
follows :

''Buffalo, November 90, 183a
DbasSib -

I wrote to you a few days since very briefly on the subject of
selling the Ypstlanti bank.

I have been for some trme satisfied that the bank will not an*
swer the purposes of those for whom it was originally purchased
by me, as its circulation must be limited to tne amount of its
capital stock paid in, and the Bank Commissioner has assured me
that any of its notes loaned to other institutions, will be debited to
k as circulation. I will make you a proposition, subject, howev-
er, to the contingency of the alteration of a contract with the bank
already spoken of.

The capital stock of the Bank of Ypsilanti paid in, is 91 00,-
600.

The circulation is about 960,000. The bank is indebted to the
CTity bankof Buffalo in the sum of $10,000, for which a bill has
been drawn on New York ; collateral to this, the lilite amount of
notes of the bank has been deposited. There is a farther indebt^
edoess to the state of •10,000, for which a bill has been drawn on
the Canal bank of Albany.

There are very small amounts due to depositors, and I believe
no balances in favor of other banks.



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8M HOUSE DOCUMBNT&

I will sell stock to the amount of 999,108 36, and sunraoder
the entire control of the banL

For this, and for nay services in the premises, and the respon*
sibility assumed by me, I expect ten per cent more than the par
of the whole amount of stock*

I will assume the payment of aH the drafts that may be made
at the time of the transfer, on receiving from the bank funds suA
ficient to cover them.

I will take in payment all notes which may have been discount*
ed by the bank since I assumed the control of it, and for the re-
mainder I will take funds current in the city of Detroit. If the
notes of the bank are paid to me^ I will take care to give them a
good ch'culation.

I will expect of you, that you cause the old notes of the bank
to be destroyed, and not re-issued, as I promised Mr. Treadwell
(when I purchased from him,) that this should be the case. Sueh
are the leading outlines of the pri iciples on which I am willing to
sell ; and if satisfactory to you, I think we will have no diffit^ty
on my return in consummating a bargain.

Yours, &c.

THEODORE ROMEYN."



Subsequently I wrote to Mr. Rawsom in effect as follows : (I
have not retained a copy of this letter,) that he couM have the
bank on the terms mentioned in my former letter, as the directors
of the institution in New- York, who had intended to use its note^
were willing to release me from my bargain with them, and did
not wish to encumber themselves with the management of the
bank, and 1 could not conclude an arrangement with their stock-
holders as individuals for this prrpose ; that if he desired to take
the bank, he must have his own directors selected, and all thiws
prepared for a complete change, as I would retain no responsibm-
ty» and would give full notice of the change.

On my way home, I received at Bufialo a line from him, aim*
ply stating that he was entirely prepared.

The only persons whose names I recollected as having been
mentioned to me by him as his friends in this matter, were Mr.
Maynard and Mr. Gill. The former I supposed, and certainly
understood, wad a resident of Onondaga county, New Yciik; the
latter of Columbus, Ohio. I inquired and was informed as to
both of these, that th«y were exceedingly respectable men*
From the examination of Mr. Rawson before you, it appeared
that Mr. Maynard is a resident of Chenango county. Of this
gentleman I know nottiing. My inquiries were as to a different
person.



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HOUSE 0OCUMBIf Ta 8W

I letoroed home on the d4thda]r of December. On the 26th I
tmtmkned to Mr. Rawion aod to others, accordtng to his direo-
tions, all my stock in the bank. A serio for about tldfOOO was
sot 10 my possession at the time, but as I considered it ^object to
my control it was assigned with the rest, with full notice of the
fiict of its having been subjected to a temporary hypothecation.

The mode of transfer was as follows : the stock was traosfeis
red upon the books, and the old officers and directors resigned.
A new board was chosen, who passed upon certain paper. Mr.
Rawson then gave me in payment for my stock an equal amount
of the old discounted paper of the bank. I wish it distinctly uo-
<ierslood that neither myself) nor any old director, examined the
•new paper offered for discount, or had in any way any thing to
-do with it.

You will recollect that I had taken from the bank t2&000 of
ks notes. These I brou|;ht back witii me. Mr. Tracy declined
to receive them, or to give me up my receipt, lest the matter
should be afterwards misrepresented. 1 accordingly gave them
to Mr. Rawson, and not satisfied with taking up my receipt, I
took from him an acknowledgment of the delivery to him of the
'Whole amountf which was exhibited to you and admitted by him.

At the same time, or the next day* the direetorff ordered the
execution of the agreement accompanying this communicatioo,
marked B, bv which I assumed the payment of all the drafts of
the bank. This instrim^ent speaks for itself.

The mode of transfer was thejsame that was adopted when I
(xircbased. In both cases, the intention was to leave all respoo
sibiiity with the new directors.

Mr. Rawson wished me to.take the premium on the stock in
some paper which he held. I objected, as not knowing the names.
He the0 proposed that I should take certain stocks of a third per-
son, and after some tiesitation, I acceded to this, and took tkem,
as, at the time, there was a prospect ol converting them into mo-
ney.

I have now stated to you with entire frankness, aU the circunn
stances connected with my contract for the sale of the eontrol^ of
the bank, and the manner in which it was carried into etkcU
While no one will deny my legal right to sell bank stock to any
person who would pay me for it, I am ready to admit my ob!i-
gation to the community to see that the control of the institution
went into safe and responsible hands. I now wish you lo refer to
the letters of recommendation which Mr. Rawson brought to me,
(schedule A.) You will find them to be from persons of difl^-
enl states. You wiU see that they speak of him while yet a youth,
and follow him down to the present time, during fifteen successive
yeai9; and that thev ail concur in their tettinM»y as to his inte-
grity and respectability. The representations which he gave of



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am HOUSE DOCUMENT&

his backenin the business, were entirely satttfactonr; be had
with him a letter of credit for 920,000 of money, and I submit to
you, under the circumstances, if 1 was not entirely justifiaUe in
treating with him, Sinc« the transfer, be has exhibited to nne m
formal power of attorney from A. K. Maynard, regularly execu*
ted and authenticated, authorizing the purchase of the stock of the
bank, and also of a mill.

I now oome to speak of my conduct shice the transfer of the
bank.

It will be recollected that Mn Hopkins declined to act a« cash-
ier. Mr. R. Lockwood had been in the bank for some time, and
I requested him to stay until matters were settled, as he was ae^
quainted with the situation of the bank* and I had full confidence
in his capacity and integrity, and, as my own liabilities on the
drafts of the bank were large, I was desirous of having some one
with whom I was acquainted remain there temporarily. He
agreed to stay for a few days, and for a few days only.

I solemnly declare, that from the time of my resignation ma di-
rector, on the 28th day of December, I never intermeddled with
the affairs of the bank, in any way whatever. I kepi entirdj
aloof from it, and know nothing of its operatiims, except as to the
amount of its redemptions, as they were meotidned to me inckfen*
tally by Mr. Lockwood and others.

The day after the assignment of the stock, I received 95,000 in
specie, which I gave to the bank, and for which I received nothing
but an open credit. This specie was used by the bank in ita re-
demptions, and I never received any thing but ordinary counCry
funds for it

I proposed to a friend to take the order on the Buffalo citv
bank, for the money there deposited, and disburse it wesivrard,
where it would have a good circulation, and pay the draft doe
that bank. He referred it to his partner at Buftalo. Before any
answer was received, I wrote again, arranging in another qoartar
for the payment of the draft, which has been taken up, and encio-
sing an order for the bills deposited in the bank, as I found that
sudi an increaseof western circulation might operate disadvantage^
ously. I am advised that but a part of these have been circuhh
ted ; the rest are on my hands.

Of the other drafts assumed by me to a large anKMint, all, ex-
cept about $4,000, have been provided for.

Of the discounted paper assigned to me to pay these drafts, I
have only received about one (Kindred dollars. A small anKXiBt
was taken in notes of the Bank of Y|)silanti, which are still on nqr
hands, and about three hundred dollars were paid into the bank te^
my credit, where it remains, being covered by the injunction.

Of the ten thousand dollars paid to me in the notes of the baakr
{ako for the purpose of paying theM drafts) about eight Ifao i Miod



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HDDSE DOCUMBNta Mf

Mkaei wtre piEid into ibe FtB^nmnf atid M^chtnies' boflk bf tbk
city; As 800D as I UDdertKxKi that the Bank of Yprihmti vh^
made the otnect of suspicioQ and remark, and that her notes were
roomed to her counter constantly for redemption* I went to the
above bank and withdrew every dollar she had, being about four
thousand ddlars, which notes are still in my hands.

I loaned to a gentleman of this city five hundred dollars, which'
were not used by him, while the bank was in good credit, and
wbicb I am expected to take back.

Tb another I paid four hundred ddlars^ whidi Wai immedittte-
]y aeot borne to the bank, contrary to my expectatibns, and therof
redeemed.

To another I loaned one thousand dollars, bat ro<)uest6d htm not
to use it immediately, as it might pr^adice the bank. He did so,
and the money perished on his hands. Voluntarily I ofiered to'
return his note ; so that this will be my loss.

To another I advanced five hundred dollars, tfnd the moment I
received information of the discredit of the paper, I wro<e to htnv
a note requesting the return of the money.

£xcept a very few hundred dollars disbursed by me in smalt
sums, I used none of the money except as above stated.

I challenge any individual to come forward and say that I have
been inetromentaJ in extending the circulation of the notes of the^
bank, except as above stated. Let any man who has received
them from me answer.

The result of the whole is, that of the ten thousand dollars paid
to me, more than (me-lialf perished on my hands.

I now come to speak of my conduct while the bank was mak-
ing its last effort.

Mrj Lockwood brought to me a note for ten thousand dollars^
that had been discounted at the bank, and wished me to procure
its re-discount. I was satisfied this was impossible, but told him
I woufld make the effort. The only thing which I could do wa^
taexdiaru;e, temporarily, notes of the Bank of Ypsilanti, to the
amoimtoTfive thousand dollars, for other money; which I did/
by pledging my own private property and individual credit fef
the return of the sum advanced. All this went to the Bank of
Ypsilanti, and all that I hold for it is the like amount of their owff
depreciated paper, and the ten thousand dollar note above men*
tioined.

1 also went to the Bank of Michigan, and left with her teller
two hundred and fifty dollars, to redeem what Ypsilanti money
Diigfat be ofiered at her counter. This amotiot is also on my

I w«s induced to make the tet exertions for the bank, becacm'.
I bad a direct interest in sustainioff her credit, not onty from my
recent connection with her, bat Kom the amount of her money
45



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mt BOVm P0C1JMIHVT».

i« my hands. I did k io good bMu urged to it t^ her affiem
^ a9Mured by lhem> that a hrge amoUAt of Ohio and othor
AnkI^ were daily ^peoted. 1 did it, after uoTavorablo rwm^n
had conofs to «iy eor9, and agaiost the advioe of frieoda. The r(^
suit of the whole is, tbat I have never oirculatod but a mmUI
amount of the no(e»pf the bai.k ; that at my oyin risk, I prerented
tjieif circulation in numerous instances thereby incurring Idss
iny«etf ; and that I have supplied her with exohaqieea from miy
own resources, and to my own disadvantegD:* |o nearly the aroouBt
of aU tbat I have used^ If Uie notes of the bank are worlhleas, then
I am a direct loser to ibe amount of thousands by my QoaooQlioQ
with her.

You have now a statement of all my oonneotions with llie Bank
of Ypsilanti, and I am sure tbat you will do me the justice to aay
tbiaVit is in every respect confirmed by alt the testimooy, oral aniil
written, which has been elieiled on this subieot.

it only remains that I speak of what I hare said and done
fiMdy in this matter.

Before I assumed the control of the hank* I menlioiied loyour*^
self that I had it in contemplatioQ, and did the same la Mr.
Pritchette.

So soon aa it had passed into my handa^ I wrote to yoM» advi>
sing you of the factt that I alone was responsible tbi it0 wanaf
â– aenW

I gave the same information to all the Detn>it banks*

Immediately upon my return, I annouoeed to all who spoke to
me on the subject^ my intention of relinquisfaiiig the mam^aaieai
of the bank.

When I had done so, I advised the Detroit banks of it« aad all
ikei^ents and correspondents of the bank were advised <^itb and
«very thing was done to give fuN publicity to the matter.

80 soon as I heard of ixtfavorable rumors ooncerning the banl^
I advised the Bank Commissioner of them. Yourself waa abseat»
and 1 spoke to Mr. Belt and requested him to go and exaoikiaits
afiairs^ He declined, as it was out of his district, I weot mjn
self to the Attorney Gei^eral, and aaked him to altend«* Tbo
examination was finally made by you and Mr. Moray. Youis
sdf can say whether 1 did not do every thing in my power k>
aki it.

Before concluding this communication, I wish to s^ one ¥fofd
about an individual whose name has been connected with tin Bank
of YpsilantL I refer to Mr. Lewis Godard. While I was inters
eated in the bank, Mr. G. had nothing to do with it, direcUy or Hh
directly. He is interested in a valuable property in the village ef
Ypsilanti, and had just finished a large flouring mill. 1 promised
Mm all such accommodations as he wouM be eetilied to fiwn tbt

*Not niitH th» dny after the bank stopped payimnt.



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HOUSE DOCUMBNT& Mt

nature of his business* but lk>thiiig nmre ; and even this was not

Jraolecl to binv. Except in the Detroit city bank, I never heI4 a
ollar of stock in any bank in which he was intere^ed until a few
weeks ago. In the Bank of Ypsilanti he never, to my knowledge,
has had any interest Of his agency for the bank, since t went
irom it, I knew nothing until the matter was detailed to us hf
Mr. Lockwood and Mr. Rawson*

I have now given, as fully and particularly as t could. It 8t&l6-
meiit of all affairs which connect me with the Bank of Ypsilanti.
Yourself can bear witness to the fact that they are corroborated
by every entry in the books of ihe bank, and by all collateral ^nd
extrinsic testimony. They ffo to show,

1st That the control of the Bank of Ypsilabti ^as puf6h&s^
by me in good faith, and in an open and honorable manned.

2d. That while I held the control, its affairs w^fe conducted
fairly and prudently.

9d. That my transfer of it was bona fide and absolute, and
justified by circumstanpes.

4th. That since its transfer, 1 have been entirely disconnected
with it, and am in no way responsible for its present conditibo* .

5th. That I have in no manner aided in expandiuK its cifcula-
lion, but have so managed for the safety of the publiij atid the
benefit of the bank, as to be myself a loser.

6th. That nothing has been done covertly, or undef the rose ;
but fuH pubKcity has always been given by me to evet^ ttCt cov^
nected with it

?th. That I have invited and dided the investigation of tkb
whole affair.

Irt cotaclusioh, I have to ask of you that you will excuse itte fblr
aeidding yoti such a long communication, and one euteringso
much into details. It is due to myseir and to the public that
fhiuds, !f any, should be traced home, And that blame should i^t^
tAch where it belongs.

THEODORE ROMBYN. '

StACT OOP MlCSUOAN, J I-.

Wal/ne dounty. \ ^

On this dOth January, 1889, personally appeared beftMi^ tne,
Theodore Romeyn, who being duly sworn, made oath, that the
matters and things set forth ^ in the foregoing communication to
Alpheus ^elch, bank commissioner, &c. are true, to the best of
his kbtmledge and belief.

I- S. ROWLAND.
Not. Pub.^ W. C.,Mr



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3M HOUSE DOCUMENTS.

{JSdiedtde A.)

The undersigned, inhabitants of the town of Palnoyra, certify
that they have for some time past been acquainted with Philo
S. Rawson, and have n6 hesitation in saying, that his character,
ia their opinion, is unimpeachable as to integrity, honesty and
good conduct ; and further certify, that he would be perfectly
competent to the roanagennent of a mercantile store in the capaci-
ty of a clerk.

Palmyra, August 3d, 1823,
Joel McCollum, James Field,

Alexander R. Tiffany, P. Grandin,

Leonard Wescott, Piatt Williams,

Israel J, Richardson, L- Tucker,

Thomas Rogers, 2nd, Seymour Scovell,

Caius C. Robinson, N. W. Wilcox,

Tho. Baldwin, Alva Henslee,

D Rogers, Kingsley Miller,

Js, William Wells,

Giles Landon,
Geo. N. Williams,
e}(amined a certificate signed by a large number
itable gentlemen of Palmyra, recommending Philo
^ young man of fair character, and in their opin-
to tl^e management of a mercantile store in the ca-
; it gives me great pleasure to state, notwithstand-
sak of his present fitness for such a situation, not
irsonally acquainted with his deportment or ac-
quirements for the last two ye^ni, that said Philo was a member
of ipy family from the fall of 1620, to the spring following ; and
that from his then regularity of conduct, knowlec^ and his strict
mpral integrity, I could not anticipate any other character thaq
the highly respectable one given oi him in said certificate ; and so
far as my acquaintance will warrant, I most cheerfully join with
those gentlemen in their recommendation.

DUDLEY MARVIN.
. jlturn^ 8, 18d&



Palmyra, October 6, 1828.
I have been particularly acquainted with Philo S. Rawsoiv
for three years past, and it gives me pleasure to state in his be-
half, that I have ever re^rded him as a youth of strict integrity,
ilHhistrious habits, and unoflfendiiw w ann er s .

D. K. JONES,



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HOUSE DOCUMENTa 905

1 hive for aocne tkne been acquainted with the bearer, Mr.
Pbilo S. Rawson, and have always cooaidered him a young ^n-
tleman of correct and honest principles, and entitled to the fullest
confidence in whatever situation or employment he may be en*-



'^•i



le has been in the employ of Messrs. Mead and Lyon, of this
village, for some considerable time.

I feel a pleasure in recommending Mr. Rawson to the favora-
ble notice of those among ^hom it may be his lot to be cast

JOHN A. GRANGER.

Canandaigua, N. Y. April 16, 1828.

Columbus, I6th May, 1838.
Mr. Bt%

Sib: I understand that you wish to be made acquainted
with the character and reputation of Mr. P. S. Rawson. Sir, it
zffovdB me great pleasure to be able to communicate to you my
highest opinion of Mr. Rawson. I have known him for many
years, and have never known him to deviate from the path of
rectitude, and can recommend him to you both as a moral. Intel-
lectual, and business man, and worthy the confidence of any'bu-
mness, and presume that he will fulfil any engagement that he
may make with you.

Yours, in haste,

H. GILL.



I hereby Certify, that I am well acauainted with Mr. P. S.
Rawson, and can cheerfully concur in the above remarks of Mr,
GUI.

Yours, in haste,

J. S. SHERMAN,
CUbnim 3«ft Mag, 1886.



Lochportf May 20, 1838.
I have bem aoqaaioted with P. S. Rawson for several years
past I have bad considerable dealings with him, and have al-
wavs found him fair and honorable.

I ooosider him a competent and capable busioess man, and aa
a aaletman in a dry goods 8t(»^ unsurpassed in this vicinity.

MARK HOPKINS,



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MB HOUSE DOCUMENTSl

Lotiffori^ May 18ift, ifsa
I iMve been dcqtiaiiited with P. S. Rdtvson for setetal jteLtg
and have had considerable deal with him. I have ever found
him, so ht as my dealings with him extended, fair, honest, and
honorable.

S. CAVERNO.



^ Thta may eertiry that Philo S. Rawson has been in our em^
ploy as a olerk for abont two years past, and we consider him a
^oung man of strict integrity, industrious habits, and well calcu-
lated for the mercantile business ; and would recommend him to
the favorable notice of those among whom it may be his lot to (all

HAYWARD &L RAWSON.
Lockport, April 9th, 1831.



I



YpsikmH, (M.) June id, 1836.

To whomsoever it may concern :

This will certify tha^ I have been for several yeara past ac-
quainted with Mr. P. 8* Rawson, and know him to be a gentle-
man of correct^ industrious business habits, ffood nooral character,
•Iriolly honest, and I cheerfully recommend him as every way
worthy of the confidence of any business man.

MARVIN MINOR.

Hartland, AuguH 2% 1829.
This Will certify thai Mr. P« S. Rawson has been in my em-
pby as a clerk for some tin^ past, and that I consider him strictly
moral, honest» and well calculated for the mercantile businessi

MARVIN MINOR.

Sanduiky C%, l<Hh Mtty, iMd.
Mr. Bell

Sir : The bearer of this letter, Mr. Rawson, requested from
me A letter of credit lo you, which I cheerfully give, and I can
say, that it aflbrdb me the greatest-pleasure to be able tocommu-
fiicate to you my hiifhe^ opinion oi Mr. Rawiott^ for I have Imi
many years of personal acquaintance with him, both in busiooM
for himself and others, and have always found him prompt^ holiest
and Mt in all matters of deal, and would recommeod Imd as sioh
to you \ ahd I have no doubt but that he will fulfil all and any
en^gements that he may make with you, and he has many friends
wIk> can say and do the same for him.

I am truly vours, in haste,

HORACE APLIN.



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U0I7SB DOGUWBNTS* am

Sir; Tbi» l^Mf will bo htiiKled you by the bearer, Mr. Raw-
son, whom I have had many years of persooai and buniness no^