The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-03-15

The Boston papers have been very chary of
their comments upon the disturbance in State
street last week. The result of the heavy
failure of Mellen, Ward & Co., has been to
swamp the First National Bank of Newton
vile; to inflict upon the Merchants and State
banks loss of 100000 or 100000 which
they are trying to throw upon one another;
to victimize another Boston bank to the
tune OF $150,00O, another of $125, 900,
another of $4,000; and to leave various
business houses Ou5 of pocket to amounts
varying from $4,000 downward The entire
loss cannot be much less than $1,5OO,OOO
Cause, stock gambling. The matter is fully
explained by a Boston correspondent of the
New York Times, as follows:
Some three or four years ago, a nice new
IRON store ON Congress street was occupied tor
the first time by three young men, under the
style of Mellen, Ward q Mower, with a CAP
ital of $4,000, it is-said. They stsrted well.
but how sad the ending. The first two wears
they did large and prosperous business, be-
ing agents for the sale OF government Securi-
ties, on which their commissions were large,
and as commission stock brokers they also re-
ceived an excellent share of that sort of bust
ness, which was then in ''iull the of success
full experiment" But change came over
the spirit of their dreams. The sale of gov
eminent securities had its run, and their pro-
fits from that source rapidly declined; the
speculation in stocks, Which was SO rampant
in 1864, became thing OF the past. Office
expenses and cost OF living were both he avy.
and something must be done. MIR. Mower re-
tired from the firm, and, alter some unfortu-
nate operations in gold, retired to the Green
Mountains, the home of his relatives. Mel
len and " ard kept on, and admitted Carter, a
Director OF the First National Bank at New
ton into the firm. lie is reported to have paid
i'll $4,000. "Big things" now began to be
talked OF. Carter has big ideas. He was
building big house at Newton; he kept
big span of horses, and was considered "big
bug" He was interested in the raising Of
swine; it is said he recently had on hand one
hundred big hogs. He soon conceived of big
operations in stocks, and matters were ar
ranged tor big corner on Copper Falls, but
the thing seemed to hang fire-the brokers
were shy, and outsiders could not see why
Copper Falls, which never paid ole dividend,
should sell at $40. Finally, an "old stager''
in Coppers was found, who thought the thing
had gone about far enough, and was willing to
"sell short" Another joined him; between
both some 1000 shares were oversOld. Now
was the opportunity, thought Carter, but mon
must be used, and that freely, too. The en-
tire FUNDS of the Newton First National were
absorbed; the funds of the United States
Sub-Treasury had been used through the
cashier, it is said, at one time as high as ST.
100000, until suspicion began to rest on
him, and he could not go on in that
way. 1t was too much for his nerv-
Gus organization, and was killing him.
HE ooch xuac 70 ha bo 1nto;o,,o,
was to be made right on examination day.
What was to be done? A large amount of
Gold certificates were purchased in New York,
and sent here (how they were paid for, if at
all, does not appear) They were carried to
the Merchants Bank and deposited, and a
loan OF 100000 obtained for Mellien, Ward
& Co. That was something in the way OF
working capital to carry on the corner" To
get the certificates away from the Merchants
Bank, Mr.. Smith, the Cashier of the State,
was callef in. He requested that the deposi-
tors be allowed to remove the certificates to
the State Bank. The "point" was not "seen"
by the Merchants until Smith stated that The
check of Mellen, Ward & Co. on that bank
was good, and was willing to certify to it
which he did, and the certificates were re-
moved, but not to the State Bank. Down
they went to the Sub-Treasury, the cashier
wishing as he told them, to bridge over the
first of the month, when he would return them
next day. He had no idea of doing this. how
ever, for he was already tired of the game
His wife had found out about it, and it is said
a detective was at the time on his track. The
certificates once in the treasury office of the
Custom-House, the Government cash was
made right, the cashier resigned" the GER
tificates were not delivered to the Copper
Falls ring when they applied for them the
next morning. The jig was up-the checks
of Mellen, Ward & Co. were refused at the
banks during the day-the explosion took
place, and very fortunately perhaps, for had
the clique again got control Of the certificates
as they intended, and of the Sub treasury
cashier, the matter, as bad as it IS, might nave
ended worse a month or two hence. Inc
men who have caused this row are an young,
and all have now or have had hard-working
and frnoal ancestors, but they were not will
inc to tread in their footsteps to acquire
wealtb~a short cut must be resorted to-
They thought they had the game in their
hands, and were expecting to
make the "old fosies" off State
street take of their hats to them
1t is possible that State street may be instru-
mental in having theirhead shaved al Charles
town. The father of the Cashier OF the New
ton Bank (who is thought to have known all