The New York herald., 1873-10-12
CASHIER PIERCE ARRESTED.
His Detalcation at tie Merchants National
Bank Over S6s, ,0oo-Bank Examiner
Needham Orders His Arrest-In
Court-Butier Fighting the Com
missioner s Demand for Bail.
Boston. Oct. IL. 1879

BOSTON, Oct. ii, 1873.
Justice has not been as tardy IN the case OF John
p Pierce, the indiscreet cashier the Merchants'
National Bank OF Lowell as we usually find in such
matters and should the scales remain even it is
possible he may find that truly, the way OF the
transgressor is hard. The offender was taken into
custody by United States Marshal Usher this after
noon. Colonel Needham, the bank examiner, in
his investigation, came upon evidence oi the
CASHIERS guilt. and 1t was determined upon that
he should be at once arrested. Mr.. Pierce prom
ised to De at the United States Court in Bos ton,
this forenoon, in preference to being ac-
companied by an officer lie fulfilled his prom
ise and surrendered himself to Marshal
Usher in this city at the hour agreed. He was
accompanied by his BROTHER Mr.. Livingstone and
Mr. Buttrick, of Lowell, WHO became his bail.
General Butler, his counsel, agreed to be present
at The same hour, but at twelve O'Clock had not
put in an appearance. The complaint against Mr..
Pierce for embezzeling the funds OF the bank to
the full amount OF the defalcaton as discovered by
Colonel Needham and for making lalse entries on
the books. Pierce looked somewhat carew0rn and
as II his trouble had told on him. At about the
time Mr.. Pierce came in General Butler appeared,
and at waived an examination in order to
arrive at the question OF bail.
FIFTY THOUSAND DOLLARS BAIL ASKED.
The government asked that the bail be fixed at
$4,000 General Butler demurred to the amount.
He detailed the circumstances OF the defalcation,
showing that Mr. Pierce had known the loss days
before it came the eyes OF the examiner and had
not run away, and that since the discovery he had
given up, only all his properly but also the
house and other property belonging to his
wile and held in her name. The bail was
only to be sufficient TO hold the person charged
with wrong doing and he asked IL to be put at
10000 Mr.. Pierce had friends who had confidence
III HIM and would bail HIM to large amount;
very small amount would hold him well as
81, 100000. Ii he had wanted to make of he would
not have waited until this time
The Commissioner asked what amount OF funds
were claimed by the bank managers to be lost
Assistant Unired States Attorney Dabney
swered that $685. 900 was alleged to have been taken.
COLONEL NEEDHAM ON THE DEFALCATIoN.
In answer to question by General Butler,
Colonel Needham SAID that it was very difficut
thing to nix the exact amount OF the deficit; as he
made the deficit was $o3 roo or this some So 900
or $1,000 had been made good by the defendant;
BESIDES some $4,000 in property had been restored,
leaving amount due the bank OF per haps S55 OOO
General Butler said that the only question TO be
asked by the Commissioner was what, In his judg-
ment, was the least amount that would hold the
defendant. After giving up all his property even
to his lie insurance policy he thought there could
be doubt of his Willingness to attend his trial.
Commissioner Hallett stated that his duty was
to fix bail at such an amount as to insure the at
tendance OF the defendant. The case was very
similar to that OF Lovett, the deiaulter at Hing
ham, which was before him this week. In that
case he had found no reason to reduce the bail
asked. one reason urged now was the TACT that
a valid defence was intended. That might have
been alleged OF any defence, but perhaps in day
week that defence might be found to be invalid.
On q careful consideration OF the case he should
be compelled to decline to reduce the bail
General Butler said that he intended to show
not lose dollar through Mr.. Pierce He thought it
was an excessive bail TO demand alter the willing
ness the defendant had shown to stand trial.
Commissioner hallett said, fortunately Tor all de-
fendants, there speedy redress II the bail was
put at an excessive figure by an application Tor o
A consultation was held between General Butler
and the gentlemen who were ready to give bail
for Mr. Pierce, and the General then stated that
they were ready TO go on with the examination.
District Attorney Peabody said that ne was not
quite ready to go on with the case.
$4,000 BAIL ACCEPTED.
General Butler said that the government might
as well be frank about the case 1t could not IN
Whereby %iy yg to Mr. Pierce and he could not be
imprisoned without that. The District Attorney
had better take s25,00o and be satisfied.
Mr.. Dabney then said he knew very little about
the case, whereupon General Butler advised him
to ask Colonel Needham, VINO would tell him that
the books OF the institution did not show that q
single dollar had been lost. The counsel then
retired for consultation, after which Mr.. Dabney
d nns & sr M pase ba o s to case
bail in the sum OF $4,000, he should take bail at
that amount.
were received as sureties. The Court then ad-
journed.
the bank examiner makes the following Official
statement
OF the Merchants National Bank this city found the
loss the by the deialcation the cashier
SOS 0l 81 which will leave the capital unimpaircd
surplus $lA A29s Is In addition this there a pos
sble liability OF which have been informed by members
Board Directors amounting to $S7O01 which Is
disclosed by the books and In the
the bank but which, II established and legal liability
Is the bank account of the unauthor.
lied its late cashier, will be than met by
the balance of the bank and esti
mated Its assets fully valued in the schedule of
resources. DANIEL NEEDHAM,
National Bank Examiner.
EIGHTY-sIx HORSES BURNED TO DEATH