The New York herald., 1873-09-30
ANOTHER BANK DEFALCATION.
Cashier Lovett, of the bingham
Bank, Boston, in Trouble.
Forty.one Thousand Dollars GambIed Away
in Stock SpeculatiOnS.
The Bank Closed by the Govern.
ment Examiners.
RosroN. Sent. %. 1873.

BOSTON, Sept. 20, 1873.
Another financial "irregularity'' has been un-
earthed to-day the transgressor this time being
j. o. Lovett, cashier of the bingham National
Bank, and the amount OF his deiacation Is stated
TO be about $4,000 1t is the same old story Of
speculation, ana the defauter, usual is a
venerable man, and has always enjoyed the con-
hdence OF tue community. The discovery OF the
dcialcation was first made by Colonel Needham,
the Bank Examiner, who called the directors to-
gether this forenoon and startled them with the
following little letter.
EN- find The sasher Of your bank 10.
bank amounting to more than $2))0J0 mostly good
percentage Of the original will undoubtedly,
be returned to the stockholders
Colonel Needham. IN conversation with the
HEaALD reporter said lie had not been satisfied for
q long time with til management of the affairs Of
the bank. Two v, $ ago he made an examination
and found the aany securities which he did
not approve A. d which he urged the cashier
to get rid OF In some way. AT that time,
in private conversation with the President OF the
bank, Mr.. CrOcker Wilder, he asked him IT he con-
sidered the cashier an honest man, and Mr.. Wilder
replied that he did; he had no reason to doubt him.
Mr.. Neednam then said to the cashier, "It seems
TO me you are inclined to speculations,r and put
the question to him point blank,
''Do you EVER sPECULATE?"
and he replied, "No, sr.n Last Thursday Mr..
Needham made his regular annual visit to the
bank, and an examination OF affairs revealed the
previously had. He discovered that the account Of
MIR. Lovett was not correct, and in making
up his statement'he had got too much cash cred
ited which the balance did not prove. He claimed
q balance against the Suffolk National Bank OF this
city 10 Iavor Of MS MS own nn bank S OF ssoS,S42 ST. Mr.
found that instead OF balance IN favor of the
bingham Bank the accounts OF the Suffolk Bank
showed the former owed them $207, 1868. When
this fact was shown Mr. LOvett, he admitted the
whole thing, and said that the money had been
used m speculation. The capital OF the bank u
100000
There are as assets. In noles and bills discounted,
$2ll,44l 93-all but about $4,000 OF which Will
eventually prove good. There are bonds of the
Boston, Hartford and Erie Railroad and other
bonds deposited In Washington, $l40,000 The en-
tire circulation Is $l2o,OO0, and the deposits
amount to $50, ,542, so that there is money enough
to pay all depostors and all the circulation and
very large percentage OF the stock.
THE DEFALCATION
amounted to $4l,O00, ana was finally discovered
last Saturday. On that day Colonel Needham.
after having visited the suffolk National Bank and
satisfied himself that LOvett had Oyerdrawn his
account to the extent Of upward OF $4,000, and
that he was q delauter to large amount, tele-
graphed Lovett to meet him at the Suffolk Bank
at halI-past two O'Clock the same afternoon.
Not making his appearance, Lovett was IN
him at bingham Bank this morning upon the
arrival OF the first train. He did so, and 1pon
entering the bank found the Board OF Directors
assembled ut their usual meeting for making their
semi-annual dividend. Colonel Needham made
known his discovery OF the dealcanon which
Being asked how much he had used, he replied
$35, 900.
Colonel Ncedham told him he was defauter to
the amount OF SAL 900. After some hesitation he
! acknowledged that TO he the sum.
THE BANK SUSPENDS PAYMENT.
The Board of Directors at once appointed a COM.
mittee to wait upon the officers OF the Suffolk
National Bank and see what could be done under
the circumstances. Tne statements OF Colonel
Necdham confirmed and the suspen-
sion of the bank followed Lovett's sure
ties amount to $4,000; his bondsmen are
| perfectly good, and depositors Will lose
| nothing by his specuatons Mr. Lovett has been
cashier from the formation OF the bank, and has
enjoyed the confidence OF a majority OF the resi-
dents IL has been known for years that he was q
specuator in stocks. He was with many an oracle
upon stocks, and his recommendation was received
as authority, and Investments were made by others
In accordance with his views.
Some have thought that the management Of the
bank was too largely under the control OF Mr..
Lovett, practice common to many country banks,
and one which cannot be too strongly depre Gated.
The lact that Mr.. LOvett had the reputation OF
running the bank" has been commented upon but
as he had reached the age of some sixty live years.
and had always sustained himself, the President
and directors were Tree from any suspicion OF dis
honesty.