The New York herald., 1873-11-15
RHODE ISLAND RAsCALITY.
The Wardwell Dofnlc alton I'm the Com
mercial National Bank OF Providence
Being Investigated by the Government
Bank Examiner.

mercial National Bank OF Providence
Being Investigated by the Government
Bank Examiner.
PROVIDENCE, Nov a. 1878.
The National Bank Examiner for Rhode Island,
Mr.. Mygatt and the directors OF the Commercial
National Bank, have been engaged all day in
thoroughly examining into the condition OF that
institution and ascertaining II the defalcation Of
S. II. Wardwell extends iurther than he has stated
From personal interview with Mr.. Mygart am
enabled to give the full figures OF the defalcaton
and the way in which 1t was conducted.
Mr.. Mygatt says the deficit appears, SO far as
examined, as MIR. Wardwe has stated, viz.-$45,00O,
which he concealed by calling his bills discounted
Tor $4,000 more than they really were. He also
appropriated United States government bonds to
the amount OF s., 500, the rest OF the deficit,
$4,000, he secured by special loan from the Me-
chanics' Bank OF New York. the corresponding
bank Of the bank here. After examining up to
the present time, MIR. Mygatt and the directors are
disposed to believe Wardwell has stated the
truth Thus far they have discovered no
deficit in special deposits with the single
exception OF the $4,000 government bonds.
The cash account Is correct in all particu-
lars, and the accounts OF the bank generally seem
10 be correct, and will be verified as rapidly as pos
slble, though it is supposed the strictest examna-
tion will not reveal any discrepancy other than
what has been already stated. Wardwell specu-
lated largely in real estate i've years ago, and 1t is
supposed, lost $4,000 by the business. He also
had considerable dealings in stocks Clark the
former teller was defaulter at the time OF his
discharge three years ago, and put the load OF his
guilt on Wardwe, who has been IN the employ OF
the bank for twenty-seven years, assuming the
position of cashier in 1858. Deacon Wardwell.
iather OF the defauting cashier was cashier OF the
Eagle National Bank here lot halI century,
and was devout man, an extraordinary accom-
plishment OF his being his reading OF the Bible In
different languages Wardwell, the defauiter was
nearly craZed after disclosure and last night was
greatly agitated In expectation, as he afterwards
confessed, that the bank officials would be very
bitter against hlm and have him severely pun
ished. He, however, appears to have confessed to
harshly disposed towards him; but Mr.. Mygatt
says In this affair, as in all such dishonest
proceedings. the law must take its course. Ward
wen appears more collected to-day, and iully
realizes his dishonorable position BE lives In tins
city with his amily to which he mas brought great
grief. lie had not, up TO this afternoon, been ac-
tually placed under arrest but he is virtually
prisoner, and his case viii undoubtedly be dis.
posed OF in the same manner as those OF hoard
and Pearsons, the Rhode Island National Bank
defaulters OF last year. who received a sentence OF
nine years. Imprisonment HIS salary was s3, 600
year and q short time ago stories were In circula-
tion that Mr.. WardWeH was living at
Of lie was at that time told about the stories
concerning him and questioned in regard to it, but
he then stated he had other income from legiti-
OF the bank, amounting TO over $1,000 600, rem
dered 1t atner an easy matter for him to cover up
the deficiency, and such was the confidence re-
posed in hlm that there hardly breath OF sus-
picion against MIN. Advices by mail are expected
from the Mechanics Bank in New York tonight,
and the actual extent OF Indebtedness to that bank
will be officially determined tomorrow. IL is not
expected, however, that any further deficiency in
this connection will be developed.
General Burnside, who, together with Ward
wells iather-in-law, Thomas K. Holden, Is bonds
man to the amount OF $4,000. has been actively
engaged IN the Investigation, and spent great
portion OF yesterday at the bank. Mr.. Mygatt
says this is the third dealcation during the eight
years he has been the National Bank Examiner
Tor Rhode Island, the previous deficits occurring in
the Exchange and Rhode Island National banks.
Relative TO my inquiries as regards the cond-
tion OF the national banks affected by the Spragues
suspension, he says that they Will be fully protected
by the associated banks. The interests in the
Spragues in the shape OF acceptances Of the
house OF Hoyt, Spragues Co., OF New York. In
reference to the First National Bank. which is more
distinctly affected by the Sprague crash, being
wound up some extent with the Cranston
Savings Bank he states that the latter bank owes
the First National s54, 900. The Cranston Bank is
still suspended, and Mr.. Mygatt says 1t must uti-
mately go into the hands OF q receiver. The pay
ment OF depositors will depend upon the issue OF
the Sprague AFFAIRS.