, 1873-10-12
MASSACHUSETTS,
srecfat Dispatch to The Chicago Tribune.

THE LOWELL HANK DEFALCATIpN.
BosToN, Oct. la formal statement was
n1atte to-day by Col. Medium, tho Bank Exam
iner, Of tue extent of tho defatcation in tho
Merchants National Bank, Of Lowell, and John
L. pierco for the dofaulting Cashior, WAS ar
raingod IN the United states Commissioner
Court, in this city. Col. Neodham reports loss
to tho bank Of nearly sG4000 which will
leave tho capital unimpaircd, and Il sur
plus Of over $4,000. Tlloro is also n
possible liability aa1 nm Of tho Donrd Of
Nacdham and tho bank officials investigating
himself, hiding his coworlers to 1lud out how
gront q thief ho has boon, now takes his place a6
d thief undor arrest, undor bonds to appear
When m e. case aert !s cea a Tor @ sSannatan he r.
Hon. Benjamin .. Butler. The officers Of tho
law, respecting his feelings and recognizing him
al q moro than ordinary thief, did not sub
jees him ,,, to tho a,n,.4 modification ;l Of a
meet him Ut court ut certain hour.
Con. Butler kept the Court waiting two hours
and q half, aud then occupied Tho timo further
by ob1ecting to an excessive bail. flo carried
fixed at 525,ooo, though the Government asked
in tho beginning 0,OD0. Con. Butler detailed
the circumstances Of tho dcfalcation, and mn,lo
an effort for capital for his client by dwelling on
tho facts that lo Lad not run away when the
Since iSa discovery ho Ind sison up
not only nil hia own property, in
Guiding Ills life insurance policy, but also tho
house 9nd other property belonging to hia Wig:
aud held in hor namo. Tho Commissioner still
was none too largo aum, Cen. Butler sur
prisod tho Court md quito startled tho Goyern-
1ncnt Counsel by deuauding that il they could
not take tho e25,000 tie examination proceed
saying that it did not know enough, Of tho caso
to proceed instantcr. Con. Butler then said
thoy must citllor tAlzo As bail or oxam-
ino, as his client should not 60 to jail
when ho WAS ready for examination. There was
d consultation. and then Dutlor'a point was car:
session, that lie intended to show t!,at tho banli
did not lose dollar through Pierce, and that
Col Heedham's examination would show, that
pcrco dill not appear very much doproH Hett, WAS
ably more tho oiToct OF lilo late hours induleea
in during tho examination Of tho bank-books,
just ccasel, Than Of tho stngs Of conscienco.
There is still Homo curiosity to understand
falcation was made. A Lowell papor of tonight
snys tho additional loss Of 100 is not OK
planol, but 1t is said to bo In consequence OF
checks Of tho l,ouso Of II. y. Clain having to
be paid., Tho standing OF tho house has not oc-
bong perfectly sound. Those oi,eckH wore tho
origin of tho difficulty, and tho rumor in gatiug
to lo moro curront tint there ip in connection
with checks and other matters, something that
| plomiacs
A RTARr1ISo nEyELora1ENr,
but tho factH cannot ho muuh longor hopt from
| tho public, and tho flood Of rumora about tile
| city ut tho present time Shows that tho baus
will gain by tho earlioHt anl fullest revelation
| Of tlo true state Of affairs. This papor further
Bays 1t III probable that aa ..soon aR tho present
| excito1nont subBidos All examination Of tho ac-
counts Of all tho other bankH will take place, but
to do 80 now would disclose suspicion tllnt do
falcationB in thuao banks had boos, discovered.
| LoyETT, THE I1IS01IAsr DErAuLrER,
haH boon llold in T10, 090 for examination. The
Directors Of thiB bank have lriod to reduce the
capital OF tho ooncorn to Sli0, ,000, and lave
elected u now Casl,ier, and business will bo 70,
Hl1nod on hlonJay: lIy to statement OF Tho con.
dition Of tho banls, with ita reducnl capital, q
surplus of about $40, 600 il exhibited.