The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1877-10-26
fContinnsd from End page. !

the bank failed. Had it not been for the
failure of the bank so sOon, thereby de-
stroying my credit, and of the COM
pany Sc that it could not be run with the
same profit it had before, and with pro-
per management. 1 still believe that ]
could have paid Off the banks claim.
soon. The leading motive In MIND,
in making this purchase, was TO save
the banks claim; as had frequently
refused to make any investment in
them although repeatedly solicIred to
do go before fel5 that this claim was
in jeopardy. 1 regarded myself
more If the light of trustee for tbe
bank, till this claim was paid off,
rather than the owner OF the property,
and to show that this was my purpose,
will say that when the bank became
embarrassed for moRey, before it fail
ed, made an arrangement with the
vice president, that I would convey
the property to him, as he said he
could obtain q loan of fen thousand
dollars from some of his PENNSYLVANIA
friends so that could take up so much
of my Indebtedness TO the bank,
and to tide over the demand that was
being made on it for funds. / did
then, and there, make q conveyance
of this property q few days before the
bank failed, and delivered it to him,
with this understanding, that It was
not to be put on record, till the money
was obtained. The bank failing a few
days afCerward, he returned the
deed to me, saying, that his credit was
destroyed by the failure of the bank,
and could not obtain the money.
Immediately after the bank Jailed i
resolved to make q voluntary surTen-
NoN 20 NJ ell fnAl.r6
ing q valuable homestead, which BY
law Is exempt, to make good my in
debtedness and liability to the bank,
thereby so far as could to secure the
full payment OF all its deporsitors.
In carrying out this purpose on the
evening the bank suspended or
the evening following, at a meet
ing called at my suggestion, I gave
Mr.. Woodcock q note and asked him
TO read it to the meeting, saying in
substance,as follows: 81 hereby pledge
all my property, including my home
stead, to make good, 80 far as I can
the depositors of the bank" This
pledge was made good afterwards in q
conveyance of all my property to pay
my Indebtedness, and liability, and fol
che benefit of its depositOrs. I made
che depOsitors of the bank preferred
creditors to my own brother, who PAID
81 500, of indebtedness for me, on the
day the bank failed, and made his
notes for large amount as an accom-
mediation maker for me, for which hG
Is liable.
If have sought in any way to GOV
er up, conceal or convey In any shapt
or form, ANY of my property so that tin
depOsitOrs of the bank should not have
the fall benefit of it, my enemies them
selves shall beChe witnesses and judges
have been, as I have before said, 81
completely Impoverished by this vol
untary surrender of all my property
that am indebted to the generosity o
sented by counsel, and the payment o
the incidental expenses of my trial.
| i think / have made some sacrifices
Commencing with a salary of 81 ,66O
and which, II 1 had asked it, they
would have made $1,000. After the
panic, and during the hard times tina
followed, of my own motion reduced
to $3.50, saying TO the directors, "W
are not in q condition to pay NOR
than that, and that we are compelled
to reduce the running expenses of tn
bank 70 the lowest possible notch
During the continuance of that dread
Jul paDic,which refer to, i made q per
Sonal sacrifice of more than 900 o.
notes had taken tor merchandise
had sold at Eldorado on q store build
ing and lots and bank stock to pay m
Indebtedness 10 the bank 80 that it wa
humanity possible to pull the ban
through. This was not such a sacTi
flee as a business man was reQuil e.
or expected to make to meet his in
de bteness, at time like that, for
was not much dishonor for a note &
go 70 protest them. 1t was in thi
panic that the AK was laid at the roc
of this bank, and from the eff cts c
which 1t never recovered. Its loan
were then chiefly made 70 cattle men
aggregating at the commencement {
the panic about $2o0,C10. TIL
panic occurred, just at q time whe
cattle men were shipping cattle, larg
shipments were on the way, an
reached eastern markets when th
money of the country WIS locked Vi
and were sold for little more than t
pay freight and commissioners
An examination of our bank some
time in the latter part of Decembe
1878, showed that about half of OF
bills receivable were past due, and pre-
tested, and this, too, after many {
them had been renewed. From ths
time ill in July, 1876, we had no othG
examination, although the law requi
ed at le3st one yearly examinatio
. Most of these past due notes were II
newed from time to time, adding int
est, which was credited to profit ar
loss, out of which dividends were mad
to stockholders. These parties finall
3 going into bankruptcy, tue notes wit
added interest are q loss to the ban
3 As to just how many of these loan
? which came down from the panic, al
|, which were turned over TO the bar
I, examiner, will be a loss to the ban
not knowing how many of those ha1
been collected, or that may yet be CO
Q lected, / cannot state so definitely as
4 had wished. am safe in saying thi
Q it will not be less than $50 900, al
e may reach So, 900. Besides this 10
= resulting from the panic, tile baE
. met with great many other losses,
for instance the failure Of two cOrrc
pOndents, and the loss of bogus dra
: in 1872 of $743. We lost over $2,2;
by the shortage of cash of q form
cashier; we lost, sir, ever 50 900 in Il
, year 1874, on drafts on which the bar
advanced money, drawn against CO
Isignments of cattle shipped to st. Lo
3 Is, Kansas City, and Chicago. Besid
v these losses, like other corporation
!. we met our full share of them, by cas-
> lers receiving counterfeit money fro
time to time, the payment of improp
checks, and the cashing drafts on mi
. taken identity, the precise amounts
( which 1 could not say from memor-
Then, again, we lost several thousaE
q dollars in the depreciation of the va
{ ne of q costly banking house, and OF
er real estate purchased by the BAN
for, I'm 1878, the bank built bankil
q house with the fixtures, which CO
Q over $1e,5OO.
The putting SO much of the bank
funds in . banking house, and lOcatiI
it where, in the subsequent develo
ment Of the city proved TO be a We
unfortunate location, (although at Il
time when It was built It had q centr
: lOcatiOn,) was the occasion of the los
The business leaving that part of Il
+ city and going to the rival street, '
= were left on one side OF the business
= the place. This rendered the proper
t Of some OF our customers almost valu
= less, causing some of them to fail |
!. which the bank lost heavily. The
:, again, sir, the great shrinkaSe in va