The Republican journal., 1877-08-09


the preceding spring, to the amount o
S-oo,ooo, thus making the aggregate o
their credit as rising $500. 900 IL
"sWlng' this business the capital of the
firm was Sl9O, 600, and the rest was made
up OF money borrowed from the banks
ms was a small margin, it is true. but
Belton's credit was good, and the profit
OF this southern business was larger iI
percentage III proportion us the pay
mentS were slower: accordingly the firm
1elt no anxiety and We're congratulatino
themselves on their heavy sales, notWith
standing presidential election frauoht
extraordinary eNctements was pend
ing. and more conservative and thought
tul minds, looking down the vista. saw
the red demon of civil war preparing fol
his carnival of blood
BY the 18th Of February, 800. 900 OF
what was due the firm had been paid,
and in six weeks more they made their
calculations that they would, by the re-
celpt Of s;5t'O,O 900 from their customers.
be again sailing in smooth waters. The
features Of the political situation were
indeed such as to create the greatest
alarm, but Bolton < Co. were OF a san
gulne temperament, and believed the
trouble between the sections would be
smoothcd over and all would he well
Adrolt and pcrtinacious collectors had
mean While been dispatched to the south
elm states, with instructions to settle and
proc ne payment of all outstanding ac-
counts as they maturcd but after the 18th
of February these agents began to send
back reports OF a very lugubrious and
unsatisfactory nature.
When the ith Of April came. Bolton 4
Co. found that instead of collecting
S5oo,000 they had only been able to
draw in $50 900, and the prospect of re-
celvlng any more was Very "slim." at
least for the present. BY dint of extra
ordinary effort in the way of '.shinning." +"
the firm had managed thus far to meet
their obligations and keep their credit
good. but now, unless Sl5G,OOO could be
raised, failure was inevitable On the 9th
day Of -April notes discounted for Bolton
x Co. would come due to the amount of
S75,O00, and in two weeks later others to
the same amount.
Now it happened that the senior part
ncr, being Il man of fine business talents
and excellent reputation, had been made
| a trustee by the church to which he be
longed, and by several other parties. In
| pursuance OF these trusts he had in his
| possession coupon bonds to the value of
$500, 600, which he Kept ut the bank in a
| large tin box labelled b, in trust"
Yielding to temptation, on the morning
of April 9TH he unlocked the box con-
tanning the deposit which he should have
| kept sacred, and selecting S;iOO 900 in the
| hast nl1SSn Of h,rI, ,,1,oo,I IN l.;
oVercoat pockets. rclockcd the box re-
stored it to the bank vault, and. then 90
| ing to Il wealthy monev-lenuer, borrowed
500, 200 upon the bonds as collateral on a
'call" loan, and by this means was able
to meet ~1.5,UOO in notes which matured
that day
1T is the first step which COSTS" in
| for Il penny, in lol a pound y II might Us
| we'll he hung for 4 sheep rs for Il lamb :"
| these proverbs We're all doubtless in the
mind Of Bolton when, Il week later, he
made a clean sweep Of all the bonds rt-
| manning in the bank bon. and carving
| them to other money-Icndcrs, raised the
| further sum Of Sl5O,OUO, Which he de-
posted in bank. and hoping still for re
| mlttanccs from the south, and believing
| that the conflict between the nittd States
and the ''rll'ing sisters" would be avert
ed, he felt rs if the crises was past and
| Bclton 4 Go. would he safe With 800
coo capital, and ~25O.oOU borrowed tenn
| porarily ON those bonds, he could Keep
the firm aiIoat till better times
| These ''tcmpUralN loans were known,
ot course, to the junior partner and to
the book keeper, but the manner in
which they were negotiated was a dead
secret to all but Beton himself. He az
gucd sophiStcally With his conscience,
iuStiiying the use Of the bonds for Il short
time, and promising himself to bear all
| the blame if anything was discovered
duplicating him in the transactions.
Some ten days after the hypothccaton
OF the last batch of trust bonds came the
news of the bombarlment Of Sumter, pro
ducng 4 Hurry in Wall street, Il fall in
| the value of securities, and a general call
| ing-in of loans. At noon on the 10Th day
of April, the monty-lender to whom the
| first lot Of bonds had been pledged made
! his appearance ut the store Of Bolton &
Co., bearing under his arm bulky en-
| Velopc containing one hundred bonds,
and the demand note of Bolton x Co..
and finding the senior and junior part
ners both absent, informed the book
keeper that he had come to call the loan
for 100000, and had brought the collater-
| al with him, so that the matter could be
closed without delay
The book-keeper prcllcd up his ears,
and drew the moneN-lender out by ask
inc in a casual way.
''leS, yes, let us see a moment what
| loan was that :"
Loan on forty I. $. skies, thirty New
York Central tirsts. and thirty Hudson
River tirStS," glbly replied the man of
money.
The book-kecper made :; mental mem
orandum of these bonds, and begged the
money lender to wait Il few moments till
Mr.. Bolton should return. At this June
tulc came two other money lenders, who
made request for the payment of Sl5O,O00
| call loans on collateral.
The book-keepcr pumped them, and
speedily asccrtained the description of
the bonds which they held, and made Il
| mental memorandum of the same which
he afterWard wrote down as q retresher
for failure reference When Bolton came
| in, a few moments later, the book keeper
| kept both his ears open, and took note of
the bank where the senior partner "spout
ed" the bonds in order to pay the call
loans. That industrious and inquisitve
man of figures and accounts during the
next week busted himself in obtaining
few facts which he deemed of Importance
| to himself in connection with these bonds
1t appears that Bolton had for the past
two years employed his book keeper to
cut off and collect the coupons or the
trust bonds, and in this way that individ-
ual speedily satisfied himself that the sen
ior partner had used those securities to
bolster up an nsolvent firm that he was
i'll fact Il dctaulter to the amount of
$24U,OOO.
Cold-boodcd, calculating, and utterly
unscrupulous, he determined to avail him
self Of his knowledge, and cNtort money
from Bolton, as the price of his silence re-
spectng Il secret, the divulging of which
would produce the Immediate cOllapSc of