The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-24

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lose the difference between 1861 and i4s-a dif.
ference which on wenrlr eleven thousand
The school funds of Missouri yere the fret
sufferers hv Cant Fada's on.rntious
' ~
HOW THEY KEPT CONTROL.
with n few shares previously in their own
and in friendly hands. and the i0,sGs shares
Treasuiv To Jomes Il Eods tho irhird Nationn1
Bank Ring. Of which Fads was the s"mi nnd
brains found themseIyes in control ~ tho RanH
OF The state Of Missourl NJ Rsrnas ". ',u ana the
old management were crowdej ant They Ind
no ALTERNATIVES but 10 resisn as su sneediIy' and
and moi iittie ipdiynation oyer tho sh,rn triI
of which they were % IN" % victims thev TOOK down
rectors' room Of the RAM nf Missouri md made
way for tho incoming manaeers OF Tint solid
and venerable institution.
the F,ds RING on ia tost dav ~ 0n,ohsr iaeg
One by one the old directors resigned presi
sgned ono nf Tsds,S nssnoi"tca wa aiectd 70
the vacancy and before tbe afternoon was oveg
the new BonrI was in possession of m" hank
II ednsisisd ~ Cap, n Fsds S W Mavor as
II Britton Chne X I1ictson Rar,"n pato9'
Amos Cotting' John !. Roe John a ubsdeil''
never acted as irecinrs NM ReG me- mart % in he
transactions which followed ""N Az ''''' ~ '"'
oramni1s the ipstituton Ss nstienel SsnI y nn-
dor the National pankinS net On Nov Ia
isee tha panI ~ ~ Stnta ~ Misaoyrt hsca ~,
Inc National panL of The state 81 Nissouri
There being no nrovision In the National Rant
In, law for 6rnnch hanis ths severai hraDrhea
nj Pnimvrn Canton ~ tosenb and elsewbere
were wound mn or severcd from The aren't
instinItion The seven men eiraadv namsi
elected themselves dIrectors Of The national
10 90 bark n connle NJ n,onths from The Iormmi
ORGANIZATION; In the transier Of stock from
the Stafs 10 Tho rim, Eads's nn,na ,1ona nm.
neareJ He was resn1nsihie IN The state Tor the
payment Of ths bonds r,ouired and he had
tHir,v dnvs In oh ich ,o rcna aniatc I, Eads hor
rowed some bonds from friends in St Iouis
and in Nav York and nurchas.d othars outs
right borrowing tha money Tor the purpose
from h,a own bsnt tha irhiri 'Natinna H. ME
own mans and ON disconnts v"t..d him
bv his associates the other directors oi
that bank To canturs ,he Missnuri Rank
This ineenious Ring invested almnst everxthin9
excent aitnai cash Consiier the method nv
witch they came into powsr. E1ds obtnined
tie Stn,s's stont he N a n"yront o9 Wissn,ri
5onds He sGSS bonds o bT T
e,,i.s,. -. y. ~ i.a - ,.,, - 81
rowing some. 10 De replaced IN the future, and
~ putShtheinE t otners i0r eash. ne op.alheu
lie Thira ,opnI Rf en "n ,e Twn as n0se seer "
ule ~ hluu Nuioontl Dank anu pleuElne US secur,
W. tne Buns YI silssuonri stock lus' put,SHus',u
Scnrd A. p",s s",ahiisbsd nnI m H., ~
w wIounu slelhnNss sStnollsntu ~ .ne ~, ~
deh, for tho sdnnt he in,.ans ~ y.bicb ,bcv bad
~. oI ene $50 oS ipraus " Mill M ny .i hssu
Gated 10 % nav ior Itself TheS Ind % danced tbrr
unnce; e @ uu' ,ne piprh was yet 70 Dn ptlui II ,ne
pIp.r @ VIZ no' pI ~ .hr ts,. Y' @ w @Gads R,2
AZ a. u,Ievl9ts oi tne missouri ,NHtlohal Duhk
snIrneedyu i, ~ " =, iad niadd as SuuueuiS uhu uhoeie
mqnlopsy as II nHu begun ,,-, -,
IN ms emersency, ths nnnncln genius oi
Capt. Ends came out brilliantly, lie conceived
VIC i uv!u iuee ~ ileAink .ue Vnptunvu oanA puS
'ne % s ss 4 seq ga snG Ghs5sdHn with
We ohccsIs a. tne BANK Oh Cpihntiree OF Nrw
hork, Gov: Morgnn Tas one OF ins directors OF
.ma. @ ins'n OLA nj msnty na'' W. cHsn1r; W..
WIS an olu anu Intinate lrlenu. Most ot .le
| kententeIn hetlNe IN tuo llunhgei,heht OF tne
DUN 9l SvniinerSe WSre eohcyrhsu i u Lne WITT
J III nii'ib, EauS Wy % 80
u@eepy @ In. my, eI'eu. 4. WE w DAM vi nvi'i, III
h rns au ~ =, az H'u,u M MN an Se,,,nS ~, , ,ne
Snus nsees-aIJ 70 sot picte ms payInGht & 10 we
' State' SecuIcn 70 ha.Sr Nm tp " thHt slne
M ssors. p,euSi ~ a ~ ~ N.e pain ~, N' ,,
W WE pbaT 'rs III, ~ uSii G =, W
nasns /, ,vns ,h''ref,r" =" tbe Pant q, Con-,
~ ~nanlr. W.e w II ttipIr W Wy DanN vt tonl- @
mTTGe ,a SSpt Eaus resSred =, lor ,oan o & one
htS III " i ~" ~ s.te 2 syne
shnviters upnn thas hs ,aS
| was necnIiar '''' N
Without a loan Of one million dollars from
snurs,s Inc Feis Ring wou15 have bann com,
| pelled la nnrt with ia III st3 shares ana inns
| lose control of tie Hank of Missouri ''N'
! Eads went 10 New York and opened negotia-
tlcns with the Bank OF Commerce Tor a million
| dStiNn desirei and lie munitions am racinr ~
Tadsis purposes made the mnttcr notorious in
hank G relies in New York at the time. The 81
| Ionis nnnnci.r mot with no rehuns from his
| Tusfsrn fri,nds Tho RnnE Of Cnn,o,arca ,vns
| only too huppy 10 loan the triaing suf, nsted
| for hy lis esteemed respondent the Bank of
IN. stat. OF Missouri. Ia must h., reroeDi.r.j
thnt nj The date oi these nec5frtions the control
OF the Bank OF Missouri had moi formally pissed
not nnt vet an ofieer Of thni bnnk In tbS ,S ~
| the law he wus an outsider nskinl, in beIaif III
| n hank with which he had no legal con nection
| the loan of 81 900 900 from disinterestrd can't
| talists in New York
| Gov h ID AlOrynn Mr. Robert Ienox Ken
| nedv Cashier Vail and othars conneeted " IA
| The Bank OF Cnmfhr were Interested ,yith
| lads nn, the other fulure directors Of the BANK
| Of Missouri in the 81 Iouie hridge nroiect fhe
| North Missouri Rrilroad and the 81 Cheries
| Bridpe and the Kansas Pnclac Rnilrond saw
| ernl Of them held stork in The NJ Issouri RANK
| and hnd nlrendy made themselyes usnfui To-
| Eads by loanipg him their proxies When the
| proposal for "A m illon dollar loan wns laid he
| fore these cenflemen they consented m onre
| and discussed only the form In which the loan
| should be- made. 'N"
| II is interesting TO note TINT nj .ha very time
| when Eads was nskins this loan the Bank Of
| Missouri had ~ tie Bank OF Commerce n InI-
| nnce amounting 10 nearly 81 900 900 WHY
| should n hank With such "A balance 10 ia credit
| present itself rs n uetitoner for ae,.ommodn-
| non ? The Bans Of Commerce does moi seem To
| have incurred or cared
Thus Capt ]. B. Eads. before he became a
| director Of the bank which he had railed. nd
dressed in his Individual capacity n letter to
merce, asking upon what terms the New York
| bunk would furnish the ST. Louis bank with
! 81 900 900 in order To provide circulating notes
| for the Bank OF Missouri.
| The pretext OF the loan was 10 furnish cir
| culHtion for the newly organized national bans
| In St. Louis Capt Eads proposed the loan be
| made 10 himself and the six gentlemen about
to be associated with him in the direction. as