Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-13

dent, Etc-The Usual St0ry-He Did not
Intend to BE Dishonest at First But one
Step led to Another-Two Attempts to
Arrest Him in Montana-The Last one
Wins.
The 1905 train arriving in St. Paul on
the Northern Pacific road brought with it a
criminal who was making an enforced trip
from Montana to Bucks county, Penn
sylvania.
AGLoBE reporter took up the trail and
soon developed that Joseph Rue, Philadel-
phia detective, was travelling in company
with Barclay J. Smith, ex-treasurer of the
Philadelphia, Newtown q New York Railroad
company; OK president Of the Newtown Bank
ing company and ex president of the New
town Insurance company. Smith was ar
rested at Helena, Montana, where he had
been living in apparent poverty with his fam
lily for about year. The prisoner seemed
to be quite detected, the parting with his
family having been very affecting, and there
being a reasonable prospect that he is bound
for felon's cell. He is being taken to New
town, Backs county, Pa, where his embez-
zling exploits occurred. If the detective had
been one day later ne might have missed his
man, as Smith was on the eve of seeking
new worlds to conquer by trip to Puget
Sound.
The career of Mr. Smith has been some
what notable. He first started in business
for himself, keeping country store in Back
manville, Pa. He was successful, did a
good business and gained the confidence of
everyone. Both he and his father were
very strict Friends and stood high in the
esteem of the members of that society. It
is the custom of the Friends when one of
their numbers fails in business to investigate
his affairs and if he is found culpable to ex-
pei him from the society. In these matters
Barclay and his father were very strict, if
not severe. They never admitted an excuse,
but insisted that the culprit should pay the
full penalty. Thus he became a man
noted for his rigid honesty, and he grew to
be shining light in the community. Ten
years ago or Whereabouts he removed to New
town and engaged in real estate operations.
Prosperity attended him and his popularity
increased. He soon organized the Newtown
Insurance company, of which he became
the president and practically the vice presi-
dent secretary and board of directors. He
Newton Insurance company became an in
stitution of much greater importance than
local companies of that kind generally ARE.
His next move was to organize the Newtown
Banking company under the laws of Penn
sylvania, in which he held position similar
to that he occupied in the insurance COM
pany. There we're, indeed, the board of di-
rectors and cashier, but Barclay j. Smith
was really the bank. His standing was
such that widows, guardians and farm
ers retiring from business placed their
money in his hands. He was considered as
good as the United States treasury. His
opinion was sought on all financial ques-
tons in Newtown and vicinity, and he was
always ready with his advice, which general
ly took the form of recommendation to
invest in the Newtawn Banking company or
Newtown Insurance company. He actually
induced farmers to mortgage their farms and
invest in his bank stock, which he assured
them would pay them twelve per cent. in
terest. He also paid higher interest on de-
posts than his neighbors could get any,
where else for their money-six per cent on
short deposits, eight per cent. on those that
remained year or longer. This fact of it.
self, under other circumstances, would have
put tho shrewd Quaker farmers on their
guard, but it was Barclay Smith, and of
course it was all right. His private bank
did much more business than the national
bank in the same place.
He became the leading spirit in the Phila-
delphia, Newton & New York railroad, which
was started in 1872, and after some two
million dollars had been expended in the
enterprise the Jay Cooke crash came and the
railroad temporarily collapsed. 1t was re-
suscitated sutfcientlyto be run short dis
lance during the Centennial, and was for.
mally opened in February, 1873. Even up
to that time he stood high with his neigh
bors, though he was heavy borrower in the
New York and Philadelphia markets. A
great fire in Philadelphia in the spring of
1878 brought his insurance company to the
ground.
The explosion shook Newtown and vicinity
from centre to circumference. Barclay j.
Smith had made an assignment, but his
neighbors could not believe that things we're
very bad. Investigation, however, showed
that they were as bad as they could be-.
There was not money enough in the New
ton Banking Company nor in the Newton
insurance Company to pay the wages of the
clerks. He had sucked both institutions
dry. It was found that he had taken out all
the funds of the bank and substituted the
stock of the insurance company as collateral
and had taken out all the money of the in
surance company and substituted the stock
of the bank as collateral. The dismayed
stockholders found that instead of getting
the IL per cent. interest promised them
they were liable to the depositors in double
the amount of the stock held by them. A
great number of families were utterly
ruined, and it is said that there were not q
dozen men in Newport who were
not damaged more or less. Mr.. Smith re-
manned for few days, apparently trying to
tx things, and then disappeared. His wife
and children followed him not long after
wards. In month or two letter was re-
ceived from him from Helena, Montans,
where he said he had located, and hoped to
retrieve his fortunes. Some of his victims
were disposed to let him go; others were
not 80 lenient, and Detective Rue was sent
on with requisition from Gov. Hartranft
de came back, however, without his man,
the court in Montana having discharged
Smith from custody after hearing on q
writ of habeas corpus. The detec-
tive got more evidence, new requlsition,
10 nave been more successful.
The detective left by the River road at
1885 P. M. yesterday with his prisoner, and
by tomorrow night the once great man of
Newton will be again among his fellow-citi-
zens, but as criminal at the bar,
Storms in Ohio.
CINCINNATI, July 12.-Advices from points
in the interior and eastern portion of the
state indicate that the storm last evening