The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-22
Cant. Eads's Bank.


Day before yesterday the Grand Jury Of
tho United States Court in the ST. Louis dis
trict, after u long investigation Of the causes
which led to the disastrous failure Of the old
and solid Bank Of Missouri, indicted JAMES
A. BRITToN, cx-Mayor OF st. Louis and
lately President OF the bank. for a wilful
misapplication Of its funds and credit II
BRTrrON's trial results in n conviction, no
will be sentenced to imprisonment in the
pcnitcntary at Jefferson City for term OF
not less than five, or more than ten years.
An Indictment was also found against
CURTIS, the cashier OF the wrecked bank,
charging him with completely in the orimi-
nal acts of the President and other di-
rcctors.
Besides Burton there survive but two OF
tho directors active in the management of
the Bank Of Missouri during tho period in
which it was Quilted by the men who cap
turcd IT in 1866. One Of these, BARTON BATES,
is insolyent, and has lost position and in
fluencc in 1t. Louis. He is indicted with
BRITToN, and like BRrrToS, is liable to i'm
prisonmcnt for from five to ten years, II
found guilty upon trial.
Tho other surviving director Is Capt.
JAMES b. EADs. Socially and commercially
he still possesses great influence in st.
Louis. He is at present engaged in con-
structing the jettics at the mouth OF tho
Mississippi River, an enterprise by which
st. Louis hopes to profit moro than any
other city. When the bank failed, Capt
EADs and members OF his immediate family
were found 10 be its debtors TO the amount
of $4,000. Part OF this indebtedness. after
the crash and exposure. Capt. EADs has
tened to secure by placing in the hands Of
the receiver assignments OF future pay
ments to be made TO him by the Government
on account OF ictty work. II Capt EADs
should be convicted and imprisoned, the con-
struction Of the Ictties would be stopped,
tho Government payments 60 Capt. EADs
would cease, Capt. EADs's notes held by the
receiver Of the bank would bo worthless,
and the stockholders, who have already
suffered so much by him and his associates,
would suffer still more. Capt EADs was not
indicted by the St. Louis jury, although his
name was presented TO them for indictment,
together with BRIrroN's and DATEs's.
About month ago THE Sun printed the
first public exposure of the transactions
which ruined this famous bank. The facts
then given are the facts on which BRIrToN.
BATES, and CURTIS have been indicted and
are 10 be tried
The main charge against the fraudulent
directors Is that they used their position TO
secure loan OF 81 100000 from the Bank OF
Commerce Of this city TO the Bank Of Mis-
souri,, and then took the money and en-
ployed it TO pay for the shares on which they
controlled the institution. This whole affair
was engineered by Capt. EADs in person
He negotiated for the sl,0OO,OO0 loan. He
held the States shares of stock in his own
name. He allotted these to BRIrroS,
BATES, and his other associates and set
up BRIrroN as President. He used part Of
the Bank Of Commences loan 30 pay for his
own stock. Under oath he has testified as
follows:
"o-Did YOU individually receive the bcncnt Of any
portion Of the $4,000 ioani
"E,ps-Yc. sir
"Q-liow much, In round figures as near as yen can
rcmcmbcri
"EAns-somcthing over $4,000
"Dd the notes given TO the Bank Of Missouri by it. ID
rector have any ondorsers they secured by any
collateral sccuryi
"EAps-No arn
Mcssrs. BRuToN and BATES cannot be
tried in open court without practically try
ing Capt. JAMES b. EADs, their associate and
leader