The sun., 1883-10-10
STORY OF A BANK FAILURE.
FINANCIAL RUIN WROUGHT BY PREsI-
DENT AND TWO CASHIERS.
Dnbbiins In wall street with Other Peoples
Money Followed by Ccpieus Weepins and
Three Indica ansenss-Loese Methods In OhAs,

cal circles are very much excited over the In
dictment by the United States Grand Jury at
Cleveland OF President Stephen A. Northway
Cashier Sylvester j. Fuller. and Assistant
Cashier Henry l.. st. John for tho alleged en-
bczzlement OF $4,000 Of the funds OF the Sec
ond National Bank. President Northway
was one Of tho most prominent lawyers
in this section. He has filed the offices
Of prosecuting attorney. Speaker OF the House
OF Representatives. was prominent candidate
for Garfleld's Congressional shoes. and would
probably have stepped into them but for the TACT
that the county split on two candidates. Last
fall he was strongly urged as the Republican
candidate for Governor. The collapse OF the
bank ruined his political hopes. He was a reg
ulnr attendant at tho Congregational church
and enjoyed the confidence Of every ono.
Fuller the cashier. also stood high in tho
community He was u member OF Elder Dick
insons congregation. and had served n term
as County Treasurer. He married tho daugh-
ter of Calvin Dodge. the great shorthorn cattle
breeder of New Lyme in this county. and Is a |
prominent Mason. st. John. the assistant |
cashier was known to everybody as Uncle
Henry" He Ia u white-hared. smooth |
faced horny handed son Of toll and was. up to
the crush. supposed to be worth $4,000.
The Second National was first started rs a
savings institution Is years ago. with capital
OF $50, 900. Five years laterit became national
bank and tho capital was doubled Matters
seemed to progress smoothly and righteously
until 1882. There were S6 stockholders In tho
bank the holdings ranging from $1,000 down
to $500, The stock was mostly held by farm-
In 1881 and 1882 a. wave OF speculation swept
exra sha Soars ydabbei IN a S Street stocSs
| Those whose moans OF getting more were
Thoss who soYnSdSth hnaSd the handna Of oher peopes
| funds kept on. Like lightning from clear
the crush nd b. on he ee 49, 1s
had fed to GaaadS nS IND aat
once. and President N1rthTay @ explained TIA, hat
funds to tide over tho Difficulty. He told the
iess's pEeons wore ore. aroused ,ha, Fuller and nnee
Henry we're getting IN too deer Northway ad;
in this way became, aware that the two cash
iers we're engaged in the same hazardous y
afe 81 tSo neiuhborns S CHEESE @ factories North
way told the directors how. on 30 one s dark Iany
In the bank. and charged them with using the
lie asserted that, they admitted q shortage Of
$4,000. but they begged on their knees ana
wept and pleaded that no exposure should be
made good Out OF consdcration for their
families. Northway says. but because the Pres
tho % %deiaieation M ton was WI hushei up and not sas.
picion ever winged its way into the monthly
The Board met regularly. Fuller read his
statements. Every one believed them, and still
the dabbngs in stock mn marins @ lyidsn M"hf on ana "a
1ss iss2 oAAk XII Ga t&is time lime prSsident NorthWay
ID ana sns
gard to prospects and when to buy or sell Deal;
s YSsf s hs banH E0S' o the
) parties to buy the stocks with. taking the
e. ye Ba m had 1eks o xoTeher se
anything else to show for its money Bank
| Examiner Ellis came along, looked n over the tn
Sorthway received letter from the Comptroller
Of to s back hat te bs
matter had been prHoP9erly H9er adjusted and specu
AZ the drst Meeting Of tho directors after the
examination had epnyncsd M him I'll that tn the de- de-,
\ cashiers had promised to raise that amount at
once and make tho bank whole. For weeks
1ssy 10 the reayss and
, t'a But in vain. 4 Meantime other shortages began
8 to appear the stock market was dull and on
been II Installed High Priest Of the RoSa Arch
Masons that night and in III his absence North
WAY Gay sssuS ssturday W unee Henry ran the
. note from Fuller and ms keys; came to Presi:
. him him Of II Fulsrs fIrht; The sd man iel in q
u |
for rss tH
fsss S su Ia shai Ss q
g out the defalcation amounted to $4,000 in
Of whsn ans or hs ts5S H. fia
kn his Of tn the matter Ta ana YIN
y families. He swore at the xamination:
b II reigiously believe that those men wert
i honest upright men. and Intended to replact
d3HI sssa wa street s dd
turn out as 81 they eSpsebteddi ,t and da.,ds,
n|R .GSS HHts G
sa7n5 os w.ns .as 0aa raa1ed from the stpec
d wreck. ana somsthng from Uncle Henry, y,
Ssato ed bu. hs .se Win
n over 40 cents on tho dollar, In thirty days IN
we're paid 9 cents oh ons tho fHIai HanI
Rs Sa rG Ganna lid saa n@d SS YSr
S T'5s g. on hs ih
see@e sau i1eN wou o be- the secrst North
ID way denied this and md p poor , ola Uncle Henry wa
short TIn time ago 'Dr a askns sworo on
" warrants for tho arrest q the tyo cashier. hieI.
Id missioner White at Cleveland. and Nor,hwa
ty was SUMMONED as a witness. He refused t
i. | t6Stlly until coulu cOnsulI u lawyer, an
no when he finally did take tho stand refused I
st | answer many questions. on the ground tha
a. they might tend to eliminate himself He cor
%, tinnally protested. 1t seems as though ! AZ
,e denied his completely in the stock speculation
10 and swore that he still retained the utmo:
w confidence in the cashiers.
Ks we may have been fools" he said. speakin
he OF the directors. but we never questioned
In thing that Sylvester or Uncle Henry told US
III During the examination. which ended in h
arrest he betrayed extreme nesy1IrIsnsss IIsna an
cd St. John his voice trembled and the tears can
~ as he asked: ,,,
a ,a WAS innocent OF any criminal action and that
~. was suffering for the sins Of others :" ...,
ot Northway gave bail forihis appearance.
Fu9rs voice was shapk' 9s ne is,r admtt nnt
~ down Old Unce Henry's cheeks as no protest,
H. that he knew verv little OF the affair: tn
10 Fuller and ,Northway managed the specul
WO tlous. wn!io 10 pus ~ 80 xos nnn. !,