Springfield globe-republic. (Springfield, Ohio) 1884-1887, 1885-03-01
A RUSSIAN BANKER.
TWELVE MILLIONS OF RoUsLEs MADE
WAY WITH.
Career of the Director Of the Skopin Bank
Ending i'm siberia-How He Managed
Financial Matters for a Period
of Twenty Years.
fSt. Petersburg Cor. New York Sun.l

portray ed not only the principal actors In the
trial, but al classes Of society in the Russia
Of to-day. The hero of the case was Ivan
GavrilovitcE Rykoff. He was born in Sko-
pin, q small town Of the Riazan province.
His parents, poor burghsrs, could not give
him any education beyond that afforded by
the primary school Of the town. His uncle,
millionaire merchant, tequeathed to Ivan
his property and name. Then Ivan Rykoff
had his own sweet will He tried his utmost
to squander his fortune, and in the course of
years he succeeded. About 1850 Ivan found
himself penniless. About that time the prov
inces were granted a certain degree of self
government, and towns received the right of
establishing banks of their own. Ivan Rykoff
saw his opportunity at once. He induced
his towpsmen to open a cfjy bank and
to elect him as its director. The principal
capital of the bank was 10, 900 roubles. The
town authorities had authority to examine
the bank at any time, and the town was res
ponsible for its management Director
Rykoff, however, wanted to run the bank
alon., and he knew well how to achieve his
purpose In the first place he loaned from
the bank large sums of money to every bank
officer, the vice director. the cashier, the
bookkeeLer, AMI ali the clerks. These mon
could never make their debts good. Then
he went for the town authorities. Soon the
mayor and the most influential aldermen
became debtors Of the bank far beyond their
means. Some citizens, headed by q rich
merchant named Popoff, formed an opposi-
ton party, and threatened to overthrow the
director. Rykoff went to see Popoff.
you are going to ruin the bank" said the
latter, "and the town, too, and / am worth
10000 roubles'
"Here are 10000 roubles for you,' an
swerei Rykoff, laying the cash on the Ia
BILE.
"You are fast making money and fame,
and l am left in the shade" continued
Popoff.
"Well, will 1900 per annum be enough
for youi" asked the director.
1t was enough, and the opposition van
ished As to the townsmeu who grumbleI,
they were pacified with vodka, which was
offered to them by the director ad Hbitum.
Soon in many of the provincial papers both
lay and religious, there appeared glowing
accounts of the extraordinarily hourishing
condition Of the Skopin City bank, which,
unlike other banks, paid per cent. interest.
In some Of the newspapers Of the capital
there appeared articles commencing to pub
lie attention the new financial genius who
had appeared in Skopin. 1t was said that
by his wise investments and new enterprises
the director of the Skopin bank was in
creasing the capital intrusted to him 100 per
cent, that he had beautified his
town, and erected educational and char
liable institutions, and was fast developing
the natural resources of his province
Priests, monks, widows retired officers, Ole
noblemen, and others rushed to Skopih
and entreated Ivan Rykoff to take their
money The funds of the Skopin bank
swelled enormously, and along with then
swellei the directors pride. Now he wants /
imperial decorations and a title, and lac
went about obtaining them in his own
fashion. The governor, the vice governor,
the attorney, the judges and other officers of
the province became debtors to the Skopin
bank Then from the capital of the province
the city of Riazan, Ivan Rykof went to the
capital of the empire, and here, too he
found hearty welcome. Even the third
section of his majesty's own chancellery took
an interest in the provincial financier Soon
Ivan Rykof was made counsellor of COM
merce, and one imperial decoration after
another was granted to him for his service
II the newspapers made Ivan Rykoff
known and famous the newspapers also
threatened him with a great danger. "A
resident of Skopin published in a provincial
paper an account of the management of the
Skopin bank, alleging that all the bank re-
ports were mere fabrications, and the bank
was empty. Rykof hastenei to silence the au-
thor He raid him 81, 600 roubles. Then he
invited the city authorities to examine the
bank that is to sign a statement prepared
by himself, and mlde the author of the let
ter publish it in the newspaper where the
original letter appeared. Thus the deposit
ors were pacified
Meanwhile the deposits increased to mill
ions. As Rykoff could not invest the capi-
tai advantageously enough to pay per
cent interest, he made false reports, and
thus continued to preserve his own and his
banks reputation. Among his debtors there
appeared generals, barons, counts and
princes He gave princely donations to the
charitable institutions Of his town and in the
Skopin churches which also shared in the
directors generosity, daily prayers were
offered "for the health, prosperity and saliva
ton of Gods servant, Ivan" He was a
little car They hattered him and feared
him, and kissed his hands, which were ever
full of money. Thus he went on fully
twenty years. During this long period he
was several times cornered by the officers of
the ministry of finance, but each time,
owing to his high connections, he came dry
out OF the water.
In Russia there are about go periodical
publications, and Ivan Rykof could not buy
every one of them. Thus the truth about
his bank was at last told and could not be
disregarded by the provincial authorities.
The court of Riazan undertook to investi
gate the affairs of the Skopin bank. There
upon the depositors made a furious rush
upon the bank They wanted their money
back, which amounted to II 900, 900, and the
bank did not contain single million. The
crowd of veteran officers, priests, monks,
and aged widows cried like children. They
besieged the house of the director, but
strong iron door baffied all their efforts to
break in. Church capital, convent funds,
the money of orphans, and the savings of
old men and women-all was swept away.
By order Of the Riazan court the Skopin
bank was closed, and Ivan Rykotf. with his
subordinrtes and the city officers, twenty
six men all told. were thrown into prison.
The receivers worked on the books for over
a year. At last the case was hadded to the
Moscow court.
Even on the trial Ivan Rykoff remained
true to his nature. His insOlence and AFRO
gance knew no bounds. He shouted at the
witnesses and interrupted the court so much
that several times it was necessary to put
him out of the court After reviewing the
conduct of long list of officials, beginning
with post carriers and ending with the gov
ernor of the province, the attorney ex-
claimed: "There, in that bank, these men
pawned their oath of office, their honor, hon
eSty and conscienceT
Rykoff said in his defense: IL would
gladly ascend a pile and light it myself If
by so doing l could satisfy my creditors. My
mist ortune was that the government iet me
alone. If you will give me my freedom l
will go to some convent and pray for the
forgiveness of my sins. The government
ought to pay my creditors"
Portable Electric Lamp.
Detroit Free Press
A sanguine seer prophesies that in ten
years the gas-meters will occupy high place
among the curiosities of a dime museum.
Electric inventors are now giving their
Al. 80