The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-09-23
ANOTHER BIG DEFALCATION.
The President of the Charter Oak Life
Insurance Company Goes to Canada,
Leavinga Confessed Shortage of 1927, 900. and
There Are Indications that the Losses
Will Vastly Exceed that Amount.

or the Charter Oak Life Insurance Company,
this morning applied to Judge Pardee, of the
Supreme Court, for the appointment Of re-
ceiver. The judge has not yet named the
receiver. The company became involved in
troubles some years ago, and the policy holders
organized to manage it, with George NJ. Bar
tholomew, of Hartford as president Since
then about 100000 has been paid back to
policy holders. Recently the company's finances
have become involved again, through complica-
tons in Bartholomew's affairs, and so the re-
ownership is made necessity. Bartholomew
accounts are $4,000 short, and he has disap-
peared. Mr.. Bartholomew informed the direc-
tors of the company, on Saturday, that his &C.
counts were short $l27, 900, and on that account
the appointment of receiver was to-day applied
for. Other deficiencies in his accounts are re-
ported, but no statement is yet obtainable. Mr..
Bartholomew left this city Saturday afternoon,
and has not since returned. He has been in
business here for fifty years. He was one of
the citys most respected citizens, and was
connected with its most important business en-
terprises, and the present condition of affairs is
creating the greatest sensation ever known here
in business circles He was very large borrow
er, and had the highest credit. At one time he
Endorsed for the Charter Oak Company to the
extent Of 100000 to carry it over hard place.
when no one else was ready to help it. He had
been considered very successful in its manage
ment until this condition of affairs developed.
He was president of the Holyoke Water-power
Company, of the Union Manufacturing Com
pany, which was recently reported to be embar-
raised, and of the Charter Oak Life Insurance
Company, and was interested in other local cor
porations He has been largely influential
in building up the Holyoke Water-power
Company, and managed the Hartford, Provi-
dsnce & Fishkill railroad for years very success
fully its trustee, before its consolidation with
the New York & New England railroad. He has
been heavy indorser for the Hartford Silk Com
pany and the Union Manufacturing Company.
and the extent of its liabilities is very largo,
though it is not definitely known.
1t has been ascertained that Bartholomew is
in Montreal. Among other positions which he
held here were the following: Director in the
American National Bank, the Hartford Steam
boiler Inspection and Insurance Company, the
Orient Fire Insurance Company, the Schuyler
Electric Light Company, the Holyoke
Water Power Company, of which he was
president the Hartford Silk Company.
and the Union Manufacturing Company The
last two concsrns have been in a receivers hands
since Plunkett's fight Bartholomew was also
a director in the Insane Retreat and in the
Hartford Hospital and treasurer Of the Walkin-
son Library, of which he was one of the trus-
tees He was vice president of the State Saw
ings Bank, and member Of the corporation of
Trinity College. He is indebted to the
Holyoke Water power Company, but
insiders say that the company is
fully protected. Among some of the silk
company's paper with his Endorsement is $780,
000 and Of the Union company $3.50, 900, already
known. His own individual paper is out to an
extent not known and also the paper of his son,
Endorsed by himself for considerable sum, but
the amounts are not yet known. The treasurer
of the Florida Construction Company, with
which Bartholomew was connected, ascertained,
several days ago, that there bad been slight mis-
appropriations of it's funds. snd has been in the
city to-day for the purpose of settling the
matter The loss has been completely adjusted,
and will not exceed ten thousand dollars. The
treasurer says that Bartholomew past services
to the company have been worth more to it than
the amount of their loss by him. Whether Ger
tain trusts which he held suffer, and if so to
what extent, is not yet clear.
Bartholomew is seventy years old, and has
been in business in Hartford since 1892 He
has been president of the Holyoke
W6ter rover company since 1909, ana mas
done much to make 1t a success. In 1858 he was
elected director of the Chicago 6 Northwest
ern railroad, and remained In the board until
1867, being associated with Samuel j. Tilden,
William b. Ogden and others. He was trustee
of the Hartford. Providence & FshkiH railroad
for twenty years, and president of the old Bos-
ton. Hartford & Erie road for three years, and
also its receiver. Recently he was the receiver
of the Quimemont iron furnaces in West
Virginia, and was connected with many other
He ca1ru hanu 1o~r
never until very recently furnishing collateral, or
making statement, but giving the banks an ep-
portunty to take his paper, and if they declined,
going elsewhere, and always paying off those
ward He was supposed to have a large
property, though it was not in sight.
His business judgment was much sought, and
he rendered many valuable services gratuitously.
Some banks refused his paper because of his
reticent manner. but nearly all have some CT it
in some form. It is estimated that $500 900 is
held in Hartford, and much elsewhere It is
put at oyer 81 600, 600, but no one knows the ex-
act amount He will be thrown into insolvency
tomorrow. thus removing attachments and
prior claims
A prominent director of the Charter Oak Com.
pany said to a reporter tonight that the gentle
men who audited the accounts of the COM
pany had knownA for some time that
in large amounts Charles E. Willard
secretary of the company, on being informed of
this statement. said he did not for moment be-
lieve there had been collision between
the auditors and the missing president.
Bartholomew" he continued, was recognized
by all the officers and stockholders as the finan-
cial backbone of the company. hear but do
not know personally, that when the an
nual examination of the concerns con-
dition was made, any shortage Of cash
would be explained by Bartholomew
in this way. He said that he had placed the
money in the bank in his own name TO protect it
from attachment, but that it was at the service
of the company at any time. AS for myself,
knew nothing about the finances of the company"
For Congress-.
JOLIET. Ill, Sept 22.-The Eighth district