Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-09-24
GREAT DEFALCATI0N'
rnrsrpxxr sAsrHoroxRw sKrfs TO
CANADA.
The schuyler Klsetric-Light Company VIII
Probably Lose 500, ooo-A Number
Of New England Institutions
Heavily victimized.

EFT defalcation of only two weeks ago,
| il has produced shock and On unsasi-
ness in business circles which can
scarcely be conceived. 1.-The end Is
not yet" said q lawyer this evening
sho is conversant with the inside histo-
nv Of the affair. George NJ. Bsrsholo-
new has been Leading capitalist here
for many years, concerned in large en-
| terprises, and looked up to as tinancier
Of rare ability and large resources.
That he was 4 millionaire or better no
one doubted; yet few knew, for be was
notedly reticsnt man in his heavy
operations. He has continually had
large lots of paper afloat, and his signs-
ture has always found it ready mar
ket as . gilt-edged investment by the
most conservative banks Of New York,
Boston, and other large cities, while
small country banks fairly fought to
get it.
PREVIOUS COMPLICATIONS AND A
THREAT.
The sensation Of to-day, which fol-
lows so close upon the Plunkett defal-
cation, is linked with it, for the two
men were associated in the management
of two or three corporations, aud Bar
tholomew's name was upon much of the
paper which Plunkett negotiated. 1t
was quietly rumored at the time OF the
Plunkett affair that before he fled
from Hartford to parts yet un.
known Plunkett remarked that If he
went to ruin he would try to
drag down the Bartholomew, father
and son, whe, he claimed, had
got the best Of him in stock and other
operations. This was hardly credited
at the time, but in the light Of to.day's
disclosures ithas peculiar significance.
When the extent of Plunkett's defalca-
tons was revealed it was surmised that
Bartholomew must have lost heavily on
paper be had endorsed for Plunkett.
lie claimed at the time, however, to be
quite able to pay everything, even if
q compromise could not be effected.
THE CHARTER-OAK AND OTHER
COMPANIES.
Bartholomew stood high in business
circles. he was president Of the wealthy
Holyoke Water-Power Company, the
Charter Oak Insurance Company, the
prosperous Union Mills, at Manchester,
and the American Emigrant Society,
and vice.president and director in va.
rious banks and manufacturing corpo-
rations of Hartford and vicinity. He
came into the Charter-0sk Life-ln-
surance Company eight years ago,
when it was suffering its lowest
reverses, the directors believing that
his financial ability would save 1t
from ruin and realize something for
the policy holders. In this connection
it is somewhat strange that his misuse
of the funds Of this company brought
out the sad disclosures OF to-day. For
years the company has kept large sums
in New York banks in the name of Mr..
Bartholomew as trustee. lie had the
handling Of this money, with no special
supervision other than when the audi
tors received his occasional statements.
He could use the funds Of the company
in their behalf or for his own personal
purposes.
FIRST SHORTAGE.
A few days ago he told the secretary,
Mr.. Willard, that he was $40, 500 short
in his account, but that he could
straighten it. Mr.. Willard thereupon
communicated with the directors, who
held a special meeting last Saturday
and decided to keep the shortage Sc
cret, as they had full faith in Bartholo-
news resources.
THE DEFAULTER AND MR. CYRUS w.
FIELD.
On Saturday evening Mr.. Cyrus w.
Field, who had been associated with
MIR. Bartholomew in large enterprises
and is related to him by marriage, came
to Hartford and was closeted with him
over Sunday. A full disclosure OF Bar
tholomew's financial condition was
made, and it is reported this afternoon
that, while Mr.. Field was willing to as
sist him to the extent Of 5000, 900, he
positively refused to aid him to the ex-
tent Of dollar when the situation was
fully revealed to him. Mr.. Field re-
turned to New York on Monday. That
day the directors of the insurance COM
pany discovered that Mr.. Bartholomew
had discounted two company notes
one for sl2, ZOO at Hartford bank, aud
another for 100000 in New York
bank, and applied the funds to his own
use. He had not reported these trans
actions to the company.
SWELLING THE SHORTAGE.
Mr.. Bartholomew's resignation, in
view of his sl27 900 shortage, was i'm
mediately demanded and it was given
on Monday afternoon. Mr.. Bartholo-
new left for New York, ostensibly for
further conference with Mr.. Field, but
it is believed that he went direct to
Canada. He telegraphed Monday night
his resignation as president Of the Hol-
yoke Water.Power Company, and
nothing further was heard from him
until . law firm here received New
York dispatch to-day, which stated that
Bartholomew was in Canada and re-
questing that his family be informed.
CHARTER-oAK AND OTHER CON-
PANIEs RUINED.
Judge Pardee to-day placed the Char.
ter-0ak Insurance Company in the
hands Of two receivers--Isaac Brooks,
of Torripgton, and Edmund A. Sted-
man, of Hartford. This was on the
petition Of the State Insurance Depart
ment. II is estimated tonight that
Bartholomew shortage will exceed
100000. The sl27, 900 of the Char
ter-Oak Life is gone and the company
is wrecked. The Hartford Silk Com
pany, between the operations of Plum
kctt and Bartholomew, both having ap-
parently realized on its paper, is hope
lessly ruined. The Union Mill, of
which Bartholomew was president, is
estimated to lose 5000, 900, and
THE SCHUYLER ELECTRIC-LIaHr
COMPANY,
Of Hartford Ia involvad IN narbans half