Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-01-28
ANOTHER VICTIM.
Arrested for Fraud Under the NatIonal-Bank-
ing Law.

Arrested for Fraud Under the Mathematician nix
ing Law.
A Hartford Conn special says: In
the investigation of the memorable
Grant & Ward swindle the fact was de-
veloped that one of the parties who had
been drawn into the whirlpool was Sam
uel Bingham, cashier Of the Windham-
County National Bank, at Willimantic.
Conn. The fact that the books showed
that Grant & Ward paid Bingham $780,
600 as "profts " led to the belief that
the institution with which Bingham was
connected was involved.
The blow fell to-day, and no event in
Connecticut for years has created a
greater excitement than the arrest this
morning Of Mr.. Bingham on complaint
of the United States district attorney.
The developments show that Bingham
not only handed over large sums from
the bank, but that 100000 is lost to
the estate Of the late State-Senator
George S. Moulton, Of Windham, Of
which Bingham was an executor.
HIS ARRANGEMENT WITH FISH.
The arrest, however, is not because
of the depletion Of this estate, but un-
der the United States law, for frauds
upon the bank as its cashier. 1t is al
legged that in November, 1883, Bing-
ham and Fish executed contract under
which Bingham agreed to continue his
banks deposit of $4,000 in the Ma
rine Bank upon terms previously
agreed upon-viz., Bingham to re-
ceive $3.50 per month for his
own use. By the contract, if Bing-
ham deposited $4,000 more he was to
receive 1916 per month, and for other
sums vary ingamounts of private CON-
pensation. Under this contract Bing-
ham furnished large sums, not only
from the bank but from the Moulton
estate, to Fish, and received as commits
sions about 100000. 1t is further
alleged that Fish, for the period of five
months after the contract, paid Bing-
ham 3 per cent. month on money OBJ
tanned from the Windham-C County Bank,
which discounted notes of Grant &
Ward on the advice Of Bingham.
DIRECTORS DECEIVED.
He represented to the directors that
these notes would pay per cent, and
concealed the fact that he was receiving
the large bonus for himself. The loss
of the bank on Grant & Wards paper
discounted under these circumstances
is reported to be $50,
1t appears that Bingham covered his
tracks in part by doing his business
with Fish largely through his son, Will
liam II. Bingham, of New York, to
whom payments were made.
The United States authorities pro-
coed against Bingham at this time
principally for frauds as cashier. 1t
appears that in May, 1884, the bank
held one of the Grant & Ward notes for
IS, 900, endorsed by Fish. When Grant
& Ward failed Bingham withdrew this
and substituted $4,000 note of Mason
Lincoln, which he exhibited to the Ma
tional-Bank Examiner as part of the
assets. After the examination he re-
turned the Grant & Ward note and en-
tered upon the books that the other |
note had been paid.
HEAVY LOSSES.
The bank, as before stated, loses by
the Grant q Ward and Fish operations
about $50, 900. The Moulton estate, it
is estimated, loses about 100000, al
though judgment Of 10000 was Sc
cured against the Marine Bank for
money which Fish received from Bing-
ham as executor. The impression in
financial circles here is that Bingham
vas victim to the representations of
great profits to be won by investing
With Grant & Ward, and that he be-
ieved that while reaping a harvest for
himself he would at the same time
benefit his bank and the Moulton es-
ate.
Bingham is nearly seventy years Of
'ge, has been connected with the bank
orty-fve years, and was one of the
most prominent men in Eastern Con-
lecticut in financial circles. lie served
everal years in the State Legislature
With signal ability at the head of the
finance and other committees.
HELD 40 BAIL.
Bingham was taken before United
states Commissioner Tenney, in Nor
gich, to-day, and gave$l7, 900 bonds to
ppear February 10th.