New-York tribune., 1886-05-29
THE LOST BAPTIST MONEYS.
JOHN II. DEANE SHARPLY ARRAIGNED.
CHARGED Win MIsAPPEOPRIATIoN-A EXCITING


CHARGED Win MIsNPPEopRIArIoN-A EXCITING
DisCUs,ION-Hls OFFER.
AsBURY PARK, y. j., Nay 2S lSpecidD. 10
the American Baptist Home Mission Society re
port was made to-day ~ special committee regarding
TIC final settlement of the loss Of the socetys funds
within few years It caused much excitement, as IL
charged John H. Deanc. tho wcll-known Ncw-lork
lawyer aud real estate srcculaior VINO iailed
about two years ago. with having mlsapplied
part of the funds OF the society 10 his own use.
II is in substance follows Nearly all OF the losses
have grown ont OF the mismanagemcnt OF the Church
Eiifce Benevolent Fund and the Lack OF responsibility
and oversight by the Finance Committee. after his rst
Investment s incur opinion. oi the principal causes
which ed the losses. During the three years from
1851 to -si several hundred thousand dollars passed
through Dcanes hands IN payment OF mortgages Tor
reInvesment. without rel ort OF these transactions
being made by him to the Finance Committee OF which
a leading member. as well as counsel Tor the
board and other membcrs OF the Board claim that
they nothing OF hts transactions until near tho
lime Of his failure. An examination OF the
affairs OF the society and Mr. Deane's connection with
then shows he openel bank account as Ohm H.
Deane Trustee and deposited tho funds OF the society
~ fast as they came into his hauls; AMI when lie be-
came he used these trust funds for MS own
benefit and they lost in his failure The losses
have thus grown ont OF Mr. Dcaues approprating the
trust funds In hands TO his own use he having by
his own act made himself trustee without the knowledge
or consent Of the society or its officers or by his
investing the funds of the society In second mortgages
or in still other mortgages which he turned
over to the society good for their face vanc when
It was aterwArd proved he had not paid over the
money to the mortgages but kept IL for his own use
The committee estimates that the loss, SO far as has
been ascertained, is $l3l, ,j22.
The report quotes from two judges opinions in suit
of the pieces OF property to show that Mr..
Deane kept money given him in payment of mortgages,
had already been satisfied and claims that these ana
other transactions of with the society clearly
fraudu cnt in their nature. "WIth the statements we
have made growing of our Investigations aud these
decisions OF the courts" tho committee says, we do
not see now could arrive at any other conclusion
than that the responsibility for these losses rests on
John H. Deane whatever may bc said or thought about
the undue confidence placed In Mr. Deano by the board
the finance committee the officers of tho rooms We
cannot conscienciously report in any other way.
The Rev. Thomas Arnl,age. OF New York read let
ter Mr. Deane in which the latter proposed that
special committee five he appointed, with full power
to settle what he calls the dispute Dr. Arml-
referred to the previous good record Of Mr. Deane
and Of the immense sums cf money he had donated 10
the various benevolent projects OF the Baptist Church
The Rev Dr. Justin ID. Fulton said. fnis Is critical
moment as have ever seen as n denomination.
magnificent man. nko a good snip. has gone
down." judge Francis Wayand also spoke IN nigh
terms OF Mr. Deares past ecord and his nasnihcrht
n
cusson followed in which q large number OF clergymen
and ayuen participated. II was stated that Ir Deane
had made several offers to settle the claims ofhe society
against him. One was for fifty cents On the dollar Inc
speaker. took part in tic discussion over tne re-
port wcrs frequent excited, and some OF them de-
nouuced Mr.. Dcane IN the strongest
Mr.. Deane's letter is as follows:
My business complications with the society nave
caused all parties, myself included. much pain ana
anxiety. And | have earnestly desired and do now
earnestly desire TO have them settled TO the entire sats
faction OF all concerned as speedily as possible have
several honest attempts to adjust them with tho
board but have hitherto faiei therefore, most re-
fpectfuy submit tnis proposition for acceptance,
namely: That appoint three or five business hreth-
transactions between myself aud tho society
nyOv all claims both side. sh I'll be submitted Tor
settlements such arbraors TO be clothed with absolute
power to settle aud adjust the same In every
particular whatever. Their decision shall be binding
and final both sides. waive all right To name the
brethren to be appointed leaving the selection with you
merely say that they. think should be taken from
the most trusted friends OF tho society As far az am
concerned such men as the president, Samuel Colgate
Mrssrs. G.. b. Trevor. John ID. Rockefeller, j. A.
BOstwck j. Il. HOyt Charles |. Colby. Robert Harris,
three nve OF them appoint Will be ac-
ceptaDe.'
The Executive Committee also report on tho case.
saying that the amount directly chargeable TO Mr..
Dcane at time OF his assignment S79,9 81
but this does not represent the entire losses nvestga
showed that In several Instances the societys mort
cages second and upon property with IN.
finished TO protect Itself society had to
pay on not only the antcccdent nOrtgages but other
accumulated liens. and also complete the houses In
doing TINS the foreclosure OF mortgages and other legal
expenses were necessary. A. tho property generally
wss found be worth only about the amount OF the
soccty's mortgages these expenses dead loss.
The reports OF both the Board OF Trustees and tho
special committee adopted and ordered III
full upon the minutes.