Omaha daily bee., 1889-07-04
JOHNSON AND MORGAN.
The Late Chat Morgan Introduced
Frank johnson as His Partner.


SIDNEY, Neb,, July 3.-ISpecial to THE
BEE. An article appeared in Mondays
Republican purporting to be from their
Sidney correspondent, in relation to Chat
Morgan of the State bank of Sidney.
Frank b. johnson, the president of said
bank, owns a talf interest in the Omaha Re.
publican. This article was never telegraphed
from Sidney but was most likely produc-
ton of either Mr.. Johnson or some one in the
Republican office.
day morning at 10 o'clock. AT
the depot large crowd had
congregated with eager expectancy to get
glimpse of the man who was to strengthen
the then unsettled condition of the banks
affairs.
Morgan committed suicide on Thursday
morning about z o'clock. The news was
spread about IL. Your correspondent imme-
diately went to Joe Starmer, the old reliable
clerk in the bank, and asked HIM to inform
him on the dead square If everything was all
right in the bank, as it had become nosed
around that there was deficit. Sharmer SAID
everything was all right and nobody would
lose cent. He had photographed to Frank
johnson, the president of the bank, to come
up at once" and later he confirmed it by
showing your correspondent a telegram from
Johnson saying that he (Johnson) would be
here In the morning.
1t turned out that Sharmer was ignorant
of the true condition OF the finances of the
bank.
Upon Johnson's arrival here he immedl-
ately repaired to the Morgan residence and
examined the body in company with j. Z.
Cavanaugh, an Omaha attorney. They
subsequently came up town and entered
the bank accompanied by Sharmer and Adam
1ckes, the county treasurer, and James Suth-
erland of North Platte. johnson, Cavanagh
and sutherland began making an examina-
tion of the books: This was about IL o'clock.
AT 2 o'clock Morgan's body was sent to
Omaha and johnson and Cavanagh returned
to the bank alone.
They saw enough of the bank to assure
them that there was a large deficit, but when
interrogated on the subject they would in
variably answer, I'VE can't make a report
yet and it will take several days, as the
books have not been posted in nearly two
WeekS.n
About o'clock n crowd of excited depos-
itors gathered in front of the bank and
wanted an explanation, that they had been
put off long enough and it was time to know
the true inwardness of the business The
result was a meeting was called for z 80 in
the evening. G. ID. Essg was appointed
chairman and Alfred Grantan secretary.
A committee of three was ap
pointed to wait upon Mr.. johnson
at the Pacific hotel and ask his presence at
the meeting. He came over with the COM
mittee to the place of meeting, where about
seventy-tive per cent of the depositors had
met. He was cordially received and intro
duced. A number of pertinent questions
were asked of him. He denied beng inter-
ested in the bank, but said that Morgan
owed him $4,000 and he would not take it
until all the other creditors had been paid.
Johnson has admitted right along being
Morgan's partner and, in fact, was intro
duced by Morgan only last fall and during
the winter as his (Morgan's) partner, even
going so far as to tell a Sidney man last fall
in Omaha, that he was not satisfied with the
way Morgan was doing things in Sidney,
and if he did not change his tactics that he
(Johnson) would have to make some other
arrangements.
AS soon as johnson left the meeting few
of the creditors began suit and had papers
served on Johnson as the surviving partner,
When the west-bound train arrived at 10
o'clock p. IN. and Sheriff Eubauk was
presenting his documents to johnson
summoning him to appear in court on August
to answer these suits, he got aboard the
train, saying he was going to Cheyenne and
would be back OK Saturday afternoon to
assist committee of three in further exam
lining the books He never returned, but it
is learned that he took the I3. s. M. train for
Omaha. He never intended to come back
here. The result was that County Treasurer
Ickes, who has Sl7 900 deposited there, went
to Omaha on Sunday III company with Mr..
Mcintosh, where they will probably enter
suit.
.ohnson's denial of partnership with
Morgan is all nonsense, as there Will be
plenty of proof to show they were partners
and that there never was dissolution pub
lished The people here are determined to
make Mr.. Johnson pay up every dollar and
no compromise will be effected. That Nor
gan spent great deal OF money there ls no
question. He may have spccuated, but at
home he certainly was not extrayagant.
There is no truth in the story of rcttnue of
servants, lie occupied a splendid house, ire
gift OF Mr.. Yates to his daughter.