Omaha daily bee., 1889-07-30
FRANK u. JoHNsoN's GAME.
How IL Is Considered by the Citizens
OF sidney.

How IL Is Considered by the Citizens
OF sidney.
Regarding the situation in Sidney over tho
relations between the ctizens and the State
bank of that place and Frank b. Johnson
of this city, the Telegraph of that city In its
latest issue says:
The situation of the State bank affairs this
week is practically unchanged. so far rs the
payment of the banks debts is concerned.
After much delay, and tho breaking OF many
promises, j. p. Cavanaugh Mr.. Johnson's
representative in the matter, arrived in the
city, presumably for the purpose of making
propositions for settlement. Johnson's
agreement with Messrs. Mcintosh and Ickes
1t is true left out of sight all such things as
propositions. He agreed TO assume and take
charge of everything. In the event OF his
keeping his word proposition would have
been entirely unnecessary.
MIR. Cavauaugh came up Tuesday morn
ing. A meeting was called, at which most
of the creditors were present, Mt 3 O'Clock in
the afternoon The meeting was adjourned
until Wednesday evening, atwhich time Mr..
Cavanaugh agreed to present his proposition
If he had one TO present
On Wednesday evening the creditors mot
again expecting to hear definite proposi-
tion looking toward final settlement of the
difficulties. This was the proposition Mr.
Cavanaugh made orally, after rambling
peroration upon the good qualities of Frank
Johnson, his love for his dead friend and his
sympathy for the banks creditors. Mr..
johnson would pay the remainder, II the
creditors would take the assets for fifty
cents on the dollar. Half of tho portion
which Mr. johnson would pay would be
money and the rest Omaha and Boone county
real estate. This was very fair proposition,
apparently, and the creditors present were
inclined to accept it, believing that 1t would,
in the end, realize very nearly 100 cents on
hAl ALL a.. - a 4.
assets of the bank ut about Sex, 900, perhaps
little more. The liabilities ha put ~ $S9,-
000. The statement made by Mr.. Taylor
showed only SOC, 900, but MIR. johnson had
resurrected Morgan's paper to the extent of
5000, endorsed by johnson. and held by an
Omaha bank.
1t will be remembered that Mr.. johnson
has never mentioned these notes before. 1t
had probably disappeared from his mind
that he was on Morgan's paper for S26, 600.
offered to subtract this s26, 900 from half the
liabilities. As a result, he would pay the
Sidney depositors Sl7, 900, half in lands, half
in money. The remainder they must realize
from the banks assets. The proposition ap-
peared quite fair, though it was not by any
means what johnson had promised, and
Cavanaugh was asked to put it on paper,
that the individual opinions of the creditors
present might be had. Mr., Cavanaugh did
this, but produced a document so completely
was told without further argument that ne
gotiations might stop If he had nothing
further to offer.
j. ]. Mcintosh suggested that if Mr..
johnson would turn over to the Sidney
creditors one-half the liabilities in cash and
real estate they would probably accept the
assets at 80 cents on the dollar and pay all
legitimate claims against the bank Mr..
Cavanaugh feared that MIR. johnson would
not consider himself morally responsible to
such an extent. The mpetinp then broke nm
In this manner has MIR. johnson redeemed
his promise to see that nobody but himself
lost IA dollar by the failure of the State bank.
Supposed to be man of integrity and char
acter, he has made promises by the score,
and has in every instance failed to keep
them. This fact is all the more glaring be-
cause Mr.. Johnson's lies have been entirely
gratuitous. If as he states, he is not con-
nected with the bank, there has been no call
for his promises. The moral responsibility
dodge which he endeavors to work will not
wash with the people of Sidney. They are
well aware that he has not made his hun
dreds of thousands m the past years in the
character of a tender friend and sympathetic
philanthropist They are much more ready
to believe, in the light of circumstances
which have developed since June 20 that
Frank b. Johnson's knowledge of Morgan's
affairs and the causes OF suicide is far greater
than he has yet revealed. But concern
ing the dark possibilities which lie in the
mystery of that tragedy the Telegram has
nothing to say. 1t is sufficient to say that an
abundance of proof can and will be pro-
duced TO compel Mr.. johnson to pay the Sid
ney creditors in full The matter will be
Johnson will find himself confronted with
facts that to say the least will not be pleasant.
Mr. Ralph Ellsins lives in Marionville, Mo-
and is successful farmer. He says that he
has been great sufferer from impurities of
the blood, which made his limbs stiff and