Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-05-27

ESPECIAL TELEGRAM TO THE DIsPArcH.l
SCRANTON, May 26.-This city continues
to be agitated over the collapse of the City
Bank. Cashier Jessup and his friends made
great effort to keep the news from the out
side world, and correspondents for out-of-
town papers were beseeched not to send the
news over the wires. His attorney, Everett
Warren, who acts in the absence of Mr.
Jessup's brother, Judge Jessup, said that
the reports sent out were grossly misleading,
but the directors of the bank tell a different
story, and intimate that not half has been
told.
The following is Mr.. Jessup's card. spoken
of in THE DISPATCH this morning, and
which was published in morning news
paper, the owner and editor of which is the
political sponsor and personal friend of the
besmirched cashier:
THE CASHIERS STATEMENT.
With reference to the article in this even
ing's Truth, headed Failure of the Scranton
City Bank" permit me to say: About o'clock
this afternoon I was utterly astonished by
being served with warrant charging me with
embezzling the funds of the Scranton City
Bank. This charge is not true. 1 have not
illegally used invested the funds of the
bank, either personally or officially, nor do
propose to go to Canada. If have made mis-
takes in loans to others, for which am per-
sonally liable, or in investment with bank
funds, have, as l fully believe, an abundance
of property to make the same good. This
property will not be assigned or secreted but
is mostly in investments in this city and imme-
diate vicinity, and certainly within reach of
any Just creditors have.
GEORGE A JEssUP.
Notwithstanding this card, however,
which was conspicuous for its ambiguity,
the directors declare that Mr.. Jessup, in his
last weekly report to the board, dated May
Is, declared that there was a surplus on
hand, above all liabilities, of $40, 000, in
cluding the stock. 1t is also known that
Sainter Brothers & Co., clothiers, had paper
discounted amounting to 5000 on Friday
last, and that Mr.. Jessup took this paper to
the Merchants and Mechanics Bank and
had it rediscounted.
NOT VERY SLOW DIRECTORS.
The directorsgof the bank are roundly GEN.
sured for the part they took in closing the
institution. The directors drew every cent
they had on deposit few hours before the
collapse, with the exception of President
Throop, who owns one-fourth of the stock
and is the heaviest depositor in the concern.
At the close of business on Saturday he had
over S68 900 in the bank.
In an interview this evening President
Thfoop said that the embarrassment of the
bank was caused by Jessup using the funds
of the bank to promote a contract he had
with the Ontario and Western Railroad
Company, whereby the latter was to develop
coal land owned by Jessup in this vicinity
These lands comprise so acres and contain
1000, 900 tons of coal. One week ago Satur-
day, after having spent a week in New
York and Boston in the interest of this
scheme, Jessup returned to Scranton dis
heartened. He had expected to return with
100000
CASH AND RELIABLE CONTRACTS
for the balance, amounting in all to $780,
900. Had he accomplished this, Dr. Throop
says, ne would have been able to bridge
over his difficulties and the collapse never
would have occurred. DR.. Throop thinks
that Jessup is good for every cent he owes,
and is not alarmed at all at the collapse.
The gentlemen who comprise the Board of
Directors of the defunct bank represent
nearly 81, ,000,0 and people generally be-
lieve that the losses to depositors will be
light. Mr.. Warren, attorney for Jessup,
admits that the latter used the funds of the |
bank to promote his private enterprises. In
an interview he said: "Mr. Jessup used the |
funds of the bank only as they came through
legitimate channels. He drew them regularly, |
as any other customer of the bank would. |
1t NAV be that he didn't put up collaterals |
as he should, but there is ample security for |
all the shortage right here in Scranton. 1 |
do not believe he will go to Canada, like |
other cashiers we read o."
BUILDING A FINE HOUSE.
A few weeks ago Mr.. Jessup let the con-
tract for the handsome new residence to be |
built at the corner of Quincy avenue and |
Mulberry street, and the foundation walls !
of the new building have already been laid. |
A director told THE DISPATCH corre- |
spondent this evening that the amount of |
cash on hand at the time of the collapse was |
a little over $4,000. The rumor that DIR. |
Throop, who is rated as worth So, ,00O, 900, |
was on Jessup's bond to the bank, was au- |
thoritatively denied this evening by that |
gentleman. The only bondsmen are Jessup's |
brother, Judge William II. Jessup, and his |
father-in-law, Albert Beardsley, of Susque- |
hanna county. These bonds are considered |
insufficient and unreliable by leading bust |
ness men who have had business with the |
bank.
Among those who suffer largely by the |
failure is the firm of L. n. Kramer & Co.,
leading clothiers here. Mr.. Kramer had in
action the coming week.
SOME SUSPICIOUS CIRCUMSTANCES.
When the auditing committee OF the
Board of Directors agreed to meet on the
14th instant to go over the books of the
bank, Mr.. Jessup requested postponement
until last Tuesday evening, saying he had
important business interests to look after in
New York. When the committee met on
Tuesday evening, Jessup failed to put in an
appearance, and then the committee took it
upon themselves TO go over the books, with
the result already known.
Owing to Jessup's connections, he being a
brother of Judge Jessup, of this city. and
of ex-Justice Hand, of the
Supreme Court OF this State, who is now in
there is a probability that his de-
falcations may be made good and that the
bank may resume business. Ifitdoes resume
business, President Throop said to-day it
would be as national bank
Fine Whiskies.
xxx 1855, Pure Rye Whisky, full
quarts. .N W
Pure Rive Whistv fn1l