Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1891-11-06
COULDN'T GET BAIL.
Director of Maverick
Bank in Jail.
A VERY SEVERE CRITICISM
OF Comptroller Lacey by the Boston
News Bureau.

Boston, GOV 6-Colonel Jonas II.
French, late director of the Maverick bank
and Commonwealth avenue millionaire,
was committed TO the Charles street jail
last night in default of bail, charged with
having embezzled aud misappropriated
the funds OF the Maverick bank while di-
rector in that institution.
Thus ends another chapter in the great
failure which has conyulsed Boston and
rendered the public suspicious Of eutrust-
ing their moneys in other hands than their
own, no matter how safe the security
seems 10 be
Ever since the arrest Colonel French has
been trying TO Get bail, which was fixed AT
. F5,OOO, and has been unsuccessful. His
colleagues were more fortunate, and tho
man whom every one supposed would be
the fret tn obtain the requisite bond goes
70 Jail. The closing scenes Of this very
dramatic affair were very stormy and en-
gendered bitter feelings, not only between
the defendant and the authorities, but be-
tween learned legal men who would bo
supposed 10 keep an even mental balance
upon all occasions.
Comptroller Lacey ArraIgued.
In its issue of yesterday the Boston News
Bureau says:
Comptroller Lacey's excuses have begun, but
they are too late. Bank Examiner Magruder
has had the burden of the Maverick bank
upon his mind for many years He gave
Comptroller Lacey "A photograph, rs near as
words could do IL, Of tho condition of the
bank and supplemented IL with letters and a
personal visit TO Washington. lie told Comp
troller Lacey all about those directors in
dorsements.
But still, according 60 the comptroller, tho
borrowing of the whole capital stock OF the
bank by one director; twice ~ much, or the
entire surplus, by another, aud three times as
much, or nearly one lalt the individual dc.
posits, by third direc tor, with men of straw
signing the notes and the parties who get tho
money indorsing them, Is perfectly legal; II
only the pieces Of paper are each written for
no more than 10 Pc cent of the banks
capital
Why this persecution OF the directors. with
Comptroller Lacey certifying to the legality of
their acts2 l. there no coheroncy in the gov
ernment AT Washington that ono department
should prosecute bank directors for malfca.-
ance wher, the government department super
vising those bank directors declares their
transactions perfectly leGalY
The Boston bank presidents examination,
upon which the Maverick was closed and ex-
pelled from the Clearing House association,
was an examination only Of
'hc Letter Press Coplos
Of Magruder's report previously on file with
Comptroller Lacey But this report did not
show the character of the loan account. That
had been fully shown in previous reports to
the comptroller, and particularly last Janu-
ary. The comptroller then knew OF the many
notes with directors Inducements, and he
knew nothi ,~SynOre except that such notes
had increased) when he ordered the bank
closed last sunday.
These directors indnrsemrnts, as the pos,on
News Bureau has previously stated, were not
upon the note-, but yyerc fled in another de-
partment OF the bank. Tho bnak preidcnts
however, not having the comptroller's fun in
formation from Mr.. Magrudcr, simply sat up
nights with the Boston directory, and from
that valuable compilation Of Stamps n. Muir
dock 4 Co., learned whose clerk and whose
bookkeepCr and whose typewriter were tho
signers Of all the notes for ias: few hundred
dolla r. under the legal 10 per cent. Of the
banks capital.