Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-05-01

! AN examination OF the Nlntn NdJlOudl
Bank, reveals the defalcation of about
| $500, 900, chargeable to its former PreSi-
dent. While the loss is serious, il does
not impair the banks Solvency, nor its
| ability TO take care of its customers.
Its assets, aside from the loss mem
| toned, are of good character: its dis
counts of exceptionally good character.
The bank has owned for period OF tf-
teen years eighty-fve acres of land in
| the Twenty-third and Twenty-fourth
wards of this city.
Gas national banks are not allowed
I to own real estate for other than bank
ing purposes, and which taken for
debt not longer than five years, this
real estate was charged off and has not
appeared in the assets of the bank for
many years, during which period it
has largely appreciated in value. That
/ is now restored at a valuation of $780,
OOO Competent appraisers value it
much higher.
las evidence that the banks valua-
ton is fully warranted and within
limits the directors have executed an
agreement TO the bank to take this
property at said valuation.
"ThiS bank has been unfortunate,
but it is perfectly solvent and is enti-
tied to and should receive the support
of its depoSitorS and the public.
"A. 2. HEPBURN,
National Bank Examiner.
The officers and directors of the Ninth
National Bank first learned that there
might be shortages in the late presi-
dents accounts through the relatives of
the late DR.. Clifford T. Morrogh, who
died March "a, 1882, leaving an estate
estimated at several hundred thousand
dollars. The doctor left wife and an
adopted son, Charles Augustine Nor
rogh. John Il. Hill, the Rev. Dr. Rich
ard Lalor BurtSell and Mrs. MorrOgh,
were by the terms of the will made eX-
ecutOrS of the estate, The adminiStra
ton of it, however, devOlved almost en-
tirely upon Mr.. Hill. Dr. BurtSell and
Mrs. Morrogh were not familiar with
any OF the details of business, and had
but limited knowledge of the Doctors
affairs. Mr.. Hill on the contrary, had
been the Doctors business confdant for
years and had suggested all the invest
mentS that were made by the physician.
Upon the death of Mrs. MOrrOgh on
January %, 1890, President Hill was APP
pointed by the courts the sole guardian
and trustee of the doctors adopted son
during the period of his minority. The
boy, who is scarcely more than Il years
old. became sole heir TO the handsome
property left by his father, which at the
time Of the latter'S death in personally
i = = >
For man who was haraSSed by bus
mess cares and who had an expensive
family 10 support the temptation to tide
over any personal financial difficulty by
borrowing some of the gilt-edged Secur-
tiles left in his keeping by the will of
DR.. MOrrogh and the instructions of the
court was too great for Mr.. Hill to re-
Sist. There was nothing to prevent his
hypothecation of some of the securities
or TO place them to his own credit at the
bank to conceal any of his own short
ages.
Every one who was acquainted with
Mr.. Hill had the utmost confidence in
him. No breath of SANDER either in
business or family relations had ever
been breathed about him until after his
death. He also impressed men that the
slightest suspicion Of any maladminiS-
tration of his friends estate or the
banks affairs never entered the minds
of any of his associates. DR.. BurtSell,
the co-eXecutor with Mr.. Hill under the
Doctors will, felt perfectly ut ease in
leaving its ADMINISTRATION to his associate.
1t is said that Mr. Hill led double
life. IL is known that he specialized
largely with the banks funds. and it is
suggested by innuendO that there were
other acts in his life that would not
bear the light of day. Particularly not,
i'm consideration Of the high place he
occupied in the councils Of Christ Epis-
copal Church at New Brunswick
His speculationS, first with his own
money, then with the banks, both
went against him. His accounts
showed a large overdraft with the bank,
which. TO make good, he supplied by
borrowing from the securities Entrusted
to his charge as executor OF the Nor
rogh estate and as guardian OF young
Charles Augustine MOrrogh.
Although this practice of hypOtheca-
tion continued for several years, it did
not become known until after the death
of Mr.. Hill. on March last. He had
filed the report Of his stewardship regu-
larly in the Surrogate'S Office Of New
Brunswick. Apparently all the Securi-
ties were intact, and, Of course, no one
thought of questioning the reports Of
the prominent bank president and
/ church member.
After his death, however, it became
/ necessary TO appoint new guardian for
| the minor heir. The man selected was
| c. f. Cowenhoven, of New Brunswick,
a prominent lawyer. In the meanwhile
Mr.. HIS executors were pu2zing their
| brains with the intricate problem of
/ STRENGTHENING out what they thought
was his large and complicated estate.
/ Mr.. Cowenhoven called for speedy
accounting, and began to trace the Sc
curitieS. They found then that the
/ Morrogh estate was either very serious
" impaired or that Mr.. Hill or the bank,
they could not tell which, was heavily
indebted 20 il.
The true facts of the case became
only too soon apparent. 1t was found
that not only had DR.. MOrrOgh'S Securi-
/ ties been pledged with the bank, but in
some instances they had been sold out
right, and that nearly the entire estate
/ had been disposed Of.
Those Interested in the welfare OF
Young Charles Morrogh acted with COM
mendable despatch. They made a de-