The Portland daily press., 1891-10-14
PRICE HA YEAR. WHEN PAID In ADVANCE !s.

actual situation was at that time n ~ Sa s. nls
sary TO recur to some facts and events III AZ.
history Of the bank. The bank started. ' as
! nave SAID. az an unIoItanate period and
OF specie payments was approaching; the
bank paid large amount In premiums upon
It's purchase OF United States bonds, which
was subsequently lost. There was a strong
and persistent and jealous rivalry OF the
old established banks against the newcomer,
and whatever success Il won was the result
OF dlligen and constant and judicious effort,
largely on the part OF the respondent. There
were heavy losses which the bank met on
Its way, even during this early period Of Its
success. 1t lost heavily by
THE FIRST DENNIsoE FAILURE
so that one dividend was passed, and the
period to which 1 have referred as that
which had brought pecunlary stringency and
loss upon the respondent In his private af-
fairs was also very critical period In the
history OF the bank, the most critical period,
think, through which Il has ever passed.
The bank itself, established In a shoe manu-
featuring community, was closely Identified
with the interests OF the shoe business and
largely depended upon the growth and sta
billty Of that for its own success. The year
1882 was disastrous one for the shoe busi-
ness at Auburn, There was. an entire
that business. The goods which they had
been accustomed TO manufacture had
ceased to be saleable at profit; everything
was depressed some new departure was
were to ensue. Many Of the firms went out
OF business. others kept on In the
business upon the old methods aud
failed; few rose TO the
emergency. to the requirements Of the sltu-
alton, changed their style OF manufacture,
adapted themselves to the requirements Of
the new market and went on prosperously.
But during that year disturbance and alarm
prevailed as to the financial standing OF the
manufacturers Of Auburn. In the spring
Kinsley q Co. failed, owing the bank q
large amount; 1t was house that had stood
well, In good credit, its failure involved con-
siderable loss 10 the bank, but far more i'm
portant than that at this critical period,
when everything was In suspense, 1t was q
shock to the integrity Of the business credits
In Auburn. That firm went into insolvency.
All seemed involved In a common danger,
the very danger which one OF the objects OF
the establishment OF this bank had been TO
avert: A few months later the firm Of Ram
larger amount. Mr.. Randall, one Of the
directors, and In fact. the vice president OF
this very bank, committed suicide, and the
firm went into insolvency. The court will
perceive In the state Of facts to which
have referred what
SIGNAL FOR GENERAL ALARM
an event like that was at this critical period,
The firm OF Randall & Miller was one Of the
oldest firms In the city, having been estab-
lished and In good credit for period some
thing like thirty years. Their affairs were
found In the utmost confusion, after the
firm bad gone int0 insolvency. The danger
was that the alarm would become panic;
the credit Of business men In Auburn was
scrutiniZed with the utmost care In Boston
where much Of their paper was negotiated;
extraordinary effort was made by this bank
and BY the wealthy men TO sustain the
orQdff NJ "a Auhura mo huff ~
almost, seemed that summer and fail as II
the whole business OF Auburn was moving
along the very verge OF an abyss. Now
have passed that period for the approaching
one far more important In the history OF this
mans life. In the fall OF 1882, the very fall
succeeding the dates to which have Just
referred, Mr.. Crafts, one OF the directors Of
the bank, one OF the heaviest dealers In
Auburn, came In great distress to
the respondent as cashier Of the bank nOti-
fed him In confidence. so that he might pro-
tect the bank so far as possible, that he had
just taken account Of stock; that he found
mis- business had been Improbable and that
he could not meet his obligations. He was
then indebted to the bank In a sum exceed
ing $4,000. including this $4,000 OF
Crafts's paper held by the bank, the
bank then held an amount OF over
due and unpaid paper exceeding $4,000, and
think approaching 100000. OF course, at
this period Mr.. Crafts's paper, In certain
fact OF his condition had been made known
"a thr eTshif~ and including that In the state
ment the bank then held an amount Of sus-
pended paper overdue and unpaid which
may be stated approximately at 100000. Up
TO this time / am informed and believe as
the result OF careful study Of this case.
that the bank itself was intact, that the re-
spondent had been
UPRIe HI, EXACT AND FAITHFUL
In all his relations with II, acting from the
best motives towards 1t, and acting accord
ing to legal and exact rules. But the court
will perceive with what he was confronted
when this statement was made to him by
Mr.. Crafts. His own private means ex-
hausted, identified as he was with the bank,
In certain sense standing almost as the
bank and for the bank TO that community,
the bank Itself In peril, the business inter-
ests upon which the bank depended in that
shoe manufacturing community seeming
ready to fall PROSTATE at the public announce
ment Of such news as this from Mr.. Crafts,
everything desperately at stake, something
must be done quickly or all was lost. Mr..
Cushman, the president OF the bank, had
adopted new methods In the conduct Of his
business as shoe manufacturer and was
succeeding; the thought flashed into the
might be formed to take the assets and busI-
ness OF Crafts Il Co.. assume their
debts. thereby paying to the bank the s20.-
600 which otherwise IL was likely to lose, and
shock to public confidence as would result
from the failure Of Crafts 81 Co.
"Now this was the thing that he did. I'm Oc-
t0Der, 1882, new company was organized,
largely by the respondents efforts, he, him
self becoming large shareholder In 1t to
push the WORK on, and the bitter results Of
that, conceived as 1t was with the best mo-
tlves as to the ends to be sought, are appar-
ent to the court from the statement which
has already been made. 1t Is, under these
qirenmgtanQpQ ~ the Q0uYt nlQasa that the
first mis-appllcatlon Of bank funds by the
respondent was made. AS / have reelected
upon 1t, have been startled by the consid-
Grafton Of the terrible temptation to which
he was exposed. On the one hand, IL he
stopped there was ruin for himself and dan
ger, high degree Of danger. to the bank.
his own embarrassme mt falling like blow
upon the institution with which he had been
identified. and adding
NEW SHOCK TO THE PUBLIC MIND,
the publication Of such news as that from
Crafts seeming at the time to be fatal
thing to all interests. On the other hand. oy
blending his own interests with the interests
Of the bank and by some misuse Of bank
funds, it seemed to him that he might work
out safety both for the bank and for himself.
1t was this temptation. imDerfectly az
have stated 1t, yelled as 1t was, disguised a.
most In the garb Of virtue, into which he
fell. IL was ESQ sudden. too, 1t seemed to
smite him down like bolt from a clear sky /;
he could not separate himself from the
bank; his mind would not permit him to do
lt. BY false means it seemed as IL he could
save both, and at the same time save from
destruction the shoe interests at Auburn,
up IN which the bank itself depended. 1t
was that subtle feeling Of the Identity Of his
own interests with that Of the bank ana the
great emergency which gave him no chance
to reflect, which deceived and betrayed him. .
believe that his methods had been upright
down to that time; that his motives had
been good. and he seems to me like man
oVerpowered, overwhelmed by the calamity
Il might almost say the fatality-of that
great temptation. Had he been confronted
directly and openly with a temptation 10
wrong the bank he would never have yielded
to 1t; nothing would have tempted him to
take that first step, to seek his own interests
and gain In a way that he could see was Op-
posed to the interests Of the baRk; but for
him to fail Gin his own mind he believed, and
| am far from sure that In the facts OF the
Outward situation there was not enough 10
justify lt), was for the bank to fail. Is was
this false light, this fatal illusion, which
misled him; and this deadly mirage Of safety
for both, for himself and the bank, amid the
losses and dlsappointments which have
crushed him to the earth, he has pursued
over the dreary wastes Of his subsequent ca
reer. 1t was the thought Of blending his
own Interests with the interests OF the BANK
and working for both and that thereby no
might achieve success, which explains the
mystery Of his crime. account only Tor MS