The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-11-22
An Interesting Case Showing How Easy 0fiicen
of National Banks Can Fail within
the Clutches Of the Federal Law.
South Bends Prosperity as Evidenced
BY Census Bulletin on Manufactures
Candidates for the Place Vacated by Judge
Blodgett-$1S0. 600. 900 Required for Pen
sions in the Next Fiscal Year.
HIS SENTENCE RENTED.

Broker Simmons, OF New York, Co BE Re.
leased from the Penitentiary.
Special to the Indianapolis Journal
WASHINGTON, Nov. 2l.-President Harri.
son to-day made use again of his good busi-
ness sense and humanity in disposing OF Q
case which is Of special interest to nation
al bankers every where. He RENTED the
unexpired sentence of James A. Simmons.
q wsll-known banker OF New York. who
was sentenced to six years In the Erie
county penitentiary May 26. 1891, undeS
circumstances and for an offense which
might. to q greater or less degree. surround
any national banker on almost any day in
the year. Simmons was Q man Of large
means, and owned q controlling interest
In one or two banks. His agent
George II. Pell. was directed to purchase
for him . controlling interest in the Sixth
National Bank of New York city. which
required cash payment of nearly three
quarters of a million of dollars A part OF
the money for the stock was paid over by
Pell for Simmons in cash and governmens
bonds. but there lacked about SlS0000 Of
the full amount required. Simmons gave
his agent. Pell some bonds, upon which ho
was TO raise the amount TO close the trans
action. Finally, Pell went to the cashier
certify 10 three checks for Simmons, each
for $50, 600. which the cashier did. and these
were turned over in full payment for the
purchase. Simmons did not have this
money in deposit in the Sixth National.
and some one in the bank, who
proved to be an enemy. notified the
national bank examiner of thia
transaction. The examiner pounced upon
the bank, found that the checks of Sim
mons had been certified without there
having been deposit made for them, and,
bank's funds, he closed mp the institution
and had Simmons arrested for violation Of
Section 52O9 of the Revised Statutes of the
United States. In just six days Simmons
had disposed of the stock placed
in Pelps hands for sale. and de-
posted with the Sixth National Bank
the $4,000 checked out by him. but
this was not sufficient. Simmons waa
brought to trial for missppropriation OK
funds. ETC.. and sentenced to SIX years in
the penitentiary. The Judge trying the
case threatened TO starve the jury If they
did not return a verdict of guilty. No one
had been injured. as it was apparent that
no crime was intended. yet it was in the
eyes of the law q statutory crime.
Simmons has stood high in the business
circles of New York. His disgrace made
his wife insane and she recently died from
grief. His mother has also just become ins
sane. Simmons was released on the cer-
tlfcate of a physician, showing that
he was a sufferer from Brights disease.
National bankers have taken much inter-
est IN the case, as transactions of the same
general character as Simmons was guilty
of are more or less common and are to o
large degree necessary to successful bank