The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-11-05
President of an Institution That Is Now
Claimed Was InsOlvent for
Twenty Years Back.
SENTENCED TO THE GALLONS
Quick Trial for "Budd'' Stone the
Wratten Family Butcher.
Muncie Has an Elopement Sensation
State Y. NJ. c. A. COnventiOn-Miss
Rosa Waltz After Married Man.
pecial to the indianapolis Journal.

Special to the Indianapolis Journal.
TERRE HAUTE, Ind, Nov. 4.-John s.
Beach, sole proprietor of the Prairie City
Bank, private banking institution, which
closed its doors Aug. II. was served with
a warrant late this afternoon on eleven
grand jury indictments charging him with
violation Of the special statute OF 1891. He
gave bond in $11,000, John G. Williams,
vice president and general manager of the
Vandalia railroad, becoming his bondsman.
There could have been one hundred indict-
ments as easily as eleven, but as the PEN
atty is from TO three years on each
the number found is thought to be suffi-
cient. If he be sentenced TO prison it will
not be less than ten years. The statute
provides that any banker receiving depos-
it's when the bank is insolvent will be held
guilty of embeZzlement and that the fail
ure of the bank within thirty days after
receiving the deposits shall be prima facie
evidence of the intent to defraud
When the bank failed it quickly became
known that it had been insolvent for many
years, and there was much indignation. 1t
was not doing a legitimate banking bus
mess, the money Of depositors being used
by Beach in his private enterprises. The
list of assets showed how barren was the
banks resources in bills receivable. The
appraisers put ciphers opposite most OF the
accounts. Such, for instance, as $4,000
against Henry Clews, of York, who liqui-
dated many years ago on debts covering
the period when the Beach money was de-
posted with him. The bills receivable as
assets are put down not worth over
$4,000 while the deposits are $l56,OO The
other liabilities are $4,000 more, but these
are preferred creditors, who were given
mortgages on the Beach Block of business
houses and the family residence The best
estimate of his affairs is that he will not
pay 10 cents on the dollar TO the depos-
itors. The amount of deposits alleged in
the eleven indictments is :l,SoO. All OF the
eleven were made after Aug. ], and one
after banking hours Aug. IL, the day be-
fore the assignment and after IL was
known the assignment was under consid-
The assignees found but $500 in the
bank There had been $1,000 more the
savings bank Of which Beach was treas
urer. He had been in the habit OF making
free use of the banks money. One of the
mortgages is TO protect the men who are
on his bond as treasurer of the savings
bank which he yet owes $4,000 or $4,000.
His wife has considerable property, which
depositors think their money paid Tor, ana
she was protected in a loan to him shortly
before the bank closed. The depositors feel
that their money has been used in this way,
and they are demanding restitution.
Beach's friends defend him on this score,
and declare that his wife has nothing that
she did not inherit, and that Beach is In
debt to her Their defense will be that it
cannot be proven that he knew he was in
solvent when he accepted the deposits; that
he thought his assets were more than his
liabilities They say that the assets will
now pay 40 cents on the dollar II his debts
be rightfully managed.
From trustworthy information IL is now
made known that the bank has been in
solvent for twenty years. He has been re-
ceiving deposits the Prairie city Bank
and using them as John ;. Beach. This
was made possible by reason of the fact
that most of the depositors were persons
who We're allured by his promises or big
interest on longtime deposits. One OF the
depositors had left his deposit increase by
compound.ng interest for twenty years.
The amount Of liabilities is not less than
Sl50OOl. but the exact amount cannot be
obtained Under the law the assignee Is
compelled to report only the assets, and he
declines TO give any information as 10 me
IiahiIities. If they reach $4,000 the bank
will not pay 10 cents on the dollar.