Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1893-08-26
FEATHERED HIS NEST.

Gotten Gains.
KANSAS CITY, Mo-, Aug. %. From
school-teacher to Napoleon of finance
and thence to a defaulter is the story of
E. M. Donaldson, late of this city, sec
retary and manager of the Union Trust
company of Sioux City, la, pres
ident of the First national bank
of Marion, Kan, and of eleven
Iowa banks, who fled Tuesday, pre-
sumably to Mexico, and left be-
hind him record as an artistic looter
of banks that is seldom surpassed All
of the institutions he was connected
with are in receivers hands He is sup
posed to have taken with him about
Ss0O,OO of other peoples money. From
the Union Trust company alone he
took 5000, 900. From the Kansas
and Iowa banks 5000, 900 is a conserva-
tive estimate of his stealings. Forgery
is one of the many charges against
him, and a deputy marshal is now on
his trail in Mexico armed with war
rant for his arrest for erasing his in
dorsement to a note for 50, 900.
Donaldson's story is unique. 1t be-
ing to go into the real estate business
in Marion, Kan. Associating himself
with prominent men of the city he was
soon coming money for them, as Kansas
was then in the height of its boom.
Eastern people became interested with
him, notably Joseph l.. Hosmer, of
Suncook, n. f., who established a
branch office in New Hampshire and
began placing loans with New England
| people for them. In 1887 Donald
son organized the Union Trust "
Mortgage company of Marion, Kan,
with a capital of s15O,OOO, which began
business successfully. Up to this time
Donaldson was honest and successful,
and his marked abilities and smooth
tongue carried everything before him,
but the bottom began to drop out OF
the Kansas boom and that started his
troubles. But he never lost his nerve.
| He got his eastern hackers to help
him organize banks to relieve the situa-
ton. The Union Banking company,
capital $3.50, 900, was started, and with
its money the First national bank OF
Marion was bought, and the Union
Banking company of Greensburg, Kan.
Union Banking company of Jetmore,
Kan, Union Banking company of Holt,
Kan, were organized as branches OF
the First national of Marion.
But this scheme failed. His business
began to dwindle. So he went to Sioux
City, organized the Union Trust com.
pany in the latter part of 1883 with an
authorized capital of 81, 900, 900, paid up
$780, with Hosmer as president and
himself secretary. This company sue
ceeded to all the assets and liabilities
of the Kansas concerns. In connection
with this company the following Iowa
banks were organized:
First national bank, Ida Grove; First ma
| tional bank, Holstein; Sloan state bank Sloan
| Danbury state bank, Danbury; First Ut
bank, Ute; Woodbine savings bank, Woodbine
Gushing savings bank, Cushing; Castana saw
ings bank, Castana; Schaller savings bank
Schaller; Aurelia savings bank, Aurelia; Banl
OF Modale, Modale. ...
At first this scheme was successful
but like his Kansas venture it, too, be
gan to fail. Then he started bis
ranch near Marion, Kan, and spent
thousands of dollars on it. This brok,
the Union Trust company About thi
time Donaldson began to see that ruiz
was inevitable. So he moved here anC
organized his cattle company into I
branch of the Union Trust company.
Then he began to plunder. Two o
the Iowa banks were sold and an at
tempt was made to sell the others, bu
the financial stringency stopped him
Thereupon he laid hands on all tn,
assets of all the banks and the trus
company and disposed of them Within
the last ninety days all of the bank
and the trust company have gone int
receivers hands. James Doughty, o
Sioux City, was appointed receiver 70
the trust company and the Iowa bank
about June %.
In July the First national bank o
Marion was closed and Special Banl
Examiner w. A. Latimer took charg
last Tuesday. The same day Donald
son fled. The examiner says he is $24,
900 short at that bank.
INDIANAPOLIS, Ind, Aug. 22-Monda,
afternoon Theodore P. Haughey, presi
dent of the wrecked indianapolis ma
tional bank, was arrested at his hom
near this city on warrant sworn on
by Receiver Hawkins charging hin
with embezzlement and misappro
priation of funds and credits O
the bank from January 1, 1892, unit
July pa, 1898. simultaneously with tn
arrest of President Haughey the fedora
officers arrested his son, Schuyler C
Haughey, president of the Indianapoli
curled hair works and the Indian
apolis glue works. A little late
Francis A. Coffin, president o
the Indianapolis Cabinet company; Per
cival Coffin, vice president of the com
: pany, and A. L. Reed, treasurer of tn
same concern, were gathered in
Young Haughey, the Collins and Rec
were charged with having aided an
abetted the elder Haughey in the EN-
) bezzlements and misappropriation O
, credits charged against him.
: The arrests We're made as quietly a
possible and the arrested men wer
| taken before United States Commis
: sioner Van Buren,, who released ther
on bonds furnished as follows: Thee