The record-union., 1893-08-22
SHORT IN THEIR ACCOUNTS.
RETURN OF THREE MEN ANX-
IOUSLY AWAITED
An Iowa Bank Wrocker Gets Away
With About six Hundred
Thousand Dollars.


Special to the RECoRD-UNIoN.
KANSAS CITY, Aug. 2i.-Henry Wool
mer, attorney for Special Bank Examiner
Latimer, acting as special agent Of the
First National Bank of Marion. Kansas,
filed attachments to-day against George
D. Galbraith, Special Bank Examiner in
charge Of the National Bank of Kansas
City, the National Bank of Commerce
and the American National Bank, by
Il. NJ. Donaldson, President of the First
National Bank of Marion, Kansas. II is
charged that Donaldson secured loans
from the bank of which he was President
for personal use, without adequate Sc
curity. He has since disappeared, and
the bank is short SOB, OBJ.
James Doughty of Sioux City arrived
to-day, and after conference with Attor-
ney Mailman and Bank Examiner Lati-
ner, swore outa warrant for DonaIdson's
.-rrest for alleged embezzlement, mis-
appropriation and forgery.
The facts told by Mr.. Doughty made
Donaldson's embezzlement from the
Marion Bank appear simply drop in the
bucket compared with the ex-banker's
transactions in Iowa. Donaldson, in the
eighties, besides owning a majority Of
the stock of the First National Bank of
Marion, Kansas, controlled two State
banks. His transactions, through them.
were not successful, and in 1856
he closed out two small banks.
and securing considerable money
from the Marion Bank, started the Union
Trust Company of Sioux City, Iowa. AS
feeders for it he established chain of
banks in Iowa, eleven in number.
His ventures. however, did not develop
according to expectations, and from sub
sequent events it became apparent that
he was determined to realize what cash
he could and leave the country. Accord
ingly, last winter he opened a branch
Office here and disposed of large amount
of securities and assets of the town con-
Germ. The Union Trust Company was
among the first financial institutions 10
60 under when the financial difficulties
began last spring. With it went down
the eleven Iowa banks. Doughty, who
was interested in the Union Trust Com
pany, says an examination of that COM
pany's affairs and the affairs of the eleven
Iowa banks shows a deficit Of at least
100000.
LEFT FOR PARTS UNKNOWN.
OGDEN, Aug. 2l.-To-day a warrant was
issued for the arrest of Alfred II. Nelson.
formerly Secretary and Manager OF the
Ogden Buildings and Savings Associa-
ton of this city, for embezzlement of
funds Of the company. His estimated
shortage is about $4,000. Nelson and
family left for parts unknown early this
morning.
FATHER AND SONS ARRESTED.
INDIANAPOLIS, Aug. 2l.-This after
noon Theodore P. Haughey, President of
the wrecked indianapolis National Bank.
was arrested at his home near this city.
on a warrant sworn out by Receiver
Hawkins, charging him with embezzle-
ment and misapplication of the funds
and credits of the bank. simultaneously
with the arrest of Haughey. Federal Off
GERS arrested his son, Schuyler c.
Haughey, President of the Indianapolis
Curled Hair Works and Indianapolis Clue
Works. and later Francis A. Coffin, Pres
ident of the indianapolis Cabinet Com
pany; Perciyal Coffin, Vice. President
of the company, and Albert t. Reed.
Treasurer OF the same concern. Young
Haughey, Coffin and Reed are CHARGED
with having aided and abetted the elder
Haughey in embellishments and lnisan-
preparation of credits charged against
him. The arrested men were taken be-
fore United States Commissioner Van
Huren. who released them on bonds