New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-24
ACCUSING FELLOW CFFICERS.
ALLEGED DETAILS OF THE WRECKING
or A LOCKPORT BANK
JOHN JACOB ARNOLD. EX-CAsHiER AND EX-
COUNTY TREASURER UNDER SENTENCE
TO AUBURN PRISON. MAKES
CONFESSION.

CONFESSION.
Ioclport. y y Feb John Jacob Arnold. now
under sentence Of eleven years and four months at
Auburn having pleaded guilty TO three indictments
charging grand Larceny committed when cashier
81 the Merchants Bank. and false entries made
when County Treasurer has made fun confession
lie duplicates other bank officers in the wrecking
OF the Merchants Bank and the county treasury
The Merchants Bank OF Lockport was the sue
cessor Of the First National Bank organized In 1863
Through speculation the part Of j. W. He.mer
in 1875 the bank acquired large amount OF WORTH
less assets and, after reduction OF the capital
from s2o0cro - 10000 its condition still remained
=, unsatisfactory that In 1889 the Banking Depart
decided tina: the bank could not be run longer
unless its affairs were put in a better CONDITION.
a reform which was promised. Instead OF TINS II
was made n state bank. Previous to the change
large amount Of worthless assets s! stood upon It's
books AMI at the time OF the change some were
taken out. but enough remained, with paper now
declared 10 be bad. 10 amount 70 over 5000 upon
a capitalization of $4,000, which has since been
carried upon the books, though now /, Is declared
worthless.
This amount was made up Of paper by Seymour
Burrcli Chauncey Z. and Mary T. Bowen, T. Stuart
Pierson. J. l.. Fowler. J. W. Rogers, Milford
Iicimer. A. y. Helmer T. t. IIener and others;
also $500 borrowed from the County Treasurer
ard placed among the assets OF the bank Arnold
says In his confession:
an H asylum S n n6 SG aGa the HtmS of
mat | must have funds with when to meet IL.
must draw upon one Of the Other depasitores
/ then put OF The asylum bill unnl Us treasurer
banks Tor the funds Shortly thereafter had
rSSTsl 9 ths same s%a T Tip n.y. me Ios SAID
@@sr T Ss wo 2aay na da an 0 The other
bank balances. After further conversation | told
}. $. Heimer that could remit FOR the bill and
hrl dee no mat
it upon our books. He repel: "Cln you fix I,
then drew a draft upon our New-Y5rb bank for
bS r S Sf S but " %d2 making GnF
thc amount god either by tne purchase OF a draft
cro '' No p nnl dor GrS orr H Ee rem HAN Of
funds to New-York for the difference. Tor whlch
would receive credit in New-York. but which
would not be charged by Us. Either transaction
would maxi the account god as hefore tbs his
These methods we're first made known - me about
| Helmer y co. to the First National Bank for
sSil23 81. for which J. W Helmet & CO. recelyed
| tlonal Eank New-York. but was never forwarded
manner for several years. and afterward charged
TO profit ana loss n amounts Of $500 and 81? g.
time. also carried in this manner amounts ranging
| from 500 to $500. and upon his retirement from the
viluay In order to shield him. This 800 never
repaid to me by him. Ard Is tots loss 70 me so THIS
j. s IIelmcr president Of The bank lie caused 70 be
York. a draft Of s. 500 on Liberal. Kan. which was
not forwarded. but carried upon the books from
about September 6 to September q. whereabouts
| 4 check for $1,000 also sent to New-York. on
Kansas city. and one on the o Manufacturers and
the Banking department At Albany notified the
bank that within sixty days. $4,000 must be raised
paper and losses which had been made September
10 or a. upon orders from President Helmet $1,000
profit and loss. but as nothing was placed in dis
count of $1,000 which existed until the appearance
Of the Bank Examiner on September q; when Mr;
| Helmer put I'm $4,000 stock OF the Chicago and
| Cakonet Canal and Dock Company. worth about
5000 and which ! held as part OF collateral for
the O'I.aughn note OF SLIT. to which he added
a note OF ss223 signed by him and myself. making
After my arrest sent to two brothers in Dakota
| amount. In addition to about S75 Que from the
county for orders and accounts have made adj
have family OF five ch!idr,r-the eldest fourteen
years old the threshold OF womanhood; the
! arrest, whose face have never seen. and little
Dorothy. aged two years. who has totally forgotten
ready to give me the frat nfantile greeting upon
my arrival home. The entire care Of the Two little
ones Is thrown upon dear and devoted wife. In ad-
Those dear ones-dearer to me than lfe-are left
absolutely penniess. and need my utmost efforts for
their protection. My anguish and anxiety are Inn
neasurlbly Increased by the fact that several SIS
ters and a brother OF my wife have been victims
OF consumption. and this unspeakable calamity IL
rendered the more unbearable by the knowledge and
Tear that may IT any time be the recipient OF in
| is too terrible and awful TO contemplate / have
brother here who Is devoted and true. but he
chsnnot obtain employment He was. SINCE 1879 in
charge OF the ranch property In Texas. In Deem
gel! the property, but before he could do 20 the