The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-02-24
LoCKPOR1'S WRECKED BANK.
CONFESSION or T8E cAsHIER. VINO
rs UNDER sENTEACE 10 <UBURN.

four months at Auburn, having pleaded guilty
to three indictments charging grand larceny
committed when cashier OF the Merchants
bank and false entries made when County
Treasurer. has made q full confession which
was published in the Loekport Union this even
Ing He makes some startling disclosures
duplicating other bank officers In the wreck
ing Of the Merchants Bank and the county
treasury.
The Merchants Bank OF Lockport was the
successor Of the First National Bank. organ
ICED in 1864 Through speculation on the
part OF J. W. Helmer In 1875 the bank ac-
quired n large amount OF worthless assets,
and ater a reduction Of the capital from
$500 600 TO 100000 its condition still re-
NAMED 80 unsatisfactory that in 1850 the
Banking Department decided that the bank
could not he run longer unless it's affairs we're
put in better condition, . reform which was
promised. Instead Of this It was made state
bank. Previous to the change large amount
Of worthless assets still etood upon its
books. and at the time OF the change
some were taken out but enough re-
NAMED. with paper now declared TO be bad.
TO amount to over $4,000. upon q ca pitaliza-
tion Of 100000. which has since been carried
upon the hooks. though now II is declared
worthless This amount was made up OF paper
by Seymour Burrell. Chauncey L. and Mary f.
bowen, 4. ENuhTL flcTSOn. u. L. HOWleT, u. W.
Rogers. Milford Helmer. A. N. Helmer. T. f
Hslmer and others; also $4,000 borrowed
from the County Treasurer. and placed among
the assets Of the bank.
Shortly after this loan" says hrnold's con-
fession. /. upon the maturity Of an asylum
BILL notified President J. s. Holmer that
must have funds with which to meet It. He
replied that he could not give any. and
that m ust draw upon one OF the other deposit
taries. Ithen put OF the asylum bill until it's
Treasurer threatened TO place the account In
tha hands OF Its attorney. and 1 thereupon
drew upon the other banks for tho funds.
Shortly thereafter had another bill. and. upon
my request for funds. 1 received the same re-
Ily Dir. J. $. Helmer said We cannot give
you anything then told Mr. J. s.
Helmor that I would not draw against
the other bank balances. After further
conversation I told Mr.. j. s. Helmer that I
could remit for the bill and bridge the matter
over and that I could arrange 1t upon our
books. He replied: Can you fix It so there
will be no trouble?' To which answered
dras nS rs npon Ycpi bank
the amount OF the bill. entering IL upon our
books for a lesser amount. but siterward max;
draft from the bank for the difference. which |
draft was credited up and destroyed or by the
ference. for when We woold receive credit in |
New York. bpt which would not be charged by |
count coed as before. This was a.terward |
done in other instances. but the trreg ularity |
These methods were first made known to |
me about iST3 when New York draft vas !
sona for Which HS w. h. Fss N%
c.. received credit. and i was CHARGED 70 the |
years: and Hitcryasd oe ehaTs9d. e proht and
ard Helmer. the cashier Of the bank at this
time, also carried in this manner amounts
tirsment from the, tank was in arrears
:; stO w. which | took care Of Individually
Ieraid me by him. and ia a total loss to me.
Thi 81; same practice was followed In septem ber
lie caused to be charged to the Merchants'
National lianS, New York. draft Of s.. 500 on
UPON the booE n from ssS
was also sent t, New York on kansas City. and
gank Baso for sSo On jus T. fI'H s
the BapEine Department at Albany notified
count Of poor paper and losses which had been
Heimsr, SO. 600 was Charged to dis.
counted hills and credited to, profit and loss.
1t created u deficiency in that account Of SiU.-
600 which existed until the appearance OF the
put in si""66 stock Of the Chicago ,H aud caRo.
ss ot Spnnl .nh R3ck C9mpany worth about
for the loan OF $4,000. before mentioned, and
he asked Il l had anrthing could Int in: /
then gave him the O'iauGhlln note OF Sl.777.
him and myself %S mak ing total q sioo 0'
r, t M.er ny arrest ! sent sent 70 two brother: IN
needs Of my family. which were aud arc now
pressing: Out OF this amount, in addition to
and accounts upon which / have made sd-
vance, ! managed to give my family $40 per
Srsn h. .des yasls I'D ' on tho o. f
Of womanhood the youngest an infant. born
n October asT Ty nrrss Whose fac have
who has otaly iorg often me and treats me as a
stranger who was always ready to give me the
fns ssHhef Two SeHR IL, ass Rfo%n
uIon dear and devoted wife. in addition to
iesr ones-desrer to me than ham lifs"ar. lett a..
solutely penniless, and need my utmost Efforts
are immeasurably increased by the fact that
several sisters and brother OF my wife have
sa H. H Is TsnG.ssd hHs m ss
at ~ ns be END dsAE ths
d which Is too terrible and awful
Q !, e,on,sm plate; ! have brother hers
an nloyment. lie was, since 1870. in charge
of the ranch prorerty IA Texas. In December
cell the property. but before he could do so
he financial depression occurred. and, as tho
Il |
him to sell at any sacrifice The result was
hat he sold for less than Sl3OOO property |
worth over 10000, and which went into the
Jank at different times. The note OF Sl,177, |
before mentioned as having been credited to |
profit and loss. came from this source.
" would add that my trouble arose from an
entered into with Col. SNOW a |
,oh-in law Of DR.. Helmrr and who was intro |
iuce6 to me by the doctor. ny which was to |
invest $1,000 In the Coal and Gypsum Com |
,any, which amount was to he used by him |
olelT for the purpose OF developing the prop
'rty and that future expenditures would lie
provided for by the receipts from the business.
Plausible demands were made for improve |
nents. said to 10 necessary, and, after NUM-
)sr had been paid by me notified him that |
'Ould go no further ] received reply stating
hat 10 keep out 81 the Sherifrs hands. Il |
would no necessary To put IN more funds. 1 |
hen asked him y he could sell the property. !
o which he replied Yes and that Boston !
with capital Of s3OO40OO would
,aT SlOOOO for il. As Snow claimed that
~. 600 had been extended uDon the prop |
'rty. wrote him that considered the prom
'rty worth more. ana that II he could get |
,lO0. 900 cash and S5OOlO 10 stock or bonds Of
he company TO sell at once il not, 20 take SlOO.-
100 ana close 1t out without delay. He wrote |
ne several times ateTwaTd that the syndicate ]
vas peTfscting Nnance arrangements with \ |
lew to the purchase. but have learned since |
hat ARRANGEMENTS had been entkFad iutn J