Waterbury evening Democrat., 1895-01-25
BINGHAMTON'S BANKS.
Another One Closed by State In-
 spector Backus.
CASHIER MORGAN A DEFAULTER

The Amount Missing Is Not Known Yet,
 but Irregularities Have Existed For Thir- ty Years s-Hcayy Runs Other Savings
 Banks Met by. Cash From New York.
 BiNGHAMToN, N. Y, Jan. 25.-The an nouno2ment of tn dedication of Cash fer Tracy R. Morgan of the Chenango Valley Savings bank has created much ex- Citement. He has been mayor of the city. and during his 30 years residence hero has been looked upon as an upright citi- zen He is about g years old, and though he has beon close attendant to business his bodily vigor is unim aired.
 Philo H. Bal kuS, tho hank examiner had been in the city but one day when he discovered that something was wrong at the OSIenango Valley bank. He entered the bank on "Wednesday morning and at noon had discovered sufficient evidence to warrant him in charging Morgan with being a deaulter
 He found hat during the past 50 years a correct trial balance had never hecn taken in that bank, and that the cash re- fused to halanot almo t invariably. In spi:e of the fact that Ihe number of the banks depositors had increased daily. the amount on deposit had declined, showing that something was wrong.
 MT. Backus told a reporter that he had no idea how much had been taken, and that he would not be able to tell until he had posted mp the books called in 1000 passbooks, and as he expressed it, dis. covered where we are at
 Run on Other Banks.
 There has been n heavy run on the other savings banks in he city all day, but money is coming in on every train, and the New York banks say they will put Sl.O0O. GOO into this city if necessary.
 The Bro me County National bank was the depCs tory of the city and county funds. The city had on deposit $l0l, 036. S5. The coun:y's funds in the bank were be tween Sg5 900 and $l0O, 00O They werc placed there by County Treasurer Rider. The bank did not give the county securi- ty, as it did the city. MT. Rider and his bondSmen-Messrs. T. R Morgan. D. L. Brownson, A. $. Miner Erastus Ross, W. P. Hallock and Frederick F. Ockerman- arc tht rtfore said to be responsible to the county for the amount of the bond-$75, 000-if the tank cannot pay it's indebted ness.
 Mir. Backus. who is now in charge of the Chenango Valley Savings bank. was interviewed in regard tn the affairs of the bank, He was asked, Why did you close this bank"
 Because I found that there had boon defalcation here ho replied.
 Who is the lofanltcrE"
 Tracy R Morgan"
 Docs he admit ite"
 "YCs sir. He admitted it to me Thurs day night in my room at the Hotel Arling- ton"
 MT. Backus then continued: II have found the books of this bank in horrible condition. and cannot now tell how the affair> stand IL will he a long time before the books ale straightcned out My men arc now at work
 shortly after l came here last week discovered that things were in very had shape. and 1t did not take mo long to find out that some one had hecn defaulting. intimatcd ;o MT. Morgan in mild way that he was to blame. and ho said nothing. Later took the bull by the horns and di- rectly charged him with it.
 Morgan Made a Confession.
 "IIc admitted he had taken the funds of the hank. l was taken sick at the ho- tel anu Morgan and Mir. ErOwnson came to sto Inc ina lv got Morgan to admit that he hal taecn the funds of tho bank. but am nut ct i:b rty tu tell all that he told me thru cautioned both men not to go near t1o hank and against touching one of the books or papers MT. Morgan promised to keep away, but subsequent events proved that l was justified in talk ing the savings hank funds and securities to the Bingkamton Savings hank.
 "M,ssrS 3 organ and Brownson arc lia- ble for burg ary in entering this bank and taking out the books, If l had not set the directors watching the building. should have no books hero today to work on. l certainly never found a bank in such condition.
 II cant say how the affairs uf the Ma tional Broome County bank stand, and do not know whether or not the funds from the savings hank have been trans, ferrcd to tha national bank. It will be some time before the books here are posted up sufficiently to show how the finances of the bank stand I cannot say how heavy the defa!cation has been. hope it has not been sufficiently large to break Ihe bank, It became absolutely necessary to close this ank until we can fiGd out how its finances stand '
 Kept inc Books Alone
 The great question here is. What has Morgan done with the money, It Is not known that he was extravagant to any extent or that he had any particular vices which would aid him in getting rid of fortune, He lived quietly and has devoted apparently most of his time to business. He has kept the books of tho savings hank almost entirely alone Not one ot the emp oyees know anything of his accounts with the exception of 0 young girl who has for several years been Morgan $ chiet helper.
 Today watchman Is in the bank to prevent any one from tampering with the books The atement that all the other banks are in a iiurry-a report that carly in the day gained some credence here-is not borne out by the facts. Each bank !s prepared for bad run. and there is fully Sl. 900. GOO more in the city than the total amount ot the deposits in all the banks.
 It was reported about the city that Har- ry Ross of the defunct Merchants bank and the private bank of Ross X Sons was miSsiDU bnI the ranort is mt trua