The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-12-17

sum OF nearly $500. 600. which IL had on
hand at that time or shortly after
wards. From the time OF the cousolida-
tion but few loans were made to per-
sons not connected in some way with
the bank of with the officers thereof
Such loans as were made were made
directly under the supervision of Il. ID.
Edgerton, the manager. and we find at
the time the bank closed the officers
of the bank and their friends and rea-
tives and the companies and corpor-
atoms in which they were largely In
terested We're indebted to the bank to
the extent uf more than one million
dollars. The companies. corporations
and enterprises with which Mr. L.. ID.
Edgerton. T.. W. BeRttie, e. X. Cole
and H. w Childs were directly inter-
ested seemed 10 have had full power and
authority To withdraw such sums o.
money from the bank as they saw liz
and the obligations and expenses or
their various enterprises. mostly min
ing ventures, and the sums which
Were taken from the bank In the inter-
est Of these officers are represented not
only by the notes of the individuals
and companies themselves. but We're
also eTresented by numerous notes
signed by the clerks and employees in
the ba.k. other individuals directly
interested as employees OF Edgerton and
his friends. which notes and obligations
are unsecured and practically wurth>
less. The extent to which these obll.
cations have been substituted ana
made to represent the money taken
from the bank in behalf OF the officers
and directors OF the bank has been diff
ficult for this grand jury In ascertain,
but If an expert accountant were placed
i'm charge of the books we believe that
defalcations to large amount could
be found To have taken place in this
matter.
Fourth-The grand jury further find
that there was department called the
savings department Of the said bank.
This institution was a portion OF the
Second National hank and accompa-
MED that institution uDcn the console
dation with the Helena National bank
and became departmcnt in the Hell
ena National bank, and upon the con-
solidation with the First National bank
they became department of that in
stitution. The object Of this institu-
tion was apparently To obtain deposits
from the laboring men, clerks and em-
plOyes about town. poor and needy
persons, who had saved small amounts
of money and who desired To obtain
as high rate of interest aa possible
upon their savings. II was given out
that this department was separate ana
| distinct from the bank proper ana IL
was generally understood on the part
of the denositOrs that the moneys in
| the SAVINGS department were safe ana
secure as senarate and distinct funds
from those of the bank itself the fact
/ being. however. that while the deposit
/ tors in the savings department placed
their money in the saving department.
that department deposited from time
to time to the individual account of the
| department the varions sums received
| from the depositors without any Sc
| curity whatever being received In any
manner by the savings department ex-
| cept in fact IL had had an acCCynt In the
| First National bank Of Helcha. These
deposits i'm the savings department ag-
gregatsd on the day the bank closed
Z about Sl27 COO and were represented by
about 700 depositors in the savings de-
partment. The depostors in this saw
/ ings deuartment since the closing OF
the bank have made proof Of their
claims and will in time receive such
dividends as the assets Of the bank
/ will warrant. thus ertailing upon them
a long delay and heavy loss, The de-
partment itself was evidently scheme
| devised by the officers of the bank To
! obtain BY offers of n hiEh rat" ot in.
| terert and fictitious security money 10
carry on the bank itself. and Is one OF
| the most censural'lc enterprises Of the
many schemes operated under the
name of the First National bank OF
| Helena
Five-The grand jury further finds
/ that there was n company operating
under the name OF +. -. Edgerton 4
! co. al Marysvlle. Mont. the expenses
/ Of which were paid out of the funds of
| the First National bank without any
authority Of the board of directors ~
the First National bank. and which
was private concern OF Z, ID, Edhcr-
/ toms. This institution was likewise a
I feeder of the First National hank of
Helena and the workmen and em-
ployes living nt Marysville, in this
/ county. were induced by the represent
/ atiyes Of this company to deposit their
money in the First National bank or
! Helena on certificates of deposits rum
I ming for a long time. This enterprise
likewise had no financial responsibility
/ ard when the First National bank or
/ Helena closed it's doors succdy strps
were taken by the members "f the co.
! nartnership to obtain the appointment
| of receiver. so that there might hr
DELAY sufficient To enable the individual
members of the concern 10 escape their
liability by the transfer "f such assets
: as they might have IN the meantime.
| Sixth-From the time of the console
/ dation of theFe banks the Enst Ylsor-
/ Gus efforts were made hy tue officers
| of the bank apparently 10 borrow
money from various sources, So that
[ cash could he obtained and made
: available In the bank. The First Ma
/ tional bank of Butte loaned $4,000 on
/ certificates Of deposit under agreement
/ as To collateral security. signed by ta'
representatives az the two banks. II
| further received from the FIRST Ma
tional bank OF Helena and uaid for In
! cash SlS7 .0O0 in assets and ~ a suhse-
quent time received sig2.0 600 of assets
Of said bank. a portion 90 these as
/ sets were collected and the balance r.
( turned. for which the First National
hank uf Helena paid the face value NJ
Slsg. .nOn. \ fcW days before the bank
| clospd its doors thCrc was turned over
To- the First National bank uf Butte
slG5 900 or thcTeahOuts. good. solvent
assrts and securities Of the hank.
These securities were turned over Ia
the First National bark of Butte N "A
lime when IL was apparent To every
On" Intimately acquainted with the nf-
fairs of the First National bank or
Helena thlt IL. bank was lusuivCnt
aul would he unable to keep open any
great length of time, rnd tris consul
tUtes IN thc opinion ~ his grand jury