The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-12-17
IT IS A WARM ROAST
Sensational Report Of tn, United
Stats Grand Jury.
in THE BANK FAILURE CASE
E. ID. Edgerton Indicted and Ar
rested and Placed Under
Bonds He " axes a
Public Address.
IN THE BANK FAILURE CASE
specIal pIsnateh 10 the Standard.

Special Dispatch TO the Standard.
Helena. Dec. 16.-The expected came
to pass today. and the officers and di-
rectors OF the defunct First National
bank are suffering under the severest
rebuke that ever eminated from an Of
fetal body in Montana. The United
States grand jury. which had been in
NesIigating the failure of the bank for
several weeks, brought in four indict-
ments today, two against Il. ID. Edger-
ton, vice president and manager; one
against Mr.. Edgerton and George II.
run, assistant cashier, and one against
Mr.. Ldgerton and Mr.. Hill and Il di-
rector whose name was not announced.
fdmor connects the name of Il. W.
Beattie, director of the bank, who is
now In the east, with the fourth in
dictment
The returning of the indictments was
repiete with sensational occurrences.
First of these was the report OF the
grand jury. II was a scorcher all
through. 1t began with the consolida-
ton OF the First National and Helena
National. which. it says, was brought
about in a way To deprive creditors of
the assets. All Of the officers and di-
rectors come in for a share OF the criti-
cism, but ON T.. ID. Edgerton the vials
are turned principally. He had COM
plete charge Of the banks affairs and
he Is principally responsible for the
wrecking Of the bank. the grand Jury
says. The report tells of the question:
able methods of banking which were
employed. The chief principle of the
hank. II would seem from the report
WAS to have been get all you can and
Keep what you get" Money. the Jury
81 \
| friends of the bank without security.
The jury characterizes the retention
. of Mr.. Edgerton as receiver as an in
decent outrage
The grand jury's report Is as fol-
lows:
The grand jury of the United States
1 duiy impaneled at this term of court
To inquire within and for the district
OF Montana of all crimes committed
against the laws of the United States
within said district, heg leave to re-
port that they have diligently inquired
INTO the various matters regularly and
duly presented before them and have
made due presentment of such matters
as they deem sufficiently clear to war
rant indictments. The grand jury has
furher, in response to urgent and nu-
merous demands on the part of the
people or this district. made an in
Nestlgation of the affairs of the First
National bank OF Helena, Mont, and
have in their investigation been as
thorough as the time and facilities at
their command would warrant. In this
! Investigation they have had before
them n large number cf witnesses aud
have also called To their assistance the
expert knowledge of one of the exam
liners Of national banks under the laws
. AT the IFpig.I
their investigation they have present
Ell in court certain indictments against
certain officers Of said bank which
have been duly filed In said court and
speak for themselves. The grand Jury.
. however, have decided to prese nj in
court IN addition To the indictments
above mentioned the following stale
ment of their views and opinions de-
rived from the investigation, which
they have made I'm the affairs of the
| bank.
First-We find that the First Ma
tional bank Of Helena. after closing its
doors in the month of July. 1898, re-
opened for the transaction of business
in January, 1894; that IL continued To do
business as the First National bank of
Helena until December, 1894. when n
consolidation was effected between the
! First National bank Of Helena and the
Helena National bank. which said Hell
ena National bank had previously been
! consolidated with the Second National
| hank Of Helena. The terms of consOl-
idation have not been presented clearly
before the grand jury and the officers
of the bank and other persons interest
ed in the consolidation, in their testi-
mony before the grand jury, have cx-
hibited great apparent reluctance to
"a ha
has been elected to satisfy the grand
jury that the consolidation OF the banks
was never fully consummated in such
manner that the consolidated bank
could specially claim certain notes and
| assets as its own. a large quantity of
assets to the amount of nearly one
million dollars being reserved on the
part of the stockholders of the old First
National. These reserve assets were
never segregated upon the hooks OF the
hank, but from time To time. appar-
entity as IL became desirable To indiv-
iduals connected with the bank to get
rid Of this paper. these assets We're re-
moved from the bank and charged TO
profit and loss or other paper was sub
stituted for them. The effect Of this
confusion has been to make the exam
| ination of the matter 10y this grand
jury particularly difficult. hut upon
this head We are satisfied that II an
expert accountant We're placed In pos
session Cf the books ard directed To in
vestigate the peculiar transactions
connected with the consolidation ~ the
hank, he would he able to elicit many
facts of criminal nature by means
of which the depositors ard creditors
Of the bank have been deprived II the
available pssets, which would 60 FAR
towards the liquidation uf their claims.
Sc"ond-Ahnut the time ~ the con-
solidation the directors ~ the C0nsulf-
dated First National bank. by uuani-
nous vote, placed the entire manage
merit ard control of ihs bank and it's
affairs In tho hands of =. II Edgerton.
the vice president. who was designated
as general manager - the said bank.
and f.um that time the affairs of 5hc
bank have lcen conducted by Air Ed-
Rertun without consultation with nr Ill
rection from the other officers OF thc
bank. and In h's conduct ~ tho bank
h. has b,7oH absolute tn fhr miSmun-
9CemCnt II The same. the iOuting ~
the sssets %. tho bank, and The disap-
pearnuCc Of tho available funds cf thr
! institution. Whilo Sir Elg rtlr is To-
spousthlr himself. directly -tI 81, dp-
sire 20 saS ihdt The prHzl1 ff' anr d,-
rrCiuIs 0i the hank have ben rriulra b.
a. ,-iiL-UJ In the conduct - the nd
mir..,uti.a ~ rHrlT trust and clnuu'
tr too higHl" ,Husgrsd fer ,ha rsUg. ..ss
and incNl u.9ul. wlrr,r ,n .aiuS tr.r
allowed IN" IHaI.s 20 IA. haak b. h.