Evening journal., 1896-11-20
FARWELL'S BIG LOSSES
New Hampshire Bankers Un-
fortunate Investments.
BAD sPBCULATTONs IN TIE WEST.

Unable TO Meet His Obligations, lie Seeks
Refuge In Enrope-clients Ie'st the Bet
tor Part OF 81 900. .Ooc-AsSrest Threat
sned II Tie Returns.
BosroN. Nov. 20-A specinl dispatch
from Claremont, y. IT,. says: " The bank
er. John l.. FarNyell of the Sullivan Cour-
tv Institution For Savings, has gone 20
Europe and has left 81 eco, 600 of largely
deprecated or worthless paper behind him.
Mr. Farwell handled money for large
number of dcpositors and investors, and
the cash, it is said was sunk in worthless
investments In western land and stock
speculation. The bank was closed recent
" by the commissioners.
"Iho Farwell ismily has been favorably
known here for several generations George
\. Farwoll, father of the present repre-
sentative, wasan incorporation of the sui
livan institution, and it was matter OF
family pride 60 maintain that as the bcst
savings bank in New Hampshire John
l.. FarNycil entered its service in carly life
and his success was marked i'm keeping It's
rate of interest higher than that of other
banks. A belief in his business Judgment
led 60 the intrusting 60 him of sums for
individual investment. Mr. Farycll guar
anteeing the principal and 6 per cent in-
torest, keeping any excess of interest as
his fec
For some time matters went we'll on
] this basis, but about ten yenrs ago the
/ boom in certain western localities col
/ lapsed, and MIR. Iarwcn was one N the in
/ vestors who hunted through wide and arid
areas trying to locate what they had placed
! their money on.
since Mr.. Farwell's departure for Eu-
rope many cases have been found where
he loaned money on government lands pre-
empted by men who skipped away before
the first interest was due
Dealt with Western bankers.
"Nr Farwell dealt through a Nebraska
/ banker, whose guarantees on mortgages
/ he accepted as sufficient. The bank COM
/ missioners have found that this banker
would guarantee anything from sand
/ bank to a bunch of alfalfa, that he could
raise a mortgage on. Sullivan county de-
( positors hold hundreds of thousands OF
dollars of his worthless guarantees.
"Alr Farwell showed courage i'm his at
tcmpts to straighten out his affairs. NC
one questioned his honesty. Money wa.
still inwusted to him for Investment, anC
still he placed it on western mortgages
believing that the lane OF financial depres
sion must eventually have q turning
About 2l5 years ago demands were press
ed upon Mr.. Farwcll for the payment o
principal and interest of defaulted notes
10 meet these he mortgaged to their ful
value his holdings of western lands. Sto
ries of his troubles getting at last TO TIN
dcpositors caused a year ago last Christ
mas "a run on the Sullivan Institution ant
ultimately led TO its closing by the com
missioners
"After this Mr. Farwcn seemed to Civ
way to his troubles and made less effort Q
meet his obligations The demands o
him were not lcssened, but ne receive
them nonchalantly saying that with tim
hc would pay up everything. An July, b
advice Of his intimate friends, he saiig
for Europe, intending TO return in Sci
tembor 1t was rumored however, thu
he would be arrested if DE returned, an
many think hewill never be seen i'm Clar
mont again.