St. Paul daily globe., 1896-03-08

acting as broker in Cincinnati. Har-
per was one Of the chief organizers
OF the bank. He was supposed to be
worth about $2,500,O00 at the time of
the organization was effected, and he
had interests in steel works and 9TH
er things. The bank was founded in
1886. In 1887 it had $3,0OO,O 900 in de-
posits, and Of this $1,S00,0 was due
to more than 600 banks and bankers
covering all parts of the United States.
Harper was the vice president of the
bank, and he practically controlled
everything. The directors were good
men, but they had confidence in Har-
per, and they allowed him to do as he
pleased. Within ten months after be-
ing made vice president, Harper had
drawn out 100000 for his own use.
He then got the idea Of cornerNag
wheat and he began to buy in the Chi
cago market. He had a young lady
clerk, Miss Josie Holmes. in the
bank, through whom he worked, and
IN connection with her. the paying
teller and the exchange clerk he ma
nipulated worthless checks to the
amount of more than $1,000, 900, This
money was also sent on to Chicago
and invested in wheat. It was not,
however, enough, and he borrowed
from outside banks. He got $400, 900
from the First National Bank of New
York, 100000 from the Chemical Ma
tional bank, and $4,000 from Western
National Bank Of New York. This mon
ey he threw into Chicago, but still he
needed more, He then proposed that the
capital stock Of the bank be increased
$1,O0O,0OO. To this the stockholders
agreed. supposing that it was for legit-
innate banking business. Five hundred
thousand dollars were paid in, and
Harper at once shipped this off to Chi
oago, so that by the 10th of June, 1887,
he had borrowed more than $4,000, 900
and had put 1t into wheat.
HARPER SUSPECTED,
In the meantime these purchases be-
gan to materially affect the market.
No one knew who was buying the
wheat, but Is was finally found that
the money came from Cincinnati. Har-
per was suspected, and a circular was
sent around asking as to his credit.
This soon got to the banks who had
deposits In the Fidelity They began to
saw that he must quickly sell out his
wheat or fail, He could not do this at
once and he had to have more money
He gathered together such bills re.
ceiyable as he had in the bank and ex-
pressed them to the Chemical National
bank in New York, telling them he
would draw upon them for the amount
Of these bills. The bills aggregated
$lOO0,o00, They did not, Of course, be.
fn II Z
however, that false rumors had been
circulated about the bank and begged
the Chemical to stand by him a few
days. The Chemical replied that II
would help him out, but 1t was moi
their business to aid in cornerine
wheat in Chicago. In the meantime
Harper sent man to Chicago with
four drafts on the Chemical bank fol
$lOG,o0 each. He also sent a false let.
ter OF credit for S20o, o,00o,and he thought
that through these amounts he could
consummate his wheat deal. The mon.
ey, however, was not delivered in time
1t was one day late and wheat fell
1t dropped from 80 cents to 70 cents
and Harper and the Fidelity bank
went up with the bursting bubble
There was Immense excitement, The
pank examiners were called In and the
doors were closed. After time Har.
per and his confederates We're brought
TO trial. Josie Holmes turned state 6
evidence and escaped. Harper was
sentenced to ten years in the Ohio
penitentiary,b but in 1893 President Har-
rtson commuted his sentence and BAR
doned him on the ground that he was
physically broken down, AS above
stated. he Is again a broker in Gin
c1nnatt. l am told that Asa Potter.
the president Of the Maverick National
&c 1@axo
In New York. This bank was ruined
through loans to its directors, and its
failure resulted in the loss of 81, 900, 900.
LOST IN INDIANAPOLIS.
One Of the biggest hypocrites among
these national bank presidents who have
failed was Theodore p. Haughey, who
was the president Of the Indianapolis
National bank. Haughey was a mem
Der OF the Methodist church and an ac-
tive worker in the Sunday school, where
he had class which he called his
poor class. He was hypocrite of
hypocrites, and was up to ali sorts of
rascality. His bank failed to the
amount Of about $4,000 and this
money was scattered among a great
many small creditors. The bank had.
all told. about 5000 creditors, and
among these were many school teachers
and poor church members. Missionary
societies, aid societies and benevolent
associations were all in the bank as de-
pos1tors, and Haughey boasted that he
was the friend of such organizations
A large part of his swindles were car
rled on by getting draymen, porters and
clerks to sign fraudulent notes, which
he accepted in the bank and used as as
sets. AT one time when he was about
getting drayman to sign one of these
notes he overheard young boy who
had caught his finger in some machin-
cry swearing. He had him at once call
ed up an discharged, saying that he
could not have any one In his business
who would use such language.
FRAUDULENT COMPANIES.
The Indianapolis. NATIONAL bank, of which
this man was the president, was one Of the
first of the kind to be organized. 1t was In a
bad way in 1884, but at this time it issued
some new stock. and, among others, got ex-
Vice President Colfax to put $27 500 into it,
At this time Haughey's biggest swindles be-