The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-26
"SALTED' HIS STEHLINGS
FEDERAL GRAND JURY VOTES TO IN
DICT BANK EXAMINER JOHNSON.
Got Away with About 45O,oOo-Monti-
cello Institution WIZ BE Saved
The Forged Notes.

For the first time it is possible to approx
mate the amount of his stealings. These
amount, all told, to about $3.50, 000 of which
$200, 600 is represented by forged paper
found in the bank; 100000 by crooked book
accounts; $4,000 on a certificate of deposit
issued to the National Bank of the Re-
public of New York, and 100000 on his
personal paper or word given on loans. He
has turned over the bank property, con-
servatively valued at 100000, leaving the
net amount he has got away with $350,0O0
He stole just about this amount from the
bank, but the property he has turned over
to it brings the amount down to $250,000
1t has a capital stock of $1,000 and a sur
plus of 100000. The directors figure that
the surplus is wiped out, and that about
$4,000 of the capital stock is gone The
value Of the paper in the bank will have
to be ascertained before the figures can be
reached.
Bank Examiner Caldwell, who was here
with the directors and employees of the
bank to testify before the grand jury, de-
clined to express a theory as to what be-
came of the money Johnson stole The di-
rectorS have come to the conclusion that
he has sequestered a large portion of it, and
in support of this theory they point to the
fact that nearly all of the personal loans
he made and the certificate of deposit which
he issued to the New York bank, as well
as much forged paper in the bank, We're
matters of the past thirty days. The eX-
aminer says that the stealings shown by
the book accounts date back to 1895, though
the forged paper and certificate are new.
Examiner Caldwell was the chief witness
before the grand jury, and he exhibited the
hfn and Who GiCnp fore or Il
employees testified that Johnson ran the
bank, acting in the double capacity of pres
ident and cashier They said that they had
had unlimited confidence in him. The jury
voted to indict him, and the indictment,
charging every penal clause in the bank
ing act will be written tomorrow.
Henry Van Worst. the largest stockholder
of the State National Bank of Monticello,
came down yesterday and had brief in
terview with Johnson in the jail. The lat
ter, while perfectly self-possessed, seemed
sorry that he had carried that bank down
also, and readily signed a telegram to his
attorney instructing him to confess judg-
ment on a note for $4,000, and declared he
was sorry he could not do more to help
Van Worst out. He said that the money did
not do him particle of good, as it simply
went with the wreck. The Monticello peo-
pie are making an effort to reopen their
bank. The auditor of state went to Month
cello yesterday to look into the matter and
determine whether to ask for a receiver or
grant time for a reorganization.
EXAMINER CALDWEL ESTIMATES
Bank Examiner George b. Caldwell, of
Detroit, the man who discovered the rot
tenness in the bank and has since had
charge of it, was a much-sOught man when
he arrived from Logansport yesterday
morning.
I've have not arrived at exact figures
yet" said he, in reply to the question of
a Journal reporter. II have an expert from
Cincinnati at work upon the books, and
any figures 1 may give now are simply
approximations We have heard of no fur
Their evidences of debt against the bank
since Friday night and as l have now all
the accounts current of the correspondents,
l think We shall find nothing that will fur
Their swell the shortage. In round figures
he has taken from the bank $3.50, 900 by~va-
| rious devices, and he has turned over to
the bank property of various kinds con-
servatively estimated to be worth 100000,
leaving the bank loser to the extent of
$3.50 co.,"
.'Can you make a guess at how much he
TO himself?" was asked.
eff l did it would be purely a guess, but
1 should say that it will amount to 100000
more"
by what methods did he get his money
from the bank?"
He simply took it. His first defalcations
were covered up IN the books. He would
take even amounts, say, $4,000 or $4,000 or
$50. CO., as he might need for his purpose,
and these things were concealed in the
ledger and register of certificates. They
began as far back as 1895, but | did not
discover them when / examined the bank in
1886. There was no way to discover them
unless l had called in people holding GER
tihcates and books 1t was during the last
year when he got into the assets of the
bank. and had to put in something to rep
resent the cash taken out, that it became
lions show a shortage of 100000 and he
endeavored to cover up 100000 more with
forged notes. The other $4,000 he sought
to cover up by the plan of issuing GER
tificate of deposit to the New York Bank
and drawing against it there"
Was there any penal clause OF the bank
ing law that escaped him."
None that l know of. 1 have read the
law over again to see if he overlooked any
thing, but he did not"
will the depositors be paid in full?'
Il think they will; without DOUBT. 1t is
possible that it will pay out without an
assessment upon the stock, though the
original stock paid in will be nearly wiped
out
What do you think of the talk of reor-
Sanization?'
Il do not think il practicable 1t would
be better to take the money and start a
new bank than to try TO build upon the
foundation of the wreck. Confidence in
this bank has been so thoroughly shaken
that I doubt if it could do profitable
business with plenty of money behind 1t.
Its capital may not be entirely wiped out
but it will be so seriously impaired that it
would take a good deal to restore it,
Have you any theory as to what became
of the money!?
Yes; but it would not do my theory any
good to exploit it and then l might be
wrong"
DELIBERATELY LOOTED IT.
The directors of the broken bank have
lost confidence in Mr.. Johnson. In fact
they are inclined to look with skepticism
upon that story about the obligations of his
fathers estate and to think that he first
got into trobule by specializing and then
decided that he might well be hung for
a sheep as lamb and went in with the
deliberate intent of getting away with all
he could lay his hands on
John r. Elliott and w. H. Snider together
talked to a Journal reporter yesterday ana
declared that they had come to the conclu-
sion that he had done most of his wicked
work within the last four weeks. They
pointed out the fact that the New York
certificate for $780, 600 had been made as late
as May u. that all the personal loans he
had made amounting TO about 100000 had
been within the past month, and that the
forged paper in the bank was all fresh
plicit faith in him and We're just recover
ing from their surprises. j. 7. Elliott
owned 80 shares of the stock of the bank,
and while he has been accounted a wealthy