The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-23

PENITENTIARY AWAITS HIM
WILLING TO PLEAD GUILTY AT ONCE
AND TAKE PUNISHMENT.
S. II. Sheerin Recommended for the
Receivership, and VIII Prob
ably BE Appointed.
Special to the Indianapolis Journal.

Special to the Indianapolis Journal.
LOGANSPORT, Ind, May 22.-F'rom
maudlin sympathy for Banker Johnson, the
people have turned to a feeling of bitter
ness, and to-day they wanted to lynch the
man who robbed them. To-day many
of the dupes of President Johnson, farmers
from the country, who had loaned him
their hard-earned money on his personal
security, came to the city to learn of the
full extent of the losses. When they
learned that probably not a dollar of their
money would ever be recovered, some of
them cursed, some wept and none had a
good word for the fallen idol. The feeling
of anger was SO manifest that when Deputy
United States Marshal Clark arrived to
make the arrest it was decided that it would
not be safe to bring Johnson through the
streets to the office of the commissioner,
and that officer and the deputy marshal,
therefore, drove to the handsome Johnson
residence and the deputy marshal served
the warrant in the presence of his wife
They were by far the most collected of the
few who witnessed the arrest The banker
said: Il ready to abide by whatever
course is best"
The prisoner waived formal arraignment
and preliminary hearing, and the commits
soner fixed the bond at $4,000. The com
HIlSSlOHeF Hdu already agreed Win NdllOIlil
Bank Examiner Caldwell on the amount.
Johnson did not leave his house, but friends
went diligently to work in the endeavor to
raise the required bond, but it is not likely
he can furnish it. A number of influential
citizens have been appealed to and have re-
fused. At a late hour tonight the bond
had not been secured, and Johnson will
probably be taken to Indianapolis to-mor-
row and placed in Jail to await the action
of the federal grand jury. A close personal
friend of the fallen banker said tonight
that Johnson would not attempt to evade
responsibility, but would enter a plea of
guilty and take his punishment. The pen
atty for the offense with which he stands
charged is imprisonment for not less than
five years nor more than ten, with a fine to
be fixed by the court.
WILL GO TO PRISON.
AT late hour tonight it was learned
that there will be no further attempt made
by Banker Johnson to secure bonds, and he
will go to Indianapolis in the morning. He
has decided to make no defense, and will
remain in the indianapolis Jail until Tues
day, when the federal grand jury meets.
An indictment will then be returned and as
soon as possible Johnson will appear before
Judge Baker, plead guilty to the charge of
the accounts of a national bank, with intent
to defraud creditors and deceive national
bank examiner. He will then receive SEN
tence and enter on his term Of service in
the penitentiary at Columbus, o., as soon
thereafter as it is possible for him to be
sent.
The situation with regard to the affairs
of the bank is not changed in the least. The
recent examination of the examiner leads to
the conclusion that the stealings from the
bank will amount in round numbers to
100000. To offset this are assets which are
available of 100000 in cash and $125, 900 in
property turned over by President Johnson
In addition there is about $4,000 in good
paper in the bank out of a total of $517000
This, it is thought, will secure the creditors,
aside from the stockholders. The depositors
will all be paid. The stockholders will hold
a meeting, on call of Examiner Caldwell,
who is awaiting instructions from Wash
ington before proceeding in the matter of
reorganization.
No one has yet been able to learn what
has become of the 5000, 600 or more with
which President John f. johnson, of the
rotten State National Bank got away. De-
Velopments to-day would indicate that the
bank has not suffered as heavily as citizens
of this city and county, who were hood
winked into loaning their money direct to
Johnson, either on his personal note or no
note at all. The total defalcation to the
bank is now given as $2SS 500, and, with the
assets and property that has been turned
over, depositors will likely receive dollar
for dollar, or nearly so. Stockholders will
rot come out so well, and, in addition to
the original $144.OOO in stock held by them
johnson having $56, ,000), they may be called
5,Is%
are liable for double their amount of stock
under the misunderstanding laws.
Every one is asking what Johnson did
with the money but he has not seen fit to
make a statement The claim that he was
attempting to liquidate the insolvency Of
his father to the extent of $20000O may ac-
count for his motive, but no one is able
to understand how it would take $500 900 10
pay 500 coo. His father died in 1891 and
owed much account of speculations in
pork and otherwise. 1t is believed that the
son fell into the ways of his father and
sent good money after the bad in specula-
tions on the Chicago Board of Trade. Had
luck been with him he would have paid out
but he had no better luck than the ma
jority of blind spectators who put UP their
money against the trained gamblers on the
Board of Trade.
FOUND STEALING EASY.
From what is now known of Johnson's
affairs, in addition to the 100000 which is
shown by the books of the bank, there
is at least $2Oo. 900 of obligations outstanding
which bear his personal Endorsement alone,
and there is a considerable amount which
is totally unsecured, the victims not having
even the acknowledgment of the deDt The
sum of such obligations may amount to
double the amount mentioned, which would