The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-06
WRECKED BY A CASHIER
NORTHWESTERN NATIONAL BANK OF
GREAT FALLS, MONT, CLOSED.
DefaIcatiOn of SISO,OOO Charged to
Benton ID. Hatcher-Other Bust
ness Embarrassments

GREAT FALLS, Mont. Feb. 5.-The
Northwestern National Bank, one of the
oldest institutions in the State, posted a no
tice announcing it's suspension this morn
ing The board of directors and officers
charge that the trouble is due to a defalca-
ton on the part of Cashier Benton ID.
Hatcher of S1S0.0O0 The controller of the
currency has wired Louis G.. Phelps to take
temporary charge of the bank pending the
arrival Of the examiner. The assets of the
institution are given out by the directors as
$3.50 900: liabilities of about an equal
amount. Cashier Hatcher is lying pros
trated at his home here. All day long he
refused to say anything for publication.
The charges made by the board of direc-
tors are of a sensational character. 1t is
believed here, however, that in the wreck
ing Of the bank more than Cashier Hatcher
are implicated. On Dec. II last the Conrad
Brothers, who were the organizers of the
bank in the early sos, offered their stock,
amounting 10 $1S0,0O0 for sale, as they were
retiring from all active business. The en-
tire holding was purchased by Cashier
Hatcher, who informed the directors of the
bank that he had friends in Boston who
wanted to purchase the stock. Mr.. Hatcher
went East in December. and on his return
informed the directors that he had sold the
stock to his friends. The correspondent of
the Northwestern in the East is the Globe
National Bank of Boston. Cashier Hatcher,
it is alleged, being unable to dispose of the
stock as he had agreed to do, drew from the
Globe National the amount of the pur-
chase price of the stock. $3.50. 900.
This over a month ago. and no sus-
picion OF where the money came from was
entertained until just before a mortgage
for reorganization was received. on July Il.
An investigation was put on foot, but no
knowledge of it was possessed by the Off
GERS or directors here until the arrival of
President James A. Coram from Boston
last night. He at once called meeting
of the directors and for the first time II
was shown that the Globe National Bank
did not have on deposit the amount re-
ported by the Northwestern books here
S1s0,0 600. The directors decided to suspend
that effect. Cashier Hatcher alleges that
he drew the money from the Globe Ma
tional Bank at the direction of President
Coram, who had, with other friends. agreed
and reimburse the draft from the Globe
National Bank. He also says that Presi-
dent Coram called at his house this morn
ing and assured him that he had perfect
confidence in his honesty.
The last statement given out Dec. II last
showed total assets of sl.01S. $50: liabilities
deposits, 1856, 166, and other liabilities, S4l9-
Co..
one of the sensational features of the
trouble is told by Vice President Klepeet-
ko. who says that on Saturday last Mr..
Hatcher sent a message to the Globe Ma
tional Bank asking that institution to ad-
wise the bank here that 1t had more money
on deposit than it really had. On receipt
of this telegram Mr.. Coram started at once
for Great Falls. The Bank is owned by the
Boston and Montana and the Butte and