The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-29
TEN YEARS IN PRISON
BANK WRECKER JOHNSON SEN
FENCED By JUDGE BAKER.
He VIII Be Taken to the Penitentiary
at Columbus, o., Monday to
Begin His Term.
COOL NERVE STILL WITH HIM
COURT GIVES HIM THE LIMIT OF
THE LAW ON ONE COUNT.
John r.. Wilson'S Plea ant JOhnson's
Statement-COurt's Remarks i'm
Sentencing the Banker.

John F. Johnson the Logansport bank
wrecker, was yesterday morning sentenced
to ten years Imprisonment at Columbus, o.,
by Judge Baker, of the Federal Court. The
courtroom was crowded with spectators.
Johnson was brought in from the Jail at
O'Clock by the United States marshal, ac-
companied by his wife and attorneys. His
wife occupied a seat close to him at one of
the attorneys tables. He appeared as UNI
concerned as any of the spectators and dis
played no emotion whatever His wife was
heavily yelled, and no agitation in her mind
was shown by any outward signs. Johnson
sat quietly in his chair until the judge COM
manded him to come forward and receive
sentence, and then he walked calmly to the
bar of the court. The only tears shed in
the courtroom were by ex-senator Rufus
Magee, one of his attorneys, who stood it
as long as possible and then left the court
room.
The long indictment was read by District
Attorney Wishard, and then Bank Exam
liner Caldwell made a statement to the
court that has already been published. He
said that the amount of Johnsons pecula-
tons is 1864 500, outside of the 100000 bor-
rowed by Johnson from individuals on his
personal credit. Mr.. Caldwell said:
On the 10Th day of May l began the ex-
ANIMATION OF the State National Bank of
Logansport In the afternoon of the 18th
Mr.. Johnson confessed to me as to the vari-
Gus shortages some of which | had discov-
cred. The first discovery | made in the
bank, to which l called his attention, was
the dummy or forged paper of business
firms of Logansport to the amount of S2Ol
0O0, as l have it. The next morning Mr.
johnson called on me at my hotel and in
the presence OF two of the directors of the
bank, admitted still further shortages
when mad not then discovered, SCI, 500 of
which he said was concealed in the cetrif-
cate or deposit account of the bank, and, as
he remembered, $40,0 900 or $42, 900 in the in
dlVldual ledger. My verihcation of these
BOOKS so far reveals the SCI 500 in the
shortage in the individual ledger [
have still further found from out
$40 eoo sources oer dd of deposit of
issued by Johnson without authority of the
board OF directors, and without the making
OF any record on the books of the bank be-
tween the dates of May and May 10"
Was there any actual deposit of money
corresponding with these certifcates?''
These certificates were discounted by
correspondent banks in Chicago and New
YORK ana then checked against by Johnson
ana the money appropriated to his use. In
other words, the issuing of the certificates
was without record or authority of the
board of directors, and there was where
the irregularity first occurred. The total
amount which find at this time from nv
Nerihcation of the books of the bank is
l.
find later" '
Had you any information from Mr..
5ohn son that the amount is larger?" asked
II understand from Mr.. Johnson the
$sOO, COOP mat II was nearer
Yes, sir
Did he make any attempt to conceal the
situation ST. On from you??, Has he not tried to
After the examination he admitted ev
erything and told me more than | knew.
has ne turned any property over to the
Yes, sir; something like $4,000, accord
ing to the inventory of Mr.. Johnsons fig
Have you any knowledge of the actual
value? inquired the court.
only from business men of Logansport
to whom / have gone for information They
eetoonsery,atively place the value at about
500 co.,
JOHNSON's STATEMENT.
John r. Wilson. one of the attorneys for
Johnson, then read number of affidavits
sworn to by many Logansport citizens, at
testing Johnson's good character in every
thing outside of his present crime. He pre-
scented the following signed statement by
Johnson:
ITO the Court feel that I owe it to the
court who is to pass sentence upon me-
and to the stockholders and creditors of the
state National Bank of Logansport to make
guilty which / have entered to the indct-
ment in this case.
I'm February, 1892. I was chosen president
of the bank 10 succeed my father who had
recently died; my serious financial diffcuI-
ties began with the death of my father; up
on an investigation of the condition of his
estate l ascertained that he was insovent
and because of his identification with the
bank and believing it to be for the interests
of the bank | assumed all of his liabilities
and his assets were turned over to me-
believed at the time that his liabilities
amounted to 1886, 600 and that his assets
consisting largely of real estate, We're about
$4,000 Subsequent events demonstrated
that his liabilities were largely in excess
Of Sl36000. This large liability, together
with others of a domestic character result
ing from family relationships, imposed a
severe annual tax upon me, aggregating
about $4,000 each year
Prior to my identlncation with the bank
had been in the grain business at Logans-
port; / continued this latter business up to
the day of closing the bank. The money
not consumed in carrying the burdens re-
sulting from the assumption of the liabili-
ties above referred to was lost in speculat-
ing in the grain business, particularly in
Chicago Detroit, Toledo. OF course, it
was not my intention TO wreck the bank;
on the contrary, my hope was to save my
self and my creditors.
Il have never Speculated in mines or
mining stock. and in all my eXerience ] only
acquired $1,000 in any mining venture.
have never invested cent in any mari
beds. | have now none of the proceeds of
these Speculations.
For me to say, in this connection, look
ing back over the past, that l regret that
pursued the course which l have pursued
may not carry much weight. Nevertheless
no person who suffers by this bank and my
conduct can or ever will experience the suf-
fering that | have brought upon myself and
that / have brought upon my wife and my
child. l am in the hands of the court to
receive such punishment as in the mercy
of the court it may see fit to administer"
MIR. WILSON'S PLEA.
After reading this statement Mr. Wilson
addressed the court on behalf of his client
Your Honor, 1 just desire to add a few
words to this statement" said he. LAS a
lawyer practicing at this bar l believed
that it was candid and fair to the court
who had to pass sentence upon this plea of
guilty to put the court in possession of the
situation; and that was the disposition, I
can assure the court. of Mr. Johnson. We
have tried to do 50. 1t is difficult TO con-
ceive of more painful situation than that
which encompassed the defendant in this
case when. as a young man in 1892 just
little over thirty, upon the death Of his
father he assumed the responsibilities which
have here been described. He staggered
along under that load He carried il TO the
best of his ability. He determined to ex-
tricate himself. He had been in the grain
business. He appropriated the moneys of
others in that effort There is the crime
He confesses il. He has none of the pro-
ceedS of this venture. From his bOyhOOd
in every relationship of life up to this time
as a SON. as a husband, as a father as a
those who have known him from this child
hood he has depOrtpd himself with the