Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1898-12-31
GOOD NATURED CASHIER.
Allowed Patron to Overdraw Heav.
ily-Arrest Followed.

ily-Arrest Followed.
Colebrook, N. H., Dec. 29.-Harry F.
Bailey Of the Colebrook National bank
was arrested early last evening, charged
with the violation Of the banking laws.
The arrest was the outcome of an ex-
animation recently made by Bank Com
missioner Carroll Of Concord. The eX-
animation revealed overdrafts to the
amount Of $34. $50. distributed among 10
depositors who have done business with
the bank during the past few years. The
amount Of the overdrafts was kept on a
third book.
The bank. which Is the only national
institution In the town, will continue to
do business after the irregularities are
Strengthened out through the usual
mode Of procedure. A portion of the
overdraft has already been made good,
and 1t Is believed large amount will be
lauidated today, while 1t would not be
surprising IL the third book account will
be balanced within few days.
Cashier Bailey Is not charged with the
embezzlement Of the banks funds. but
his arrest is made for the violation of the
banking laws in allowing deposltors to
overdraw their accounts
The COlebrook National bank was or
Eanized in 1889, with capital of SIS, ,OCO
the president being George Van Dyke,
and Harry F. Bailey cashier. When the
bank commenced business the deposits
amounted to $4,000. The latest state
ments of the bank made to the govern
ment showed an Overdraft Of $780, or
over 10 percent Of the capital In 1893
the overdraft amounted to $1S3. and has
been gradually increasing since that
time.
Cashier Bailey is about 80 years of age,
and has wife and two children. He Is
In the custody of Deputy Marshal
Horner and he will he taken to Lam
caster for hearing.
Boston. Dec. 2s.--In an interview last
night, President Van Dyke stated that
not single depositor In the bank woul,
lose q dollar Rs the result of the in
discreet action of the cashier. II have
personally guaranteed all checks on the
banks correspondent in this city," said
Mr.. Van Dyke. and have received as
surances from Colebrook THAT number
of those who had made over-drafts on
the bank had either settled their ac-
counts or arranged to do SO at once,
The trouble was that the cashier did not
know how to say no. and allowed
number Of his friends to make these
over-drafts on the bank.
MY brother has notified me Of the sit
uation, and, according to his statement.
young Bailey has acknowledged that the
over-drafts amount to $34.150 This
amount Is distributed among 10 Of the
banks deposftors or customers, but they
are all good for their various amounts,
and have no doubt but that two-thirds
Of the amount will be made good in three
days. The largest one has already
made good his Indebtedness.
Young Bailey's method of hiding the
shortage was to reduce the amount G:
deposits by just the amount Of the over
drafts. but he kept an account of the
latter on third book. Only two or
three years ago ] found that he had
been accommodating friends by CASH
ing checks without the necessary funds
to their account. but. after severe lee
ture, Bailey promised not to do SO again.
He evidently could not withstand the
pressure, and yielded, and now he must
suffer the consequences. for shall not
ask any leniency for him. The bank is
all right, and do not worry about its
standing"