The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-21
CADwALLADER's CAREER.
How the Union City Bank Was Loot
ed and Wrecked.

How the Union City Bank Was Loot
ed and Wrecked.
Special to the Indianapolis Journal.
UNION CITY, Ind, Sept. 20-The dis
patch in this mornings Journal from Stock
ton, Cal, giving the details of the flight
of Sheriff Simmons with his prisoner,
Charles H. Cadwalader, late cashier of the
Citizens Bank of this city, was eagerly read
by the citizens of TINS locality, and calls to
mind the closing days of the Citizens Bank,
its failure and subsequent events
The Citizens Bank was originally pri-
waite concern, owned and operated by the
late Governor Isaac P. Gray and Nathan
Cadwallader In 1873 they incorporated under
the state banking laws enacted about that
time. The charter of this bank expired in
April, 1898, and was reorganized at that
time by the old pank turning over all of the
assets to the new bank, which assumed the
name of the old one and agreed to pay all
of the liabilities. The capital stock of the
bank was fixed at 100000 but was SUISSE
quently reduced to $4,000. Nathan Cadwal-
lader was it's president from it's original or
ganiza ton down to it's suspension. HIS son,
Charles H. Cadwalader, was for many
years and up almost to the time of the
failure of the bank, it's cashier. The institu-
ton stood high in the estimation of the
people in this community, and Nathan Cad
wallader was regarded as one of the most
conservative and successful bankers. 1t was
the boast of this bank for years that it
never had litigated case, and that it's bust
ness had been successful beyond measure
Its stock sold readily at a good premium
and was always regarded as good invest
ment.
In the beginning of the year 1886 the bank
was pressed for currency and discounted
much of it's paper in order to meet demands.
The stringency continued until some time in
the month of February, 1896, when it was
claimed that the teller of the bank, Ed
Reeves. was defaulter, and on investiga-
ton it was reported that he
was short something like $11 600
in his accounts with the corre-
spondent banks in New York and Cincinnati.
The report of this shortage caused patrons
of the bank to become suspicious and they
began quietly to withdraw their deposits.
An investigation of the condition by the
bank officers did not come until the month
Of April. This was conducted by Pierre
Gray, son of the late Governor Gray, and
his brother. b. S. Gray, both of whom were
large stockholders. They found many things
not satisfactory in the management and laid
the matter before the board of directors,
first presenting the matter to Nathan Cad
wallader and his son. They demanded the
resignation of Charles H. CadWallader as
cashier and the selection of some one else in
his stead. Young Cadwallader resigned as
cashier and George N. Edger, president of
the Bank of Red Key, was elected. 1t was
believed by the stockholders and officers of
the bank that the election of Mr.. Edger
would allay all suspicion and restore the
;G con OF the public Mr.; Edger stand
honesty. But the story was out and
Mr.. Edger's influence could not avail. On
resignation of young Cadwallader, the
bank was forced to suspend. The bank ex-
aminer took possession and Jesse Canaday
was appointed receiver. Suits were brought
at once against Nathan Cadwallader and
Charles Cadwallader on obligations due the
institution, and the grand jury was called
to investigate the criminal Side of the case
Six indictments were returned against Ma
than Cadwallader, and indictments are sup
posed to have been returned against Charles
r. Cadwailader at the same time. Before
the suspension of the bank, Reeves, the
teller, returned, and it was reported that
he charged Charles II. Cadwallader with
a heavy defalcation. The latter had estab-
lished himself in business in st. Louis,
where he had a partnership in the control
of the Union Stock Yards, but when he
learned that indictments would probably be
returned, he fled for parts unknown and
kept cOncedleu Until run down IN California.
The receiver of the bank has paid only
Il 2-3 per cent. in dividends and has on hands
now a sum Of money for further distribu-
ton. The receiver Immediately brought suit
against Cadwallader and other officers and
directors of the bank for 900 for misman-
agement, which case was tried in the Della
ware Circuit Court and in which action a
judgment was returned for the sum asked.
Suits are now pending in this county to set
aside conVeyances made by some of these
directors and to recover the money due the
bank.
At the time of Charles H. Cadwallader's
resignation cashier he was indebted to
it in large sums, which he secured in part
by second mortgage on the Cadwallader
Theater building in this CITY, estimated to
cost in the neighborhood of $30, COO He also
gave a second mortgage on his farm north
of town and on his sale stable in the same
locality and turned over by chattel mort
gage his breeding stock The receiver has
reduced all OF these items and obtained
something in satisfaction. but only small
part OF the money that disappeared
Nathan Cadwallader the president of the
bank, was twice tried on the indictments
returned against him, on one of which he
was fined Sis On the second indictment,
tried last November after long and holly
contested suit he was acquitted. The cashier
was found to have kept two sets of books
making false entries and issuing drafts for
large sums and charging himself with but
a small part of the same on the books of the
bank These probably constitute the charges
under which he has been indicted
Charles II. Cadwallader was born and
reared IN TINS city, and was up to within
thifty Gays OF the failure or the bank re-
garded as one of the most successful BUSH
ness men OF this county. Since his de-
parture it has been reported that he sollan-
dered large sums of money at the gambling
table, and that he had dissipated his faith
er's fortune in other ways
The arrest of young Cadwallader Is be-
lieved to have been brought abour through
the information of Orville Simmons. a
brother of Sheriff Simmons who came
across young Cadwallader IN California
and on his return to this community gave
the information that brought about his ar
rest. The Cadwalladers were great friends
OF Benjamin Simmons, late recorder az this
county. and father of the sheriff and Or
vile, and It is claimed had done much for
him and his family in times Fast. There is
uer under which Cadwallader was discov-