Evening journal., 1898-12-22
BURST OF A BUBBLE.
Materially Reduces a Smyrna
Banks Surplus.
OVER THIRTY THOUSAND LOST

LOSS.
STAFF Correspondence Evening Journal.
Smyrna, Dec. 22.-Th.s town Is not
loaded down with sensations Of fnan-
cial character and when one comes il
runs like wl.dfire. The talk Of the
commun.;y at present is the reduction
by the Fruit Growers National Bank
of it's surplus from sS3, 1000 to abcul
$2,l00, and the shnnkage OF S30,9 Ia
round figures carries with it a tale
which has just become pubic property.
The publication of the bank statement
brought the maUter to light, and II
came in the nature OF a surprise %
those who are interested in banking
and financial matters.
Years ago there was but one bank in
Smyrna, the First National OF which
COionei George II. Raymond was, prior
10 the founding Of the second one,
president David j. Cummins decided
that he wanted the presidency and by
snrewd manipulation of the stock hold
ings he obtained II. William NJ Bell
was cashier and Nathaniel Wids teller.
These who were dissatisfied with the
Cummlns control. decided TO start a
new bank, and Colonel Raymond head
ed the pr0jecl. Mr. Wiids went with
them as cashier. AT that time Smyrna
was in the peach bet. and ii was
Thought a hit to call the nuw bank
ing Institution the Fruit Growers Ma
tional Bank of Smyrna. Nor were the
promCters mistaken, for the new bank
soon began cutting a big swath into
the deposits and earnings Of the Oh
one, so much 50. in fact. that up 10 q
recent period the old bank had been
paying per cent. on dep. sits, although
against the advice of Benjamin b.
COmegys, the veteran banker. Of Phil
adelphia, who told them that in his ex-
perience he had never known a ma
uonal bank to profit by Offering tusl
company and savings fund Inducements
to depOzIJ-Ts. This action, of course.
increased the volume OF the old bank S
business, but the Fruit Growers Ma
tional Bank continued to do business
al the OLD stand, and profitable
business at that The Old bank had
been hard HIT by the Lord & p Il
TROUBLES and was compelled, to pro
tect itseN to take certain real estate
az high figures on a low market auu
to hold il longer THAN the five years
allowed by law, President Cummins
representing to the washington au-
thorities that il would be a losing game
TO sell when values of farm lands were
so appreciated, and the Washington
authorities acquiescing in the business
sense OF the proposition.
About Clght YEARS ago wave OF
Western speculation swept over
Smyrna. Word came that there wae
big money in Western investments
and the Winner Investment Company
secured the bulk of the local trade
Colonel George II. Raymond, Cashier
Wilds, Wiillam NJ. Bell. Joseph FAIRIES
Abel FAIRIES, and others who had cash
Of their own, sent * West and It never
came back. The individual LOSES IN
this sac.i-n probably amounted to S40.-
0O0 or $4,000. Some of the losers
were merely crippled; others practical
ly ruined, but the Investments were
made in Individual capacity and the
two banks were in nOWise affected
only inasmuch that the volume OF local
circulation was reduced by that
amount.
About that time there was a project
to build a big bridge across the Ms.
souri, river at or near Kansas Citv
a prospectus was sent out: in glow
Ing terms the great financial advan.
tages Of the enterprise were set forth
and the aid Of those who had money tC
invest and who wanted big returns was
invoked. : that time the Fruit Grow.
ers' National Pank had more money
than it could advantageOusly ana
proftably dispose Of close at home
The glamour II this Western proieet
ATTRACTED President Raymond ana
Cashier Wilds, OF the Fruit Growers
National Bank. President Raymond
now says that the cashier induced him
TO do it; and the cashier, it is under
stood, lays the blame to CO.onel RAY.
mcnd, or, al least, demands that he
share The burden. At an events, Cash.
Ter Wilds took a trip to the West. look.
ed at the turbid waters of the Mis-
souri and the bridge site: made whar
| he regarded as a thorough and critica'
examination Of the enterprise and ther
returned home. He reported to Presi.
dent Raymond THAT it was a gooc
thing. and promised big returns. With
or without the consent OF the bank di.
| rectorate, presumably without. the,
sent out about $50 600 OF the bank.
money, not for their own benefit. IN.
| derstand. but for the benefit of IN,
bank. They had no personal interes.
in the matter further than it affectet
the veal or woe Of the bank. No ons
here entertains the least idea that they
had amy motive other than. by a bol5
stroke, making the bank. in whose
interests they had always labored mos
zealuusly richer by several thousand
dollars. But their Judgment was al
Fault The bridge tumbied down about
their ears. so to speak. and the bank
had to h0ld the bag. It was given our
by the promoters of the scheme THAI
the collapse was but temporary. and
that time would right all things. Their,
was q B-ston capitalist who had about
$500 600 tied up in il. and he believed
that he would come out an right
While he had faith on s3G.. 900. there
was no reason why they should MOI
have faith on $4,000. From time tc
time they derived benefits until tho
amount was reduced to s31 900 IN
round figures. and carried as a hank
asset. The losses sustained by Colr.
mel Raymcnd. both in his private ca.
pacity and as president Of the bank. un.
nerved him completely. and he weni
away to a sanitarium, where he re.
mained for many months. sec.uded from
| tho world 1uI unffl a rfrnr o,. ,,r-