The Portland daily press., 1899-06-06
Warrant for Treasurer's Arrest
Issued.
That Official Has Disap-
peared.
Charged With Defalcation of a
Small Amount.

Dover, N. H., June 5.--Ths financial
community In this section Of the state re-
ceived another shock to-day, through the
closing of the doors Of two Of the best
Savings bank was enjoined from paying
out or receiving money, and warrant
was issued for the arrest Of its treasurer,
Harry Hough who is charged with a
shortage of $500. The doors of the Cochsco
National bank were also closed, and Ma
tional Bank Examiner Carroll is tempo
rarily in charge. While Hough was not
an official Of the national bank, he acted
as assistant cashier, did all the bookkesp.
ing of the institution and had free access
to the documents. 1t is believed that
Treasurer Houeh left the city for Boston
on an early train yesterday morning.
but up to late hour,tonight, the. officials
of Strafford county have been unable to
locate him. While the warrant was
sworn out for Hough on the charge Of o
shortage of $500 of the funds of the cav
ings bank, that amount was drawn from
the Strafford Savings bank this morning
by Treasurer Hough's wife and paid to
Trustee Mason who turned 1t over TO the
Cocheco Savings bank to settle the short
age This will not deter the county ot1ic-
ials as well as the officials of both banks
from securing the arrest OF Hough. as
he is charged with shortage of the ma
tioul bank funds.
The dosing of the tanks caused consid-
erable excitement in the city but the de-
positors recognized the fact that they
corid do nothing until the books are ex-i
Iamined and action is taken by the courts,
| 1t was learned today when notices were
posted on the bank doors that State Bank
Commissioners Hatch, Parker and Cum
mings were in this city last Saturday
and made an examination of the books of
the. saving bank. They learned that the
accounts were not straight and after
holding brief conferences. Cummings
applied for warrant for the arrest of
Treasurer Hough. A shortage of $500
was found. National Bank Examiner
Carroll says he is unable to say what the
shortage OF the national bank will be
until after full examination has been
made. Everything that has SO far oome
| to light places 1t at about S7.00J Mr..
Carroll made the discovery over week
| In the accounts, and he has been working
on the case since that time. Last Satur-
day he discovered shortage of S3, 500 In
the savings bank and $4,000 in the ma
| tional bank accounts. Hough was con-
| fronted With the situation and paid back
| 90, 600 He further agreed to pay the re-
manning $4,000 of the national bank Mon
| day morning. This promise is the reason
why he was not placed under arrest at
| that time. The treasurer's father, Ralph
Hough, Who Is one of the directors of the
pational bank. says his son went to Bos-
ton for the purpose OF raising money from
brokers to pay the shortage, and he ex-
peoted him to return today. The directors
claim tsey knew nothing of the shortage
until Saturday night, when they were In
formed by the examiners.
/ Cashier Harrison Haley of the national
bank, said tonight that Houeh had full
/ access to the books of the institution mt
| all times, as he acted as assistant cashier
yet ne was not an official Of the bank.
MIR. Haley says he knew Hough had
been speculatiDg and was also aware Of
the fact that thsre were worthless checks
in the bank with no collateral behind
them. He called Hough's attention to
the matter few days ago, and he said he
would make It all right. as his relatives
would assist him.
Hough's friends believe that hs viii
return.
The suspension OF the two banks leaves
this oity with no financial Institution ex-
cept the Strafford National bank and
1 Strafford Savings bank, the Dover Ma
tioDal bank and Dover Savings bank
having collapsed several years ago, follow
1 ing the discovery OF heavy shortage IN
who afterwards committed suicide
| The capital OF the Cocheco National
| bank is sf5OOO0 James X. Lothrop Is
| president and the directors are as fol ows:
A. p. Pinkharn, Amos W. Downing of
Haverhill, Ralph Hough, Timothy Smell
Ii was late Saturday night when Bank
| Commissioners Cummings received an or.
| der from Judge Pike of the Supreme
court enioining the savings bank from
paying or receiving any money, pending
an examination.
bank are; Captain M. S. Hanscomb,
Eben O. Burley, John II. Henderson,
b. +. Remnant, William +. Mason and
A. Il. Pinkham.
1t is alleged that Hough's Irregularities
were discovered through the sale of prop
erty and the failure to make a rsturn of
ths money received. The Cocheoo Saw
ings bank held mortgage on the Ger
1 man estate in this city, and proceeded TO
foreclose, the purchaser paying Hough
S5opo N cnecK on the Str7nord Savings
bank which. 1t is claimed was not turned
over to the Cooheco Savings bank. This
$500 was the amount made good by Mrs.
Hough this morning It was disco vered
last Saturday that the payment for the
property had not been made through
the proper channel
1t is claimed that Hough's method was
to take money from the bank and put IN
worthless checks and notes. with no col
lateral to make them OF value to the
bank. Mr.. Hough Is highly respected in