The Anaconda standard., 1899-12-25
CAUSE OF THE FAILURE
Bank Examiner Wing Makes a
Statement.
SOME BIG OVERDRAFTS
Nearly Million Outstanding Which D d
Not Appear on the Books.
Efforts Made to Save
the Globe

Boston, Dec. 24.-National Bank Ex-
! er of the Globe National bank, gave
out a. statement tonight in which he
says that in the course of his regular
examination of the banks affairs, Seq
10, he found $600,0O0 of Globe stocks
outstanding which did not appear upon
the books. President Charles N. Cole
admitted this to be his personal loan.
Feeling that to close the bank at that
time would cause dire results, Mr..
Bigelow, the only director within
reach, Mr.. Cole and MIR. Wing went to
Washington to lay the matter before
Comptroller Dawes. Mr.. Wing then
said:
"Mr Bigelow then agreed to person
ally guarantee that Coles shortage
should be made good to the bank at
once, Cole having turned over certain
securities to him and Messrs. Clark
and Coolidge assisting In guaranteeing
Mr., BigeIow.
The comptroller of the currency di-
rected that Mr.. Cole should resign at
once as president: that the whole mat
tSI pc ldlu before the directors
and that | should at the proper time
report the facts to the district attor-
ney. At this time Messrs. Coolidge sGd
Clark We're each borrowing not more
than 100000 of the bank, with plenty
Of security and each had about $75,-
600 cash on deposit. Mr.. Blgelow owed
not more than that and had more than
enough on deposit to pay his loan.
"On the following Monday Coolidge
and Clark gave Cole $4,000; Cole ad-
ded s125,000 of his own money and re-
paid 100000 of the 100000. The bal
ance, 100000, was repaid in three days
by the sale of Coles securities, a part
being bought by Coolidge and Clark
through their respective brokers'
The banks assets were thus bettered
by 100000 in cash. About a month
later the facts so far as known were
laid before the full board of directors
and further investigation showed that
there was 1000 more of checks out
standlng not on the books, and that the
Indebtedness of the Lowell Arms COM
pany was really much in excess of the
amount shown by the books and that
Mr.. Cole was himself personally the
holder of nearly 100000 of the Lowell
paper.
There was also found an apparent
overdraft of squires amounting to
$525,000 in addition to their regular
loan, which itself was in excess Of the
100000 limit
"Mr. Cole admitted his responsibility
for this overdraft. either to the bank or
to the Squires, and turned over to the
bank his own. securities, including the
Lowell paper owned by him, to ecure
the entire Indebtedness, for which he
admitted responsibility.
This amounted to nearly 81 900 coo
and the securities turned over. at their
81 n t,11
In excess of this amount.
The six directors and Messrs. Cool
idee and Clark then entered into a writ
ten guarantee that the securities should
be sufficient to make good the Cole in
debtedness.
Mr.. Stevens. who was elected presi-
dent Nov. s, the directors and Messrs
Coolidge and Clark have since then
done everything in their power and
made great personal sacrifices to save
the bank from failure.
The banks assets are better off to-
day by about $500, 900 cash, over 81. .Oo0,-
900 of notes and securities and the per-
sonal guarantee of these gentlemen
than it was at the time / brought the
condition Of affairs to the attention of
the comptroller
'The connection of Cole with the So
called copper interests was not the
cause of the Globe bark failure. but his
connection with these comnanies had
provided him with securities amount
ing in the aggregate at the then mar
ket price to nearly 81, 600, ,000 These Sc
curities were not in the bank when I
examined, but were put UP later by Mr.
Cole to secure his indebtedness.
81 make this statement at this time
to correct the various rumors now in
circulation as to the failure of the
Globe bank
I'm Justice to Mr.. Bigelow 1t may be
stated that on Sept. 10 he was the larg-
est individual depositor in the hank; be
also was the largest when the bank
closed it's doors''