The record-union., 1899-12-25
DEFUNcT GLOBE BANK.
BANK EXAMINER WING MAKES
HIS STATEMENT.
Tells Of Coles Indebtedness and the
Efforts Made by the Directors
to Save the Bank.

examiner ~. III. WINK. temporary re-
|ceiver 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, Sep
TENDER 10Th, he found 100000 of the
Globe checks 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 Mr.. Wing
went to Washington and laid the matt
ter before Comptroller Dawes. Mr..
Wing then said:
Mr.. Bigelow agreed to personally
be made good at once, Cole having
turned over certain securities to him,
and Messrs. Clark and Coolidge assist
ing in guaranteeing Mr.. Bigelow.
The Comptroller of the Currency di-
rected that Mr.. Cole should resign at
once as President; that the whole mat
ter should be laid before the directors.
and that 1 should at the proper time
report the facts to the District Attor-
ney. At this time Messrs. Coolidge and
Clark were each borrowing not more
than 100000 of the bank, with plenty
of security, and each had about $4,000
cash on deposit. Mr.. Bigelow 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 added
$120,00O of his own money and repaid
100000 of the 100000. The balance,
$4OO, 900, was repaid in three days by
the sale of Coles securities, a part be-
ing bought by Coolidge and Clark
through their respective brokers.
"The banks assets were thus bet
tered by 100000 in cash. About a
month later the facts SO far as known
were laid before the full Board of Dr.
rectors, and further investigation
showed that there was 100000 more
of checks outstanding not on the books,
and that the indebtedness of the Lowell
Arms Company was really much in ex-
cess of the amount shown by the books,
and that Mr.. Cole was himself person
ally the holder of nearly 5000 of
the Lowell paper
There was also found an apparent
overdraft of Squires' amounting to
1925, 900 in addition to their regular
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 Sc
cure the entire Indebtedness, for which
he admitted responsibility.
This amounted to nearly 81 100000.
and the securities turned over, at their
then market value, were considerable
in excess of the amount.
1.-The six directors and Messrs. Cool
idge and Clark then entered into a
written guarantee that the securities
should be sufficient to make good the
Cole indebtedness.
Mr. Stevens, who was elected Presi-
dent on November Sth. the directors
and Messrs. Coolidge and Clark have
since then done everything in their
power and made great personal sacri-
fees to save the bank from failure.
1.-THE banks assets are better off to-
day by about 100000 cash, over ST.
100000 of notes and securities and the
personal guarantee of these gentlemen,
than it was at the time I brought the
condition of affairs to the attention Of
the Comptroller.
1.-The connection of Cole with the So
called copper interests was not the
cause of the Globe National Bank 8
failure. but his connection with these
companies had provided him with Sc
curities amounting in the aggregate at
the then market prices to nearly ST.
100000 These securities We've not in
the bank when examined it, 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 it may be
stated that on September 18th he was
the largest individual depos.sor in the
bank; he also was the largest when the
bank closed it's doors"
BOSTON, Dec. 24.-An official of the
Globe Bank, when shown Receiver
Wings statement to might, said:
Matters are progressing smoothly
with us, and think we shall open our
doors again next week A new Board
of Directors will be appointed and the
former stockholders have been given
options on the stock"
SEVERE AfyCyTnENT