The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-24


The family went from Boston to Salt
Lake City, where Mr.. Cole has mining
interests and came later TO Los Ange-
les on account OF Mrs Coles health
FOUR COUNTS ARE CHARGED.
Cole Accused of Embezzlement and
Misrepresentation of Funds.
Boston. Dec. 23.-The trend OF affairs
connected with the closing of the
Globe National bank in this city for
the first time developed a criminal as
pect through the placing under surveil-
lance today in California OF the pank
former president, Mr.. Charles II. Cole.
The charge against Mr.. Cole is the old
one of overdraftS and over loans MADE
to himself. The action of Mr.. Wing,
the receiver of the bank, in ordering
the arrest. while shock to the friends
of the former president, was not sur
prise to those who have been watching
the course of events and who were &C
quairted with the affairs of the BANK
Rumor was current here late yester-
day afternoon that such action Wouio
be taken, but for a while it was found
impossible to locate Mr.. Cole. Late
last evening word was received mere
that he was on the Pacific coast, and
lust outside of Los Angeles. where he
had journeyed with his wife and SON.
A warrant was sworn out during the
day in this city and dispatched tonight
to Los Angeles
In the meantime the brokers and bus
mess men in the city are congratuiat-
ing themselves that the week Is over
and that the worst probably Is KNOWN
lust how the affairs in the Globe bank
oh
probably known to few outside the
former president, but it is practically
agreed that il was a gigantic specula-
ton in copper stocks in which Mr.. Cole
became so much involved that the
banks money and credit was used until
it was we'll night exhausted.
The inevitable result followed, except
that the closing of the bank was de-
layed for more than a month. and dur
ing the last week was bolstered up by
the clearing house, which paid its in
debtedness to the extent of many mil
lions. The fact that the bank was IN
difficulty but yet kept open through
the aid of the clearing house enabled
its depositors to withdraw their ac-
counts. and very large number diu
so during the arly part OF the week,
but the city of Boston, which. through
Mr.. Coles influence when sinking fund
900 in the bank, failed to take the hint.
with the result that that amount Will
be tied up for some time TO come.
notwithstanding the heavy over
loans it is generally believed that the
depositors will be paid in full or nearly
so. and that it will be the stockholders
who will suffer. Unfortunately, large
number of savings banks are holders
of the Globes stock. so that the loss
will have to be made good by these IN
situations. -
While the Globe bank probably will
never open it's doors again, there seems
TO be every prospect that the Broadway
hank will soon be on it's feet again.
The first intimation the general pup
lie received that there was anything
about the Globe banks affairs which
might lead to an arrest was received
yesterday at a meeting OF the creditors
of John P Squire & Go. H. W. CHAP
lin, the assignee of the firm, stated that
the indebtedness OF the corporation 10
the Globe bank had been misrepresent-
ed. and made to appear almost doubel
what it really was. Mr.. Chaplin To-Day
said that the trouble had been known
for some time, but that until the bank
had been closed it was considered I'M
wise. for business reasons. TO make
known the charge. 1t was intimated.
however, that no steps in the matter
were proposed by the Squire creditors,
and it is not known to what extent DIS
coyeries in this connection made by
Receiver Wing may have influenced MS
action.
Bankers understood when the difficult
ties of the bank first came to light that
an Indebtedness of 100000 to the clear
ing house had been found. This, it was
claimed. was not the banks account
although borrowed in the name or the
bank. The amount, it is alleged, dio
not go through the books of the BANK
but passed to individual accounts
1t also was understood among those
acquainted with the bank situation thai
this sum was included in the sl.5OO,Oot
Indebtedness assumed by Mr.. Cole anc
his associates when he retired from the
presidency of the institution.
Many savings banks in this state are
Stockholders in the Globe bank. Among
| the heaviest are: The City fnstitution
Lowell: Haverhill Savings bank. Peo-
ple's bank. Worcester; Leominster saw
| ings bank, Salem Five-cent Saving:
bank and Worcester Five-cent Saving:
| bank.
At the district attorneys office late
This afternoon it was learned that thu
warrant issued for the arrest OF Charles
II. Cole. ex-president of the Globe Ma
tional bank. was in four counts, TIVE
charging embezzlement and two mis-
appropriation of the funds OF the BANK
The aggregate amount mentioned Il
| 5000. COO. the sums of 100000 and $500.
| 600 being mentioned in the respective
| counts. No time is mentioned in tn
warrant. as it is understood the mis-
deed covered an indefinite period
Mr.. Wing refused to make known tn
nature of the facts which he discov
cred and which led Comptroller Dawes
as soon as he was made acGuainte'
with them. to instruct Mr.. Wing L
take legal steps. Bankers. however
| who have been in touch with matter
| connected with the Globe bank say tina
reasons for the action are not hard t
find and they refer to the history o
| Mr.. Coles connection with the BAN
and circumstances under which he re
signed last November.
The banks troubles date back far be
yond that time; but early in Novembe
the directors Of the Globe Nations
bank decided that certain loans ha
been made on terms considered unsat
isfactory. These loans. 1t developed
had been made largely in stock trans
actions in which President Cole wa
associated with Edward A. Clark an
William Coolidge.