Omaha daily bee., 1899-05-14
THAT MERCHANTS BANK CASE
Some Interesting Facts Shown Up by the
Matter in the Courts,
BoNDSMEN TRY TO SHIFT RESPONSIBILITY
No Particular Attempt Made by state
AuthorIties to Secure Payment of
Money Lost by Common
wealth in the Crash.

LINCOLN, May 1S.-(Special.)- I'm the re-
cent trial of the case Of the State against
the bondsmen who guaranteed the deposit
in the Merchants bank, judgment was rem
dered against r. S. Young G. l.. Chip
man, William Ryons and David Fitzgerald
for $9,903.36. ]. l.. Ryons, j. c. Fullerton,
William Fullerton, ]. II. Sheen and Il. A.
Stephens whose names also appeared on the
bond, were released from liability. AL
though it was well known that Joseph l..
Ryons and William Fullerton were the only
ones of the lot financially responsible for
any amount it does not appear that the at
torneys for the state made any special et-
fort to get judgment against them.
At the time Joe BARLEY turned his office
as state treasurer over to j. b. Meserve
The Merchants bank of Lincoln had on de-
posit state funds amounting to $6,41S "a,
which. together with $32 interest, was
checked out at that time. On the 9th of
February, 1897, the bank presented a new
bond which was promptly accepted ana
on that same day Meserye made deposit
of sS, $50 "a. The balance was S9,4O4.6l on
the 31st OF March, $S,S45. 20 on the Both of
April and $S,731.S5 on June l. when the
bank closed it's doors.
When the smash came 1t was at once ap-
parent that the state was not well secured
in it's claim against the detunct institution,
most OF the bondsmen being also officers OF
the bank. There were also rumors that
soma of the bondsmen would deny their
signatures. This state of affairs induced
tho attaches OF the state treasurer's office
to give out the statement that the state
deposit in the bank was smaller than the
one carried when BARLEY was in office. An
examination of the records, however, eN-
ploded this story. The balance sheet showed
that Meserve had increased the deposit to
a considerable extent. This favor had been
extended because the Fullertons and Craw-
fords had been especially active in secur-
ing signatures on Meserve's own official
bond few months previous,
No Money Forthcoming.
Twenty five days after the bank closed itt
doors the state treasurer made demand fol
the money but OF course did not get It. The
fusion bank examiner was then in charge
and It will be remembered that this offca
pocketed nearly all the available cash in tho
bank in payment of his services, which con-
sisted in keeping the doors locked for three
or four weeks until a receiver could be ap'
pointed.
Along about this time the Fullertons com
menced to talk. They intlmated that the
signature OF William Fullerton had really
been placed on the bond by his son John w
Fullerton and that there were other irreg
uLarlties. At one time they made the threat
that II the state did not release them from
liability they would withdraw some names
from Meserve's bond and would make dis
closures that would compel the state treas
urer to rustic for a new lot OF sureties.
With so many political and financial com
plications surrounding the case it was NJ
surprise that every possible excuse was al
lowed to delay the suit against the bonds
men. while their available property, If they
ever had any, disappeared from view, In the
trial the bondSmen presenttl a variety o.
detenses. William Fullerton, president o.