The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-24
Nine Hundred Thousand Dollars of
the Banks Money Alleged to Have
Been Wrongfully Used.
RESIGNED LAST NOVEMBER
WHEN DIRECTORS FOUND OVER
DRAFTS AND UNSECURED LOANS.
Trouble Due to Transactions in Cop-
per StOcks-Secretary Gage on
the Financial Situation.

BOSTON, Dec. 23.-The trend of affairs
connected with the closing of the Globe Ma
tional Bank in this city for the first time
developed a criminal aspect through the
placing under surveillance to-day in Cali
fornia of the banks former presi-
dent, Charles II. Cole, by direction
of the controller of the currency.
The charge against Mr.. Cole is the old
one of overdrafts and overloans, many to
himself, and the action Of Mr.. Wing, the
receiver of the bank, ordering the arrest,
while a shock to the friends of the former
president was not surprise to those who
have been watching the course of events
and who were acquainted with the affairs
Of the bank. Rumor was current here late
yesterday afternoon that such action would
be taken, but for a while 1t was found i'm
possible to locate Mr.. Cole. Late last even
ing word was received here that he was on
the Pacific coast and this noon came the
news of his arrest, just outside of Los An
geles, 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 business
men in the city are congratulating them
selves that the week is over and that the
worst is probably known. Just how the af-
fairs of the Globe Bank were allowed to
reach such a stage is probably known to
few outside the former president, but it is
practically agreed that it was gigantic
speculation in copper stocks in which Mr..
Cole became so much involved that the
banks money and credit was used until it
was well nigh exhausted. The inevitable
result followed, except the closing of the
bank was delayed for more than a month
and during the last week was bolstered
up by the clearing house. which paid its
Indebtedness to the extent of many mill
lions, The fact that the bank was in diff
Guilty, but yet kept open through the aid
of the clearing house, enabled its deposit
ors to withdraw their accounts, and a very
large number did so during the early part
Of the week, but the city of Boston, which
through Mr.. Coles influence. when sinking
fund commissioner, had placed nearly four
hundred thousand dollars in the bank,
that amount will be tied up for some time
to come.
MAY BE PAID IN FULL.
is generally believed the depositors will be
paid in full or nearly so, and that it will
be the stockholders and directors who will
suffer Unfortunately a large number of
savings banks are holders of the Globes
stock, so the loss will have to be made
good by these institutions. While the
Globe Bank probably will never open it's
doors again, there seems to be every pros
pect that the Broadway Bank will soon be
on it's feet again.
At the district attorneys office 1t was
learned that the warrant for the arrest
of Cole was in four counts, two charg-
ing embezzlement and two misappropria-
tion of the funds Of the bank. The aggre-
gate amount mentioned is 100000, the
sums of 100000 and 100000 being men,
toned In the respective counts. No time
is mentioled in the warrant, as it is un-
derstood the misdeeds alleged covered an
indefinite period.
Examiner Wing has refused to make |
known the nature of the facts which he
discovered in relation to Cole and the Globe
Bank. Bankers, however, who have been
in touch with matters connected with the |
Globe Bank said that reasons are not hard |
beyond last November, when Mr.. Cole re-
signed. Early in November the directors |
decided that certain loans had been made !
on terms considered unsatisfactory. These |
certain loans. it developed, had been made |
largely in stock transactions in which |
President Cole was associated with Ed !
ward A. Clark and William Coolidge. The |
dealings were made in United States Min |
ing and United States Oil and certain cop
pers, and the amount of loans aggregated |
81 100000. On the strength of these facts
the directors requested Mr.. Cole to resign.
and he withdrew as president on Nov. 16,
having arranged with the directors that he |
and his colleagues, Glars and Coolidge,
would assume the loans, additional security
being deposited with the bank. Recent
declines in copper retarded settlement, and
last week the bank found itself embar-
rassed and forced to ask aid from the Bos-
ton Clearing house Association. The clear
ng house last Saturday advanced s., ,00O
and il was thought no further trouble
would be experienced. Early in the week.
however, heavy depositors began to with
iraw their accounts, and in a few days
more than s3.5oooo0 was taken from the
Globe Bank. This proved too great a strain
Ind, being unable to secure further loans,
Controller Dawes was advised of the situa-
ion and the bank was ordered closed.
FIRST INTIMATION OF FRAUD.
The first intimation the general public
had that there was anything about the
Globe Banks affairs which might lead to
an arrest was received yesterday at
meeting OF the creditors Of John p. Squire
Z Co. H. w. Chaplin. the assignee
'f the firm. stated that the Indebtedness OF