New-York tribune., 1899-12-24
WHY COLE RESIGNED.
UNsATIsFACTORY LOANS MADE IN HIS
STOCK TRANSACTIONS IN COP


PER AND OIL.
Boston. Dec. 23-when news Of the arrest OF
Charles II. Cole former president Of the Globe
National Bank. in this city, at Redondo Cal,
reached here this afternoon 1t developed that
the warrant had been issued in the forenoon,
and that the authorities had little trouble In
finding the man. The warrant was sworn out
before United States Commissioner Fiske by the
Special Examiner Daniel G. Wing, acting under
the orders OF the Controller Of the Currency. 1t
was in four counts. two charging embezzlement
and two Interpretations Of the funds Of the
bank. The aggregate amount mentioned is
100000 the sums, 1t is alleged. of 100000 and
$780, the amounts mentioned in the respec-
tive counts. No time is mentioned in the war
rant as II is understood the msdeeds alleged
covered an indefinite period.
The action of Special Examiner Wing In the
matter was taken after he had been in charge
Of tho Globe National Bank only one day the
institution having been ordered closed by the
Controller Of the Currency yesterday morning.
with Mr.. Wing as temporary receiver. Mr..
Wing refused 10 make known the nature OF the
facts which, he discovered. and which led Con-
troller Dawes soon as he was acquainted
with them, TO instruct Mr. Wing to take legal
steps. Bankers, however. who have been in
touch with matters connected with the Globe
Bank say that reasons for the action are not
hard to find, and they refer to the history or
Mr.. Coles connection with the bank and the
circumstances under which he resigned in No
vember.
The banks troubles date back far beyond that
time but early in November the directors Of the
bank decided that certain loans had been made
on terms considered unsatisfactory. These
loans. II developed. had been made largely in
stock transactions, in which President Cole was
associated with Edward A. Clark and William
Coolidge. The deals were made in United
States mining and United States oil and in GER
tain coppers, and the amount Of the loans aggre-
gated 81 100000.
On the strength OF these facts. the directors
requested Mr.. Cole TO resign, and he withdrew
as president on November 16. having arranged
with the directors that he and his colleagues.
Clark and Coolidge, would assume the loans.
additional security being deposited with the
bank. The recent, and repeated declines in cop
per retarded settlement, and at last the bank
found itself embarrassed and forced to ask aid
from the Boston Clearing House Association.
Three and half million dollars was advanced
by the Clearing House last Saturday, and it
was thought no further trouble would be expert
enced. Early in the week. however. heavy de-
positors began TO withdraw their accounts and
in few days more than 81, 100000 taken
from the Globe Bank and placed elsewhere.
This proved too great strain and. being un-
able to secure further loans, Controller Dawes
was advised Of the situation and the bank was
ordered closed
The first intmation the general public had
that there was anything about the Globe
Banks affairs which might lead to arrest
received yesterday at a meeting Of the
creditors of John p Squire & Co. II. w. Chap
lin. the assignee Of the firm, stated that the in
debtedness of the corporation to the Globe Bank
had been misrepresented and made TO appear
almost double what II really was. Mr.. Chaplin
to-day. when asked about the matter, further
said that the trouble had been known for some
time, but that until the bank was closed IL
considered unwise for business reasons TO make
known the conditions. IL intimated how
ever. that no steps in the matter were proposed
by the Squire creditors and II is not known to
what extent discoveries in this connection made
by the receiver may have Influenced his action.
II considered more likely that another
Bankers understood when the difficulties Of the
bank first came to light that an Indebtedness OF
100000 TO the Clearing House was found. This,
II was claimed, was not the banks account. al
though borrowed in the name Of the bank. The
amount, IL is alleged, did not go through the
books of the bank. but passed 10 individual ac
counts. II also was understood among those ac-
quainted with the bank situation that this sum
was included In the 81 100000 Indebtedness
sumed by Mr. Cole and his associates when he
retired from the presidency Of the institution.
Many savings banks In this State stock
holders in the Globe Bank. Among the heaviest
OF these are the City Institution, Lowell 200
shares Haverhill Savings Bank, 100 shares;
Peoples Savings Bank, Worcester, 217 shares;
Leominster Savings Bank. 6S shares; Salem Five
Cent Savings Bank. 200 shares, and Worcester
Five Cent Savings Bank 100 shares.
Both this city and the State Of Massa achusetts
are among the depositors at the Globe Ma
tional Bank. Treasurer Turner said to-day that
the deposits OF the city aggregated $3700SS rs.
when Charles II. Cole was chairman OF the
Sinking Fund Commission. The present Com
rnissioners voted last week 10 withdraw the