The San Francisco call., 1899-12-25
COLE TOOK THE
BANKS MONEY
Statement by National
Examiner Wing.
Special Dispatch to The Call.


BOSTON. Dec 24-National Bank Ex-
aminer d. G. Wing, temporary receiver OF
the Globe National Bank. gave out
statement tonight, in which he says that
in the course of his regular examination
of the banks affairs, on September ~. he
found $500, 900 of Globe checks outstanding
which did not appear on the books. Pres
ident Charles n. Cole admitted this 10 De
his personal loan. Feeling that TO close
the bank at that time would cause dire re-
suits. Mr.. Bigelow. the only director
within reach, and Mr.. Cole and Mr.. Wing
went to Washington and laid the matter
before Comptroller Dawes. Mr.. Wing then
said
Mr. Bigeiow agreed to personally guarantee
that Coles shortage should be made good 10
the bank at once. Cole having turned over c%er GER
tain securities TO him and MessTs. Clark ana
Coolidge assisting in guaranteeing Mr.; blse,
low The Comptroller OF the Currency directed
that Mr. Cole should resign at once as presl,
dent: that the whole matteE should me Ialu
before the directors and thai i should at the
proper time report the facts 20 the District AZ,
torney AT this time Messrs. CooHdSe anu
Clark we're each borrowing not more than
and each mad about y75, 900 cash deposit.
Mr. Bigeow owed not more than that ana had
more than enough on deposit 20 pay MS loan
on the following Monday Coolidge and Clark
own money and repaid $500. 0oO OF the $500 900.
The balance S4oo.0 900, was repaid In three days
bought by Coolidge and Clark through their re-
sDective brokers'
The banks assets were thus bettered by
$500 600 In cash. About month later the facts:
so far as known. were laid before the full
board OF directors. and further Investigation
showed that there were 900 more OF checks
outstanding not on the books and that the
Indebted edness OF the Lowell Arms Company was
really much in excess OF the amount shown
personally the holder OF nearly 100000 OF the
Lowell paper. There WAS also found an ap-
parent overdraft Of squires amounting 70 go
900 in addition to their regular loan, which It
self was In excess OF the $780, 900 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
secure the entire Indebtedness for which he
nearly ST. 900. 900 and the securities turned over.
at their then market value, were considerable
The six directors and Messrs. Coolidge 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 president November S. the direc-
tors and Messrs. Coolidge and Clark have since
then done everything in their power and made
great personal sacrifices ito save the bank
from failure.
The banks assets are better of to-day by
about $500 900 cash over ST. 000. 900 OF notes and
securities and the personal guarantee OF these
gentlemen than IL the time l brought
the condition Of ahairs 10 the a attention @ 81 ,se
so-called copper interests vas not the cause
OF the Globe National Banks failure.
but his connection with these companies had
provided him with securities amounting In the
aggregate at the then market prices 10 nearly
81 500 COO These securities were not In the bank
when | examined H. but were put up later by
Mr. Cole 10 secure his Indebtedness
I make this statement at this time 10 correct
the various rumors now In circulation 20 the
failure OF the Globe Bank. In justice 10 Mr.
Bigelow Il may be stated that on September 10
he was the largest individual depositor In the
bank. He also was the largest when the bank
closed its doors.