The Portland daily press., 1899-12-25
THE GLOBE BANK.
Statement Made by Re.
eelVer Wing.
Effort Made to Save
the Bank.
Lowell Arms Company Owed Mr.. Cole
Personally Half Million.
100000 in Unpaid
Checks Outstanding.
Bank Has Been Helped To
Nearly Two Million.
Bank Has Been Helped TC
Nearly Two Million.

Boston, Dscsmber 24.-National Bank
Examiner ID. q. Wing, who last week
was appointed temporary receiver OF the
Globe National bank, gave out Q state
ment tonight In which he says that In
the course of his regular examination of
the banks affairs september 0, he found
SGe0, 600 OF Globe bank checks outstand-
ing. which did not appear upon the
books. President Charles II. Cole ad-
mitted this 70 be his personal loan. Beel-
ing that to Close tie bank at that time
would cause dire results, Mr.. Bieelow,
the only director within reach, MIR. Cole
and MIR. Wing went to Washington and
laid the matter before Comptroller
Dawes. Mr.. Wing then says;
''Mr. Bigeiow agreed to personally
guarantee that Coles shortage should be
made good TO the bank at once, Cole
having turned over certain securities TO
him, and Nessrs Clark ana Coolidge as
sisting In guaranteeing MIR. Bigelow.
The comptroller of the currency directed
that MIR. Cole should resign at once as
president, that the VIII ole matter should
be laid before the dire ctors, and that
shou Id at the proper time report the fact
to the district attorney. At this time
Messrs Coolidge and Clark were each
borrowing not more than 100000 OF the
hank, with plenty Of security and each
had about S75, ,00O Of cash on deposit. Dir.
Bigelow owned not more than that and
had more than enough on deposit to pay
his loans. On the following Monday.
Coolidge and Clark gave Cole $50, ,0Oo.
Cole added $3.50, 900 Of his own money and
repaid $500. QUO of the 5000, 900. the bal
anoe S40O, 900 was repaid IL three days by
ths sale of Coles secu ritiss. part being
bought by Coolidge and Clark through
their respective brokers.
The banks assets were thus bettersd by
$500, coo Ia cash. About a month later
the facts SO far as known were laid before
the full board Of directors, and further
Investigation showed that there were
$500, 600 more Of checks outstanding not
ON the books and that the Indebtedness
OF the Lowell Arms company was really
much In excsss of the amount shown by
the books, and that Mr.. Cole personally
was himself the holder OF nearly $500, 900
Of the Lowell paper.
There also was found an apparent over
draft of the Squires' amounting to $780,
100 In addition to their regular loan.
which itself was In excess Of the Sl0o, 600
limit. MIR. Cole admitted his responsible
ty tor this oyerdraft either to the bank or
to the Squires. and turned over to the
bank his own security including the
Lowell paper owned by him to secure ths
entire Indebtedness from which he ad-
mitted responsibility. This amounted to
nearly 81, ,O0o, 100 and the securities turned
over at their then market value were con-
siderabIy in excess of this amount.
The six directors and Messrs. Coolidge
and Clark then entered into written
guarantee that these securities should be
sufficient to make good the Cole indebted
ness MIR. Stevens, who was elected presi-
dent November 8, the directors and
Messrs. Coolidge and Clarke, have since
then done every thing In their power and
made great personal sacrifices TO save the
bank from failure. The banks assets are
better OF today by about s70o,0c0 cash,
over 81. 900, o % Of notes and securities and
the personal guarantee OF tnese Rnhtie-
men, than 1t was at the timo l brought
the condition of affairs to the attention
Of the Comptroller.
The connection Of Cole with the So
called copper interests was not the cause
of the Globe National banks failure, but
his connection with these comp anies had
provided him with securities amounting
In the aggregate at the then market
prices to nearly sl,5OO.Ooo. These seoari'
ties were not In the bank when 1 ex-
aninsd 1t. but were put up later by Mr..
Cole to secure his Indebtedness.
at make this statement at this time, to
correct the various rumoIs now In circu-
lation as to the failure Of the Globe bank /.