St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1899-12-27
BROADWAY BANK.

BROADWAY BANK.
Boston, Dec. 26.-There are but few
developments in the banking situation,
although Receiver Wing, who is in
charge of both the closed institutions, the
Globe and the Broadway National banks,
has not paused in his work of readjust
ing the tangled affairs. Late yesterday
he received word from Comptroller
Dawes in Washington that the time
liuIt for the reopening of the Broadway
bank, which expires tonight, be extended
for one week. This was good news to
those who have been working assidu-
ously toward getting the institution on
Its feet.
Notwithstanding numerous published
interviews with prominent bankers and
brokers as TO the cause of the recent
troubles, the general public have been
much in the dark until Receiver Wings
long statement, which has in a great
measure thrown light on many of the
transactions in the Globe bank Future
information is looked for when -Presi-
dent Cole arrives from California and
tells his side of the story, probably in
the federal courts. Receiver Wings
statement follows:
About Aug. l came to Boston, under
the new system inaugurated by the
controller of the currency, for the spe-
cial examination of banks. On Sept
found 100000 of Globe bank checks
outstanding, which did not appear on
the books. Mr.. Cole admitted this to
be his personal loan.
II felt to close the bank would cause
not only the failure of that bank, but
also, by reason of it's relations to other
banks, brokers and business houses, the
probable failure of several important
banking and business firms and indi-
viduals.
Consequently Mr.. Bigelow, who was
the only director within reach, Mr. Cole
and myself went to Washington, and
laid the matter before the controller.
Mr. Bigelow agreed to personally guar
antee that Coles shortage should be
made good to the bank at once, Cole
having turned over certain securities
to him, and Messrs. Clark and Coolidge
assisting in guaranteeing Mr.. Bigelow.
"rhe controller of the currency di-
rected that Mr.. Cole should resign at
once as president, that the whole mat
ter should be laid before the directors,
and that should at the proper time re-
port the facts to the district attorney.
AT this time Messrs. Coolidge and
Clark were each borrowing not more
than 100000 of the bank, with plenty OF
securities at the then market price, and
each had about $4,000 cash on deposit
Mr.. Bigelow owed not more than that
and had more than enough on deposit
to pay his loan.
"On the following Monday Coolidge
and Clark gave Cole $4,000. Cole ad-
ded $4,000 of his own money, and re-
paid 5000 900 of the $6OO,O The bal
ance. 100000. was repaid in three days
by the sale of Coles securities, a part
being bought by Coolidge and Clark
through their respective brokers.
1.-THE banks assets We're thus betteret
by 5000. 900 in cash. About month
later the facts, so far as known, were
laid before the full board of directors
and further investigation showed thai
there were 100000 more of checks out
standing not on the books, and that thu
indebtedness of the Lowell Arms com
pany was really much in excess of thu
amount shown by the books, and tina
Mr.. Cole was himself personally thu
holder of nearly 100000 of the Lowell
paper.
"There was also found an apparen
overdraft of the Squires amounting t.
S525, 600, in addition to their regular loan
which was in excess of the 500. 600 limit
"Mr. Cole admitted his responsibility!
for this overdraft, either to the banl
or to the Squires, and turned over to tn,
bank his own securities, including tn
Lowell paper owned by him, to secure
the entire indebtedness, for which n
admitted responsibility.
"This amounted to nearly $l,ooO,ooo
and the securities turned over, at thei
then market value. were considerably II
excess of this amount.
1.-THE six directors and Messrs. Cool
idge and Clark then entered into {
written guarantee that these securitie
should be sufficient to make good tn
Cole Indebtedness.
"Mr. Stevens, who was elected presi
dent Nov. s, the directors and Messrs
Coolidge and Clark have since then don
everything in their power and mad
great personal sacrifices to save tn
bank from failure.
1.-THE banks assets are better Off to
day by about 100000 cash, over 1000,
600 of notes and securities, and the per
sonal guarantee Of these gentlemen