The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-12-25
VIVU " " IHIGVIEVI
Bank. Examiner Gives True AC-
count of Globe Nationals In
VoIved Affairs
COLE TURNED OVER
LARGE SECURITIES
Copper SpeCuIationS Not the
Cause of the Banks Difficult
les 1t Is Alleged

Boston, Dec. 24.-National Bank Ex-
aminer Wing, who was last week APP
pointed temporary receiver of the Globe
National bank, gave out a statement
tonight, III which he says that in the
course of his regular examination of
the banks affairs September 9, he
found 5000 900 of Globe bank checks out
the books.
President Cole admitted this to be
his personal loan. Feeling that to close
the bank at that time would cause dire
results, Mr.. BigeloW, the only director
within reach Mr.. Cole and Mr.. Wing
went to Washington and laid the mat
ter before Comptroller Dawes. Mr..
Wing then says:
Mr. BigeloW 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 Messrs Clark and Coolidge
assisting in guaranteeing Mr.. Bigelow.
CONTROLLERS ORDERS.
THE controller of the currency direc-
ted thai Mr.. Cole should resign at once
as president, that the whole matter
should be laid before the directors and
that l should at the proper time report
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 Sc
curity, and each had about $4,000 cash
on deposit Mr.. Bigelow owed not more
than toat, and had more than enough
on deposit to pay his loan.
ION the following Monday Coolidge
and Clark gave Cole $4,000. Cole added
$4,000 of his own money, and repaid
100000 of the $4,000 The balance $500,
900 was repaid in three days by the
sale of Coles securities, a part being
bought by Coolidge and Clark through
their respective brokers.
ASSETS BOTHERED.
"The banks assets were thus betteret
by $685. in cash. About a month la
ter 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.
There was also found an apparent
overdraft of the Squires amounting to
$525,000 in addition to their regular
loan, which exceeded the 100000 limit
TURNS OVER SECURITIES.
Mr. Cole admitted his responsibility
for this overdraft, either to the banl
or Squires, and turned over to the banl
his own securities, including the Lowell
paper owned by him, to secure the en-
tire indebtedness. This amounted tt
nearly $1,00O000 and the securities
turned over, at their then market va
lue, We're considerably in excess of this
amount
1.-The six directors and Messrs. Cool
idge and Clark then entered into g
written guarantee that the securities
should be sufficient to make good the
Indebtedness. Mr.. Coolidge and CLARK
have since done everything in theiI
power and made great personal sacri-
fees to save the bank from failure.
1.-THE banks assets are better off to-
day by about $500, 900 cash, over $1,000
900 of notes and securities, and the per
sonal guarantee of these gentlemen
than it was at the time the condition
of affairs was brought to the attention
of the controller
1.-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
companies had provided him with Sc
curities amounting in the aggregate al
the present market prices to S1,500,000
The securities were not in the bank
when I examined it, but were put ur
later by Mr.. Cole to secure his indebt,
edness.
II make this statement at this time
to correct the various rumors now ir
circulation as to the failure of the
| Globe bank"