Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-02-11
PEOPLE ARE INDIGNANT.
5 .7'ohoIdcrs Of So. Danvers Bank ne,o,u,
to iaie Somebody Punished ~

10 are Somebody Punished
'tdbody. Mass, Feb. 10.-Tharo =.
reasoning Of the indignationat tho :" no
i'f III WhIch the people believe -
Hctf3 of the South Danyers 49, u
LINK nave conducted that irs,t.'.iai
IN ~" other hand, as each na,,
NflOpfncht appears, there ~ an
III ''eI determination rn tho part ~ M
5hafrholdcrs ana dcpositnrs \, r.
somebody punished If possible 'ee
TX a+hi"r Foster comes in for
E""d :hdF" of the cXecration. Inn, ~.
NOT The only one who is condern,.a
re directors and mana gers Of the i.
N''tu'I"h aic blamed almost 4f,pan'.
"iilI" "" system Of examination n
'Iar"d to haze been family IL ,ha,
permitted n" affairs to reach WI a,a.
iHey apparently did reach.
h' announcement that the b1nk ~
+mIn"f irving y. Sayl-., had brouah,
Hh!t against John W. Dickinson n r.
'"t"r $4,000 which il IL claimed h. u
'Hi'i fipm the bank On his D.rqonaI
h"la@' brings cut new storm Of indie
hati"h. 1t ~ banking law, well-inform
q persons state, that 40 one borrouar
snail receive in loans from any bank
sum greater than 10 per cent ~ ~
capital stock of the bank. The can,tal
ttpo K Of the South Dany4re Bank waa
Sl5O,000, ana The bank examiner II ain,
IN borrower micEinsonJ FOR aIn,or,
thre" times the amount permitted n,
law for the bank to loan 10 any ons
person.
Bank mon sly the question Of col.
latcran is not involved at all, "Tf
man went in with 800. 900 worth If
government bonds" said one posted IN
bank affairs, this afternoon, tho Law
would not permit TIE bank to advance
him over $4,000"
From the plaintiffs declaration IN
TIE suits against Dickinson, il would
appear that there was no collateral nj,
W with his notes. II there was 4
could not have been adequate. or the
examiner would not nave brought suit
To recover.
There has been considerable talk. TO-
day, about the value Of the bond which
cX-Cashier George NJ. Foster furnished
as treasurer Of the bank 1t was for
$4,000 and was drawn in 1852. II was
inside information that this bond had
never been renewed since it was first
given. almost 20 years ago and that
on that account il was worth no more
than the paper on which it was written.
Inquiry Of lawyer who is somewhat
interested in this affair brought out the
opinion that the bond is as good now
as ever. Some banks, he said, make
practice Of having their employees
bonds renewed every year and others
every five years. But he was Of the
opinion that Fosters bonds for $4,000,
signed by himself. Ira Foster and
/ Jacob Young, was perfectly good-if
the men on it or any one Of them was
good for the amount involved.
I Ira Foster foster father Of the defend
ant. Is dead. and George NJ Foster. the
( cashier who is now under arrest charged
with ombezzlement. is in possession Of the
estate. Jacob Young. Fosters father-in-
I law. Is believed to be good for any part
( of tho whole III the amount In fact. he
ana George NJ. Foster have been jointly
ana srverally sled for the full amount Of
. tEe bond. The fact that the bank exam
| liner has brought suit against the bonds
/ men convinces most OF the interested
cu,s that the bond is good and still holds.
/ Arrests were being predicted, last night
( bat nobody seemed to know who it was
/ that might be arrested.
/ None Of the several other institutions
ana enterprises with which Foster was
1 intm ;riy identified are believed 10 have
suffered. Charles H. Fiiield Of Salem
director Of the Monson, Me. Slate Co., OF
which Foster was treasurer, was seen,
yesterday afternoon. lie said his com
pany had suffered nothing at Fosters
hands. In fact. Foster had only been put
in as temporary treasurer, and he was
soon to retire anyway. s.
The South DanverS Mutual Fire lnsur-
ance Co. Of which Foster was treasurer,
has had its accounts examined. and they
are perfectly straight The company loses
a suodly sum through having III shares
Of the bank stock, ana il Will have 10
meet tht assessment of 500 a share.
net loss of 93,3On. but in no other way
does The company lose through Fosters
having been its treasurer.
The Sutton Home for Aged People also
loses some money through holding several
shares of the stock. but its finances, OF
which Foster was the custodian in the
capacity of treasurer. are properly ae
counted for, as an examination mas
proven. All the other many enterprises
IN which he had part announce thal
they have not suffered any loss through
Foster.
Persons who have known Foster infl-
mately for many Years SAY they do not
believe H. has taken a cent for his own
use His habits were not expensive. II
he is an emheZZler il is believed II was
purely technical ana done through MS
overwillnEness to help out his friends
ana business acquaintance by permit
ting uverdrafts and accepting notes OF
questionable value.