Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-09-05
Wreck Of TScumSeh Institution Due 10
RsOklesneSs and Dissipation.
TRUSTED CASHIER PROVES EXPERT CROOK
Had Full Confidence Of Victims and Made
Use Of Their Trust.
ONLY BARE WALLS OF BUILDING LEFT
Details OF Disappearance of Charles
M. Chamberlain and Disclosures
that Followed Ipvestiga-
tiOn of His Amairs.
(From a stan Correspondent


(From a stan Correspondent)
TECUMsEH, Neb. Sept 4-CspeciaI.)-
Poor judgment, recklessness in the invest
ment Of funds. then dissipation and finally
embezzlement and disappearance, all on the
part Of the trusted cashier and sole man
ager, Charles NJ. Chamberlain, were the
combined causes OF the financial wreck Of
the Chamberlain banking house OF this
city. few days ago this was supposedly
one OF the strongest institutions in the =
community. The people generally thought
Chamberlain was square and they gave
him their confidence and their money, ana
both were manipulated by the shrewd
banker in a manner which shows now that
be was master in the art of deception.
1t is impossible for those now In charge
of the bank to estimate safely what per
centage Of the deposits will be paid. From
all that has been learned thus far, how
ever, II would be conservative to say that
the bank will not pay over so per cent
The dividends may amount TO a tTiho more
than that, but will probably be much less
Today the Chamberlain banking house
stands about as does building which has
been gutted by fire. The walls remain and
here and there a pillar or some part OF
the structure is found intact, but the
greater part OF the interior is literally
notes left in the bank, showing $4,000 on
their face, is problematic. In the pile are
securities that are long past due, some
that have been paid OF and many that are
worthless.
People Know Very Little.
Comparatively little is known by the
people OF Tecumseh regarding the actual
condition of the bank. Tney know tnAi
the institution is closed and that Cashier
Chamberlain has disappeared, but as TO the
state Of the funds they are almost as far
in the dark as they we're before the failure.
Little crowds Of eepositors and creditors
gather at the street corners and In the
hotels and discuss the situation. but they
are able merely to Burmise and guess at
random. This morning a rumor went fly
ing wildly through the town that Mr.. Blank
of a few miles distant Is loser to the ex-
tent Of SAC, 900. On the heels OF this Il
was said that a telegram had beer received
| from Chamberlain announcing that he
would return and pay all depositors in full.
The former had no foundation In fact and
| the latter is conceded unlikely.
These kilograms have been received
since the cashier Of the bank disappeared
CHICAGO. Aug. 27.-s; NJ. True. Tecum-
'1'' CHARLES M, CHAMBERLAIN.
CHICAGO Sept. as NJ. True, Tecum-
seh Neb.: Charlie completely prostrated at
delay obtaining funds VIII return and
se''e VIII" al Oe''''' CHAMBERLAIN.
The latter telegram came to Tecumseh
Tuesday night. but 1t was not at that time
made public. Some II Its contents became
known, however, and the news spread rap
idly that Chamberlain was coming home to
settle all accounts. The rumor was revived
this morning, but is not believed by those
who are at all cognizant Of the banks af-
fairs. Mr.. True, to whom the messages
we're directed is the bookkeeper OF the in
stitution.
other Institutions CLOSED.
The Chamberlain banking house Of vesta
| and the Chamberlain banking house Of Graf.
which were owned by the Tecumseh institu-
tion, were closed by order Of the State Bank
| ing board. but 1t is probable both will pay all
of their depositors in full. The deposits
In the bank at Graf amounted to approx
mateIy SIS, 900. The institution has $4,000
of good notes. besides deposit Of $500 in
! the bank here. The accounts In the bank
at Vesta were smaller. but about as secure
as those in the bank Of Graf,
Bank Examiner w. ID. Hartwell is tenn
| porarily in charge OF the institution here,
pending the appointment OF a receiver. He
is making a thorough Investigation, but has
not yet determined the extent Of the loss
that will be sustained through the manipu-
Iation of the banks AFFAIRS. New deals
come to the surface every day and each
serves to illustrate more plainly the bold
ness Of the operator. Mr.. Hartweil ex-
pects to complete his report within the
next few days and will then submit Il 20
the State Banking board at Lincoln, fol-
lowing which a receiver will be appointed.
Cashier Chamberlain departed on Mon
day, August 25, leaving not only the bank
and his creditors, but his family as well.
Mrs. Chamberlain was an invalid at the
time. and her condition has grown rapidly
worse since her husbands departure. The
home they occupy is mortgaged. but II is
generally believed that they were otherwise
provided for.
When ChamberIain Disappeared.
Chamberlain told the clerk in the bank
that he was on on a little trip 70 close up
a private deal. intimating that he would be
home in the evening On Tuesday the clerk
began sending kilograms to various places
for information regarding the cashier He
directed these TO the places he thought
Chamberlain would most likely visit. The
cashier evidently learned OF the investiga-
ltion that was being made, for on Wednes-
day night the first telegram was received.
The bank had been running low in cash and
exchange. The clerk was the sole person
In charge, and he was confronted by q Sc
rious problem. He knew there was not
enough money in the vault to keep the bank
going much longer. but he thought after
receiving the telegram that Chamberlain
would dispose OF some Of the securities on
the following day-Thursday-and telegraph
credit for the amount Of money raised.
He proceeded upon the theory that Cham
| beriain had been unable to dispose OF the
securities in Chicago but that knowing the
condition OF the bank would make the neees-
: sary negotiations the next day and come
promptly TO the rescue. He knew the cash
Ter could deposit money in any eastern
bank, subject TO the draft OF the bank here,
and this is the course he thought Cham
berlain would take. The next day was an
uneasy one for the clerk in the bank. He
remained at bis post, paying and receiving