The Hawaiian gazette., 1904-12-30
THE RUIN OF A BANK.

concern in which Honolulu money was
deposited to warrant a somewhat pre-
else account of the manner in which
the brilliant adventures. Mrs. Chau-
wick, got her3elf in debt to the instl-
tuition on unsecured paper for more
than s250.000.
The sworn statement of President
Beckwith shows that he was led into
the maze of disc sters by Mrs. Chad-
wick's promise to make his bank the
trustee for the S5,00t,OOO in securities
which she claimed TO possess, ana
which were then held in trust, she
said, by a financier named lri Key
nolds. For the banks service and their
individual work President Beckwith
and Cashier Spear each were TO re-
ceive $4,000 per year and the bank was
TO be given a bonus of close to S4O,OOO.
The trust fund of $4,000. .OO0-whch was
n myth-was to have been turned over
TO President Beckwith July !, 1903. ln
the meantime Mrs Chadwick got loans
exceeding $25O,OOO, using the name OF
her alleged father, Andrew Carnegie
and a forged note of his to conjure
with.
: All went we'll until the date came lot
the transfer of the S5,00O,0OO trust fund
and there was nothing doing. Cashler
Spear humbly inquired why. lie was
advised that Mrs. Chadwick had pre-
yiously negotiated with Pittsburg
bank to act as her trustee and before
she had learned of the standing OF the
Oberlin bank she gave the Plttspurg
institution a power of attorney she
wanted to have this surrendered pe-
fore she relieved Iri Reynolds of CleVe-
land of the trust and turned the Sc
curity over to Mr.. Beckwith.
She was granted six months more
time by the banker and again he want
ed to know why he had not been MADE
custodian of the funds. In the mean
time Mrs. Chadwick's Indebtedness was
increasing and finally, early in Janu-
nry of this year, Mr.. Beckwith demand
ed some actual security for his loans
Then the Andrew Carnegie notes were
flashed on him and he was satisfied ior
the time being.
The story of a Carnegie paternity was
also told. 1t was a wonderful tale. mrs
Chadwick did not want her secret ol-
yulged, and she put the banker under
solemn oath. She admonished them 10
be lust as secretive about the Carnegie
notes, for she knew that If her wealthy
relative heard that she had hypothe'
Gated the securities there would p'
much trouble. And it was because OF
these promises that the bankers helo
their tongues so long.
Mrs Chadwick explained that sh'
got the $l,25O,OOO notes from Andrew
Carnegie in trade for Caledonian Ran
road stock. These stocks comprised
mart of the original trust fund, accord
ing to the woman, and when the Srea
financier desired to get possession o
them to manipulate some big deal n
gave his notes for them.
President Beckwith says he an
Cashier Spear indorsed one of the note
when the bank became hard presse
for funds because of the ChadWic
loans. The banker went to New Hor
with the indorsed note with the IN
tention of realizing cash on 1t, but n
lost heart at the last minute becaus
he was fearful the hypothecatio
would trip up the trust deal with Mr.
Chadwick.
President Beckwith tells how he wer
to Mrs. Chadwick time after time an
insisted on payment. Again and agai
promises were made that money woul
be forthcoming in day or two. h
visited Mrs. Chadwick in the Hollan
House in New York, where she occl
pied a suit of fine rooms and was SUI
rounded by maids and attendant
There was every evidence of expensiN
living, but not a cent could he get
Then came the deplorable death
w. B. Bedortha, of Oberlin, attorhe
for the bank, and his deathbed reVel
tion to several Directors of the bank
the President being involved with MI
Chadwick. This was followed by
trip to New York. participated In
the President and three Directors.
this occasion Attorney Powers
with Mrs. Chadwick. Representato
were received that every arrangeme
was made to settle the Oberlin ella
except the signature of DR.. Chadwi
These were to be forthcoming the ne
day and the Directors were sent no
in high glee. President Beckwith sta
ed over once more he was doom
to bitter disappointment.
President BeCkWltn never was Il
to get look at the s5,OOO,0OO securiti
but his visits to the Wade Bank
Cleveland to see Cashier Iri Reynol
custodian of the collateral. assured h
somewhat Mrs. Chadwick told
worried President about three n
York business men who were the r
trustees of her estate. She mention
the name of William Baldwin o.
sumably fictitious), but Mr.. BecSw
never met him in the metropolis.
was always "out," ba1 the woman Y
domineered the hardheaded ban
told of "Baldwin's" trips to ClevelI
to clip her coupons"
At one time, in Mrs. ChadwiC
presence President Beckwith drew
revolver and threatened to commit
eide. The gun play brought hy Il
but no funds. Parleying continued