The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-12-28
THE RUIN OF A BANK.

,
the brilliant adventures. Mrs. Chad
wick, got herself in debt to the insti
tuition on unsecured paper for NOR
than s25O,oOO.
4 The sworn statement of Presiden
I Beckwith shows that he was led int
the maze of disss ters by Mrs Chad
wick's promise to make his bank the
trustee for the $4,000, 900 in securities
which she claimed to possess, anf
which were then held in trust, she
said, by a financier named ri Key
nolds. For the banks service and theii
individual work President Beckwitn
and Cashier Spear each were to re
ceive $4,000 per year and the bank was
10 be given a bonus of close to $4,000.
| The trust fund of $5,O ,0OO-which was
! a rnytfl--was to have been turned over
to President Beckwith July 1, 1903. In
the meantime Mrs. Chadwick got loans
exceeding $3.50, 600. using the name of
her alleged father, Andrew Carnegie,
and a forged note of his to conjure
with.
+ All went well until the date came for
the transfer of the s5.OeO,oOo trust fund
and there was nothing doing. Cashier
Spear hunbly inquired why. He was
advised that Mrs. Chadwick had pre-
viously negotiated with Pittsburg
bank to act as her trustee and before
she had learned of the standing of the
Oberlin bank she gave the Pittsburg
institution a power of attorney. She
wanted to have this surrendered be-
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-
ary of this year, Mr.. Beckwith demand j
ed some actual security for his loans.
Then the Andrew Carnegie notes were |
dashed on him and he was satisfied for |
he time being.
The story of Carnegie paternity was
lIso told. It was a wonderful tale. Mrs.
Chadwick did not want her secret di-
rulged, and she put the banker under
solemn oath. She admonished them to
,e lust as secretive about the Carnegie
totes, for she knew that if her wealthy
elative heard that she had hypothe-
ated the securities there would be
much trouble. And it was because of
hese promises that the bankers held
heir tongues so long.
Mrs. Chadwick explained that she
.ot the s1,250,OOO notes from Andrew
carnegie in trade for Caledonian Rail-
DAD stock. These stocks comprised
art of the original trust fund, accord
1g to the woman, and when the great
desired to get possession of
hem to manipulate some big deal he
ave his notes for them.
President Beckwith says he and
ASHER Spear Endorsed one of the notes
Then the bank became hard pressed
or funds because of the Chadwick
oans The banker went to New York
With the Endorsed note with the in
ention of realizing cash on it, but he
ost heart at the last minute because
e was fearful the hypothecation
vouId trip up the trust deal with Mrs.
,hadwick.
President Beckwith tells how he went
o Mrs. Chadwick time after time and
insisted on payment. Again and again
romises were made that money would
e Forthcoming il day or two. He
listed Mrs. Chadwick in the Holland
House in New York, where she occu-
led a suit of fine rooms and was sur,
ounded by maids and attendants.
here was every evidence of expensive
living, but not a cent could he get.
Then came the deplorable death of
n. B. Bedorrha, of Oberlin, attorney
"a me DoLa>5 dliQ OCSilAOSO ISNSid-t
ion to several Directors of the bank of
he President being involved with Mrs.
Chadwick This was followed by a
rip to New York. participated in by
he President and three Directors. On
his occasion Attorney Powers was
With Mrs. Chadwick. Representations
we're received that every arrangement
vas made to settle the Oberlin claim
except the signature of Dr. Chadwick.
These were to be forthcoming the next
lay and the Directors were sent home
n high glee. President Beckwith stay
ed over. Once more he was doomed
70 bitter disappointment.
President Becltwith never was able
to get look at the s5.0O0.OOO securities,
but his visits to the Wade Bank in
Cleveland to see Cashier Fri REYNOLDS