The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1911-06-08
.BENEDUM WRECKS
BANK AT CAMERON
And Judge Orders Him to
Pay Creditors a Large
Sum Of Money.

| A decision against President NJ. L.
Benedum, OF the First Citizens
Bank, of Cameron, which failed in
December, 1908, has been given In
the Marshall county circuit court by
Judge Frank w. Nesbitt, In the de-
c.sion President Benedum is held
responsible for the failure OF the
bank and judgment is given against
him for ums totaling 100000.
with interest for eight years, which
bring sthe amount up to a quarter
OF million dollars.
Howard Was Receiver.
The testimony produced was of a
highly sensational nature, Mr.. Ben
edum and former cashier, A. Z.
Fox, being accused OF gross misnan-
agement and unwarranted manipu-
lation of funds. After the bank
failed in December. 1908, owing
large sums, President Benedum
came forward with a claim for
$4,000 against his own institu-
tion and asked for the appointment
of receiver.
John A. Howard was appointed in
this capacity, but his actions were
not satisfactory to the creditors OF
the bank, who had an investigation
made and discovered that corpora
tions promoted by President Bene-
dun owed the bank large sums of
money. Being unable, it is said, to
get Mr.. Howard to proceed in the
proper manner, these creditors were
forced to file cross bill which pre-
c'pitated the long legal fight which
has just ended.
Overdrafts of $4,000.
The capital stock of the bank was
$4,000, with deposits averaging
about $15O,OOO. The Cameron
Glass Company, a Bendum concern.
was at one time allowed to carry an
overdraft in the bank of $4,000,
Or $4,000 more than the capital
stock, and to negotiate unsecured
loans from $4,000 to $4,000. This
then sold out to the Mar
shall Window Glass Company, also
controlled by Benedum, and this
concern was permitted to discount
a note for 100000. Other Benedum
with which similar tactics
were employed were the UpshurI
Glass Company and the WetzelI
Glass Company, OF New Martins.
vile. These companies all failed,
owing the bank over 100000, and
causing the complete ruin OF the in
stitution.
Cashier Overdrawn.
1t was also shown that unsecured
loans had been made to many indi-
viduals and that when the bank
failed Cashier Fox was overdrawn
$4,000 on his personal account. AS
a member of the board of directors
President Benedum is held respon-
sible for this loss. 1t fact, it is said
that Mr. .Benedum was the only real
director of the bank, the others oc-
cupying positions but being finan-
cially irresponsible.
The decision of the court holds
that Messrs. Bendum and Fox were
responsible for the wrecking of the
bank and that Benedum should re-
pay the sums due to all the cred
itors.
Ii was stated by the defense that
an appeal would be taken to the SUI
preme court.
Mike" Bcnedum, as he is popu-
larry known, is a native of this
county. When a Standard OF Com
pany began to operate extensively
through the northern part of West
Virginia. Mike, with brother
named Charles, entered the employ
of the octopus" and in this way
got their start in life.
One of the first financial adven-
lures of the Benedums was the or
ganization of the Benedum Brothers
and Trees Oil Company. This con-
Germ prospered and operated rather
extensively through the Wetzel and
Tyler county oil fields.
In the meantime the Benedum
brothers had located at Cameron
where Charles died, and Mike or,
ganized the First Citizens Bank
lFor some time after the failure Of
the bank Benedum maintained ar
office in Wheeling, but he is now 10
Gated in Pittsburg. where he ha: