Logansport Reporter from Logansport, Indiana • Page 1

4 VOL. 16. NO. 48. WEDNESDAY AFTERNOON.

MAY 26.1897. TEN CENTS PER WEEK JOHNSON SPECULATED. Was a Plunger on the Chicago and Toledo Boards of Trade. Banker's Private Correspondence Yields up the Secret. CERTAIN DOOM IMPENDING.

Declares He Will Serve His Sentence Without a Murmur. Glad That the Terrible Ended. Strain is Nearly Sensational disclosures in the State National bank suspension follow each other with such rapidity and stunning force that the public is prepared to believe any extravagant statement in regard to Johnny Johnson, This morning's developments prove beyond peradveuture of a doubt that the $350,000 embezzled from the bank and the $100,000 raised from other sources by the versatile bank wrecker were swallowed up in speculation, the maelstrom which has ruined many a man before. Johnny Johnson "planted" money but he "planted" it so deep that he will never dig up a dollar of it even if he lives to serve a sentence in prison and return to Logansport. Bank Examiner Caldwell began a perusal of Johnson's personal correspondence last night which was kept in one of the bank vaults.

Before he had read a half dozen letters the secret of where the money went was laid bare. The examiner said today. "The money was lost in speculation. The letters show that Johnson lost large sums in the J. N.

Houston phosphate beds in Virginia, Gas City oil company stock, Colorado and "Wyoming mining stocks, margins on Toledo and Chicago Boards of Trade. The correspondence also reveals that he dealt extensively with investment brokers and grain dealers, part of which was legitimate in connection with the warehouse business. In 1895 Johnson took about $100,000 from the liability side in order to carry on his speculations. In 1896 he had to have more money and executed the forged notes to conceal the $200,000 embezzled during that year," Mr. Caidwell stated further that the comptroller had wired him not to recognize as a liability, for the present, the $50,000 certificate of deposit issued by Johnson in favor of the New York National bank of the Republic.

The certificate bears the endorsement of Will Elliott, but the amount will probably be ultimately recognized as a liability against the a friendly suit may be necessary to settle the matter. When asked by what methods Johnson got the money Mr. Caldwell said. "He simply took it. His first defalcations were covered up in the books.

He would take even amounts aay $10,000 or $20,000 or $30.000, as he might need for his purpose, and these things were concealed in the were told to in the bank, and no one of them had access to enough figures to give him any light upon the condition of the bank. They testified that Johnson always personally made up the balance sheets. Since the death of the cashier some months ago Johnson himself had acted as cashier. Mr. Kiser testified that on May 12 Johnson issued to his bank a certificate of deposit for $50,500 and drew against it.

The directors testified that they knew nothing about the bank except what Johnson told them. They had never inspected his balance sheets and had simply passed upon the names attached to the paper in the bank, and thought he was exercising excellent judgment in making his loans. The district attorney and his clerk began wqrk upon this task last evening and Expect to have it finished today. GLAD ITS OVER. temlent Walton will be warmly commended for his efforts to help the people.

The bringing' of the pay car here a week earlier that the local employes on the clerical force will be obliged to work a great deal at night in order to prepare pay rolls and accounts. The success of the plan also requires the co-operation of the high officials and clerical assistance at headquarters. AMOUNT OF DEFALCATION. ledger and register of certificates. They began as far back as 1895, but I did not discover them when I examined the bank in 1896.

There was no way to discover them unless I had called in people holding certificates and books. It was during the last year when he got into the assets of the bank, and had to put something to represent the cash taken out, that it. became possible detect, it. The book falsifications show a shortage of $100,000, and he endeavored to cover up $200,000 more with forged notes. The other 550,000 he sought to cover up by plan of issuing a certificate of deposit to the New York bank and drawing against it there." The National bank of Indianapo- is cashed a $10,000 draft drawn against the certificate.

The accounts of the Chicago Commercial National bank and the New York National Bank of the Republic were verified today and found correct. The examiner says they were the main correspondents and it is unlikely that further discrepancies will be found in verifying £correspondents' accounts. Mr. Caldwell is still of the opinion that depositors will not lose. The doors of the bank were opened this afternoon in order to allay fears induced by locks and drawn blinds.

People crowded into the bank and appeared to think they had gained a point in getting a few feet closer to the deposits. A number of pass books were handed in and the examiner requests those who handed in their books several days ago to call and get them as they are evidence of what the bank owes the holders. Johnson Says He Labored Under! a Great Strain. Messrs. A.

P. Jenks, Harry Shideler, John Kuns, Miner West, Will Elliott, Jehu Elliott, W. H. Snider, S. W.

Ullery, Joe McNary and jf. B. F. Kiser were the witnesses Before the federal grand jury day. During his stay in Indianapolis Mr.

Jenks called on Johnsdn. The latter upon meeting Mr. Jenks showed no agitation greeting him with a pleasant "Good mornina" There is no surprise in such a meJt- ing, entirely unexpected though it may be. There is a mutual feeling that no expectations are needed, and all ordinary emotions are drowned in the one shock. ''I am glad it over," said Johnson when the conversation turned upon the failure "no one knows the terrible strain under which I labored while waiting for the exposure which I knew must come.

If anyone in Logansport asks about me, tell them I made a mistake and will take my medicine like a man, not a criminal." Through a strong perversity Johnson seeks to impress the public that he is simply committed a mistake, not a transgression, that he will bear the penalty as a man not as a criminal. Figures Approximating Condition of the Bank. A succinct statement, approximated, is expressed by the following figures. Johnson's defalcations amounts all told, to about $450,000, of which $200,000 is represented by forged paper found in 'the bank; $100,000 by crooked book accounts; $50,000 on a certificate of deposit issued to the National Bank of the Republic, of New York, and $100,000 on his personal paper or word given on loans. He has turned over the bank property, conservatively valued at $100,000, leaving the net amount he has got away with $350,000.

He stole just about this amount from the bank, but the property he has turned over to it brings the amount down to $250,000. It has a capital stock of $200,000 and a surplus of $100,000. The directors figure that the surplus is wiped out, and that about $70,000 of the capital stock is gone. The value of the paper in the bank will "A Cold Bottle and Another One" often with the luxury of traveling in a palace car. Everyone may not be able to afford tbis, bat any man can afford to be well and fashionably dressed if he orders his suit made from our elegant saltings.

Perfect fit, and an indefinable air of refinement, which only an artiat can give, goes with every suit made by us. Carl W. Keller, Tai a per have to be ascertained before figures can be reached. the Bank Notes. JOHNSON CHEERFUL.

GEAND JURY TESTIMONY, After Hearing a Number of Witnesses It Votes to Indict. The federal grand jury, which had been called to meet yesterday before the bank failed, took up the consideration of Johnson's case in the afternoon and examined the following witnesses: George B. Caldwell, national bank examiner; Jehu T. Elliott, W. In.

Elliot, W. H. Snider, and S. W. Ullery, directors; Harry Shideler, Miner West and Mr.

Kuns, employes of the bank; Assistant Cashier Kiser, of the National Bank of the Republic of New York, and Henry Van Vorst, of Monticello. Examiner Caldwell was the principal witness and laid before the grand -jury the books of the bank. The employes of the bank testified that they simply did what they Talked Pleasantly to a Former Logansport Man- Johnny Johnson was seen at the Indianapolis jail, yesterday, by a former Logansport man. He greeted his visitor cheerfully and said that he regretted that the bars denied him the privilege of shaking hands. He was dressed in faultless style even to a spotless cambric handkerchief tucked -jauntily in his outside coat pocket.

He discussed his troubles with the caller, but the latter refuses to betray any confidence further than that Johnny said he had made a great mistake, that he did not propose to murmur, but bear his punishment like a man. The Logansport man also expressed the opinion that Johnson has no money "planted." PANHANDLE PAY DAY, Superintendent Walton's Plan Alleviate Distress- to DATE JEWELLERY. Red and Green Watch Guards. Gold and Silver Harness Amethyst Circular Pins and Rings. Stone Hat Pins.

Gents' Silk FoDa. Large Pearl Waist Sets. Enameled Waist Seta, and the Babbits Foot fnr 410 A. HAUK, Jeweler Optician. The locking up of more than $300000 in' the State National bank vaults is having an effect on trade.

Business men are complaining that their daily cash business is so small that a comparison with sales of two weeks ago is rather discouraging. A ray of light comes, however, iri a plan suggested by Superintendent C. H.Walton of the Pan Handle. Oa the twentieth of every month the Pan Handle pay car disburses over $50,000 to local employes and merchants are anticipating June 20th, as a day which will mark a revival in trade. Supt.

Walton appreciates the situation and proposes to have the pay car here in June a week or ten days before the usual date. In that event the circulation of $50,000 will temporarily alleviate distress and a week or two later, it is quite probable that a further remedy will be offered, possibly in a re- Reorganize the bank. Reorganize the State National bank. James Small, of Idaville, has $2.500 in the bank. Rev.

J. C. Smith, of Indianapolis, is the guest of S. B. Boyerand family yesterday.

There is no foundation for the rumor that a further shortage of $25,000 has been uncovered. There is nothing definite in regard to reorganization in addition to what has already been made public. People who have money locked up in the bank are walking in order to save, car fare. The daily receipts have fallen off thirty per cent. George Zinn, of Noble township, is a member of the Federal grand jury which body will indict ex-President Johnson, of the State National.

Peru Chronicle: "Harry Lux, of Logansport, is calling on his customers here today. Harry had $7,000 worth of confidence in Banker Johnson and is that much out. The banker played no favorites." George Prescott, of Terre Haute, a stockholder in the State National bank has suffered more bad luck through the failure of the Terre Haute Bicycle company in which Mr. Prescott was an investor to a large extent. A rumor was afloat today that Mrs.

William Johnson had gone east several days before the bank failure and was not at home when Johnson made his farewell proved it untrue as the many other canards that have been afloat. The jail dinner menu consists of a half pound of meat to each prisoner with bread, coffee and one vegetable cabbage, hominy or kraut. The supper consists of soup or with bread and coffee. This will be Johnson's fare unless some of his friends send in something else. Johnson has the faculty of win nihg the respect and sympathy everybody he comes in contact with The government officials felt it am even the hardened criminals in the Indianapolis jail have succumbed to it.

When Johnson was firs brought among them Sunday nigh they broke into a riotous song a his expense, singing the music hall air "Mr. Johnson, Turn Loose." Now they treat him with the utmost respect. In case of an assessment, Milton money on Johnson's bank stock, must pav the assessment or surrender the collateral. Bank Examiner Caldwell corrects fie impression that there was no attempt at disgnise in the signa tares of the thirty-three The notes were all written in the same hand, but the signatures were written with a different pen, different coloreO ink and in a disguised hand, Martin Bryan, of East Spear street, is seriously affected by the bank failure. He was employed for many years as a blacksmith in the Pan Handle shops and saved up enough money to buy a pleasant home.

Two weeks ago he sold his property with the intention of removing to Nashville, and pending removal placed his money the bank. Thinking he had arned a vacation after his years of rduous labor, he took his wife and hild and went to Ohio for a visit, 'he news of the failure reached im there and now he cannot remove till he gets all or a part of his eposit. HOQSIER HAPPENINGS. W. H.

HARRIS Mcklc Skows. Will Bxhiblt on Hlfh Between II One Day MONDAY, MAY 31st. Two PrefwuaucM belly, 2 sad 8 organization of the bank. Superin-1 Shirk and Frank STavrs by Telegraph from Various Towns in Indiana. See the Maryelous Acrobats.

See the -raceful Eiders. See Gypsy, the World'! Famous Elephant and her Baby Barney. ADMISSION, 10 and 20 Cts. land. There is at present but one snon line in thnt country.

Fltfht Butler, May been causing trouble along the line ol the Lakt Shore Michigan Southern railway. A large '-number gathered here and held up five men, robbing then of money, watches and new clothing 1 Then they attacked a train crew on the Lake Shore road. The trainmen made a desperate fight, and one tramp wan so badly injured b'is life is in danger, Marshal Karl and 50 citizens, armed, went to the rescue of the trainmen, and, after a fierce battle, arrested eight of tramps, bringing two into town insensible. For Wanting Gna. Anderson, May have been issued by Slate's Attorney icanlan and State Gas Inspector Leach or William E.

Decker. J. Buffington nd C. II. Garvey.

owners of the gas well drilled in last week near the Carver oil gusher. The was drilled or oil, but proved to be the greatest well in the history of the gas belt, hopes of oil developing, it has been llowed to stand open, aud fully cubic feet of gas have been wasted. This is the first case iu tho lash between the state and the gas men on the one side and the oil developers on the other. This will probably be made the test case by the oil men and will be taken to the supreme for a final decision, whether it ia against the law to let gas escape this way when it is necessary for the de- elopmcnt of the oil territory. Ilia Fourth Wife.

Lafayette, May Cathirine Evans, of Cleveland, read an advertisement in matrimonial sheet Bad hastened here to marry Jacob Layman, whom she had never seen. He is only 73, hale and hearty, and she is 52. When Mrs. Evans arrived here Layman was at the station to meet and welcome her, not only to the city, but to his heart and home. He took her the where a license was oectired, and Justice Naylcr did the test.

When Mr. Layman heard his new wife say that it was her third marriage he said: "I beat you one, don't When he told the justice that it was his fourth marriage he added that he hoped it would be his last, and she said she thought it would. After the ceremony the couple received congratulations and left for their home in Mont- movenci. JHImieil Mark. Lafayette, May T.

Quick, an inmate of the soldiers' home, from Marion county, attempted to kill Commandant James P. Megrew. Megrew was playing croquet with the members of his staff, when Quick emerged from the dining-room, and, to Megrew, made a lunge at him with his knife, but missed his mark. A desperate fight occurred. Quick using his knife and Haven, who defended his mallet.

Quick was finnllj' beaten down senseless. but riot until Haven had his right ear cut off and nevernl other cuts on the head. The physician of the post attended Haven, and, while terribly cut. his wounds are not dangerous. nnllway for Mcnrnilnii.

Richmond, May has been made of the formation of a company to build a 150-mile electric line iu Isham Sedgwick, oi this city, is president, Peter Baches. Trenton, N. secretary, and C. II. Hall, Trenton, N.

treasurer. The normal capital is .1100,000. and the name of the company is the Atlantic and Lake Nicaragua Hailroad and Navigation com pany. The company gets numeroui concessions from the Nicaragua government, amonjr which im 110,000 acres of Trlnmpli of a Colored Girl. Indianapolis, May Carrie only colored schoolgirl in Vermilion county, graduated from the Clinton high school after four years of snubbings and slights that would have discouraged a less resolute person.

Miss Parker's father is a laborer. She will apply for a place in the mission field, and devote her life to teaching the heathen. Spvclnl Election Called. Indianapolis, May Mount has sent out his proclamation oi a special election 1o choose a successor to Congressman Holmcn, deceased, ol the Fourth congressional district. August 10 was chosen as the date.

The district includes ten counties. Afrmlnnt PHrdon. Indianapolis, May 26. Central labor union has "adopted resolutions asking President McKinley not to pardon T. P.

Haughey, who is serving a sentence in the Michigan City prison for wrecking the Indianapolis National bank. AltruniU'd Harder. Portland, May Kecsaer was brought to jail here from Red Key on the charge of attempting 1 to murder Ida Stewart, who is not expected to live. Keesuer first gave bond, but his bondsmen delivered him up. 1V11I to Atunka.

Washington, May president (IBB decided upon the appointment ot C. C. Tiithill. of Columbia City. js United States commissioner for Mnska.

with headquarters at Sitka. To nv- Governor-f-eneml of Crete. London, May dispatch to the Standard from Berlin says that the powers, including Turkey, have assented to the appointment of Prince T)at- tenberg as governor-general of Crete. Some Day. "When will you ever do penance foe your fiins?" said she.

"I expect to get married sonm day," said Y. Journal. Absolutely. Celebrated for itsgrMtliMTeningitrtDgth and heaUhlulnen. Anons ths too against alnm and all of adulteration common to the cheap Baking do, Yorfr..