Democratic Sentinel, Volume 8, Number 22, Rensselaer, Jasper County, 27 June 1884 — DEPOSITS AND SECURITIES. [ARTICLE]

DEPOSITS AND SECURITIES.

Concerning Middleton & Ca, the Washington Bankers—An Injunction Applied For. "tWashington special.] The local bank failures here are worse than had been anticipated. The filing of a bill for an injunction against the private banking house of Squiers A Co. has resulted in the disclosure of some peculiar facts. When the writ was served yesterday a meeting of creditors was being held at the bank, and Judge Edmunds, a District Commissioner, was endeavoring to explain to the creditors that a small safe in the office was his private property, which be had stored there because he had not room for it at his house. This circumstance, together with many others, has given rise to the rumor that Judge Edmunds is a partner in this enterprise. The cashier is reported to have said that the small safe contains army and navy vouchers. Judge Edmunds denies that he has any connection with the firm. Squiers’ business consisted almost exclusively in loaning money to clerks and army and navy officers at excessive rates of interest.

Seme extraordinary disclosures are being made as to the Middleton failure. The Evening Star has the following: One of the latest developments of the way in which their customers were plundered is shown in the case of James H. McKenney, Clerk of the Supreme Court of the United States. Mr. McKenney had been the close friend from boyhood of D. W. Middleton, Jr., and succeeded Mr. Middleton, Sr., as Clerk of the court, and his confidence was therefore unbounded in Middleton, Jr. His deposits in securities and money with the firm amounted to the large sum of $61,000, every dollar of which is lost They not only took his money in the general default, but cut open the envelopes in which he had placed his securities, such as bonds and stocks, for safe-keeping, and sold them. Mr. McKenney has nothingbutthe plundered envelopes to show for the savings of a lifetime, though part of this amount belonged to the court. In another instance SIO,OOO in trust bonds have disappeared in the whirlpool. There is still another aggravated case. They had power of attorney from a man of means absent from the city to attend to his business here, and had the k£y to his safe. On hearing of their failure this gentleman hurried to the city to look after his own securities. He found that every one had been sold. His safe was not in the Middleton bank. Gen. Erank Morey, of Louisiana, one of the committee of creditors, loses about $19,000.