Democratic Sentinel, Volume 9, Number 35, Rensselaer, Jasper County, 2 October 1885 — INDIANA’S GREATEST FRAUD. [ARTICLE]

INDIANA’S GREATEST FRAUD.

General Review of the Township Bond Swindle, So Far as the Facts Have Been Developed. The Amount of Fraudulent Warrants in Sight Aggregates Between $600,000 and S7OO 000. [Vincennes Cor. Indianapolis Journ&L] The statement of an Indianapolis correspondent that the swindle has been exaggerated is not the fact in the case, as every merchant, banker, or broker who has been interviewed on the subject places the figures high above any estimate yet given in any of the newspapers, and many of them who know refuse to talk on the subject There are certain banks which could be easily named that have large blocks of these bonds which they have purchased, but it would be folly to name the institutions in the public prints, as it would be instantaneous financial death to them. Such statements, though true and easily proved, would create a “run” on the banks holding the bonds, and unless in the best financial condition would ruin them and close their doors.

A certain capitalist told your correspondent that he had lost heavily, and that he was greatly crippled. “If you could have only known,” said he, with a long and weary sigh, “that I had invested in the bonds, and if you could have only come to me and told of this fraud I would have felt like giving yon $5,000 in cash! Yes. $5,000 in cash, I repeat, and you would have saved me many and • many a hardearned dollar, even though I gave you my check for that amount. It is a terrible fraud, and I do not wonder at the excitement of the people and- the interest they take in it. ”

There have been some scathing denunciations of the President of the North Vernon Bank in some of the papers. Of course President Cook deserves rebuke, but the sensational reports that North Vernon and Jenping County are ruined are absurd. “If a Bifiali failure, involving less than $50,000,” sffid a’North Vernon merchant, “can ruin, us, we ought to shut up shop. Of course many of the depositors feel hard, but they will not lose all, and as citizens we ought to make the best of it. ”

“Who is it that is going to shoot Mr. Cook on sight?” “That’s all bosh,” answered the merchant, “and no one contemplates such a thing. I expect a great many feel embittered toward Cook, but I cannot see how he could have done anything else than close up. As far as his speculations, in the bonds were concerned, he did no more than many other bankers. I believe the talk that North Vernon is ruined and is wild with excitement, as generally reported and published. will do us ten times more injury than two such failures as Mr. Cook’s. I don’t believe in kicking a man when he is down,-and Oookis down now, sure enough. He was not a rich man, always lived in moderate style, and was as common as the most of us. In fact, we all liked him. If he is as unmitigated a scoundrel and schemer as has been printed by the Enquirer and Sentinel at Indianapolis, he is worse than Pollard.”

“Mr. Cook was very popular,” said Mr. P. McGannon, the assignee; “the people here had every confidence in him. As far as I am concerned, if Mr. Cook went into the banking business to-morrow, I would help him all I could. ”

Mr. McGannon is a quiet, sensible gentleman, full of business, and owner of the large roller-process flouring mills of the place. The Seymour News charges Cook with having “gone East, after learning the school orders were fraudulent, and bought largely for a mere song. He then brought them to North Vernon, failed, and listed them as assets, and is posing for sympathy. He has victimized the poor and protected the rich, and the wrath that has burst upon him knows no bounds. The Harrison, Ohio, bank, with which he was also connected, has been compelled to suspend, on account of his working against his friends in that institution to make money for himself.”

Another report makes out that Cook swindled his widowed sister. President Cook is considerably vexed over these reports, and states there is not a word of truth in any of them. “I did not sell any of those bonds to any one unable to buy them; or, that is to say, to those who had but little money, because most of them run too long for such investors. As for my widowed sister, I have none, and the statement is absurd and infamously false. We had nearly SBO,OOO on deposit at one time. We tried to stand the storm, but the past few weeks a run was made on the institution, and I found that I was gone. Of course, as soon as I learned that most of the bonds I had invested in jpere worthless, I knew at once that I was ruined. It is not the rush of depositors to Vlraw out their deposits that break up a bank, generally speaking, but the gradual sinking down to simply nothing does it. After the pell-mell rush cf many deposit--ors who draw out their money is over, the sinking and deadening effect comes on, and like a dying man, a broken bank catches at every breath as a last hope until all is gone. The latter days you don't see many around; only three or four men are seen in the institution, probably, but every one of them brings despair to the banker’s heart, not hope, for they all want money, and do not bring in any. In this gradually sinking way the life of the institution is sapped up, and its last hour of financial life soon -comes. That is the way it was with us. When our losses in the bonds became known, I felt that ruin was inevitable, and there was no way to recover. ” Pollard was Cook’s Nemesis, and he succeeded in effectually winding him up. Among the principal depositors are the following: Amos Thomas, County Clerk $4,300 A. J. Johnson, conductor. 7,000 Dr. Cope 1,000 John Cox. Treasurer 1,750 Thomas Havens 1,200 Agricultural Society 900 Kobert Levitt *OO Rev. Gruisant 600 Eldo Hicks *oo J. C. Cope 1,200 A. Haley 360 W. H. Cook 600 John Forsythe 200 -Covert’s heirs 875 James Hutohins 250 ■ Jacob Feeble 400 Total... $20,925 Besides the above there were many small

deposits, from $l5O down. The assets are: Notes, estimated $12,000 Notes on C. b. Scoville 6,000 Balance with three banks 45* Exchange 696 Property... 16,000 Cash 2,00 u Total... $38,150

Besides the above, there are bonds held by the above banks as follows: George W. Foreman, Trustee, $800; John B. Clawson, Trustee, $2,305.50; John Grimsley, $3,902; W. B. Bodman, $2,421; Henry A. Thorpe, $3,496.40; Charles H. Brown. $7,593; Ernst Kitz, $3,500; Elisha Saville, $300; George D. Kowe, $728; John Clark, $438.65; John Benton, $315; Robert M. Benton, $1,394; M. T. Kennedy, $284; John Gladden, $700; Albert Roll, $100; tota\ $28,278.15 The Seymour News tells of a peculiar transaction as follows: “The Trustee of a Jennings County township lost $350 in the bank. He will pay it out of his own pocket There is some school furniture addressed to him, which he refused. A young man called on him to sell him seme turaiturs but the refused to buy. He signified his willingness, however, to patronize the chap when needing furniture; whereupon, to ‘make it business like,’ the agent requested the Trustee to sign three blank oiders, the amounts in same to be filled as goods were wanted. The Trustee did so. The orders are on the market now, and the Trustee will have to pay the loss out of his own pocket. ” “Pollard used to get done up in Vincennes on poker,” said a Vincennes sport, “and he came over often. He dropped a good deal of money with us, but he never seemed to mind it, and always had plenty with him.”

Pollard went over to "Washington County about six weeks ago to see Rodman, one of the swindling Trustees. Pollard claimed he wanted to buy Rodman’s cattle. He was driven out to Rodman’s by a livery man, who saw Pollard and Rodman sit down together, when the former took an immense roll of bills out of his valise, and, after counting it over, shoved the whole pile at Rodman, who took it and put it away. When returning home through some woods, Pollard pulled out his revolver and said he had lots of money with him and wanted to be prepared to fight any one who might attack them. Rodman is in deep. The amount of his rascalities is not known, but he has slipped out under cover of darkness, and will never be seen again.

A report comes that Pollard & Son have set up one of the finest gambling dens in Canada, and that the Trustees in his neighborhood have interested themselves in it If this is the case, Pollard will get all their money in the end, and the absconding scoundrels will be left penniless. Frank Pollard was seen in Lawrence County about three weeks ago, and showed his money conspicuously. He had five or six SI,OOO bills and a roll of SSOO bi Is. Pollard and his whole family used to wear diamonds by the dozen, and it is related that he gambied gold watches and diamonds away repeatedly. He gave a relative a handsachel—ladies’ make—the tassels of which were bedewed with diamonds, and the handle was made of gold dollars. It is quite a curiosity. The latest estimate placed on the villainous swindle, so far as known, is as follows: Grand total ot dispatch of Sept. 12 $114,013 Add additional bonds held bv Jennings County Bank over former estimate...2o,ooo Ezra Lathrop 7.5(H) Thos. Boole 20,000 Other sources 14,000 EckKouse, Washington 2,000 J. L, Kendrick, Seymour 4,150 W« O. Chilton, Mltchel 2,000 Bonds in hands of Vincennes law firm for collection 150,000 Chicago bank 50,000 Chicago broker 200,000 Bank in Ohio 20,000 Harrison, Ohio, Bank 5,550 Grand total $609,213

Some of the above figures need explanation, especially the last four items. The Vincennes law firm has been employed to collect the batch of bonds aggregating over $150,000, and there is no doubt of the estimate. If anything, the estimate is low. The Chicago bank holds $50,000 in these bonds as collateral for money loaned. This your correspondent learned from Mr. Charles E. Cook, of the broken Jennings County Bank, and he states they were offered him at one time for sale. The name of the bank could be learned, but it would be far from sensible or judicious to do so, as such a statement, driven home to the institution, true as it is, would embarrass the Chicago concern, and, perhaps, do it irreparable injury. Mr. Cook also gave your correspondent the statement that the Chicago broker, one of the wealthiest of that city, held $200,000 in such bonds, and offered them for sale to Cook. In the above statement there is probably no clash of figures, as they come from different parties, from widely different sections of the country. As an instance of underestimating it would be well to state that it was held in these dispatches that the Jennings County Bank held only $8,300 when it was really discovered that they had nearly $30,000, or three times the amount given.

The Trustees that have left their constituents in the lurch and gone to new pastures and green fields are as follows: Arista Glover, Mill Creek Township, Fountain County. John B. Clawson, Logan Township, Warren County. Charles H. Brown, Washington Township, Daviess Countv. John Grimsley, Steele Township, Daviess County. John Clarke, Barr Township, Daviess County. Henry A. Thorpe, Morgan Township, Harrison County. Walter B. Bodman, Monroe Township, Washington County, Norman L. Jones, Liberty Township, Parke County. Robert N. Martin, Owen Township, Jackson Count}'. The two last named trustees are in other trouble besides the bond speculation. Norman L. Jones has been sued by a woman for $5,000 damages for breach of promise. Martin left for Kansas with another man’s wife, and remained with her until the exposure of the huge swindle, when he became alarmed and skipped for parts unknown.

Jones, of Parke County, with his breach of promise suit and his rascalities as well, realized the “deep damnation of his taking off” and skipped to Canada in the dark of the moon to join his fellow-frauds in a country that permits them to live in peace Rnd plenty, unmolested by American limbs of the law.

—The reunion of the Seventh Indiana will take place at Greenabnrg on Oct 15.