Jasper County Democrat, Volume 9, Number 42, Rensselaer, Jasper County, 19 January 1907 — GILMAN CAUGHT. [ARTICLE]

GILMAN CAUGHT.

Ex-Good land Banker Arrested at Last. OVERHAULED AT BLOOMINGTON, ILL And Cases Against Him Set for Next flonday in the Newton Circuit Court.— Evaded Capture Over Two Years.

Fred D. Gilman, proprietor of the defunct Home Bank at Good* land which failed two years ago last June, and who has successfully evaded arrest since thalrtime, was overhauled last week at Bloomiugton, 111., and brought back to Kentland to answer the Charges in some 15 indictments charging him with embezzlement. He was released on bond of $4,500 furnished by a Kentland party who, it is reported, is indemnified by Mrs. Gilman. Wednesday afternoon argument to quash the indictments was heard and the court sustained motion to quash 9 and held 6 good. The cases are set for next Monday. Mr. Gilman is represented by attorneys Parkison of Rensselaer, Darroch of Kentland and Sellers of Monticello. The case that the prosecution has elected to try first is that of embezzling some $55 or S6O deposited by Peter Buck, the Goodland butcher, which was deposited shortly before the bank closed its doors. A special venire of 25 jurymen has been ordered. The Democrat is informed by a party who was at Kentland this week that there is a difference of opinion among those who lost funds in Fred’s bank regarding what ought to be done with him. Some are very bitter against him, while others think he was simply too kind to those he thought bis friends and allowed them to overdraw their accounts too heavily, and that he is only technically guilty and justice should be tempered with mercy in this case.

STORY OF THE ARREST. The following dispatch from Kentland to an Indianapolis paper tells of the capture. The Patton mentioned is Bert Patton, formerly of Goodland, who married a sister of Fred’s. Kentland, Ind, Jan. 12. —Fred D. Gilman, who wrecked »he Home Bank at Goodland, in June, 1904, and has since been a fugitive, is awaiting trial at this place on fifteen charges of embezzlement. He was brought to Kentland late last night bv Sheriff Stoner, from Bloomington, 111., which city he has made headquarters tor the last year. Sheriff Stoner had been on the trail of Gilman ever since his departure from Goodland in June, two years ago. Acting on a hint that Gilman was stopping at Blooomington, Sheriff Stoner visited that city Thursday and he found his man keeping books in a poultry house owned by the Patton Brothers, formerly of Goodland, and who were large borrowers of the Gilman bank when it closed. Mr. Gilman appeared in the sheriff's office this morning attired in his usual immaculate style, but physically showing signs of distress. He is hopeful that friends from his old home at Goodland will furnish a bond to-day, so he can breathe the air of freedom until Monday, at which time the Newton Circuit Court convenes, Gilman stated to the Indianapolis News representative that he had made no effort to evade arrest, for he knew he would have to face trial sooner or later. "People in both Goodland and Kentland knew I was in Bloomington, and have written me a number of times, I was advised last week that the arrest was probable, but I preferred to face trial than to attempt further escape. I have no fear of the trial, for I believed my bank to be solvent until the day I was called to Chicago.” To a number who called at the courthouse last night be stated that be bad been tempted to committ suicide, but he was now glad to be back, whatever the result.

GILMAN MAKES STATEMENT. To the Kentland Enterprise, at its request, Mr. Gilman made the following statement of the failure and his whereabouts since that time: “It is with considerable reluctance that I endeavor to make a brief statement for the Enterprise regarding Home bank affairs, for it has been nearly two years since the bank was closed and I must trust to memory, when I feel that every statement I make should be very accurate. When I tell you that I have never personally profited by any of the large sums of money left on deposit in the Home bank, I am making a statement the books of the institution will substantiate. The failure of the banlr was brought about by borrowers, who had never failed me before, but who were unable, or at least did not furnish the funds to cancel their just obligations to the

bank. It is properly considered the duty of a banker to safely loan the funds confined to his care in trust, and derive from such funds a safe and reasonable interest. The discretion and sagacity of the banker is relied upon to safely guardthe interests of an institution under his control, but he must have confidence in the people as well as the people in the banker. I have been severely criticised for making large loans to a poultry firm doing business sot years in Goodland and surrounding towns. The drafts and storage receipts for that concern passed through my bands, and I was familiar with the volume of business they transacted. The local papers never tired of exploiting the rapidly extending business of the firm, and its prosperity was generally recognized. In April, 1904, seven thousand cases of eggs were purchased, eggs in prime condition, and put in storage in the east. There was also 44,000 pounds of dressed stuff worth at least ten cents per pound. The eggs were worth at least six dollars per case. As usual, and according to custom, I advanced at the proprietor’s solicitation sums of money, at a fair rate of interest, to the poultry firm. There was nothing unusual or extraordinary about this. In every case I had always received my money whenever a call was made for it, About ten days before the closing of the Home bank I called upon the poultry firm and others for their overdrafts. It was readily promised. But failure of the McCoy bank had made depositors uneasy and there was a steady withdrawal of deposits. I relied upon the outstanding accounts to pull me through. When in the last trying hours I was brought face to face with the fact that the promises made me would not be fulfilled, I then realized that the Home bank must fail. I was determined, however, not to give up and made a final effort to raise funds in Indianapolis, and failing in this left for New York. In ihe meantime the doors ol the bank had been closed, and the rest is history. I left for Baltimore and from Baltimore I went to Tampa, Florida. "I took passage for Havana and landed in that place with six dollars in my possession. I became interested in some gentlemen in the development of an iron mine in Cuba and they sent me to Birmingham, Alabama, to engage an expert to inspect the property, they paying my expenses. From Birmingham I proceeded to Chicago and from there back to Cuba. After fourteen months residence in Cuba I returned to the United States and have lived at Bloomington most of the time since. I engaged in the real estate business and dealt in Dakota and lowa lands. I returned with Sheriff Stoner without waiting for requisition papers, and wish for a speedy trial, in Newton county. So far as I am concerned I am willing to take a jury of twelve men, made up from representative depositors of the Home Bank, men who lost their money if you will. With their verdict I will willingly abide.”