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NOT THE MAN FOR MAYOR AUGUSTUS SCHELL'S RECORD AS A TRUS. THE OF PRIVATE FUNDS. How the Union Trust Company was Plandered of 8875,000 while he was Acting President Also how the Manhattan Club was Robbed After the worthless old iron safe in the Manhattan Savings Bank WAS robbed of $3,000,000 on Sunday last, and the gross care. lessness of the officers in Intrusting the combination to a feeble old janitor became known to the community. there were some persons who expressed astonishment that Mr. Augustus Scholl, the leading man in the management, should have so neglected the important trust confided to him. In business etroles, where the Union Trust Company's defalcation and suspension are well remembered, his careless. ness or incapacity in the present instance are considered to be characteristic of the man. Gus Schell," said a down-town banker. yesterday. gives the lie direct to the old adage that a man is never too old to loarn. This is the third institution with which he has been connected in which there has been stealingthrough incapable management, That Union Trust perience must have taught any other man than Schell a lesson that would have lasted a life. time. It doesn't seem to have made fany impression on him. though The robbery of the Union Trust Company. which has been referred to frequently since bank burglary. was in the fall of 1873 and WRS one of the causes that precipitated the great panic. A few days before Jay Cooke Oo. failed. President Frothingham, the head of the Trust Company started for Europe. Augustus Schell, who was Vice-President, became act ne Presidentan general manager of the company. Commodore Vanderbilt was one of the trustees. and WAS generally understood that he gontrolled Mr. Scholl as completely as the King will have him in hand If he is made Mayor. On the first day of the panie-Sept. 19, 1873-when the series of Wall street failures began, ugly rumors affecting the solvency of the Trust Company got afloat. and a run began on the institution. This was on Friday. At noon on that day Charles T. Carlton. Secretary of the Union Trust Company. was missed from his desk. In the afternoon. after the run had been kept up all day, Mr. Schell said to A reporter: There is not the slightest doubt RA to the solvency of the company. Our investments are of such A character as to enable us to realize readily. Every depositor CAR have his money on applying for it. Beyond the general panic I am utterly unable to account for the rumors afloat affecting the stability of the company which has always dones large and conservative business. While Mr. Schell WRS talking his secretary a defaulter to the amount of $400,000. was A fugitive from justice, and the next morning when a notice of suspension WRS tacked on the bank doors it was learned that part of the conservative business of the bank was a call loan of $1,827,558.60 to Vanderbilt, who had refused to DAY the money on domand Mr Schell WRA as much bewildered at the flight of his secretary and at his company's sudden suspension AS he was on Sunday morning last when he BRW the empty tin boxes and the unhinged safe door on the floor of the Manhattan Bank. Mr. Schell who on Friday had narrated the solid character of the company and the nature of its investments, said on the following Monday that he did not know the company's condition or how much had been stolen and lost in Wall street by his secretary. He thought that the steal was not very large. A receiver was appointed for the Trust Com pany, and it was soon learned that Mr. Schell's secretary had spent $375,000, He was charged with $400,000. but somebody in the bank happened to look in the safe one day and found $25,000 that had been overlooked. Receiver Wealey was asked in his investigations how it was that Carlton could have taken $400,000 in so short a time. He replied: The inception of his fraudulent practices dates back at loast four years-1 fact, since the time he came here. He deceived the trustees by submitting securities to them which he subacquently used in speculation instead of Dutting them in the vault. But how could this happen without deteotion was asked. Because the management of the company's affairs was undoubtedly very loose. was the reply. One of the trustees said after the company had suspended If Frothingham had only been here and Horace F. Clark were alive, not a single depositor would have applied for his money in vain. The absconding Secretary was not captured, although Mr. Schell thought he would send back some of the money he had taken. He never did. however, and died abroad a few years ago. The trustoes got together and paid out of their own pockets the $400.00 that had been lost by loose management, and the company resumed business: but there are those among the trustees who will not vote for Mr. Augustus Schell for Mayor. Mr. Augustus Schell was Treasurer of the Manhattan Club six or seven years ago, and 8 named It Scholl's had bookkeeper Jones. was Mr. duty to look after the club's finances and make deposits of all moneys in. to him. the office. and left its honora trusted of Mr. Schell wore duties the to young Mr. Jones, AH Mr. Schell did not feel any responsibility, Mr. Jones did not deem it necessary to assume any either and he lost $20,000 of the club's money in Wall street, The present steward of the club says that he doesn't believe that $20,000 WAS lost. He thinks may have been $2,000or $3,000. The steward then explained that under the present management no clerk or employee could steal more They have than one day's receipts. must Mr. managed different then.' he said. Scholl could tell you how was. He WAS treasurer. The Manhattan Club WHB richer then than it now 18. and the loss WAS cheerfully borne. Mr. Schell goes there regularly but he long ago retired from the office of treasurer In all the deffeits and defalcation with which his name has been associated, Mr. Schell's losses have been trifling. He lossos own boars the of others with a calm philosophy born of long OKperience.
