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HEAVY DEFALOATION. The Cashier of n Franklin, Pa., Bank Using the Bank's Money in Speculation. FRANKLIN, Pa., July 29.-The residents of this city were astounded this morning when a report was circulated that J. N. Craft. Cashier of the Exchange Bank. this city. was a defaulter in a large amount. The news was verifled by the President of the bank. John L. Mitcholl, and for a few hours after the bank opened great excitement prevalled. and a run on the bank was begun by the small depositors, but quickly subsided when it became known that sufflieient funds were on hand to pay the depositors in full. and some of those who had drawn their money again deposited it. The directors of the bahk. assisted by Assistant Cashier Thomas Alexander and Mr. Husband of J. W. Mitchell & Co.'s bank. at Oil City. commenced overhauling the books and counting the money and securities to ascertain the amount of the defalcation, and at 5 P. M. wore still at work. A public statement of the loss will be made as early as possible. From the best information obtainable, It is thought that the bank will lose not less than $100,000. and it may exceed that figure. It is certain that Cashier Craft has been speculating with the funds of the bank for about two years, but he has always succeeded in covering his tracks until the present time. Indeed. his manner of using the money almost defled detection. At the quarterly examination of the condition of the bank, made by the directors in the most thorough inanner. his books and cash were found to be correct, but it now appears that he used the bank's money deposited in New York and Philadelphia in his speculations, and covered his work so artistically as to prevent detection. A statement of the account of the bank with a Philadelphia bank receiver on Friday fell into the hands of the assistant cashier. Mr. Alexander, and a discrepancy between it and the books appearing, the subject was brought to the attention of the directors, and the cashier was called to an account. Finding that the jig was up. he acknowledged his poculations, and gave some of the particulars of his operations. but the full extent has notyet been made public. Mr. Craft is a particular friend of State Treasurer Baily. having been born and reared in Uniontown, and he took an active part in securing Baily's election. For this friendship the latter gave the Exchange Bank a deposit of $55,000. but it seems that only $20,000 was ever credited on the books, and the balance Craft converted to his own use. Mr. J. P. Byers of Coopertown deposited as security for a loan of $2,000 Venango Water Company bonds, and Craft took these bonds to Pittsburgh, and hypothecated the same to raise cash for speculative purposes. Eight hundred dollars of the funds of the Venango Grays, a military company of this city. of which Craft was treasurer, was also used in the same way. Other funds are reported missing, but particulars are wanting. It is certain, however, that his speculations were largely in petroleum. Ho was unfortunately one of the investors in eighty-cent oil before the Warren field was opened, which depreciated prices largely. and to sustain himself he used the bank's funds. He also invested, but not largely. in silver mines in Colorado, and was secretary of the Ajax Mining Company. composed of some of our wealthiest citizens. Craft was a trusted and respected citizen. popular with all classes, and the last man to be suspected of dishonesty. He is lying at his residence completely prostrated, unable to give information which it is important for the directors to know before they can complete a statement for the public. He is A son of E. Craft. Esq., of Uniontown and a brother of Major Craft of the same place. The Exchange Bank is one of the strongest institutions in the State. The stockholders are individually liable. Among them are J. L. Mitchell, F. W. Mitchell, R. H. Woodburn. A. Irwin, C. Heydrick. F. D. Kinnar. and other wealthy citizens. The bank will not seriously feel the loss. Mr. Craft has not been arrested as yet. but is under police surveillance. He is a deacon in the Presbyterian church. Later.-The directors of the bank to-night made a statement that the loss. as far as ascortained, is $65,000. Besides this there is $33,000 which the State deposited, but which Craft failed to give credit for on the books. and some $12,000 special deposits, which the bank will refuse to pay. and will contest the matter in the courts. Craft. on becoming cashier of the bank. entered bonds of $10,000. his father and brother becoming his securities. To-night Craft is reported as dangerously ill and unable to see any one.
