Citizens National Bank (Oberlin, OH)

Article Text

Bank Closed

Oberlin, O., Nov. 28.-The Citizens' National Bank closed its doors this morning, and the following notice was posted on the door: "This bank will not open this morning, nor until further notice The bank is in charge of the national bank examiner for examination." C. G. Beckwith is president-of the institution. No statement furth than that on the door has been is The bank was founded in 185° the only national bank ir There is great excitemen' business men, Beckwith made a st er ing to the effect Shear made a he e ago on whathe termed nrity." On SatThe loan falls due e bank. The urday there was a run run continued during the late afternoon and evening. The calls for de₁ osits depleted the cash on hand, the officials admit. They say arrangements have been made with a New York bank for $300,000, which is due here Tuesday. By the receipt of this the bank may be opened.

Article Text

GREAT EXCITEMENT Due to Closing of the Only National Bank in Oberlin. (By Publishers' Press.) OBERLIN, O., Nov. 28.-The Citizen's National Bank closed its doors this morning. The following notice was posted on the door: "This bank will not open this morning nor until further notice. The bank is in charge of the National Examiner for examination and inves tigation." C. G. Beckwith is president of the institution. No statement further than that on the door has been issued. The bank was founded in 1858, and is the only national bank in Oberlin. There is great excitement here. President Beckwith made a statement this morning to the effect that he and Cashier Shear made a heavy loan some time ago on what he termed "gilt edged security." This loan falls due January 1. On Saturday there was a run on the bank. Officials of the bank admit that the institution is to a small degree involved in the Chadwick case loans. The run continued during the late afternoon and evening. The calls for deposits depleted the cash on hand, the officials admit. They say arrangements have been made with a New York bank for $300,000, which is due here Tuesday. By the receipt of this. the bank may be opened.

Article Text

OHIO BANK SUSPENDS

Sald to Carry Mrs. Chadwick's Notes for Large Amount. Oberlin, O., Nov. 29.-The Citizens' National bank of this place was closed during the morning. The action was taken as a result of a meeting of the board of directors. The following notice was posted on the bank door: "This bank will not open until further notice. The bank is in charge of the national bank examiner for examination and investigation." C. G. Beckwith is president of the institution. The bank was founded in 1858. It is generally understood that the bank carried notes of Mrs. Cassie Chadwick of Cleveland to a large amount. On Saturday there was a run on the bank as a result, it is said, of a rumor that Mrs. Chadwick had borrowed largely from the institution.

Article Text

SUIT AGAINST WOMAN CREDITOR WAS THE CAUSE OF THE FAILURE OF THE OBERLIN NATIONAL BANK. (By Publishers' Press.) WASHINGTON, D. C., Nov. 29.-The comptroller of the currency this morning gave out the following statement regarding the failure of the Citizens' National Bank, of Oberlin: "The comptroller of the currency yesterday appointed National Bank Examiner Levi L. Miller, receiver of the Citizens' National Bank, of Oberlin, Ohio, which closed its doors yesterday morning in consequence of a run on the bank on Saturday last, caused by the suit entered against Mrs. Cassie L. Charwick, of Cleveland, who was a heavy borrower of the bank." The resources and liabilities of the bank as shown by its last report of conditions to the comptroller, November 10, were $588,335.18 each.

Article Text

EXPLANATION OF OHIO BANK FAILURE

Comptroller of Currency Makes a Statement of Why the Doors Were Closed. Washington, Nov. 28.-The Comptroller of the Currency this morning gave out the following statement regarding the failure of the Citizens National Bank of Oberlin, Ohio, "The Comptroller of the currency yesterday appointed National Bank Examiner Miller receiver of the Citizens National Bank of Oberlin, Ohio, which closed its doors yesterday morning in consequence of a run on the bank on Saturday last, caused by a suit entered against Mrs. Cassie L. X. Chadwick, of Cleveland, who was a heavy borrower in the bank." The -resources and liabilities of the bank as shown by its last report of conditions to the Comptroller on November 10th were $588,385.18 each.

Article Text

CARNEGIE PAYING THE CLAIMS

Rumor at Oberlin, O., Anent the Chadwick Case. Oberlin, O., Dec. 3.-Reports from New York that Mrs. Chadwick held a long conference with the attorneys of Andrew Carnegie have inspired the directors of the closed Citizens' National bank here with a renewed hope that their claim will be liquidated. The directors express the belief that if the Newton case is settled it means that all the claims against Mrs. Chadwick will be paid. L. L. Miller, who was at first named receiver for the closed Citizens' National bank, has been recalled to Washington and Rob ert Lyons has succeeded him in charge of the bank's affairs. The doors of the bank were opened during the day for the first time since the suspension and people who have had papers and valuables in the private safety vaults were allowed to secure them.

Article Text

CARNEGIE PAYING THE CLAIMS

Rumor at Oberlin, O., Anent the Chadwick Case. Oberlin, O., Dec. 3.-Reports from New York that Mrs. Chadwick held a long conference with the attorneys of Andrew Carnegie have inspired the directors of the closed Citizens' National bank here with a renewed hope that their claim will be liquidated. The directors express the belief that if the Newton case is settled it means that all the claims against Mrs. Chadwick will be paid. L. L. Miller, who was at first named receiver for the closed Citizens' National bank, has been recalled to Washington and Robert Lyons has succeeded him in charge of the bank's affairs. The doors of the bank were opened during the day for the first time since the suspension and people who have had papers and valuables in the private safety vaults were allowed to secure them.

Article Text

PROVIDENCE MAN LEFT

INSURANCE POLICY TO OBERLIN

Oberlin, O., Dec. 3.-Oberlin college has received a gift of $7150, being the pro-ceeds form an insurance policy assigned to the college by the late William C. Chapin of Providence.

The money will be used for endowment purposes. Mr. Chapin died in Andover more than a year ago. He became interested in Oberlin 39 or 40 years ago and desired to help it. The college was not affected by the failure of the Citizens' National bank.

Article Text

Bank Officials Arrested

Cleveland, O., December 4.-As the result of the extended conference between the United States district attorney and bank examiners who have been looking into the affairs of the failed Citizens' bank of Oberlin and their council, President T. C. Breckwith, and Cashier Spear of that bank were placed under arrest late tonight by United States Marshal Chandler of Cleveland at their homes in Oberlin. The arrests of the two men are in connection with the Chadwick case. The Citizens' bank is an alleged creditor to the extent of $240,000 of Cassie L. Chadwick, whose financial affairs during the past week have been the cause of a great deal of publicity. The bank is capitalized at but $60,000. Since the disclosure of the bank's dealings with Mrs. Chadwick, the president, cashier and directors have held conferences and meetings frequently. All the time there has been expressed by PresIdent Breckwith at least a hope of reimbursement of the bank's loan to Mrs. Chadwick, but so far as known no remittance has been received. President Breckwith has been in a state bordering on physical colapse for nearly a week, and for the past three of four days has been confined to his bed. He has expressed the most sincere regret over the outcome of the bank's dealings with Mrs. Chadwick, but has given no intimation as to why such great sums of money have been loaned from the bank to Mrs. Chadwick. The warrants on which Breckwith and Spear were arrested charge them with violation of the federal banking laws. Nathan Loeser, receiver for Mrs. Chadwick's property, said tonight that he would qualify in that office tomorrow morning.

Article Text

THE CHADWICK CASE

Developments in the strange drama of high finance in which Mrs. Cassie L. Chadwick is playing the leading role materialized with great rapidity yesterday Subpoenas will be issued for Andrew Carnegie and Mrs. Chadwick in connection with the Oberlin, Ohio, bank case. The rumor that two notes, aggregating $750,000, that bear the name of Andrew Carnegie, were among the assets of the defunct Citizens' National Bank of Oberlin was confirmed by U S. District Attorney Sullivan, of Cleveland. Cashier Beckwith then volunteered the information that there was a third Chadwick note bearing the alleged signature of Andrew Carnegie. It is for $500,000, making the total of these notes $1,250,000. He says Mrs. Chadwick has this note. He also says "I am either an awful dupe or a terrible fool. I guess there is no doubt of my being a fool. Iknow I have done wrong, and although crushed to the earth myself I do not propose to be made a scapegoat to shield the sins of others. Andrew Carnegie entered a second denial of all and any knowledge of Mrs. Chadwick. President Beckwith and Cashier Spear, of the defunct Oberlin bank, were arraigned in Cleveland. They pleaded not guilty and werereleased under bonds. Nathan Loeser, appointed receiver for Mrs. Chadwick, took possession of her properties. Emil Chadwick, the woman's son, arrived in Cleveland, adhering strenuously to the policy of silence his mother has

Article Text

EDITORIAL OPINION Amazing Financeering

From the Baltimore American. In the annals of feminine financiering in America doubtless no such sensational episode ever occurred as that with which the name of Mrs. Cassie L. Chadwick, wife of a Cleveland physician, is associated. Suits against her have caused runs upon several banks from which Mrs. Chadwick had secured large loans, and one, the Citizens' National Bank, of Oberlin, Ohio, has been forced to close, the president and cashier having actually loaned upwards of a quarter of a million dollars to Mrs. Chadwick, which was more than four times the bank's entire capital. It is thought that the loans negotiated by Mrs. Chadwick will run into millions, although a statement of her counsel is that her aggregate liabilities will not be more than $1,000,000. Yet with all this wreck of matter and crash of small financial worlds Mrs. Chadwick has suffered no criminal charges. Her case recalls that of the Humberts, of Paris, only in that she is a woman who has made amazing loans upon securities which are yet a matter of mystery. She and her husband were supposed to individually wealhty. They lived in a splendid home, surrounded by large grounds, upon Euclid avenue, famous as one of the world's most beautiful urban thoroughfares. When the crash came through a suit of Dr. Newton, of Boston, who had negotiated loans for Mrs. Chadwick aggregating nearly $200,000, Dr. Chadwick attended meeteing of counsel and then left for Europe, ostensibly to look after property in England.

Article Text

a. DUPED BANKER 1n EXPOSES CASSIE 1ot TELLS HOW MRS. CHADWICK HOODWINKED HIM. of di CARNEGIE'S NAME FORGED 3. 1, e Name of Great Steel Maker on Secur. ities Accepted as Good-Woman it Took Solemn Oath as to Genuine S Character of Millionaire's Signa1. ture-Had No Suspicion. 1d Cleveland, Ohio, Dec. 6.--President Beckwith of the failed Citizens' Na tional bank of Oberlin yesterday after r noon told the story of the bank's n transaction with Mrs. Cassie L. Chadwick. He said he knows he did wrong, and "although crushed to earth myself I do not propose to be made a 1scapegoat to shield the sins of r others," and declared "others also must be called to the bar to answer for their part in this terrible affair and one of those whose answer must be had is Mrs. Cassie L. Chadwick." His acquaintance with Mrs. Chadwick began three years ago. The attorney for Herbert D. Newton, the Brookline, Mass., banker, have stated that their t client loaned Mrs. Chadwick money f only after a note signed Andrew Car1 negie had been endorsed by the president and cashier of d national bank. 1 The men who endorsed the note were

Article Text

SAID TO BE WORTHLESS

Chadwick "Securities" Afloat Aggregate $13,750,000. Cleveland, Dec. 10.-The Plaindealer says: When the contents of the mysterious "securities" held for Mrs. Cassie L. Chadwick by Iri Reynolds of the Wade Park bank are revealed to the outside it will be found that the signature of Andrew Carnegie has apparently been forged on notes and other papers to the total amount of $13,750,000. The securities held by Reynolds, together with those that were held by the Citizens' National bank of Oberlin and have already been made public, aggregate this amount. The mysterious "securities" held in trust by Reynolds, concerning which there has been SO much futile speculation during the past two weeks, consist of the following items: First-A note for the sum of $5,000,000, signed "Andrew Carnegie." Second-A certificate of trusteeship which states that Andrew Carnegie has in his possession stocks and bonus to the amount of $7,500,000 held by him in trust for Mrs. Cassie L. Chadwick. This paper also is signed with Mr. Carnegie's name. These securities, supposed to represent the vast amount of $12,500,000, have been for the past three years the principal basis on which Mrs. Chall wick has conducted her financial S,S. tem and on which she has borrowed sums which, it is conceded, run up into the millions and are positively known to exceed $1,000,000. And these same "securities" are the rock which has wrecked the Oberlin bank and caused the ruin of hundreds of families and losses to business men almost without number. For it is the frankly expressed opinion of reputable lawyers who have examined these papers that they are not worth 1 cent.

Article Text

CONTROLLER HAS CHADWICK JEWELS

Washington, Jan. -The - Controller of the Currency has in his possession an emerald ring and a diamond sunburst brooch that are said to have at one time belonged to Mrs. Chadwick. They were deposited with the failed Citizens' National Bank, of Oberlin, Ohio, as collateral. When the bank falled the jewelry was taken by the receiver. and It will be sold the same as the other assets of the bank. They were not deposited by Mrs. Chadwick, although it is said they once belonged to her. The jewels have not been appraised, and the Controller is unable to fix their value.

Article Text

Mrs. Chadwick's Gems. WASHINGTON, Jan. 7.-The comptroller of the currency has in his possession an emerald ring and a diamond sunburst brooch that are said to have at one time belonged to Mrs. Chadwick. They were deposited with the failed Citizens' National bank of Oberlin. O.. as collateral. When the bank failed the jewelry was taken possession of by the receiver, and it will be sold the same as the other assets of the bank. They were not deposited by Mrs. Chadwick. although it is said they once belonged to her.

Article Text

THE CHADWICK TRIAL

There Will Be No Delay So Far As the Defense Is Concerned.

Washington, Jan. 7.-The controller of the currency has in his possession an emerald ring and a diamond sunburst broach that are said to have at one time belonged to Mrs. Chadwick. They were deposited with the failed Citizens' National bank of Oberlin, O., as collateral. When the bank failed the jewelry was taken possession of by the receiver and it will be sold the same as the other assets of the bank. They were not deposited by Mrs. Chadwick, although it is said they once belonged to her. The jewels have not been appraised and the controller is unable to approximate their value.

Cleveland, O., Jan. 9.-Commenting upon the fact that he had been served with an order by the federal authorities "To produce certain diamonds and gems," Attorney J. r. Dawley, counsel for Mrs. Cassie L. Chadwick, said:

"I have not received so much as a pewter shoebuckle from either Mrs. Chadwick or her husband. Dr. Chadwick. The serving of such an order strikes me as being humorous. Mrs. Chadwick has certainly not turned any diamonds over to me."

Mr. Dawley stated further that there would be no delay 'n the trial of the Chadwick case, so far as the defense was concerned.

Article Text

Notes of the Departments.

President Roosevelt and Ambassador Jusserand delivered addresses before the Forestry Congress. The House laid on the table the resolution aimed at the statistical department of the Department of Agriculture and vindicated the cotton reports. Henry M. Rose, reading clerk of the United States Senate, has been appointed internal revenue collector for the fourth crdistt of Michigan. A favorable report on the extradition treaty between the United States and Panama was authorized by the Senate Committee on Foreign Relations. The Senate committee authorized a favorable report on the nomination of W. D. Crum as collector of the port at Charleston, S. C. James A Watson, was convicted on the charge of embazzlement while in the office of District Auditor Petty. The Comptroller of the Currency has in his possession an emerald ring and a diamond sunburst brooch that are said to have at one time belonged to Mrs. Chadwick. They were deposited with the failed Citizens' National Bank of Oberlin, O., as collateral. When the bank failed the jewelry was taken possession of by the receiver. At the meeting of the House Committee on Interstate Commerce members of the committee denied the statements attributed to E. P. Bacon, of Milwaukee, president of the Interstate Commerce Convention, that members of Congress are influenced by railroads. Conrad H. Syme, attorney for A. W. Machen and others involved with him in the alleged postoffice conspiracy, filed application for a writ of certiorari in the United States Supreme Court. Involuntary bankruptcy proceedings were instituted against John Ridout, the real estate dealer.

Article Text

BANK CASHIER MIS-READ BOOKS IN CHADWICK INCIDENT AND BANK DIRECTORS WERE KEPT IN IGNORANCE. / By Associated Press. CLEVELAND. O., March 7-In the trial of Mrs. Chadwick today Messrs. Hol er. Randolph and Doolittle, directors of the Citizens' National Bank. of Obarlin, testified that they knew nothing of the dealings with Mrs. Chadwick until the bank suspended. They said the cashier read the minutes every meating and also the discount book, but Mrs. Chadwiek's loans were never reported. Vice-President Marshal, at the First National Bank of Cleveland, testified that ine cashed a check of fifteen thous and dollars in October last, drawn by Mrs. Chadwick in Oberlin, ,and certified by C. T. Beckwith. He paid the money in cash to Beckwith in Mrs. Chadwick's presenea. He had done the same previously with other checks.

Article Text

CHADWICK

HEARING

GOVERNMENT CALLS MANY WITNESSES IN THE FAMOUS CASE

CLEVELAND, O., March 7.-- When Mrs. Chadwick appeared in the federal court this morning she was seized with nervousness. She still showed signs of the collapse which she suffered yesterday afternoon during the hearing. The strain had been too much for her and when she was seized with illness she was led out of the court room and fell into a dead faint in her nurse's arms.

The court was hastily adjourned to this morning. She was under the care of physicians during the night and said she felt better this morning, though she was manifestly ill at ease. Dr. Chadwick, her husband, was present in court when the trial was resumed. The general opinion now is that the jury is a most favorable one to the prisoner, inasmuch as 11 of the 12 members are farmers and one a real estate dealer, while the evidence to be introduced relates entirely to banks and finances.

Attorney Dawley, who represents Mrs. Chadwick, says he is confident that the government cannot secure a conviction. At the hearing this morning Director Haller of the Citizens' National bank of Oberlin, resumed the stand.

He said that the directors of the bank had not been informed of the Chadwick loans until the very day the bank suspended. Director Randolph testified that the directors met every two weeks. Cashier Spears read what purported to be a complete list of all the bank's loans and Mrs. Chadwick's name was not mentioned in the list.

Vice President Marshall, of the First National bank of Cleveland, testified that he had known President Beckwith and Cashier Spears of the defunct Oberlin bank for ten years, and Mrs. Chadwick since last May. He said she kept an account with his bank. The witness explained how Mrs. Chadwick had obtained $15.000 on a check certified by Beckwith in October of last year. The check was charged up to the Oberlin bank.

The witness identified the checks mentioned in the indictment by the grand jury. It was shown also that Mrs. Chadwick had opened an account with the Prudential bank by depositing a check and two drafts, amounting to $92,000. These checks were mentioned in the indictments and were also identified by witnesses.

H. H. Avery, bookkeeper of the Oberlin bank, testified that Mrs. Chadwick at one time had deposited $10,000 in the bank and that she never had any other account. He identified the checks certified by Spear and paid by the bank.

Article Text

IN SPEAK'S HANDWRITING.

Mrs. Chadwick Had $10,000 in the Oberlin Bank But Bookkeeper Diden't Know.

Cleveland, O., March 8.-Nine witnesses were examined in the Chadwick trial yesterday, and the defense established the fact that the claim of the government that Mrs. Chadwick had no money in the Oberlin bank at the time of drawing checks which were certified by Spear and Beckwith, was incorrect in two instances at least. It was shown by the general journal of the bank that on November 3, 1903, when Mrs. Chadwick received a certified check for $10,000, an entry crediting her with that amount was made on the journal of the bank, and a deposit slip for $10,000 was made out in her name. The entry and the slip were in the hanwriting of Cashier Spear. Another entry of a similar nature amounting to $5,000 was also found. It is doubtful if Andrew Carnegie will take the stand. District Attorney Sullivan said: "It is not my present intention to put Mr. Carnegie on the stand, and I do not think that he will be called upon to testify unless his evidence should be needed in rebuttal of something introduced by the defense."

Horace G. Walte, bookkeeper of the Oberlin bank, testified that the entry giving credit to Mrs. Chadwick for $10,000 was in the handwriting of Cashier Spear, and that the deposit slip for the amount was also in Spear's handwriting. Robert Lyons, receiver of the Citizens' national bank of Oberlin, said that the books did not show that any account had ever existed by which Mrs. Chadwick could draw checks on the bank.

Article Text

NEWS CONDENSATIONS Thursday, May 4. About 300 union carpenters are out on strike in Nashville. They demand a nine-hour workday and 30 cents an hour. John Baird, father of Mrs. William J. Bryan, died at the Bryan home near Lincoln, Neb., Wednesday. He was eighty-two years old. Tommy Burns of Chicago was a warded the decision over Dave Barry of San Francisco in a twenty-round bout before the Tacoma (Wash.) Athletic club. During a mimic Wild West show in the Flatbush Boys' club of Brooklyn John Hines, sixteen years old, was accidentally shot by a playmate of fourteen. Hines died a few hours-later. A. B. Spear, cashier of the failed Citizens' bank of Oberlin, O., at Cleve land Wednesday was sentenced to seven years' imprisonment in the Ohic penitentiary for falsifying the books of the bank on Mrs. Chadwick's deals. Friday, May 5. The foreign minister of Argentina absolutely denies the reported sale of Argentine warships to Russia. Major George M. Wheeler, U. S. A., retired, is dead at Washington. He was a prominent figure in scientific circles. James Gentry, said to be the last surviving playmate of Abraham Lincoln, is dead at his home in Rockport, Ind. Des Moines, Ia., has a population of 74,175, according to the report of the state census enumerators. In 1900 it was 62,139. The running of Metropolitan handicap at Belmont Park racetrack resulted in a dead heat between Sysonby and Race King. Colonial Girl was third. Fire at Home City, Kan., destroyed fifteen business buildings, leaving only the depot and two elevators standing. Several families lost all they possessed.

Article Text

MRS. CHADWICK NOT TO GET NEW TRIAL. ONLY HOPE OF CLEVELAND WOMAN IS IN UNITED STATES SUPREME COURT. Unless Rehearing Is Granted She Will Have to Serve Ten Years on Fraud Charges. CINCINNATI, O., Nov. 7.-Mrs. Cassie' L. Chadwick has lost her last hope for a new trial unless the supreme court of the United States shall consent to allow a rehearing. The United States circuit court of appeals today refused her application for a new trial. The lengthy opinion of the court was read by Judge Lurton. Mrs. Chadwick is now in the jail at Cleveland, under sentence to the Ohio penitentiary for ten years, having been indicted and convicted of conspiring to defraud under the national banking law, the specific case involving the wrecking of the Citizens' National bank at Oberlin, O., whose president has died since the exposure of the matter. The case was brought to the United States circuit court of appeals on a writ of error, sentence was suspended pending the decision of the appeal and the case was expedited. Of the large number of errors claimed by Mrs. Chadwick's attorneys, this court found that the lower court did not err in a single one. Judge Lurton declared that Mrs. Chadwick ought to have known it was wrong to draw checks on a bank when she knew she had no money on deposit there, and that the inference drawn by the jury in the trial court that she did the acts with intent to defraud was a proper one. CLEVELAND. O., Nov. 7.-Mrs. Chadwick was in consultation with her attorney. Jay P. Dawley, when the news of the decision was brought to her. She made no demonstration. however. and scarcely no comment, allowing Mr. Dawley to speak for her. "This means that they have beaten us," said Mr. Dawley. "It would scarcely be advisable for us to say anything concerning the decision at the present time. What the next step will be I cannot tell now."