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ANOTHER BANK DEFALCATION. Cashier Lovett, of the Hingham Bank, Boston, in Trouble. Forty-one Thousand Dollars Gambled Away in Stock Speculations. The Bank Closed by the Government Examiners. BOSTON, Sept. 29, 1873. Another financial "irregularity" has been unearthed to-day, the transgressor this time being J. O. Lovett, cashter of the Hingham National Bank, and the amount of his defalcation is stated to be about $40,000. It is the same old story of speculation, and the defaulter, as usual, is a venerable man, and has always enjoyed the confidence of the community. The discovery of the delalcation was first made by Colonel Needham, the Bank Examiner, who called the directors together this lorenoon and startled them with the following little letter:GENTLEMEN-I find the cashier of your bank a defaulter to the amount of $40.000. The notes held by the bank, amounting to more than $200,000, are mostly good and all the creditors, of the bank are secure. A large percentage of the original investment will, undoubtedly, be returned to the stockholders. Colonel Needham. in a conversation with the HERALD reporter. said he had not been satisfied for a long time with th management of the affairs of the bank. Two ve S ago he made an examination and found the e aany securities which he did not approve a. d which he urged the cashier to get rid of in some way. At that time, in a private conversation with the President of the bank, Mr. Crocker Wilder, he asked him if he considered the cashier an honest man, and Mr. Wilder replied that he did he had no reason to doubt him. Mr. Neednam then said to the cashier, "It seems to me you are inclined to speculations," and put the question to him point blank, "Do YOU EVER SPECULATE?" and he replied, "No, sir." Last Thursday Mr. Needham made his regular annual visit to the bank, and an examination of affairs revealed the whole thing and confirmed the suspicions which he previously had. He discovered that the account of Mr. Lovett was not correct, and in making up his statement-he had got too much cash credited, which the balance did not prove. He claimed a balance against the Suffolk National Bank of this city in lavor of his own bank of $395,542 86. Mr. Needham sent his clerk to the Suffolk Bank and found that instead 01 a balance in favor of the Hingham Bank the accounts of the Suffolk Bank 'snowed the former owed them $207,363. When this fact was shown Mr. Lovett, he admitted the whole thing, and said that the money had been used in speculation. The capital of the bank is $200,000. THE ASSETS. There are as assets, in notes and bills discounted, $211,441 93-all but about $6,000 of which will eventually prove good. There are bonds of the Boston, Hartlord and Erie Railroad and other stocks, which amount to $17,000. The bank has in bonds deposited in Washington, $140,000. The entire circulation is $126,000, and the deposits amount to $85,542, so that there is money enough to pay all depositors and all the circulation and a very large percentage of the stock. THE DEFALCATION amounted to $41,000, and was finally discovered last Saturday. On that day Colonel Needham, after having visited the Suffolk National Bank and satisfied himself that Lovett had overdrawn his account to the extent of upward of $2,000, and that he was a defaulter to a large amount, telegraphed Lovett to meet him at the Suffolk Bank at half-past two o'clock the same afternoon. Not making his appearance, Lovett was informed by Colonel Needham that he would meet him at Kingham Bank this morning upon the arrival of the first train. He did so, and upon entering the bank found the Board of Directors assembled at their usual meeting for making their semi-annual dividend. Colonel Needham made known his discovery or the defalcation, which Lovett at once and unhesitatingly confessed. Being asked how much he had used, he replied $35,000. : Colonel Needham told him he was a defaulter to the amount of $41,000. After some hesitation he acknowledged that to be the sum. THE BANK SUSPENDS PAYMENT. : The Board of Directors at once appointed a com-. mittee to wait upon the officers of the Suffolk r National Bank and see what could be done under I the circumstances. The statements of Colonel h h Needham were confirmed and the suspension of the bank followed. Lovett's suree ties amount to $20,000; his bondsmen are perfectly good, and depositors will lose nothing by his speculations. Mr. Lovett has been cashier from the formation of the bank, and has enjoyed the confidence or a majority of the residents. It has been known for years that he was a speculator in stocks. He was with many an oracle upon stocks, and his recommendation was received as authority, and investments were made by others in accordance with his views. Some have thought that the management of the bank was too largely under the control of Mr. Lovett, a practice common to many country banks, and one which cannot be too strongly deprecated. The lact that Mr. Lovett had the reputation of "running the bank" has been commented upon; but as he had reached the age of some sixty-live years, and had always sustained himself, the President and directors were tree from any suspicion of dishonesty.
