The Globe National Bank of Boston, Mass., closed its doors December 21, 1899, and was placed in charge of a national bank examiner in the hope that its affairs might be adjusted so as to permit the early resumption of business.
The bank had a capital stock of $1,000,000 and individual deposits at the date of suspension amounting to $5,000,000. Charles H. Cole was president of this institution, and Charles H. Hooke, cashier. The failure was caused by the misapplication of the funds of the association by the president for his own use, to the extent of about $1,600,000. Six hundred thousand dollars of this amount was paid back in cash by the president and his friends immediately after suspension, and the directors made good the remainder by their notes and securities. The troubles of the bank, however, were greatly aggravated by subsequent depreciation of stocks and bonds and by the failure of a local firm whose paper was largely held by the bank. The Clearing House Association came to the bank's aid in an effort to relieve the situation, but the general conditions at that time were such as to make the relief ineffectual as to resumption of business by the bank, and it became necessary to appoint a receiver for the institution on January 1, 1900.
An assessment of one hundred per cent. was levied upon the stockholders, of which amount $979,021 was collected. The total collections from all sources aggregated $6,994,389. The creditors were paid one hundred per cent. of their claims, with interest from the date of failure, and $5651 was returned to the stockholders. The receivership was finally closed February 25, 1903.
Charles H. Cole, the president of the bank, was indicted for misapplication of the funds of the institution. He pleaded guilty and was sentenced to serve eight years in jail at Greenfield, Mass. He served his full term, less the usual allowance for good behavior, and died a short time after his release.