Newspaper Page Text
SUNDAY, MARCH 30.
M. C. Dowling Tells Herald Man That
He is Innocent, But Will Not Come
Back Because of Feeling Against Him
Reporter Went To Fairfax and
Talked To Man Indicted in
Connection With the Citizens
Trust Companv
ARE ALL THERE.”
HE SAID TO REPORTER
When Told That if Priorities
Were Allowed Depositors
Would Get Nothing, Dowling
Said if He Had Been Given
Time Could Have Collected
Money.
The hearing of the demand of
Georgia authorities for the granting of
requisition papers, by which Mr. M.
C. Dowling will come from South
Carolina to Georgia, toAgive bond to
satisfy indictments returned by the
Richmond county grand jury in con
nection with the failure of the Citizens
Trust Company of Augysta, July 18th,
1912, is* set by Gov. Cole L. Blease of
South Carolina ,for Thursday of this
week.
The illness of Attorney S. G. May
field, of Bamberg, has necessitated the
delay. Mr. Mayfield is said to be
one of Gov. Blease’s warmest sup
porters.
Mr. M. C. Dowling is residing in
Fairfax, S. C., managing a hardware
■tore.
"I do not wish to make a statement
tv.;;, time,” r-epHed to a request
for one by a Herald reporter who went
to Fairfax to see him on Friday last.
“When you are under a doctor’s
charge, you usually take the medicine.
That’s my fix now. I have been
strongly advised, by my attorneys,
against making any statement for the
public, and for the present X shall fol
low their advice.
“My reasons for resisting extradi
tion are two-fold. In the first place,
I am innocent of the offense charged
and see no reason why I should be
taken to Augusta. In the second place,
I could not get a fair trial with the
public mind in the present state, and
until I feel I can, I shall continue to
resist.”
Mr. Dowling was reminded that
priority claims allowed would mean
that depositors would get nothing, but
that 20 per cent, might be realized if
these priority claims were set aside,
and he was asked where the assets of
the company were.
To which he responded: “The as
sets are all there. If we had been
given time we could have realized on
them and averted the failure."
Further than this Mr. Dowling
would make no statement.
He is living in Fairfax, where ho
has been known all his life, and where
his friends hold him in highest es
teem.
In Fairfax, it is said that there are
any number of persons not only will
ing but anxious to go on his bond, and
it is further stated that at a few mo
ments notice a bond from SIOO,OOO to
$200,000 could be raised.
He Has Many Friends.
It is said by friends of Mr. Dowling,
that he has received hundreds of let
ters from other friends in many parts
of the South, and even from New
York, requesting that they be allow
ed to sign his bond when necessary.
Mr. Dowling admits that he has re
ceived many such letters.
It is understood that Mr. Dowling
has made the statement that the fail
ure of the Citizens Trust Company
was due to no certain person “getting
away with the hag,” but was more the
combination of circumstances and
"hard luck” than anything else. As
for the management of the bank by
Mr. G. Sherwood Dunn, Mr. Dowling
is quoted as saying: "I would rather
admit to almost anything else than
this, but I was certainly fooled by
Dunn.” He asks himself the ques
tion that Mr. Samuel H. Myers asked
soon after the indictments were re
turned, friends say. That question
was: "Why am I the goat?”
Mr. Dowling is living in Fairfax
row with his family. He was born
near that place, and until he moved
to Augusta, 17 years ago, he spent
most of his life there. The business
men of Fairfax have implicit confi
dence in him. The Bank of Fairfax,
which he organized last May, before
the failure of the Augusta institution,
and of which he was a director until
the Augusta institution failed, at
which time he resigned, for the sake
of the Fairfax Bank, is in a flourish
ing condition, and that with the fair
ness, honesty and courtesy' with which
he meets his business associates in
the surrounding country have more
than established a possible momen
tary ebb of their confidence. Plan'
ar? afoot to move the hardware com
pany of which he is manager, into
new quarters so that the business can
be carried on on a larger scale, the
stock increased, etc. Several fine
brick stores have been erected in
Fairfax recently and the town Is
thriving and bustling Mr. Dowling
takes an active part in the business
life and the merchants state, enjoys
the full confidence of his associates.
It is evidently Mr. Dowling's belief
that public sentiment is against the
officers of the Citizens Trust Co. From
his statement it would seem that he
does not feel he*could secure an un
biased Jury, but certainly that he is
not going to run the risk.
Attorneys Advise Against Talking.
In the meantime he is advised
against making a statement, though
he states that he had written one for
the press. His attorneys also advise
him against acceding to the demands
for requisition. It was stated in Fair
fax this past week, that Mr. Dowling
bad been misrepresented on the mat-
ter of the first arrest, which in real
ity never existed. It was said that
Sheriff John W. Clark of Augusta
went to Fairfax and told Mr. Dowling
that the grand jury had returned in-'
dictments against him, but that for
personal reasons, the sheriff did not
allow’ the service of the papers to be
left to a deputy. He alighted from*
the train and went over to Mr. Dowl
ing, it was said, and asked Mr. Dowl
ing if he would go to Augusta with
out requisition. Mr. Dowling is said
to have replied that he would not, but
that he would call his lawyer at Barn
well over phone and have this matter
decided. It was decided they should
go to Barnwell by automobile, which
they did, and there the attorney ad
vised against returning to Georgia
without the proper process of law.
Therefore, Sheriff Clark returned to
Georgia and Mr. Dowling to Fairfax.
The story, said the informant, that
Mr. Dow’ling went part of the w’ay and
stopped had the above foundation,
What the Grand Jury of Richmond
County Alleges Against Dowling
Indictments Found on 13 Counts Charging Embezzlement and
Other Offenses. Books Showed Over $178,000 on De
posit.
On Friday, February 21st., 1913, the
grand jury of Richmond county re
turned 35 indictments against six of
ficers and directors of the Citizens
Trust Company.
Mr. M. C. Dowling, the vice-presi
dent ol the citizens Trust Cmtip.in..
was indicted on 13 counts, the great
est against any one officer of the in
stitution.
Bench warrants were immediately
issued for the arrest of the indicted
officers, and with the exception of the
Dowling, Dunn and Willard warrants,
the arrests were promptly made and
bond arranged.
The Dowling, Dunn and Willard
bonds were fixed at SIO,OOO each, but
he afterwards reduced them to $5,000
each.
With the exception of Mr. Dowling
all indicted have given bond. Mr.
Dunn supplied a $5,000 cash bond and
Mr. Willard a corporate security bond.
Mr. Dowling is fighting extradition,
having gone to Fairfax, S. C„ some
72 days after the failure of the hank,
and some several months before the
indictments against him were found.
Of the 13 indictments against Mr.
Dowling, five are with W. B. Pace,
president and C. A. McGarlane, as
sistant treasurer; four are with W.
B. Pace, president; three are alone
and one with D. H. Willard. Three
charges are for embezzlement and the
remainder for responsibility of the
hank affairs, or violation of the state
banking laws.
Specifically the charges are as fol
lows;
“M. C. Dowling, that on April 2nd.:
1912, as secretary and treasurer of
the Atlantic States Life Insurance
Company, did at divers times during
the years 1911 and 1912 collect large
sums of money, aggregating In
amount $60,000, and failed and re-'
fused to pay to the Atlantic States
Life Insurance Company $1,982.50. The
indictment reads: ‘At divers, tjmes
during said years did embezzle, steal
and fraudulently take away and car
ry, with Intent to steal the same, the
said sum, etc.’
“M. C. Dowling, that on October Ist,
1910, as cashier of the Citizens Banl<[
he collected from J. w. Vales, sls in
money and refused to pay over the
same. The charge in this indictment
is embezzlement.
"M. C. Dowling and D. H. Willard,
that on Aprii 2nd, 1912, as secretary
treasurer and general manager, re
spectively, they did, as such officers
during 1911 and 1912 sell stock of the
Atlantic States Life Insurance Com
pany, aggregating $.10,000 without the
consent of the Atlantic States Fife
Insurance Company and without pay
ing the said life insurance company
on demand the full value thereof.
“M. C. Dowling and W. B. Pace, on
April 30th, 1912, as vice-president and
president, respectively, of the Citizens
Trust Company, did unlawfully and
fraudulently loan to one D. H. Willard
an agent of the said corporation, sl,-
138.42, without the consent of the ma
jority of the hoard of directors of the
Citizens Trust Company.
"M. C. Dowling and W. B. Pace, as
officers above named, on July 18th,
1912, loaned to D. H. Willard $2,-
349.43, without the permission of the
majority of the board of directors.
"M. C. Dowling and W. B. Pace, as
officers above named, on May 20th,
1912, loaned to one C. A. McFariane,
an officer and agent of said icorpora
tion, $1,350, with the consent, etc.
"M. C. Dowling and W. B. Pace, as
officers above named, on March 27th
1912, loaned D. H. Willard $2,406.07.
without the consent and permission,
etc.
"M. C Dowling, W. B. Pace, and C.
A. McFariane, vice-president and
treasurer, president and assistant
treasurer, respectively, of the fjtlzens
Trust Co., on July 17th, 1912, did take
and accept from the Rinker Deas Co.,
$341.11. knowing that the aaid corpor
ation was insolvent. The said depos
itor demanded the return of the said
money deposited within three days
and was refused.
M. C. Dowling, W. R. Pace and C.
A. McFariane. as officers above named
on July 16th. 1912, did accept from
James G. Walton, $1,012.50 for gene-nl
deposit, when they knew the said
hank was Insolvent, etc, and was re
fused refund upon three days demand
M. C. Dowling, W. B. Pace and C.
A. McFariane. on July 16th, 1912, did
accept from W. .1. Croak, for general
deposit. $250.73. when they knew the
bank to be Insolvent, and was refused
but the story that he spent the night
in a lockup was without foundation.
Manager Hardware Company.
Mr. M. C. Dowling, the indicted
vice-president of the defunct Citizens
Trust Company of Augusta, is man
ager of the Fairfax Hardware Com
pany, a corporation composed of Mr.
Dowling, his brother and Mr. T. T.
Sparks of Fairfax.
The Fairfax Hardware Company is
situated on the corner of Main
street. The Seaboard Air Line trains
and the Charleston and Western
Carolina trains pass the door. The
present building in tvhich the com
pany is Is of brick and well built, but
the management is arranging to move
into larger and more substantial
quarters across the street, a store
with big plate glass windows, fret
ted metal ceilings and well finished
walls. It Is "the” side of the street
for business.
The Fairfax Hardware Company
handles a full line of agricultural im
plements, bicycles, automobile sup
plies, and as the name implies, a
stock of hardware. The company ap
pears to be in a flourishing condition,
notwithstanding the fact that there is
another hardware store in the town.
The company was organized a few
months ago.
same on three days demand.
M. C. Dowling, W. B. Pace and C.
A. McFarlane, on July 16th, 1912, did
accept from the Elks Club, a corpor
ation, $231.50. knowing that the bank
was insolvent, and refusing same on
three days deihanu. —• —
Mr. Pace and Mr. McFarlane have
both stated through the columns of
Tho Herald that they had absolutely
nothing to do with the lending of
money by the Trust Company and
both assert that they are Innocent of
any wrong doing.
The receiver, Mr. J. P. Armstrong,
has asserted that tw’onty cents on the
dollar would be paid depositors if
prtontres were not allowed, otherwise
depositors would get probably noth
ing. The amount on deposit at the
Citizens ns shown by the books was
as follows: Commercial and Savings
Deposits $129,333.36; Certificates of
Deposit $16,173; Cashier's Cheeks out
at time of failure $3,466.78, a total of
$178,975.14.
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BALK’S
Millinery
Department
Offers Novelties in fine
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and Children.
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We trim our hats
free of charge, and give
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cash purchases, and
also on bills paid on or
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C. J. T. BALK
600 Block Broadway.
(Look for the Orange
and Green Store Front)
THE AUGUSTA HERALD. AUGUSTA. GA C
PHONE 2036 AND SAY
“SEND ME THE HERALD”
TODAY—AND EVERYDAY
II
Did you ever stop to think that you person
ally are a business institution?
You add a certain amount to the world's
wealth by supplying a certain demand.
You make profits just like any other busi
ness.
What would you think of a business that
spent every cent it made?
Wouldn’t you decide there was something
wrong with the management?
You know that such an institution would
be in bankruptcy eventually—a complete failure.
Exactly the same thing happens to the man
who spends every cent he makes.
Fortunes in private life, like profits in business,
come largely through economies.
Don't forget that you are a business institu
tion yourself.
How much clear profit did you have to show
for 1912?
What 1 not a cent ?
Then you turned over a new leaf on the first
day of the new year.
What became of your resolution?
To the man who wants to get ahead of life,
every day is New Year's Day, every hour the
time for new resolves and higher aims.
“After a while" it will be just as hard to save
as it is at the present time.
Why not start your account NOW ?
One Dollar will do it—and we always welcome
small accounts, for the small accounts of “today"
will be the big accounts of “tomorrow"
And you'll find a spirit of real “homey"
friendliness at the
UNION SAVINGS BANK
THREE