Charles H. Cole (banker)
Charles H. Cole | |
|---|---|
| Born | Template:Birth date Plymouth, Massachusetts, U.S. |
| Died | August 14, 1906 (aged 59) Boston, Massachusetts, U.S. |
| Occupation | Banker |
| Known for | President of Globe National Bank; convicted of misappropriation of bank funds |
Charles H. Cole (January 5, 1847 – August 14, 1906) was a prominent American banker who led the Globe National Bank of Boston as its president from 1897 until 1899. He was convicted of deliberate misappropriation of bank funds and subsequently served a six-year prison term.
Early life
Born on July 5, 1847, in Plymouth, Massachusetts, Cole was the son of Job and Hannah (Frye) Cole. When he was five years old, his family relocated to South Boston. His professional journey began in 1862 when he took a position as an office boy at a private banking firm.
Globe National Bank
Cole started working at the Globe National Bank in 1868 as a clerk. Over the next thirteen years, he climbed the ranks to become cashier by 1881, wielding influence that extended well beyond the usual responsibilities of the role, particularly in loan approvals, effectively managing much of the bank’s daily operations. In 1894, he was promoted to vice president and joined the board of directors. He took over as president from Charles E. Stevens in 1897.
Other endeavors
Cole played a key role as an incorporator and director of the United States Oil Company, which operated lucrative oil wells in Virginia, substantially enhancing his wealth. In 1896, he joined the board of a mining company that increased his fortune by $1.5 million. By 1898, he had acquired a significant stake in the American Lead and Zinc Company, which initially thrived before zinc prices caused its decline. Around 1899, Cole became involved with the failing North American Gold Dredging Company and contributed to founding both the United States Mining Company (focused on copper) and the Santa Fe Gold and Copper Mining Company.
Personal life
Cole married Mary Lyon Ball in 1870; together they had three sons: Charles Jr., George, and Edward. The family resided in South Boston until 1890 before moving to a modest residence in Hingham, Massachusetts. In 1893, Cole purchased an extensive estate in Hingham near John Davis Long's property, where he renovated the main house, expanded the grounds, and constructed a conservatory along with stables to accommodate several horses and carriages.
Municipal government
In 1895, Boston Mayor Edwin Upton Curtis appointed Cole to a commission tasked with reviewing municipal finances. Two years later, Mayor Josiah Quincy named him to Boston’s sinking fund commission. Cole resigned from this position in 1899 in anticipation of travel to the western United States.
Conviction
In September 1898, special bank examiner Daniel G. Wing uncovered irregularities within the bank’s financial records. Comptroller of the Currency Charles G. Dawes threatened closure unless these issues were resolved promptly. Cole and other directors assured Dawes they would correct problematic policies implemented by Cole himself. Dawes demanded Cole’s resignation; after briefly aiding the board during the transition, Cole stepped down on November 6, 1899, citing disagreements over policy. At that time, his net worth approached $2 million—all of which he surrendered to cover the bank’s liabilities.
On December 23, 1899, Cole was arrested at Redondo Beach, California on charges of embezzlement and improper use of funds. He returned to Boston on January 5, 1900, where he entered a plea of not guilty and was released on $50,000 bail. On March 6, he faced indictment on sixteen counts related to falsifying entries and nine counts involving willful misapplication of bank funds.
On April 14, 1900, Cole admitted guilt on three charges: misusing a $400,000 stock certificate from U.S. Mining Company; misapplication of 253 bonds belonging to Niagara Mining and Smelting Company; and improper handling of checks amounting to nearly $300,000. Judge Francis Cabot Lowell sentenced him on May 14 to eight years’ imprisonment at Greenfield Jail in Massachusetts.
In 1904, Cole sought a presidential pardon supported by influential Boston figures including former Navy Secretary John Davis Long and other civic leaders. However, opposition came from U.S. Attorney Boyd B. Jones and Judge Lowell. Attorney General Philander C. Knox affirmed that the sentence was justified and recommended President Theodore Roosevelt deny clemency. The pardon request was officially declined by Roosevelt on June 24, 1904.
Release from incarceration and passing
On April 27, 1906, an amendment signed by President Roosevelt extended the Good conduct time for federal prisoners, which facilitated Cole's discharge on April 30, 1906.
Cole passed away on August 14, 1906, in Boston due to acute tuberculosis, an illness he developed during his time in custody.