BABBAGE, Richard A.

BABBAGE, Richard A. (England, Feb. 22, 1829--Jan. 18, 1906). Babbage's embezzlement of funds led to the failure of the MERCHANTS' NATIONAL BANK. Babbage came to Dubuque in 1856 and sold real estate before opening a private bank that prospered. In 1865 he was bought out and made cashier of Merchants National whose officers included such prominent Dubuque residents as William Boyd ALLISON, Henry L. STOUT, and John T. HANCOCK.

The first clue of the crime came when a Dr. Sprague came running to the bank announcing that Babbage was burning a large set of the bank's books in a stove. Babbage's crime resulted in a loss to the bank depositors of $267,289.

When the news became known, Babbage was guarded at home by an assortment of officials and friends. The directors of the bank made good the losses to the customers for every cent. A savings bank associated with Merchants National, however, was taken over by receivers, and depositors were paid sixty cents on the dollar. Among those concerned were local people with blooded stock horses on his Maudville farm. Shorthorn cattle and Arabian horses believed to be owned by Babbage were sold to satisfy the bank's stockholders. (1) Efforts to secure the Babbage homestead to help pay the bank's creditors met with some initial problem. James BEACH to whom it was to be turned over to in trust for the directors posted the following note: (2)

             To The Creditors of Merchants' National--Mr. and Mrs. R. A.
             Babbage have placed their homestead at my disposal, in
             such manner as I may think proper, in justice to you, Mrs.
             Babbage and the children.

Around October 27, 1873 Babbage began moving his family from their home and into the residence of Dr. and Mrs. Sprague on Bluff Street near WASHINGTON PARK. His former home was purchased by William ANDREW for an estimated $22,000. (3) Rumors persisted that he was going to leave banking and become a newspaper editor. (4) Henry L. STOUT purchased five hundred feet along Mineral Street for $4,000. (5)

Near midnight on October 29, 1873, Babbage, his son, and some friends fled the city. On November 2, 1873 the Dubuque Herald reported that nothing had been heard of him and that there did not seem to be much interest at the bank in bringing him back.

              President Welling replied dryly to our question and stated
              that the bank had realized all it could out of his property
              ---didn't suppose they could make anything out of his carcass,
              and it was probably well to have it out of the country. (6)

Babbage was seen in Chicago around November 1, 1873 and was thought headed for New York City. (7) The sale of his possessions continued in Dubuque through November 21, 1873. The printing press and materials he used to publish the "Maudville Times" was removed from his office at the bank. Six railroad cars of stock and farm equipment were sent from his Maudville farm to Chicago for sale. (8) In an ironic story, the Dubuque Herald reported in November 1873 that the towboat "R. A. Babbage" was ruined when it "ran through itself" ruining all the machinery while towing a fleet of barges near New Orleans. The paper considered that the banker had done much the same ruining a fortune. (9)

Babbage eventually settled in Argentina and then Europe. When most of the indictments against him were dismissed, Babbage returned to New York.

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Source:

1. "Caught on the Fly," Dubuque Herald, October 7, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731007&printsec=frontpage&hl=en

2. "The Bank Troubles," Dubuque Herald, October 7, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731007&printsec=frontpage&hl=en

3. "The Babbage Homestead," Dubuque Herald, October 26, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731026&printsec=frontpage&hl=en

4. "The Babbage Mansion and Its Recent Lord," Dubuque Herald, October 29, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731031&printsec=frontpage&hl=en

5. "Another Batch of Babbage Property Gone," Dubuque Herald, November 2, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731102&printsec=frontpage&hl=en

6. "Babbage," Dubuque Herald, November 2, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731102&printsec=frontpage&hl=en

7. "Babbage Heard From," Dubuque Herald, November 4, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731104&printsec=frontpage&hl=en

8. "The Disposal of Babbage's Effects," Dubuque Herald, November 23, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731123&printsec=frontpage&hl=en

8. "Ominous Accident," Dubuque Herald, November 12, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731112&printsec=frontpage&hl=en