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FLORENCE BANK CLOSES Florence. Colo., March 5.-The Florence State bank of this city was closed today by order of state bank examiners. Bad loans and inability to make collections are assigned as the cause of the failure. The bank has a calptal of $30,000 and deposits of $175,000. There is a possibility that the assets will be sufficient to pay the depositors, but this has not been officially determined.
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SUIT INVOLVING SALE OF BANK STOCK FILED John C. Bundy, by his attorney, Geo. H. Wilkes of Florence, and Jos. H. Maupin, filed suit in the district court here on Tuesday against Newton Large, Elizabeth B. Large, Samuel S. Large, Anna L. McCulloch, Richard S. Large, Amy Large and George Wilson, as the receiver of the Florence State bank. 5: F As appears from the petition, the suit is brought by Mr. Bundy to set aside and hold for naught a certain sale of fifty shares of the capital stock by Mr. Large for himself and on be1 half of the heirs of Samuel P. Large, deceased, to Mr. Bundy on January / 21st, last, for the price of $5,000 in cash. 1 1 The sale is sought to be set aside, e and judgment procured against the defendants for the repayment of said : $5,000 by reason of the fact, as it is 1 alleged, that the said sale was brought about by false and fraudulent repret sentations and statements made by Mr. Large to Mr. Bundy to induce him, and which did induce him, to purchase the stock. Among the frauds set out in the petition it appears that Mr. Large falsely represented the condition of the bank as to its stock, and also represented that he had authority to sell the fifty shares attempted to be sold, the same being a part of the stock held by Samuel P. Large, deceased, during his lifetime. But, as it is alleged, Samuel P. Large died October 31st, last, leaving debts unpaid, among them a large indebtedness to the Florence State bank, and as it appears, the debts of the estate were not paid and no administration was had and there was no authority of law for the sale of the stock. The petition prays, also, that immediately upon the rendition of judgment that Newton Large, his mother, $ e Elizabeth B. Large, Samuel S. Large, I Anna L. McCulloch, Richard S. Large I and Amy Large, heirs-at-law of the estate of Samuel P. Large, deceased, 1 each and all of them be committed to ( 8 the county jail for the period of one o year, upon their failure to pay or respond to the judgment of the court immediately.
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Charge Bank Stockholders with Fraud. Florence.-Charging that he was indueed to purchase fifty shares of capital stock in the Florence State bank by fraudulent representations and statements, John C. Bundy has filed suit in the District Court against Newton Large, Elizabeth B. Large, Samuel S. Large, Anna L. McCulloch, Richard S. Large, Amy Large and George Wilson, as the receivers of the Florence State bank.
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FLORENCE BANK MONEY RETURNED The U. S. Fidelity and Guaranty company, through its general agent, E. A. Bradbury, has paid to the county treasurer, Jonathan seaman, the sum of $4896.70, being the amount the county treasurer had on deposit in the Forence State bank at the time of its suspension.
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# THE FLORENCE # BANK CASE TO # BE TRIED HERE Judge Wilkin this morning overruled the motion of Samuel S. Large and Elizabeth B. Large in the suit of J. C. Bundy versus Newton Large, Elizabeth B. Large, Samuel S. Large, Amy Large and George Wilson as receiver of the Florence State Bank, for a change of venue from the Fremont county district court to the Denver county district court and ordered the case to be taken up for trial when reached on the docket. Only two of the defendants were petitioners for a change of venae, the others expressing themselves satisfied that the case could be heard here without prejudice. The court this morning also overruled the motion of attorneys for the defendants for a further bill of particulars in the case of the Florence Macaroni company against Michael Jachetti and John Nigro of Pueblo. This is a suit based on a money demand. Chas. T. Smith, who has been under bond for some time past, was arraigned before Judge Wilkin this morning on seven informations charging him with embezzlement while employed as a traveling salesman in the service of the Nave, McCord Grocery company of Denver. Mr. Smith entered pleas of not guilty in each information and notice was given of trial at a later date. Of the twenty-five petitions for final letters of citizenship heard in the district court last Saturday only thirteen were granted. The others were either continued or dismissed without prejudice.
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COUNTY TREASURER SUSTAINED BY COURT The friendly suits instituted in the district court by George Wilson as receiver for the Florence State bank, and by Mrs. Mary L. Yelton of Florence, for herself, and for and in behalf of some fifty or sixty other persons similarly situated, against Jonathan Seaman as county treasurer was on Thursday decided by Judge Wilkin in facor of the defendant. In this proceeding an injunction was asked for by the petitioners to restrain Mr. Seaman as county treasurer fro mselling certain lands owned by the plaintiffs at tax sale on which the assessment had been paid to the Florence State bank before its it:solvency and for which cashier's checks had been remitted to the county treasurer's office. These cashier's checks, about a half dozen in number and representing $1,672.70, were forwarded to the county treasurer just before the second half of the taxes for the year 1912 become delinquent and before receipts could be made out and mailed to the individuals directly concerned the bank failed and the cashier's checks in possession of Mr. Seaman became worthless. The case of Mrs. Mary L. Yelton et al vs. the county treasurer was the only one tried, the other. almost identical with it, consequently a hearing o fit was unnecessary after the first complaint had been disposed of by the court. In concluding his opinion Judge Wilkin stated, "I am quite clear, gentlemen, that the injunction ought not to go against the treasurer of the county." Judge c. D. Bradley and J. D. Blunt of Florence conducted the case for the plaintiffs, while the defense was made by Judge J. G. Schweigert, county attorney.
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The Daily Record and aappreciate it very much." THE LARGE TRIAL IS STILL IN PROGRESS The trial of Newton B. Large on the charge of receiving money from depositors while cashier at the Florence State bank after he knew the institution to be insolvent is still in pro gress and is likely to continue until the end of the week, perhaps longer. This case was called for trial on Monday, Feb. 16th, and has occupied the attentio not the court ever since, except during the recess for the celebration of Washington's birthday on the 23rd. It is understood that the state will complete the submissio not its evidence on Thursday, when the de fense will have its inning. H. J. Owens of Florence ,a member of the depositors' committee of the bank. was on the witness stand most of Tuesday morning, having been callied by the prosecution for the purpose of corroborating the testimony of George Wilson, the bank receiver. J. D. Blunt of Florence and Edward F. Arthur of Denver, the latter an EXpert accountant and bank examiner. were called after the retirement of Mr. Owens. On the reassembling of court this morning Mr. Arthur was again interrogated as a witness to: the state. He continued on the stand until the noon recess was taken.
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INSURANCE ON MILL PUTS BANK ON FEET DENVER, March 3.-The financial convolutions of an unnamed man from Kansas yesterday placed the defunct Florence State bank of Florence, Colo., on its feet. through a decision of the supreme court awarding $27,000 insurance money to the cashier of that institution. The financial entanglements of the Kansan started with a deserted mill and an abandoned gold mine. Several years ago a mill was built at Florence, Colo, for the purpose of treating ore with a cyanide process. which failed An unknown man from Kansas City bought the mill, together with an old mine, for $10,000, and organized the Colorado Mining, Milling & Leasing company, used the structure to get out a prospectus and sold stock to the amount of $120,000 to Kansas and Nebraska people. Insurance on the place required a special risk contract, by which protection to the amount of $60,000 was obtained. from seven different companies. The mill was destroyed by fire. Six companies paid the claims presented. but the seventh. the Palatine Insurance company, refused. The Kansan assigned the suit to the bank and disappeared Damages in the sum of $21,000. with interest at 8 per cent, was awarded the cashier. acting as recelver for the bank. against the Palatine Insurance company. The money received from the sult will place the bank on its feet.
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INSURANCE MONEY SAVES LITTLE BANK Denver, March 3.-The financial convolutions of an unnamed man from Kansas City yesterday placed the defunct Florence State bank of Florence, Col., on its feet through a decision of the supreme court awarding $27.000 insurance money to the cashier of that institution. The financial entanglement of the Kansas City man started with a deserted mill and an abandoned gold mine. Several years ago a mill was built at Florence, Col., for the purpose of treating ore with a cynanide process which failed. An unknown man from Kansas City bought the mill together with an old mine for $10,000 and organized the Colorado Mining, Milling and Leasing Co., used the structure to get out a prospectus and sold stock to the amount of $120,000 to Kansas and Nebraska people. Insurance on the place required a special risk contract by which protection to the amount of $60,000 was obtained from seven different companies. The mill was destroyed by fire. Six companies paid the claims presented, but the seventh, the Palatine Insurance Co., refused. The Kansasan assigned the suit to the bank and disappeared. Damages in the sum of $21,000 with interest at 8 per cent was awarded the cashier, acting as receiver for the bank against the Palatine Insurance Co. The money received from the suit will place the bank on its feet.
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# SHERIFF'S SALE. By virtue of writ of attachment issued out of the Clerk's office of the district Court of Fremont county and State of Colorado and to me directed, where by I am commanded to make the sum of three hundred ninety one and 32-100 dollars ($391.32) and costs of suit the amount of a certain judgment recently obtained against O M Birdsell now O M Hart in favor of George Wilson as receiver of the Florence State Bank of Florence Colorado out of the lands tenements, goods and chattles of the said O M Birdsell now O M Hart I have levied on the following property, to-wit The south east quarter of section thirty three [33] in township six [6] north of range forty five [45] west of the 6th p m Phillips county Colorado Therefore, according to said command I shall expose for sale, at Public Auction, all the right title and interest of the above named O M Birdsell now O M Hart in and to the above described property, on Monday the 22 day of June 1914, at 1 o'clock P. M at the west front door of the Court House in Holyoke Phillips County, Colorado Dated at Holyoke, Colorado, this 26 day of May 1914. ED. W. JAMES, Sheriff First pub. May 29 Last pub June 19
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GOOD NEWS FOR FLORENCE STATE BANK DEPOSITORS The money involved in the insurance policies, which were held by Sherman Andrews, and which cases have been pending in the courts for some years, has at last been paid and is now lying in one of the Canon City banks. As it was the money of the depositors which had been loaned to fight these cases, and as these insurance policies were the only securities which the bank had received for the enormous loans extended to Sherman Andrews, it is more than likely that the attorneys for the receiver will be able to establish claims and that this money can soon be secured to pay a portion of the claims owed by the bank to the depositors. This is encouraging news and as soon as this money is received, there is every possibility of another dividend of about 12 1/2 per cent. being paid. At any rate we have the assurance from the receiver, that just as soon as he can possibly do so, he will pay another dividend.-Paradox.
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THURSDAY Kansas City and Clinton, Mo. Brought to the Hospital Today. Mrs. E. C. Baldwin of Westcliffe was brought to the hospital today to be treated for a nervous breakdown. She was accompanied to Canon City by her brother, Nick Chamings. c. E. Smith in Town. C. E. Smith of Coaldale is in town today and is an interested spectator at the big trial. willis Watson in Town. Willis Watson came into town from his Wetmore ranch last Sunday and will remain with his family here until after the holidays. Mrs. Goodloe to Entertain Club. Mrs. Hart Goodloe will entertain -the Woman's club next Tuesday at her home, 1002 Greenwood avenue, instead of at Pythian hall, as was understood by some. Here to Spend Holidays. Dr. and Mrs. F. N. Carrier of Santa Rita, New Mexico, with their children, are here to spend the holidays. T. W. Roberts In Town. T. W. Roberts of Florence and Henry Smith were in town today attending the trial FRIDAY. Harry Handley Here from Gienwood. Harry Handley of Glenwood Springs is visiting with friends in Canon City for a few days. Frank Moore In Town. Frank Moore of Florence was in town today on business. Hessick of Florence in Town. Lawyer Hessick of Florence was in Canon City on Thursday looking after some legal matters. Mr. Bowie in Town. Mr. Alex Bowie of Bowie, Colo., is visiting friends in Canon City for a few days and is also looking after business matters. Spending Winter in Canon City. Mrs. W. H. Gandy and Miss Hattie Gandy of Long Beach, Cal., arrived in Canon City a few days ago to spend the rest of the winter with Mrs. Merriam. Mrs. Gandy is Mrs. Merriam's mother. Salida Men Here on Business. Mr. Wallace Schoolfield and Mr. George D. Williams of Salida and Mr. H. C. McLean of Buena Vista returned to their homes today, after spending twenty-four hours in Canon looking after business matters To Have New Lighting System. The city council of Florence has about completed arrangements to install a new system of lighting. The number of lights will be increased to over 100 and the cross streets will be lighted, as well as the main street. , Moved to La Junta. Mr. and Mrs. M. F. Carothers of the eastern part of Fremont county moved Thursday to La Junta, where they will live with their daughter and son-in-law, Mr and Mrs. Frank Mason. State Bank Dividend. George Wilson, receiver of the Florence State bank, will pay a dividend of 12 1/2 per cent to the depositors on Wednesday, Dec 23, this year. Ta. will make a total of 50 per cen' pa: so far. Funeral Saturday Afternoon. The funeral of Katherine Sousa will be held Saturday afternoon at 2 o'clock from St. Michael's church, Interment will be made in the Catholic cemetery at Lakeside. Joe Monahan of Pueblo Here. Joe Monshan of Pueblo is in Canon City today on business,
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Grew Out of Flor: ence State Bank Failure JUDGE CAVENDER TO PRESIDE J. c. BUNDY vs. NEWTON LARGE, ET AL. AND GEORGE WIL. SON vs. LARGE ARE THE CASES Judge Charles Cavender of Leadville will hear in the district court here, beginning Tuesday. June first, two additional cases growing out of the failure of the Florence State bank a couple of years ago. One of them is a money demand and cancellation of contract and was brought by John c. Bundy, plaintiff, versus Newton B. Large, Elizabeth B. Large, Samuel S. Large, Annle L. McCullough, Richard S. Large, Amy Large and George Wilson, receiver of the Florence State bank, defendants. Geo. H. Wilkes and Gen. J H. Maupin appear as attorneys for the plaintiff: J. D. Blunt for George Wilson, receiver; Jas T. Locke for Newton B. Large. and Edward D. Upham for Samuel S. Large. The other cases is also based on a money demand and was instituted by George Wilson, receiver for the Florence State bank, as plaintiff. versus Newton B. Large.. Frank Ruby, Samuel S. Large as administrator of the estate of Saniuel P. Large, deceased. Marshall Eak. in, John c. Bundy, Martha J. McCa.
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JUDGE CAVENDER HOLDING COURT HERE Judge Charles Cavender of Leadville arrived here on Monday and is presiding in the Fremont county district court in the case of J. C. Bundy of Florence versus the stockholders of the Florence State bank in which the complainant asks that the sale of stock, for which he paid $5,000 shortly before the bank closed its doors, be set aside on the ground that the deal was made through misrepresentation of the banks affairs by the Large family. The hearing began at 9 o'clock Tuesday morning, with Judge Cavender of Leadville sitting in the case. There will be no jury in the hearing. The defendants in the case are Newton Large, cashier of the Florence State bank, Samuel S. Large, Eliabetzh Large, Amy Large, Richard S. Large, Annie McCullough, and Geo. Wilson, receiver of the institution. The latter is named as a defendant in the case only for the purpose of bringing in records of the bank, as the suit will not directly affect finances of the bank. The stock was purchased from the Large family and did not enter directly into the affairs of the bank, and the suit is being brought to recover from 0 them the amount paid for the stock 0 The case, however, has indirectly a 0 very important bearing on the affairs 0 of the bank, as Mr. Bundy as a stock0 holder of the institution, is liable for 0 an assessment of twice the amount 1 of his stock to make up the deficiency 0 due the depositors of the bank, an 0 item of far greater importance than the original amount paid for the stock and the outcome of the suit will determine whether Mr. Bundy must pay this amount or whether the liability for the double assessment will re3 vert back to the Larges. 1 Attorneys Wilkes and Maupia are 0 acting as Mr. Bundy's attorneys in 0 the case, Jas T. Locke is represent0 ing Mr. Large and Attorneys Blunt 0 and Hessick are looking after the in0 terests of Receiver Geo. Wilson.
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DECISIONS FAVORABLE TO DEPOSITORS Two decisions were handed down in the district court here this morning by Judge Charles Cavender of Leadville in the Florence State bank cases; both of them favorable to the depositors and creditors of the defunct institution. One of them was in the case of John c. Bundy against the shareholders of the bank in which- he asked the court to set aside as fraudulent the sale to him of $5,000 of the capital stock of the concern and the other was the suit brought by the creditors against the stockholders to recover from them a judgment of twice the amount of the par value of the stock held by them in the bank for distribution among the creditors. The Bundy case was called for trial Tuesday morning and its hearing, coupled with the argument of the testimony, occupied the attention of the court until noon on Thursday, when Judge Cavender took it under advisement until 10 o'clock this morning before rendering an opinion. The defendants were Newton Large, former cashier of the Florence State bank, Samuel S. Large, Amy Large, Richard S. Large, Annie McCullough and Geo. Wilson, receiver of the bank. The latter was made a defendant only for the purpose of having the records of the bank in his possession brought into court and presented in evidence. The suit against the stockholders was determined to some extent by the showing made in the Bundy case and its adjudication. Under Judge Cavender's ruling the stockholders of the bank are liable to an assessment of twice par value of the shares of the capital stock of the bank held by them to be paid over to the depositors of the institution to make good the losses sustained by them as a result of its failure. In the stockholders case Judge Cavender decreed that each of them must pay over to the creditors of the bank an amount double the par value of the capital stock owned by them at the time the bank closed Its doors; the assessment to be as follows: Newton Large, $19,400; Frank Roby, $2,000; Samuel S. Large, $200; Marshal Eakin $400; John c. Bundy, $10,000; Samuel S. Large as administrator, $11,700. Ten days were asked by attorneys
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MONEY DEMANDS MADE IN DISTRICT COURT George Wilson, as receiver for the Florence State bank, through his attorneys, Blunt & Hessick of Florence, was complainant in the d strict court before Judge Cooper on Friday in three suits brought on a money demand. They were against Phil A. Chappell and Julia Newell Chappell in the sum of $279.44, Harry A. House in the sum of $576.88 and C. M. Walher in the sum of $1,633.50. The defendants in neither case appeared to fight the proceedings and default was taken and judgment renderedeagainst them in the amount claimed in the complaint. In the same court at the same time and in favor of the same plaintiff a deficiency judgement was entered against Peter Tonso in the sum of $1,017.18.
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SUPREME COURT DECIDES FOR THE DEFENDANT Blunt & Hessick and Charles D. Bradley, attorneys for the receiver of the Florence State Bank, have been notified that the judgment obtained against John C. Bundy in the district court, upon his stockholder's liability for the sum of $10,000 was affirmed Monday in the supreme court. This suit was brought in 1913 and has been bitterly contested in the courts ever since by Mr. Bundy. His contention being that he was defrauded in the purchase of stock by Newton Large, cashier of the bank. Mr. Bundy also contended that he was only liable for his part of the debts of the bank which accrued while he was a stockholder, which was a period of about 40 days before the bank failed. The apparent conflict between the two statutes respecting stockholders' liability in this state gave occasion for much speculation as to what the actual liability of a stockholder in a bank might be, and the receiver took the position that, under the law, a stockholder in a banking institution is liable for double the amount of his stock, and a decision of this case made it necessary for the supreme court to fix definitely and clearly the legal status of a bank stockholder. The supreme court sustained the position of the receiver's counsel and affirmed the judgment. This case was deemed of such importance by the supreme court that they requested the attorneys to argue the case orally before them upon two different occasions, besides filing the usually extensive written briefs and arguments. The case winds up the bank's litiga-