in nearby Gary metropolis of the rich northern Indiana industrial district University of Iowa students and citizens of Iowa City, former bustling corn belt center could not get checks cashed for any considerable amount and there was no way for régular business to proceed The First National and the Iowa Savings Banks which closed today were the fourth and fifth in recent months to suspend
IOWA CITY TO HAVE TEMPORARY BANKING FACILITIES SATURDAY of local business men was to meet again Friday in an effort to draw up plans for new bank or reorganization of either the First Na-
Iowa City to Get Bank Branch Today
Cedar Rapids, Ia. Jan 22 John Burianek. president of the People's Savings bank announced today that the bank will open branch office in Iowa City Friday Iowa City has been without bank since the closing of the First National and Iowa City Savings banks early this week.
IOWA CITY, Ia., June filed today Johnson county district court, asking from the closed National bank, its Craig, and County Treasurer Charles The petition filed by CounOlsen and Davis and Hart, of special council. Berry claims have deposited the First National bank The bank records show deposit $6,000. When the bank closed Jan. 20. Berry's the counhad on deposit First National records show balance
Craig, the receiver of the bank, records clear that they balance and always balanced. He further states that James O'Meara, teller, handled the deposit the county funds.
Henry Negus, attorney for the county claims that Berry had two bank books of the and color and went the bank to deposit the county funds on He claims Berry, upon finding out the wrong bank deposited the money was given duplideposit Negus says Berry later took the book bank and the entry of the deposit made. Craig says he has examined the book and that he doesn't the entry made by any employe of the bank.
Treasurer and Receiver Respondents in Suit Over $20,000.
Iowa City, June petition was filed in the John sen county district court today ask ing an accounting of the affairs of Charles Berry, county treasurer, the closed First National bank. and receiver, C. O. Craig The action was based on an alleged discrepancy of $20,000 in funds. The petition, which was filed by County Attorney Olsen and Walter Davis and W. R. Hart, members of special states that when the bank closed Jan. 20, its records showed to tal of $31,000 in county funds on deposit. County records reveal de posits of $51.000, the petition continued. Craig said the bank's records indicate that the county treasurer deposited $6,000 on Jan. 1932. This amount, he added, was entered on the ledger and the books were is claimed by the special council that the entry should have been for $26,000 Craig declared that he had ex amined the pass book of Berry and that the alleged entry of $26,000 was not in the handwriting of any employe of the bank. Henry Negus, Berry's attorney, quoted as saying that the countreasurer deposited Jan. and that about $20,000 of this amount was in cash. Negus declared that Berry had two pass books, of the same color and size, and that he took the "wrong" book with him to the bank when the deposit in question was made Negus said Berry received duplicate deposit slip for $26,243.40, and that later in the month he brought the duplicate slip to the bank with the pass book Then, the attorney continued, the total entered by teller Accountants from the state auditor's office have Berry's books and declared they balance, altho they do not tally with those of the bank. Thomas Farrell, cashier of the bank on Jan. has said that James O'Meara, handled the county deposit. course in vocational guidance may be included. C. W. Sweeney Kansas City, Mo., began his duties as of the Harrison Paving com pany which has the contract pave No. 149. Miss Dorothy Anderson who has been teaching at Green Bay, Wis., has returned for her vacation. Ione Hardy was hostess to the Worth While 4-H club Wednesday afternoon. Plans were made for an ice cream social Mrs. Cecelia Hummer has been elected president of the Hummer society and other officers are: vice president, Mrs Carl Campbell; secretary, Mrs. Ethel Cox; treasurer, Mrs. Lida Smalley.
Johnson Board Begins Action to Trace Shortage
(The Register's Iowa News Service.) IOWA CITY, Notice of court action against Charles L. Berry, Johnson county treasurer, and the receiver of the First Na tional bank was served here Friday The action is an attempt by the board of supervisors to trace the responsibility for shortage of $20,000 in county funds Berry claims to have deposited $26,000 in the First National bank Jan. 2, 1932, while the bank's records show a deposit of only $6,000. The supervisors filed a petition demanding an accounting of the bank and the treasurer, June 17. and authorized attorneys to start proceedings to ascertain the discrepancy Pare of the county's evidence will be a report of Allen, Busby, and Harrigan, Des Moines auditors, who checked the county rec ords last month.
Craig, receiver for the First National bank of Iowa City, Monday filed a petition in bank ruptcy at Davenport against Fred McChesney, son of the late W. J. McChesney, said the action was prompted by belief that McChesney intended to favor other creditors than the bank. Church Executive Dubuque Man Sentenced. He said the latter owes the bank WATERLOO, IA. (P)-Herbert $15,000 on three notes contracted Confers on Fund Galle, 35, of Dubuque, who as president of the Hawkeye Penpleaded guilty to selling federal nant Co. McChesney is now in (The Tribune's Iowa News Service.) agents 15 bottles of "spiked" California. AMES. Rev. L. Myron Boozer of Ames, executive of the beer, Tuesday was sentenced to Iowa synod of the Presbyterian serve 60 days in the Dubuque Lightning Kills church, is in New York to confer county jail by Federal Judge with the church's board of nation- George C. Scott. Iowan and Horse al missions on the board's underIowan Held to Jury. taking to raise stabilization fund MOUNT PLEASANT, IA. for preventing serious curtailMeryl Helt, 28, of Winfield, and ment of work in the home mission NEWTON, IA.-Harold Arrthe horse he was riding were field. wood, 33, local factory employe, killed when struck by lightning The Rev. Mr. Boozer has been charged with displaying wrong Monday evening. Mr. Helt was asked to take the office of execu- license plates on an automobile, not married. tive secretary of the fund and will was bound over to the grand jury open an office in Chicago to direct when arraigned in Mayor T. A. Farmer Kills Self. activities in the midwest. He has Pickens' court here Tuesday. been released from his regular BLOOMFIELD IA. F a k Stolen Safe Found. duties until Dec. by the Iowa Johnson, 71, farmer living near FORT DODGE IA. (AP) Authorboard of national missions and the Mark, killed himself Tuesday synod council. ities Monday found 500-pound safe which had been battered open, the only clew in the burglary Sunday night of $200 from the Steinmaus cafe in Duncombe.
Budget Cut. FORT DODGE Webcounty board of supervisors Monday slashed $197,000 from the 1933 budget, including substantial reductions in mandatory road
Fall Festival to Be Held. ANAMOSA, fall festival and bazaar will be held at the Anamosa fairgrounds Wednesday under the auspices of St. Patrick's Catholic parish of this city. morning by cutting his throat. Coroner C. Heady was called and arrived before died. Johnson told Dr. Heady he had suffered long enough with diabetis and wanted to die. He is survived by his wife, three daughters and two sons.
Two Suits Against Bank in Iowa City Come to Court
Two suits to establish priority claims of creditors had been filed today in federal district court in Davenport against C. Craig, receiver the First National bank of Iowa City, on transcripts from the Johnson county court In one, Arthur Steindler sets forth claim of $5,000, and in the other, Pearl M. Chapman asks an accounting on notes of $5,500 which were given to the bank for collection. Both state that they carried on their transactions with the late W. dent McChesney, the formerly presiof bank. Steindler says that he paid $5,000 Aug. 5. 1931 for note, cured by mortgage, as an investment. They were never delivered, he contends in his petition. Messer & Nolan, City, are his attorneys. In the second action, it is said that collection was made on the six five per cent gold notes the Electric Public Utilities Co., but that an accounting was never given by the bank. The plaintiff's attorneys are Dutcher. Walker & Ries, Iowa City. The transfer the federal court was obtained by Kenneth M. Dunlop, Iowa City, and Harrison Spangler, Cedar Rapids, counsel for bank receiver, on the grounds that national bank is involved and that the amount suit in each case is in excess of $3,000.
Because the receiver for the First National bank Iowa City permitted more than 30 days to elapse before filing motion for transcript of the case in which he was named defendant from Johnson county to the federal district court at Davenport, Federal Judge Charles Dewey has dered the case returned to the county jurisdiction. The suit involves approximately $5,000 sought by Dr. Arthur Steindof Iowa City, who claims that placed that amount with the bank for specific investment which consummated. Accordingly he asks return of the money preferred payment in the More than days elapsed between the time the original ing the and notice and bond for its removal federal jurisdiction which was contrary to law. Arguments for its return heard Dec. Des Moines.
Addresses Assessors at Annual School of Instruction board of and review. addressed the 29 Johnson county assessore meeting held courthouse Thursday morning. Mr. address at the annual called by County Auditor Ed Sulek The county assessors. who begin Monday, also ceived their supplies for the 1933 work the Thursday and Mr. Harrison Spangler torney for the First National and Mr Craig receiver con through afternoon Mr. Berry responded questions that he first discovered the $20 discrepancy when he received January when the First closed He County Attor Olsen went confer Mr treasurer he then saw deposit slip bank made out for the amount checks and added that adding machine tape had total addition figures red and Large Amount Currency Mr Spangler questioned Mr. Berry length entries made the daily cash book and concern ing currency hand various times during the month of Decem 1931 Mr. Berry told Mr. Spangler that was nothing un usual to have large amount currency in the safe in the treas. urer's office Mr. Berry related meeting with the board of supervisors in his of fice January 1932. at which the board counted the cash. Mr. Berry said that he not think the board counted all the money in the treasurer's of fice safe. but that the time he busy making out his semi-anmual statement for board and little attention to their ac-
Question About Bank In answer to Mr. Spangler's ques Did any the board mem bers tell you, during 1931, not the First National put money Mr. Berry said that he did not remember but that they might have mentioned sometime be fore January 1932. was brought out by Mr. Berry during by Mr. Spangler that Mrs. Abbie Rate Bickett was waiting behind him part of the time he was window the First Na the tional bank on January 1932 Mr. Berry said that after discov the discrepancy sometime and going to the bank with the county attorney. he had first told Mr. Craig that most but of the deposit when he later checked through he found most of the his in
Miss Parizek Testifies Large Sum of Money Was in Office Dec. 31st after $20,000 discrepancy County checks he been 1932. Bickett had been bank and window at which made
Miss Mildred Parinek under former County Charles L. Berry. resumed her tes timony on the witness stand when court reconvened Monday morning for the trial of the action to termine the responsibility for crepancy of $20,000 between the records of the office of former Treasurer Berry and the records of the First National bank receiver ship
One of the witnesses to be called during the trial sometime this week will be Mr. Hill formerly connected with the board of trade offices here. Mr Hill has returned from Chicago, where he was sent upon the order of Judge Frank Bechly hearing the case, upon agreement of attorneys to obtain information on Mr. Berry's transactions on the board of Recalls Large Amount Cash In answer to Mr. W. Clear man. attorney for the American Surety company Miss Parizek tes tified that she had made out the cash work sheet on December 1931. and that as she remembered. about $20,000 of the sum itemized on the work sheet was cash, though the currency was shown on the work sheet in the sum of $7.638. She testified that she knew the cash totaled more than the amount entered under currency be cause she had counted about $10. 000 herself Asked If she knew that the cash Item on the work sheet did not in clude all cash. she in the al affirmative she knew cash was also included in another item. Judge Bechly asked Miss Parizek If she knew of any other entries where entered with checks and she replied that she could not recall any such in stances. When Mr Spang ler. attorney for the First National bank and Craig receiver. asked her when cash had been tered with checks she replied "the only occasion remember was on December 1931
Asked About Deposits Mr Spangler quizzed about December 1931. and January 1932. and the attorney that only deposit detail was the on January is claimed was Mr. Berry First bank in the sum of Ask ed she could the cific deposit tha February when discrepancy discovered effort remember that she had no reason to remember the other deposits Miss Parizek first heard about when she talking about in the talked to Berry about deposit of January two months
Citizens the spend about food
IOWA CITY, Jan. 13, (P)-B. J. Meltzer, Cedar Rapids accountant for the First National bank receiver, took the stand for crossexamination today to complete testimony in the district court suit to fix responsibility for a $20,000 shortage in Johnson county funds. The bank receivership and former County Treasurer Charles L. Berry are defendants in the suit resulting after in records of deposits by the bank and those in the treasurer's pass book. Witnesses yesterday were representatives of four insurance com- panies who said that Berry had borrowed $1,300 on insurance policies during that year to cover losses in dealings on the board of trade.
Ask Spangler Be Removed as Bank Receiver Counsel
July sociated Press) Comptroller of the office said today letter had been received from Iowa asking that the resignation Harrison Spangler Cedar Rapids be demanded as attorney for the receiver of the First National bank of Iowa City No action has been taken. the comptroller's office said. Spangler's removal requested on political grounds, the comptroller's office asserted. The identity of the writer was not intimated that Rep. Eicher had written the letter, however.
Sues For $5,190 On McChesney's Bond
Special to The Gazette. IOWA CITY—A judgment for $5,190 against the American Surety company on the bond of the late W. J. McChesney, former president of the First National bank here, was asked in a petition filed in district court here Wednesday by K. L. Lindenmayer, receiver for the bank.
The receiver, in his petition, says a claim for that sum against the bank was recently granted Pearl M. Chapman by the federal court. He reports that this sum was granted on an alleged claim that McChesney collected some notes for Mrs. Chapman and failed to account for them.
Claiming that the loss of $5,190 is accountable to the acts of McChesney, Lindenmayer asks judgment against the bonding company for the amount.
STRAWBERRY POINT — The preliminary declamatory contest will be held at the senior high school here Jan. 29 and the following will participate: Oratorical—Llewellyn Hock, Callistus Houlihan and Bernard Frenchel; dramatic—Velma Carpenter, Marvin Merritt, Garnet Sargent and Mary Sherman; humorous—Elsie Frederick, LaVerne Miller, Lavon Steward, Marvin Snyder and Wanda Lang.