Sheldon State Bank (Sheldon, IA)

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SHELDON STATE BANK OF IOWA TO CLOSE DOORS SHELDON, Iowa, Nov. 5.-A sensation was caused yesterday by the failure of the Sheldon State Bank, of which Ed C. Brown, State railroad commissioner, is president. to open its doors. The bank. capitalized at $50,000 and carrying $190,000 in deposits, was supposed to be flourishing. R. W. Aday, of Sheldon, was named as receiver. W. D. Boles said the failure was due to acceptance of too large an amount of paper from farmers. Crops locally were poor, and while the securities are good, cash cannot be realized immediately.

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BRIEF BITS OF NEWS

W. H. Watkins, for several years part owner of the Indianapolis base ball club, has secured a controlling interest in the Minneapolis team. In a head-on collision between freight trains on the Cleveland and Pittsburg road at Reeds Run, O., two men were killed and a third badly inJured. A Big Four yard engine and a cut of freight cars were wrecked east of Caledonia, O., and Engineer Lee Smith and Henry Meischler, brakeman, were killed. The Sheldon State bank of Sheldon, Ia., has closed its doors. Ed C. Brown, Iowa railroad commissioner, Is president. The officers say deposItors will be paid in full. The Servian government is understood to be negotiating with a firm in America for the purchase of several thousand of the Mauser rifles captured by the United States in Cuba. The decision of the commission in the San Francisco street railway wage arbitration awards an increase of 10 per cent in wages to employes employed for two years prior to April 1, 1903, and of 5 per cent to those of less service.

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Depositors to Lose Nothing

Sioux City, Ia., Nov. 5.-The Sheldon State bank, of Sheldon, Ia., has been closed. Edward C. Brown, Iowa railroad commissioner, is president. The officers say depositors will be paid in full. W. R. Ady has appointed receiver. Assets, $225,000; liabilities, $175,000.

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Tron County Register

By ELI D. AKE. IRONTON. : : 1 MISSOURI On the 6th, the United States recog nized the new republic of Panama a a de facto government. The Sheldon State bank, of Sheldor Ia., closed on the 4th. The officers sai depositors would be paid in full. Without the firing of a shot and ami scenes of great enthusiasm, the inde pendence of the isthmus and the de partment of Panama was declared, O the 4th. President Roosevelt, on the 6th, re ceived the members of the executiv board of the Women's Foreign Societ of the Methodist Episcopal church which had just concluded its annus convention in Baltimore, Md. Minister Powell cabled the state de partment at Washington, D. C., on th 6th, that the insurgent army wa marching on the city of San Doming He asked that an American man-o war be sent there. The Baltimore wa sent. King Edward, in the presence of sev eral thousand people, on the 3d, lai the foundation stone of the King E ward VII. consumption sanitarium, a Midhurst, Sussex, for the erection ( which Sir Ernest Cassel gave the kin $1,000,000. The cadets of the Western militar academy, at Alton, III., constituted part of the reception committee which met Gov. Richard Yates, on the 3 The governor addressed a mass mee ing of the citizens in the Spauldir auditorium. The first trainload of returnir Dowie "restorationists" arrived at Zie City, Chicago, on the 3d. Later, intervals of an hour or two, train aft train deposited its travel-stained cr saders. The day was devoted to pray and thanksgiving. The First national bank of Victo Col., was closed, on the 4th, by dire tion of the acting comptroller of t currency, the examiner having repor ed the bank to be insolvent. James Lazear, national bank examiner, w appointed receiver. As showing the depth of the reser ment over the success of the Unit States in the Alaskan boundary ma ter, during the performance of a mi strel troupe at Vancouver, B. C., on t 6th, the music of the American anthe was vigorously hissed. Final burial services were held 01 the remains of Emma-Booth Tuck on the 4th, in New York city, and 1 body was placed in a vault at Wo lawn cemetery. Later it will be i terred in the army plot, where two the commander's children are burie Congressman Slemp, in Bristol, V on the 5th, confirmed the rumor the Edward L. Wentz, the young Philad phia millionaire who disappeared, V in the hands of abductors in the moi tains of southwest Virginia, and t.] a ransom of $100,000 was demanded his release. President Roosevelt was asked, the 5th, to forbid the United Sta Marine band to accent encagome

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FISCAL AFFAIRS

The Victor (Colo.) First National bank, with $300,000 deposits, closed. The Sheldon (la.) State bank, with $175,000 liabilities and $225,000 assets. is insolvent. In Chicago A. J. Stone, real estate dealer, petitioned the United States court to relieve him from indebtedness of $61,231. The Bimetallic bank of Cripple Creek, Colo., with $50,000 deposits, closed its doors. The Pueblo (Colo.) Title and Trust company, with $250,000 deposits, assigned. Paul Jones was appointed receiver of the Young Repeating Arms company of Columbus, O., a company. organized under the laws of New Jersey. The company is capitalized at $60,000. Pressing claims amount to $25,000.

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Iowa Bank in Trouble

Sibley, Ia., Nov. 5.-Judge Gaynor, on application of the stockholders appointed W. R. Ady receiver of the Sheldon State bank of Sheldon. The assets are about $225,000, liabilities about $175,000.

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Thursday, Nov. 5. About 150 houses were destroyed by fire at Jeremie, Hayti, Monday. The London Daily Mail's Tien Tsin correspondent cables that 10,000 Russian troops have occupied Mukden. In a head-on collision between freight trains on the Cleveland and Pittsburg road at Reeds Run. O., two men were killed and a third badly injured. A Big Four yard engine and a cut of freight cars were wrecked east of Caledonia, O., and Engineer Lee Smith and Henry Meischler. brakeman, were killed. Stephen D. Winner, said to have been the oldest locomotive engineer in active service in the United States, is dead at Newark, N. J., aged eightyone years. The Sheldon State bank of Sheldon, Ia., has closed its doors. Ed C. Brown, Iowa railroad commissioner, is president. The officers say depositors will be paid in full.

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Iowa Bank in Trouble

Sibley, Ia., Nov. 5.-Judge Gaynor, on application of the stockholders appointed W. R. Ady receiver of the Sheldon State bank of Sheldon. The assets are about $225,000, liabilities about $175,000.

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Thursday, Nov. 5. About 150 houses were destroyed by fire at Jeremie, Hayti, Monday. The London Daily Mail's Tien Tsin correspondent cables that 10,000 Rub sian troops have occupied Mukden. In a head-on collision between freight trains on the Cleveland and Pittsburg road at Reeds Run, O., two men were killed and a third badly injured. A Big Four yard engine and a cut of freight cars were wrecked east of Caledonia, O., and Engineer Lee Smith and Henry Meischler, brakeman, were killed. Stephen D. Winner, said to have been the oldest locomotive engineer in active service in the United States, is dead at Newark, N. J., aged eightyone years. The Sheldon State bank of Sheldon, la., has closed its doors. Ed C. Brown, Iowa railroad commissioner, is president. The, officers say depositors will be paid in full.

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SHELDON, IOWA-Th report of the receiver of the Sheldon State bank has been filed with the court. It is believed the bank will pay depositors about 70 cents on the dollar.

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WILL PAY ALMOST NOTHING

Failed Sheldon Bank Will Realize But Little for Depositors. Special to Times-Republican. in Primghar, Dec. 14.-People O'Brien county are interested in the reports which are being printed in the newspapers about the condition of th failed Sheldon State bank. Men who have familiarized themselves with the report of the receiver and the character of the assets declare that statements which have recently been sent to the Tribune and other papers that the institution will pay about 60 cents on the dollar to depositors are entirely at fault. It Is stated on the other hand. on the testimony of men who are well acquainted with the people whose notes are listed, that it will not pay over 30 cents on the dollar. One of these IS authority for this statement: Says Assets Are Bad. "Of the $195,000 of assets scheduled. at least $75,000 is not worth the paper it is written on, and is in fact the rottenest of stuff ever set up by any concern as assets of a banking institution. All or nearly all of the really good notes given the bank are in soak in Chicago, Des Moines and Sioux City, and of course these creditors will be paid in full while the local creditors will suffer." It is further declared by representatives of depositors that the people of O'Brien county will never stop short of rigid and thorough probing of the affairs of the bank, and prosecutions are hinted at in strong terms. One of the charges is that the bank has been insolvent for a year and a half and that the fact should have been patent to bankers. On the other hand the friends of Ed C. Brown insist that he employed the best of judgment, and closed the bank at a time when It was yet possible that it might have been tided over, because he did not propose. to take chances of violating the banking laws.

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SUIT AGAINST SHELDON FIRM

Petition in Involuntary. Bankruptcy Promises Light on Bank Failure. Sioux City, March 9.-Startling light was thrown on the late failure of the Sheldon State bank yesterday when R. M. McKinney brought suit in the federal court asking that the firm of J. W. Fix & Co. be declared an involuntary bankrupt. The firm's liabilities are given as $72,000 and the assets as $500. Geo. O. Swazey has been appointed by Judge McPherson to be receiver. The firm is composed of J. W. Fix and Earl C. Brown, cashier of the bank and son of Edward C. Brown, president of the bank and railroad commissioner. It is alleged the firm borrowed about $30,000 from the defunct bank.

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C. BROWN AND SONS ARE INDICTED Sheldon Banker and Railroad Commissioner Charged on Four Counts. PULLS OUT OF THE RACE Mr. Brown Announced That He Would No Longer Attempt to Press His Candidacy for Renomination This Year. Sheldon, Ia., May 5.-The O'Erien county grand jury Tuesday afternoon voted five indictments against Ed C. Brown, chairman of the lowa board of ailroad commissioners and president of he failed Sheldon State bank of this place, for irregularities in connection with the bank's affairs, leading to its ailure. They are understood to inlude one and possibly two for emezzlement, one for declaring a divilend when the bank was insolvent, and least one for receiving deposits after he bank was known to be insolvent. Earl W. Brown, cashier of the bank, and Ed C. Brown, jr., a director, both of President Brown, are also inlicted on five counts each, the same acusations being made against all hree. The indictments were returned the jury sitting at Primghar, the county seat. The Indictments have not yet been reported to the court, but Mr. Brown vas waiting to be called before the jury it is understood was not called, he indictments being based on records. The largest embezzlement charged is based on a loan of $72,000 to J. W. Fix Co., a firm of which Earl Brown, ashier and son of President Brown, vas a member. Earl Brown signed the irm name of Fix & Co. to the notes, he loan being made without authorizaof the directors, which is contrary statute in case of an officer of the bank. Paid Dividend When Insolvent. It is charged in another indictment hat on April 13, 1903, the band declared dividend of nearly $4,000, being then nsolvent. In another, Brown is charged with having borrowed $6,000 from a Chicago ank on his personal note and later writing the bank to charge it against he bank, which is alleged to constitute mbezzlement. There are several specharges of receiving deposits after he bank was insolvent. The bank originally had $100,000 capbut in 1892 was reorganized, the apital being cut to $50,000. It is harged with carrying over $78,000 of ractically worthless paper to the new rganization, and therefore being inolvent from the beginning of the new rganization. Ed C. Brown left Sheldon after it was iven out that the indictments had been

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ED. C. BROWN AND

SONS ARE INDICTED

Sheldon Banker and Railroad Commissioner Charged on Four Counts.

PULLS OUT OF THE RACE

Mr. Brown Announced That He Would No Longer Attempt to Press His Candidacy for Renomination This Year.

Sheldon, Ia., May 5.-The O'Brien county grand jury Tuesday afternoon voted five indictments against Ed C. Brown, chairman of the Iowa board of railroad commissioners and president of the failed Sheldon State bank of this place, for irregularities in connection with the bank's affairs, leading to its failure. They are understood to in- clude one and possibly two for em- bezzlement, one for declaring a divi- dend when the bank was insolvent, and at least one for receiving deposits after the bank was known to be insolvent. Earl W. Brown, cashier of the bank, and Ed C. Brown, jr., a director, both sons of President Brown, are also in- dicted on five counts each, the same accusations being made against all three. The Indictments were returned by the jury sitting at Primghar, the county seat.

The indictments have not yet been reported to the court, but Mr. Brown was waiting to be called before the jury but it is understood was not called, the indictments being based on records. The largest embezzlement charged is based on a loan of $72,000 to J. W. Fix & Co., a firm of which Earl Brown, cashier and son of President Brown, was a member. Earl Brown signed the firm name of Fix & Co. to the notes, the loan being made without authoriza- tion of the directors, which is contrary to statute In case of an officer of the bank.

Paid Dividend When Insolvent.

It is charged in another indictment that on April 13, 1903, the band declared a dividend of nearly $4,000, being then insolvent.

In another, Brown is charged with having borrowed $6,000 from a Chicago bank on his personal note and later writing the bank to charge it against the bank, which is alleged to constitute embezzlement. There are several spe- cific charges of receiving deposits after the bank was insolvent.

The bank originally had $100,000 cap- ital, but in 1892 was reorganized, the capital being cut to $50,000. It is charged with, carrying over $78,000 of practically worthless paper to the new organization, and therefore being in- solvent from the beginning of the new organization.

Ed C. Brown left Sheldon after it was given out that the indictments had been voted to attend the congressional con- vention at Cherokee. On the train he told friends that in view of his indict- ment he would not further attempt to stand as a candidate for renomination as railroad commissioner, his term ex- piring this year.

Will Pay 40 to 50 Cents.

The bank is now expected to pay 40 to 50 cents on the dollar. An effort will be made to hold the original $100,000 of stock for a hundred per cent assess- ment on the ground that the bank was Insolvent when they reorganized and retired, and therefore they could not escape liability by merely reorganiz- ing. The stock at that time was held largely in Dubuque. Under the reor- ganization the $50,000 of stock was chiefly held in Dubuque, but was later bought by the Browns. Under the terms of purchase it continued to be held by the Dubuque people as collat- eral security, the Browns to pay for it in instalments. The Dubuque men re- tained the right to vote it. Creditors Insist that this was equivalent to con- tinued ownership by the Dubuque in- terests, therefore that an assessment against them will hold good. If these two assessment contentions are made good at law a large share of the liabili- ties will be paid, as the eastern Iowa people are wealthy.

The bank had about $194,000 deposits when it failed, on November 3 last. R. W. Ady is receiver, W. D. Boies attor- ney for the receiver, and Joe Moreton of this city county attorney.

Sympathy for the Browns.

It has been expected for a long time that Mr. Brown, who is serving his first term as railroad commissioner, would retire from the race for a re- nomination if he should be indicted. His statement last evening following his Indictment, that he should no long- er attempt to be a candidate, occasion- ed no surprise, but it has resulted in a revival of expressions of sympathy. Without regard to plitics, people here feel a deep sympathy for Mr. Brown, who was always a public spirited citi- zen and a leader in the community, and for his family.

The bank matters were not taken up by the grand jury till yesterday, and there was little delay in voting the in- dictments. For a time after the failure there was much bitterness of feeling against the Browns, but the tide has turned recently, and expressions of re- gret are heard in all quarters.

The firm of Fix and company was handling a big ranch in North Dakota, in which the Browns invested too much money in a speculative transaction. This is not considered the only serious error of judgment, but it contributed largely to bringing about the crash.

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SHELDON

IOWA.-Receiver R. W. Ady today sold the Sheldon state bank building to W. H. and F. L. Myers for $5,500. Only one valuable building representing an asset of the failed bank is undisposed of, and that is used as an implement house. It is thought the bank will pay out about 35 or 40 cents 9n the dollar.

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Good News for Depositors

SIOUX CITY, Ia., Oct. 20.-An important development in the trial of Ed C. Brown of the defunct Sheldon State bank of Sheldon, Ia., was the statement of the receiver that 70 cents on the dollar will be paid depositors instead of 50 cents as was expected.

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Evidence In the Trial of Sheldon Banker Shows Loans Were Made to Many SECURITY WAS INSUFFICIENT Brown Seemed to Have Been Unable to Deny Favors to His Friends and Was More of a "Good Fellow" Than a Rogue in His Dealings With the Bank-News of Interest. Special to Times-hepublican. Primghar, Oct. 23.-In the mass of evidence of the loose banking methods of E. C. Brown, on trial on criminal charges for wrecking the Sheldon State bank, there is more to prove him a "good fellow," in the general acceptation of the phrase than a "bad fellow" in the sense of using other person's money to enhance his own fortune. Receiver R. W. Ady, just before court adjourned Saturday, stated that notes in the bills receivable, which are absolutely worthless, will total over $100,000. The makers of these notes form a list of more than 200 persons, beneficiaries of the charitable spirit of Brown. Farmers, school teachers, impecunious artisans and business acquaintances borrowed this money and if they had no chattels they gave no security. The loaning of $35,000 to the fictitious firm of J. W. Fix & Co., appears to have been Brown's only overt act in an effort to benefit himself. It was this that broke the institution. Court adjourned till today. The state will probably rest its case tonight and the defense finish Wednesday. Some of the Evidence. The two principal witnesses for the state so far were Fred F. Frisbee. cashier of the First National bank of Sheldon, and R. W. Ady, receiver of the Sheldon State bank. It was sought by the state to prove by Mr. Frisbee that a large number of notes carried and listed as assets by the Sheldon State bank were worthless, and the further fact that Mr. Frisbee was one of a committee agreed upon by the Browns and the depositors to examine into the affairs of the bank next day after the failure; and that the real estate assets of the bank were far below in value from the estimates placed upon them by the Browns, and as carried on the bank's books as bills receivable. The other two members of that committee were Hon. Tim Donohue and Joseph Shinski, the latter a capitalist of Sheldon. The board of appraisers were also placed on the stand who had appraised the bank's assets, they being Frank Frisbee, president of the First National bank of Sheldon; H. W. Conant, a justice of the peace of Sheldon, and W. H. Sleeper, cashier of the Union bank of Sheldon. Following these witness1 es R. W. Ady, receiver, was placed on the stand for an entire day, going into 1 all the notes and other assets of the bank, showing that many of them were worthless. 1 Carroll's Letter Damaging. The most damaging evidence to the defense so far offered by the state was I a letter from State Auditor B. F. CarTO roll, bearing date of some time in Aua gust, 1903, in which the auditor informed Mr. Brown that according to t the state bank examiner's report the to Sheldon State bank was carrying too 1 large an overdraft, and advises Mr. Brown to reduce this overdraft at o once. The auditor also informed him o that the law prohibited the bank from " loaning more than $10,000 to any one person, while the report shows that

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FRUIT GROWERS TO SUE RAILROADS

COURTS WILL BE ASKED TO DECIDE QUESTION OF RATES.

Attorney J. H. Call Arrives at Sioux City and Says an Attempt Will Be Made to Recover $5,000,000, Paid to Roads in Excess of Commission's Rates.

Special to The Journal. Sioux City, Iowa, Oct. 24.—Joseph H. Call of California, the well-known attorney who conducted the recent litigation for California fruit growers against the railroads, said yesterday that suit will be brought by the fruit-growers to recover $5,000,000 paid the railroads in over charges.

"There is no power under the present law whereby a court of the United States, or any state, can put into effect a railroad rate as a substitute for one found by the interstate commerce commission to be unjust," he said. Acting for the fruit-growers, he secured a ruling from the commission that the rate on oranges was unjust and should be $1.10 instead of $1.25 from California to Missouri river points. The railroads refused to lower the rate, and Call says the only relief the growers can have is to sue for the over-charge. This, he estimates, would amount to $5,000,000 before such a suit could be brought to judgment. Mr. Call has been mentioned as a possible candidate for the interstate commission, but he candidate for the interstate commerce commission, but he declares he would not take such a position. He is on his way to the interstate commerce law convention at Chicago, in which he will take a prominent part. He visited his two brothers here yesterday.

The defense scored yesterday in the trial at Primghar of Ed C. Brown, president of the failed Sheldon State bank, when Receiver R. W. Ady admitted, in reply to questions by W. D. Boies, attorney for Brown, that the bank had been compelled to sell much of its real property at a figure much below the actual value. It was shown a big mill at Sheldon was sold at $5,000, when the insurance companies valued it at $15,000. It was also shown a big ranch at Ipswich, S. D., was sold at about 50 cents on the dollar.

Ady said, in explaining the two transactions, that it was necessary to close up the bank's affairs, and therefore he was compelled to sell at a sacrifice. He stated he had already collected $120,500 for the creditors, and he might collect more, but insisted he could not obtain enough to pay out. This is very material to the case, for Brown is charged with receiving money when he knew the bank was insolvent. If he can show the bank was not insolvent, he of course will have a good defense.

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MAKING STRONG DEFENSE.

Sheldon Banker's Son Testifies In His Father's Behalf.

Primghar, Ia., Oct.26.-The state rested its case against Ed C. Brown after continuing the examination of R. W. Ady, receiver, and putting J. M. Shrenk on the stand, who made the deposit on the day the bank failed. The state proved by Shrenk that Ed C. Brown and his two sons were all in the bank when this deposit was made, but the defense will prove by at least two or three witnesses that Ed. C. Brown was not in the banking room of the building when the deposit was made, and knew nothing of it until after the failure. Shrenk admitted that his firm, the Sheldon marble works, for whom the deposit was made, at that time owed the bank on a note not then due.

The case so far looks bright for Brown and his acquittal is predicted by some. W. D. Boies, one of Brown's attorneys, said yesterday that the state had not made a case agaist Brown, either under the law or the facts. State Bank Examiner Bennett was here but did not testify as the court ruled that the solvency of the old Sheldon bank, which was merged into the Sheldon State bank in April, 1902, was not involved and as evidence along that line was excluded, Mr. Bennett did not testify.

Son & Strong Witness.

The afternoon was taken up with the examination of Earl W. Brown, son of Ed C. Brown, and cashier of the bank. Mr. Brown made a strong witness for the defense and untangled many of the bank's nets and snares the state had set by trying to show the worthlessness of many of the bank's assets in the form of notes and mortgages. He made clear many trans-actions which the state claimed were shady. Ed C. Brown, the father, will be the next witness for the defense, and as he is thoroughly familiar with the books of the Sheldon State bank, and with the old Sheldon bank as well, for the past thirty years, he will probably be kept on the stand for many hours.

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BANK DEPOSITORS PAID

Receiver of Sheldon State Bank Completes Checks for First Payment. Special to Times-Republican. Sheldon, aMy 14.-R. W. Ady, receiver of the Sheldon State Bank, has completed making out the checks in payment of the first dividend, to the