22566. Bank of Edgerton (Edgerton, WI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 17, 1897
Location
Edgerton, Wisconsin (42.835, -89.068)

Metadata

Model
gpt-5-mini
Short Digest
8e362728

Response Measures

None

Description

The Bank of Edgerton closed its doors Oct. 17, 1897 and was placed in receivership. Coverage describes alleged irregularities in the cashier's accounts, insolvency, arrest of the cashier, appointment of a receiver (L. H. Towne) and later litigation and dividends paid to creditors. No article describes a depositor run prior to suspension; the episode is a suspension/closure with receivership.

Events (4)

1. October 17, 1897 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed to ascertain liabilities amid alleged irregularities in the cashier's accounts and apparent insolvency/shortage of assets.
Newspaper Excerpt
The Bank of Edgerton closed its doors Oct. 17, 1897.
Source
newspapers
2. November 4, 1897 Receivership
Newspaper Excerpt
REPORT ON THE BANK. Failed Edgerton Institution's Condition... The report of the receiver of the Bank of Edgerton will be ready in several days. Its preparation has been accomplished with much difficulty on account of the involved condition of the affairs of the institution, and its publication is awaited with much interest.
Source
newspapers
3. November 20, 1897 Other
Newspaper Excerpt
Cashier Charles L. Burnham of the Bank of Edgerton returned ... He was arrested on a charge of receiving money after he knew the bank was insolvent, but it is expected that other charges in connection with the failure will be preferred against him.
Source
newspapers
4. July 25, 1902 Other
Newspaper Excerpt
The Bank of Edgerton closed its doors Oct. 17, 1897. ... In the four dividends which have been paid very close to 53 per cent. was paid back to the creditors.
Source
newspapers

Newspaper Articles (12)

Article from Wood County Reporter, November 11, 1897

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REPORT ON THE BANK. Failed Edgerton Institution's Condition-Mill Company Assigns. Edgerton, Wis., Nov. 4.-The report of the receiver of the Bank of Edgerton will be ready in several days. Its preparation has been accomplished with much difficulty on account of the involved condition of the affairs of the institution, and its publication is awaited with much interest. Contrary to reports there has been no organized effort to bring about the prosecution of the bank officials. However, there is much indignation among depositors. The assignment of the Leede Milling company to William Phillips of Evansville was the direct result of the failure of the bank. W. H. Leede of the company, was interested in the bank and the company was indebted to the bank to the extent of about $6,000. The liabilities of the milling company re about $8,000.


Article from Watertown Republican, November 17, 1897

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Edgerton, Wis., Nov. 15.-[Special.]--The committee appointed by the depositors of the defunct Bank of Edgerton says in its report that all endeavors to bring about an amicable settlement having failed. it is the opinion of the committee that legal steps should be taken to protext the depositors' interests. While expressing their confidence in Receiver Towne, the committee believes that the best results can be secured by the appointment of a new receiver on account of the relationship between Mr. Towne and the president of the late bank. A meeting of the depositors called the same day, after hearing the report, decided to recommend to the court for Receiver George C. Sutherland of Janesville.


Article from Wood County Reporter, November 18, 1897

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BANK WILL SOON REOPEN. Antigo, Wis., Nov. 16.-H. G. Borgman, president of the Bank of Antigo, which closed its doors on Saturday, has been appointed receiver, and will also act as cashier. He has given bonds for $75,000, with well-known business men of Antigo and Appleton as his sureties. He says that the bank will open tomorrow for business. Vice-President McDonald says in regard to the bank's affairs:" The bank was closed to get at an exact knowiedge of its liabilities, this being deemed necessary on account of al leged irregularities in the cashier's accounts. It is impossible to say the actual loss is. It may reach several thousand dollars, but in my opinion it will not be $2,000. The loss has been partly provided for and everything will be straightened out." Cashier Buckham said that no one would lose a dollar, and that he can explain all the differences as soon as a thorough examination is made. Edgerton, Wis., Nov. 16.-The committee appointed by the depositors of the defunct Bank of Edgerton says in its report that all endeavors to bring about an amicable settlement having failed, it is the opinion of the committee that legal steps should be taken to protect the depositors' interests. While expressing their confidence in Receiver Towne, the committee believes that the best results can be secured by the appointment of a new receiver on acount of the relationship between Mr. Towne and the president of the late bank. A meeting of the depositors called the same day, after hearing the report, decided to recommend to the court for receiver, George C. Sutherland of Janesville.


Article from Mineral Point Tribune, November 18, 1897

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BANK WILL SOON REOPEN. Antigo, Wis., Nov. 16.-H. G. Borgman, president of the Bank of Antigo, which closed its doors on Saturday, has been appointed receiver, and will also act as cashier. He has given bonds for $75,000, with well-known business men of Antigo and Appleton as his sureties. He says that the bank will open tomorrow for business. Vice-President McDonald says in regard to the bank's affairs:" The bank was closed to get at an exact knowledge of its liabilities, this being deemed necessary on account of al leged irregularities in the cashier's accounts. It is impossible to say the actual loss is. It may reach several thousand dollars, but in my opinion it will not be $2,000. The loss has been partly provided for and everything will be straightened out." Cashier Buckham said that no one would lose a dollar. and that he can explain all the differences as soon as a thorough examination is made. Edgerton, Wis., Nov. 16.-The committee appointed by the depositors of the defunct Bank of Edgerton says in its report that all endeavors to bring about an amicable settlement having failed. it is the opinion of the committee that legal steps should be taken to protect the depositors' interests. While expressing their confidence in Receiver Towne, the committee believes that the best results can be secured by the appointment of a new receiver on acount of the relationship between Mr. Towne and the president of the late bank. A meeting of the depositors called the same day, after hearing the report, decided to recommend to the court for receiver, George C. Sutherland of Janesville.


Article from The Superior Times, November 20, 1897

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BANK WILL SOON REOPEN. Officials of Antigo Institution Claim Everything will be Settled. Antigo. Wis., Nov. 15.-|Special.]-H. 1. Borgman, president of the Bank of Antigo, which closed its doors on Saturday. has been appointed receiver, and will also act as cashier. He has given bonds for $75,000. with well-known business men of Antigo and Appleton as his sureties. He says that the bank will open tomorrow for business. Vice-President McDonald says in regard to the bank's affairs: "The bank was closed to get at an exact knowledge of its liabilities this being deemed necessary on account of alleged irregularities in the cashier's accounts. It is impossible to say what the actual loss is. It may reach several thousand dollars, but in my opinion it will not be $2000. The loss has been partly provided for. and everything will be straightened out." Cashier Buckham said that no one would lose a dollar, and that he can explain all the differences as soon as a thorough examination is made. Edgerton, Wis., Nov. 15.-[Special.]The committee appointed by the depositors of the defunct Bank of Edgerton says in its report that all endeavors to bring about an amicable settlement having failed. it is the opinion of the committee that legal steps should be taken to protest the depositors' interests. While expressing their confidence in Receiver Towne. the committee believes that the best results can be secured by the appointment of a new receiver on account of the relationship between Mr. Towne and the president of the late bank. A meeting of the depositors called the same day. after hearing the report. decided to recommend to the court for Receiver George C. Sutherland of Janesville.


Article from Vilas County News, November 22, 1897

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BANK WILL SOON REOPEN. Antigo, Wis., Nov. 16.-H. G. Borgman, president of the Bank of Antigo, which closed its doors on Saturday, has been appointed receiver, and will also act as cashier. He has given bonds for $75,000, with well-known business men of Antigo and Appleton as his sureties. He says that the bank will open tomorrow for business. Vice-President McDonald says in regard to the bank's affairs:" The bank was closed to get at an exact knowledge of its liabilities, this being deemed necessary on account of alleged irregularities in the cashier's accounts. It is impossible to say the actual loss is. It may reach several thousand dollars, but in my opinion it will not be $2,000. The loss has been partly provided for and everything will be straightened out." Cashier Buckham said that no one would lose a dollar, and that he can explain all the differences as soon as a thorough examination is made. Edgerton, Wis., Nov. 16.-The committee appointed by the depositors of the defunct Bank of Edgerton says in its report that all endeavors to bring about an amicable settlement having failed, it is the opinion of the committee that legal steps should be taken to protect the depositors' interests. While expressing their confidence in Receiver Towne, the committee believes that the best results can be secured by the appointment of a new receiver on acount of the relationship between Mr. Towne and the president of the late bank. A meeting of the depositors called the same day, after hearing the report, decided to recommend to the court for receiver, George C. Sutherland of Janesville.


Article from Watertown Republican, November 24, 1897

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CASHIER TOWNE STAYS. Judge Bennet Refuses to Remove Him on Petition of Depositors. Janesville, Wis., Nov. 20.-[Special.]This morning Judge Bennett denied the motion to remove L. H. Towne, receiver of the Bank of Edgerton, and appoint George G. Sutherland of this city, in his stead. The court held that the evidence showed that Mr. Towne was capable, energetic and faithful. The ground of the petition that the president of the bank was the receiver's father was not evidence that the receiver would not do his duty, the court held, even the depositors asking his removal admitted that Towne had ben an excellent receiver SO far. Attorney J. B. Doe of Milwaukee made the argument in favor of Towne's removal, while Attorney E. M. Hyzer, also of Milwaukee, argued against the change. Many of the citizens of Edgerton, including Mayor Jenson and Postmaster McGiffin, testified that they did not think a change desirable or necessary.


Article from Vilas County News, November 29, 1897

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CASHIER BROUGHT BACK. Edgerton, Wis., Nov. 20.-Cashier Charles L. Burnham of the Bank of Edgerton returned to Edgerton last night in the custody of Sheriff Acheson, who went to Minnesota for him. He was arrested on a charge of receiving money after he knew the bank was insolvent, but it is expected that other chargés in connection with the failure will be preferred against him. The warrant upon which the cashier was arrested was sworn out by Edward Peters, who had a claim for $120. Burnham will doubtless be held for trial. There is a movement to bring about the appointment of another receiver for the bank on account of the personal interest in the bank which the present receiver has. Some 225 depositors have petitioned the court to have George Sutherland appointed receiver in place of Mr. Towne. All birds when perched on trees or bushes serve as weathercocks, as they invariably arrange themselves with their heads to the wind.


Article from Eagle River Review, December 30, 1897

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counter claim of $1,600 alleged to be due him, on account of the amount of timber on the tract having fallen below the amount represented. The stage of water in Lake Winnebago is higher than it has been known to be for many years. It is only two inches below the crest of the dam at Menasha, Since the millmen of Neenah and Menasha have formed a mutual agreement about the water power the water is kept at a much higher stage than formerly. A 20 per cent dividend has been ordered for the depositors of the Bank of Edgerton and will be paid by Receiver Towne. The court has also made an order restraining three of the cases of the creditors against Receiver Towne and will confine the litigation to one suit, making all the creditors plaintiffs in one action. The injunction against Receiver Towne will also be raised so that he can continue his work. Under Sheriff O'Brien and Deputy Sheriff Mutter of Racine County attempted to take into custody Anna Svobodo, a Bohemian woman of the town of Caledonia, who had been ordered to be taken to the Racine County insane asylum. The woman armed herself with an ax and drove the men away. Help was secured and she was overpowered and handcuffed after a terrific struggle, during which Mr. Mutter was cut on the hands. The services of three men were required to arrest the woman. The Paine Lumber Company of Marinette has sold its sash and door factory to Isaac Stephenson. It is said that the Johnson company of Milwaukee will take charge of the plant and will operate it as a planing mill. The factory uses about 20,000,000 feet of lumber annually. Michael Kroupa suddenly became insane in a factory at Racine and, it is alleged, attempted to kill several workmen. The officers who went to arrest him discovered a drunken man who was creating a disturbance and arrested him under the impression that he was Kroupa. The mistake was discovered at the jail.


Article from Eagle River Review, January 13, 1898

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The new flour mill at Bloomer is completed and will be put in operation immediately. Mrs. Charles Kellett of Neenah dropped dead while making purchases in a dry goods store. O. K. Ranum, a druggist of Menomonie, has made an assignment. The assets are about $2,000. County Judge J. A. Murat recently celebrated his golden wedding at his home in Stevens Point. The improvements in the capitol at Madison during 1897 in new buildings foot up to $450,000. The La Crosse Board of Education has made a rule not to employ married women as teachers in public schools. Mr. and Mrs. Jerry Gardner, pioneer residents of Sheboygan Falls,, celebrated their golden wedding recently. A company has been formed at Marinette to improve the power at Chappie rapids, on the Menominee river. A Northwestern passenger train struck a team and wagon at Fenwood. John Trask, one of the occupants, was killed. The body of a babe, wrapped in a newspaper, was found by a party of boys under the La Crosse river bridge in La Crosse. Isaac Varino, a well-known resident of Two Rivers, sustained such severe injuries by a fall on the ice that his recovery is considered doubtful. The Shaw Hardware Company of Racine has made an assignment to Hayland Daymond. The assets are about $5,000 and the liabilities are not known. Thieves entered the store of Huetter & Peterson at Appleton and stole cutlery valued at $20. A small amount of money was taken from the saloon of Mr. Kamp the same night. A horse and cutter were run down between Sagola and Randville, Mich., by a St. Paul train and the driver, an unknown Sagola man, narrowly escaped. His horse was killed. The will of R. P. Elmore of Milwaukee leaves an estate of $100,000 to his four children. The widow is given the homestead and enough cash and securities to amount to $25,000. William Bernard of Necedah, a brakeman on the Chicago, Milwaukee and St. Paul Railroad, was run over and instantly killed while making a switch at the Tomahawk paper mill. The home for the friendless at Sheboygan is in financial difficulty and fears are expressed that it may be compelled to close. A meeting will be held to consider means to aid the institution. Owing to the lack of the signature of one witness to the will of the late Charles W. Stolla at Milwaukee, W. E. Hedgar, to whom an estate of $50,000 was bequeathed, will have considerable difficulty in securing the fortune. The State Treasury has been paid $1,300 by the receiver of the Bank of Edgerton as interest and bonds collected by the bank for the State. The claim of the State as a preferred creditor had been recognized by the bank officials. The Patton flour mills, owned by J. J. Steiger at Fremont, were burned to the ground. There was an insurance of $4,500 in Waupaca agencies. Mr. Steiger paid $9,600 for the mills about a year ago. They will probably not be rebuilt. Marinette can lay claim to the smallest baby in the State. Mrs. Fred Carlson, wife of a woodsman, is the mother, and the tiny infant weighs but two pounds. It is about six inches long and its head could be inclosed in a man's fist. It is healthy and well. Persons who have been closely connected with the Northern Pacific and Wisconsin Central litigation and are acquainted with enterprises in which John D. Rockefeller has been concerned, credit that gentleman with being back of the movement to secure control of the Wisconsin Central properties. As a result of a barroom fight, in which "Bob" Fitzsimmons, Martin Hughs, an attorney; Charles Seaman, a son of Judge William H. Seaman of the United States Federal Court, and Edward B. McDaniels, a comedian in Fitzsimmons' theatrical company, engaged, Attorney Hughs lies in a precarious condition at Sheboygan, and there are some doubts as to his recovery. The trouble grew out of a criticism passed on Fitzsimmons' show by Hughs, which was resented by McDaniels, who, it is alleged, struck the attorney over the eye, rupturing a vein. The Marinette Traveling Library Association has completed arrangements for supplying the rural district with books and magazines. The books will be sent to those districts in chests or cabinets, each one containing forty books. No two chests will contain the same matter, and when one district shall have finished reading the contents of the chest new matter will be placed therein. The donations of reading matter for these traveling libraries have thus far been very liberal. Many hundreds of magazines and periodicals have been contributed and the system will be in full operation this winter. The report of the State Treasurer for December shows the total amount of cash on hand in the State treasury Dec. 31 to be $189,142.67, including all funds. The balance in the general fund was $44,-


Article from The Wisconsin Tobacco Reporter, October 25, 1901

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Bank Assets Sold Cheap. On Saturday, Oct. 19th, occurred the fourth anniversary of the closing of the Bank of Edgerton, and a reminder as well of the greatest financial disaster that ever occurred in this city. The occasion was made impressive by being selected for the date for disposing of the uncollected assets remaining in the hands of the receiver. Acting under authority of the court, Mr. L. H. Towne as auctioneer, appeared before a crowd that assembled in front of the postoffice at 10 o'clock with a long list of securities that originally represented fully $60,000. He announced that he would proceed to sell each item separately and finally the whole bunch in together and whichever way brought the greatest sum would be confirmed. The first tender was the paper of a former business man aggregating $2,150.00, and the munificent sum of one mill on the dollar was offered. The bidder was finally prevailed upon to raise his offer to $2.25, when the prize was knocked down to him. In offering each item down through the list, many of the securities failed to receive a bid, so the aggregate amount received for separate sales did not reach $200. While this proceeding was going on a syndicate of speculators was quietly formed and when the entire block was offered the bunch was sold to E. C. Hopkins, acting for the combination for $330.00. The paper of most value in the lot was a paid up policy for $1000, due at the death of the insured now 47 years of age, whích has a cash surrender value of $143. What the syndicate will be able to realize out of $60,000 of apparently worthless paper aside from the insurance policy is extremely problematical. Friends of some of the makers of this paper might be willing to pay small amounts to get the notes out or circulation and this seems to be the resource these purchasers banked on.


Article from The Wisconsin Tobacco Reporter, July 25, 1902

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WHERE THE MONEY WENT. What Was Obtained From the Old Bank of Edgerton Assets and How Disbursed. Those of our readers who remember back nearly five years ago and recall the circumstances connected with the failure of the Bank of Edgerton will be interested in the figures which we present below. The payment of the final dividend which is now nearly completed returns to the depositors all they will ever realize out of this financial wreck. In the four dividends which have been paid very close to 53 per cent. was paid back to the creditors. The Bank of Edgerton closed its doors Oct. 17, 1897. The stirring times that ensued when meetings of excited depositors were held have not been entirely forgotten. Lawyers were present anxious to stir up litigation and The Reporter was severely critcized for suggesting that it would be better for the creditors to keep out of the law and try and save to themselves all that it was possible out of the failure. If we mistake not, an offer was once made by the stockholders to take the assets and pay the depositors 65 per cent. of their claims, which was rejected. The litigation that ensued run through several years, some phase of which went to the supreme court three different times for adjudication, and it was the depositors' money that has paid the costs and attorney fees. Now after all the delays the creditors get this final accounting and receive but 53 per cent. The first statement issued by Receiver Towne showed the liabilities of the bank to be $335,533.33, while the aggregate assets, including the good, bad and indifferent, amounted to but $241,963.55, an apparent shortage of over $93,000. After working for more than four years the receiver collected but $134,856.48, indicating that $171,000 of the assets were worthless. A statement of the receipts and disbursements is as follows: RECEIPTS.