22633. Citizens Bank (Juneau, WI)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 13, 1896
Location
Juneau, Wisconsin (43.406, -88.705)

Metadata

Model
gpt-5-mini
Short Digest
20b670ff

Response Measures

None

Description

The bank briefly closed its doors 'fearing a run' after revelations of forged mortgages and alleged embezzlement by the bank president (Rambusch). A subsequent report (one week later) states the danger of a run was over, the bank was found to be 'all right' by examiners and reopened. Cause is bank-specific adverse information (embezzlement/forged mortgages).

Events (2)

1. October 13, 1896 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Revelation of forged mortgages and alleged embezzlement by bank president J. Rambusch; warrant issued for his arrest; officers closed bank fearing depositor panic.
Newspaper Excerpt
The Citizens' bank, of which he was president, fearing a run, closed its doors Tuesday.
Source
newspapers
2. October 22, 1896 Other
Newspaper Excerpt
The danger of a run is now over...Everything proved that the bank was not hurt and the people did not lose confidence in it. ...both found the bank to be solid. The Bank is All Right.
Source
newspapers

Newspaper Articles (2)

Article from The Copper Country Evening News, October 15, 1896

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Article Text

Revealed Forged Mortgages. Well-known men all over the county are on his bonds to a large amount for the estates of minor heirs for whom he was guardian. The examination is said to have revealed forged mortgages to Mrs. Spence to the amount of $13,000: to her son, Roger Winfield, $5,000. and the Nelson estate, $25,000. In one instance it is claimed that he loaned money at 5 per cent. and paid the owner of the mortgage 6 per cent., for some unknown reason. The Citizens' bank, of which he was president, fearing a run, closed its doors Tuesday. Rambusch was rated a rich man and was one of the three owners of the Juneau bank. He had been engaged in the abstract business for many years. and after the burning of the court house and all the county records in 1879 he had the only abstracts, which were considered worth a fortune. Many wealthy people entrusted him with money to loan. People at Juneau and elsewhere, where he has had many dealings, are greatly excited over the His affair. whereabouts is not known.


Article from Eagle River Review, October 22, 1896

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Article Text

dence of crookedness had been found back of 1890, but it is said today that it goes back to 1877. Not much progress has been made in getting at the assets and it will be a long time before they are known. It is believed they will not exceed $25,000 in actual value. No new attachments have been filed today. In all four have been filed, aggregating $42,066; two in favor of Mrs. Spence for $20,500; one for the Nelson estate for $21,066, and one for the Watertown bank for $500. Banker Abert of Fond du Lac arrived this afternoon with a large batch of securities and is now making an investigation to see whether or not they are all right. # Burning of the Courthouse. A startling fact of local history has leaked out in connection with one of the many theories as to the cause of Mr. Rambusch's defalcations. It is the statement made by those who know whereof they speak, that in certain quar- ters Mr. Rambusch was suspected on pretty good grounds of having started the fire that destroyed the courthouse and the county records many years ago. The fire was laid at the door of a de- faulting county treasurer, but the then district attorney had reason to believe that Mr. Rambusch had set fire to the building, and he had such good grounds that he employed Pinkerton detectives to work up the case. They found evidence tending to prove that Rambusch was the guilty man, but it was not sufficient to make a case and the matter was dropped. Nobody ever knew anything about it ex- cept the district attorney and one or two friends, but the fact now comes out. It was that fire that put Mr. Ram- busch upon his feet. Up to that time he had been poor and heavily in debt. He had just bought an abstract business upon credit for $3500, and the moment the county records were destroyed the abstracts in his possession became worth $25,000. That was in 1877, and from that day to this they have been the rec- ords for the county and have been a source of great revenue to Mr. Ram- busch. The theory of those who know this fact is that Mr. Rambusch has been heavily in debt ever since and has been covering one crooked deal with another, all the time living up to or beyond his income. Whether or not they are right will perhaps never be settled, but when it is known just how far back the crook- edness dates, there will be some evidence tending to either prove or disprove the theory. # The Bank is All Right. The last two days have been anxious ones for the officers of the Citizens' bank, of which Mr. Rambusch was president, but the danger of a run is now over. It was fully expected that there would be a run yesterday, but only a single certificate was withdrawn. Yes- terday provision was made for a run, but it did not materialize. Everything proved that the bank was not hurt and the people did not lose confidence in it. Mr Rambusch had little to do with the management of the bank and his crook- edness did not affect it in the least. Bank Examiner Kidd of Prairie du Chien and Cashier Kasten of the Wis- consin National bank, the Milwaukee correspondent of the Citizens', were here yesterday and both found the bank to be solid. Both left last night. Mr. Kidd spent the day in the bank, and before he left last night he stated that everything about the concern was all right. Cashier Hemmy's course in calling in a commit- tee of citizens to examine the books of the bank proved to be wise and the re- port of the committee did a great deal to allays the fears of the people. On Tuesday a warrant was issued for Mr. Rambusch's arrest by the district at- torney on information signed by John Leslie, one of his sureties on the Nelson estate bond. The charge is embezzle- ment. Sheriff Binte immediately tele- graphed to various parts of the country, asking the authorities to be on the look- out for Rambusch. Sheriff Binte thinks a mistake was made in not issuing the warrant earlier. The sheriff and his deputies and the appraisers remained in Rambusch's office until about 11:30 p. m., continuing the search through his ef- fects, but nothing of much account was found. Mr. Rambusch was born in Denmark and emigrated to the land of the free when a young man. He was residing in New York when the war broke out and promptly enlisted as a member of the Fifth New York Volunteer infantry and was honorably discharged from the serv- ice in January, 1862. In the same year he came West, locating in Watertown, this state, where he remained until 1867, when he went to Minneapolis, remaining there for four years, and in 1871 he re- ceived an appointment in the foreign de- partment of the postoffice department. Later he was appointed one of the com- missioners to Berlin in the interests of the United States postoffice department. In 1874 he located at Juneau, engag- ing in the insurance and real estate business there and afterwards going in- to partnership in that business with Mr. Mertz, in which he was engaged when he disappeared. In 1868 Rambusch was united in marriage to Miss Emily Cur- tiss of Minneapolis. He was always sup- posed to be successful in business and above reproach. # Maj. Rockwood Saw Rambusch. It is learned that Maj. H. S. Rock- wood of Portage, who started for the East last Saturday, traveled in company with Rambusch over the Pennsylvania railroad on Sunday. There was nothing in the behavior of Rambusch to arouse the suspicions of Maj. Rockwood, who has known the Juneau man for a long time. Rambusch told the major that he was going to Philadelphia to visit friends.