Peoria National Bank (Peoria, IL)

Episode Information

Episode UID
287801270
Episode Type
Suspension β†’ Closure
Bank Type
national
Bank ID
28780 national
Charter Number
2878
Start Date
October 7, 1905
Location
Peoria, Illinois (40.694, -89.589)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9f53d54d33408e33

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1905-10-07
Date receivership terminated
1907-11-13
OCC cause of failure
Run
Share of assets assessed as good
82.2%
Share of assets assessed as doubtful
13.9%
Share of assets assessed as worthless
3.9%

Description

Directors suspended business and the Comptroller/receiver was appointed; closure appears permanent with liquidation.

Events (4)

1. February 12, 1883 Chartered
Source
historical_nic
2. October 7, 1905 Receivership
Source
historical_nic
3. October 7, 1905 Receivership
Newspaper Excerpt
National Bank Examiner Bosworth has been appointed receiver for the Peoria National bank; every depositor will be paid in full.
Source
newspapers
4. October 7, 1905 Suspension
Cause
Government Action
Cause Details
Directors closed bank after indictment of president N. C. Dougherty and requested Comptroller take charge leading to suspension/liquidation.
Newspaper Excerpt
the directors of the Peoria National bank... decided to suspend business and would call in the Comptroller of the Currency to wind up the affairs of the institution.
Source
newspapers

Newspaper Articles (22)

Article from Albuquerque Evening Citizen, October 7, 1905

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WHY THE PEORIA BANK WAS CLOSED Peoria, Ill., Oct. 7.-Cashier Spring, of the national bank, which closed its doors this morning, said that every depositor would be paid in full. The di. rectors decided to close the bank as the result of the disclosures concerning the operations of its president, School Superintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars. Government Takes Charge. Washington, D. C., Oct. 7.-The comptroller of the currency received a telegram announcing that the Peoria National bank, Peoria, III., had closed its doors upon order of its directors. National Bank Examiner Bosworth has been appointed receiver.


Article from Santa Fe New Mexican, October 7, 1905

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PEORIA BANK CLOSES DOORS Directors Take Action On Ac. count of Indictment of Presi. dent Dougherty RECEIVER APPOINTED Officials State That Depositors Will Be Paid In Full. Over One Million Dol. lars In Accounts. Washington, D. C., Oct. 7.-The comptroller of the currency has received a telegram announcing that the Peoria National Bank, Peoria, Illinois, has closed its doors upon order of its directors. Receiver Appointed. Washington, Oct. 7.-National Bank Examiner Bosworth has been appointed receiver for the Peoria Bank. Every Depositor to Be Paid in Full. Peoria, Oct. 7.-Cashier Spring, of the Peoria National Bank, which closed its doors this morning, said that every depositor would be paid in full. The directors decided to close the bank as the result of disclosures concerning the operations of its president, School Superintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars.


Article from Ottumwa Tri-Weekly Courier, October 7, 1905

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THAT MANY INDICTMENTS PROMISED AGAINST PEORIA SCHOOL OFFICIAL. THIRTEEN RETURNED That Number of True Bills Have Already Been Voted Against Dougherty-Clearing House Association Will Protect Bank Against a Run. Peoria, Ill., Oct. 6. - A total of thirteen indictments thus far have been returned against Newton C. Dougherty, city superintendent of schools and President of the Peoria National bank. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the state's attorney's office and it was announced from that office today that the total would reach more than 200. School Scrip Missing. According to a statement made by a member of the grand jury today hundreds of pieces of school scrip which it is alleged have been changed after being signed by the president of the school board are missing. Fear Run on Bank. At a meeting of the Peoria Clearing House association today it was voted to tender a loan of $100,000 to the Peoria National bank if in the judgment of the directors it became necessary owing to the unsettled condition of the financial affairs of the bank following the withdrawal of President Dougherty. Following his arrest yesterday Dougherty resigned as superintendent of schools and gave up his offices in financial institutions, principal among which was that of president of the Peoria National bank. Leonard is Indicted. New York, Oct. 6.-An indictment for forgery in the second degree against Henry A. Leonard, the youth who secured more than $359,000 worth of securties from the City National bank on forged checks last week, was returned by the grand jury today.


Article from Las Vegas Daily Optic, October 7, 1905

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PEORIA BANK CLOSED Washington, Oct. 7.-The comptroller of the currency received a telegram announcing the Peor'a National bank, Peoria, III., has closed its doors upon an order of its directors. National Bank Examiner Boswerth has been appointed receiver. Bank Scivent. Peoria, Ill., Oct. 7.-Cashier Spring of the Peoria National bank which closed its doors this morning said every depositor would be paid in full. The directors decided to close the bank as a result of disclosures concerning the operations of its president. School Superintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars.


Article from The Evening Statesman, October 7, 1905

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DOUGHERTY'S BANK FAILS Peoria National Closed Its Doors This Morning A RUN MADE ON DIME SAVINGS BANK Peculations of Peoria's Superintendent of Schools Theraten Financial Ruin to Thousands. PEORIA, Ills., Oct. 7.-The Peoria National bank, of which Prof. Dougherty was president, failed to open its doors this morning. A run on the savings bank in interested is which Dougherty started today. The bank took advantage of the 30-day rule.


Article from The Providence News, October 7, 1905

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DIRECTORS WILL CLOSE THE BANK Peoria, Ill., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery, yesterday the directors of the Peoria National bank, of which he was president, announced early this morning that they had decided to suspend business and would call in the controller of the currency to wind up the affairs of the institution. The meeting of the directors lasted all evening and behind closed doors. It was admitted that a run would be inevitable today, and the only recourse was to liquidate at once. The loan of $100,000 to the Peoria Clearing house was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day yesterday, most of the calls coming from bar ks in neighboring towns. The bank was capitalized at $200,000. The bank will not be open for business today, and a representtative of the controller is expected from Chicago before noon.


Article from The Cairo Bulletin, October 7, 1905

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PEORIA BANK CLOSES DOORS TO STOP RUN Directors Realized That Depositors Would all Withdraw OFFICIAL'S INDICTMENT ON MANY COUNTS FOR FORGERY LEAVES INSTITUTION IN A SHAKY CODITION-COMP. TROLLER PLACED IN CHARGE. Peoria, Ill., Oct. 6.-At a meeting of the directors of the Peoria National bank late tonight, it was unanimously voted to close the institution and ask the comptroller to take charge. Since the indictment of N. C. Dougherty, until yesterday the president of the bank, on many counts for fergery, hundreds of depositors have withdrawn their acounts and this caused the action of tonight. It was admitted at the directors meeting that a disastrous run was inevitable tomorrow, and as a proffered loan of $100,000 by the Pecria Clear-


Article from Omaha Daily Bee, October 7, 1905

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DOUGHERTY IN DEEP Thirteen Indietments Returned Against Peoria School Superintendent. FORTY MORE IN COURSE OF PREPARATION Indication that Total Number Will Reach Two Hundred. CHARGES FORGERY AND EMBEZZLEMENT Committee Appointed by School Board Will Continue Investigation ANK CLERK EXPLAINS THE OPERATIONS Queer Methods of Dougherty brought to Attention of Authorities and Clerk Discharged from Bank for Doing So. PEORIA, III., Oct. 6.-A total of thirteen inaictments have thus far been returned against Newton C. Dougherty, city superintendent of schools and president of the Peoria National bank. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the states attorney's office. It is announced from that office today, that the total would reach for more than 200. The bail required Dougherty thus far returned is $52,700 Mr. Dougherty is in receipt of messages of from all over the country, many them expressing sympathy and a belief in his innocence. According to a statement tomade by a member of the grand jury day the hundreds of pieces of school scrip which, it is alleged to have been changed the after being signed by the president of school board are missing. A committet appointed by the school board to continue the investigation after the grand jury gets through, announced through its chairman, John S. Stevens the today that they would go back over books of the board for twenty years. In some- cases both stubs and couchers are missing, representing according to the cash book, large amounts. How Dougherty Was Detected. Erwin J. Schnebly, discount and exchange clerk at the Peoria Nationel bank, the man who first discovered irregularities in Mr. Dougherty's method of handling school funds, made a statement today. He said: I took charge of the individual books there- at seven years ago and to notice the queer after the bank I began shortly the methods funds had of handling Peoria school board. He and of payable to various local firms checks Mr. the Dougherty would smaller make his person al check for the give I called the attention of the bank amount. officials to this state of affairs and business. was informed that it was none of our and was then transferred to the discount exchange Mr. Dougherty department. would bring in checks for amounts, payable in most instances to a furniture firm in Chicago or firm would in St. purchase New large a checks plumbing school he Louis. With York, these Chicago or St. Louis exchange, made payto his own order. Upon examination able drafts found of the endorsements on the I used instances they had been private business affairs. local he would endorse the names or on the draft without their cases firms in.his that in many knowledge, signature. In some his own Initials under the the matter before Mr. bank examiner. for this puting National laid Cook, district. before the advice I laid the matter general at me to talk to the state's of Upon advised the Peoria attorney his county. which I Springfield. did. I also attorney laid He the matter before S. O. Spring. cashier of bank. Transactions of that kind then the ceased. In explaining them to me Mr. said that he kept of in New York. Chicago and St. I was called before the exhibited many changed checks. funds, Dougherty When were three grand sets Louis. jury instance a check charged to the had been raised from to The stub showed $24. In $2,450. school there In one fund which another $24 had was drawn for $2.1 750. The stub orginally read $27 had been raised to were $2.750. The last two figures on the stub green ink. the first two in black. in was discharged from the bank only last Saturday. At the meeting of the Peoria Clearing House association at noon it was voted to tender a loan of $100,000 to the Peoria National bank. if in the judgement of the directors it became necessary. owing to the unsettled condition of financial affairs of of the bank, following the withdrawal President Dougherty, under indictment. Bank Closes Its Doors. As a direct result of the indictment of N. C Dougherty for forgery yesterday the directors of the Peoria National bank. of which he was president, announced shortly after midnight this morning that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable today, and the only course was to liquidate at once. The loan of $100,000 by the Peoria Clearing house was tied up in such wise was bank learned that it had could that been quiet not going withdrawals be on accepted. all day. from It the


Article from Alexandria Gazette, October 7, 1905

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Today's Telegraphic News Bank Closed. Peoria, III., Oct. 8.-The Peoria Jational Bank, of which N. C. Dougherty was president, did not open its doors this morning. At a meeting of director's of the institution last night is was dec ded that the Comptroller of the Currene be asked to appoint a receiver. Withorawals of money by banks about the state and in Chicago and the loss of confisience, caused by the alleged wholesale peculations of Dougherty were causes that led to this action. Dougherty has turned over his entire fortune to Oliver J. Bailey, and vainly tried to borrow more. His friends fear insanity. With the closing of the PeoriΔ… National Bank by order of its directory, the voting of indictments, making the total against N. C. Dougherty one hundred, and the refusal of friends on wbom he had counted to give him financial assistance, the banker and noted educator faces the probability of going to jail. Washington, D. C., Oct. 7th.-The resources and liabilities of the Peoria National Bank, according to the last statement of condition made to the Comptroller of the Currency, on August 25, were $1,806,370,57 each.


Article from The Evening World, October 7, 1905

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BANK CLOSED BY FORGERY CHARGE Run Feared Through Indictment of President Dougherty, of Peoria National, So Directors Decided to Wind Up Affairs. PEORIA. III., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery yesterday, the directors of the Peoria National Bank, of which he was president, announced early today that they had decided to suspend business and would call in the Comptroller of the Currency to wind up the affairs of the institution. The meeting of directors lasted all evening and was behind closed doors. It was admitted that a run would be inevitable to-day, and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria Clearing-House was tied up in such wise that It could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day yesterday, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000. The bank will not be open for business to-day and a representative of the Comptroller is expected from Chicago before noon. WASHINGTON, Oct. 7.-The Comptroller of the Currency has received a telegram announcing that the Peoria National Bank of Peoria, III., has closed its doors on the order of its directors.


Article from The Salt Lake Herald, October 8, 1905

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BANK FAILED TO OPEN ITS DOORS Dougherty Trouble Involved the Peoria National. DEPOSITORS HAVE A SHOW FIGURES SHOW A VERY FAIR CONDITION. Peoria, III.. Oct. 7.-The Peoria National bank did not open its doors today. C. H. Bosworth has been appointed receiver and will take charge of the affairs of the bank pending liquidation. This is the result of the action by the board of directors at a midnight meeting. "We had several offers from banks who wished to take over our business. but our directors decided that the best thing to do would be to liquidate under the law. Every depositor will be naid in full and I am confident that the stockholders will receive a good return." This is the statement of R. 0. Spring. cashier of the Peoria National bank. which closed its doors as the result of the Dougherty investigation last night. Run on Savings Bank. When the news that the Peoria National had been closed had spread. depositors began to flock into the Dime Savings bank, in which Dougherty is a heavy stockholder, and by 12 o'clock th bank was experiencing a heavy run. At 1 o'clock the officials posted the sixty days notice. It was announced that the bank would be kept open until depositors were satisfied. In financial circles it is not though that the bank is in danger, as it has $500,000 cash on hand. Shortly after 11 o'clock this morning Mr. Dougherty came from the Dime Savings bank. where he had been closeted with O. J. Bailey and others concerning the securities which he had deposited. Had Nothing to Say. Mr. Dougherty. in reply to questions, said he had nothing to say on the situation. "The putting un of securities is construed as a confession by most people, Mr. Dougherty,' was suggested. "All I have to say in this regard.' replied Mr. Dougherty. "is simply this: "In butting up the securities I have in Mr. Baileys hands, it was not for the purpose of extenuating anything, but simply that I believe things will be shown to be right, and that the amoun' thus deposited is much more than any one claims the shortage to be. It has no reference whatever to guilt or innocence and it was furtherest from my idea in


Article from Albuquerque Morning Journal, October 8, 1905

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Peoria Bank Closes. Washington, Oct. 7.-The comptroller of the currency received a telegram announcing that the Peoria National bank, Peoria. III., has closed its doors upon the order of its directors. National Bank Examiner Bosworth has been appointed receiver. Will Be Paid in Full. Peoria, Ill., Oct. 7.-Cashier Spring. of the National bank, which closed its doors this morning said every depositor would be paid in full. The directors decided to close the bank as a result of the disclosures concerning the operations of its president, School Sup nerintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars.


Article from Los Angeles Herald, October 8, 1905

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PEORIA NATIONAL BANK CLOSES ITS DOORS ACTION RESULT OF DOUGHERTY INVESTIGATION Cashier Declares All the Depositors Will Be Paid in Full and That the Stockholders Also Will Receive a Good Return By Associated Press. PEORIA, Ill., Oct. 7.-The Peoria National bank did not open its doors today. C. H. Bosworth has been appointed receiver and will take charge of the bank's affairs pending liquidation. This is the result of the action of the board of directors at a midnight meeting: "We had several offers from banks who wished to take over the business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liquidate under the law. Every depositor will be paid in full, and I am confident the stockholders will receive a good return." This is the statement of R. O. Spring, cashier of the Peoria National bank, which closed its doors as the result of the Dougherty investigation last night. The Dime Savings bank, in which Dougherty is a large stockholder, experienced a small run today, but depositors were paid as they asked for their money. The officers announced that they have plenty of funds to meet all inquiries. When the news that the Peoria National bank had been closed had spread, depositors began to flock into the Dime Savings bank, in which Dougherty is a heavy stockholder, and by 12 o'clock the bank was experiencing a heavy run. At 1 o'clock the officials posted the sixty days' notice. It is announced that the bank would be kept open until depositors are satisfied. In financial circles it is not thought that the bank is in danger as it has $400,000 cash on hand.


Article from Durango Semi-Weekly Herald, October 9, 1905

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ONE HUNDRED INDICTMENTS AGAINST PEORIA BANKER PEORIA, III., Oct. 7.-The Peoria National bank, of which Newton Dougherty, the indicted school superintendent, was president, did not open for business today, pursuant to a decision of the directors reached at midnight. Dougherty has turned over his private fortune to the bank. It is expected that Dougherty will be lodged in jail this afternoon when he has been arraigned on 87 additional indictments. He has turned over securities worth $200,000 to cover the alleged shortages. He may not be able to raise bail. He has already given bail on thirteen charges. He does not deny his guilt. His friends advance the kleptomania theory. National Bank Examiner Bosworth was appointed receiver of the institution. Runs were started this afternoon on the Dime Savings bank and the City National bank.


Article from The Morris County Chronicle, October 10, 1905

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ARRESTED FOR SCHOOL GRAFT. Professor Dougherty. Peoria's Superintendent. Accused of Forgery. Peoria, Ill-The arrest on a forgery charge of Professor Newton C. Dougherty, Peoria's foremost citizen, former President of the National Educational Association, banker, School Superintendent, and friend of Nicholas Murray Butler, of the Columbia University, of New York, has furnished this city with the most amazing sensation in its history. A second indictment, charging him with the embezzlement of $3000, was returned against Mr. Dougherty, and it is now said the stealings will reach the $250,000 mark, and perhaps more. The authorities declare they have evidence to show that Dougherty's life has been a living lie; that while posing as the apostle of civic righteousness, preaching education and good morals, he has appropriated money entrusted to him in a business capacity. Professor Dougherty has resigned as President of the Peoria National Bank, thereby staying a "run." He also sent in his resignation as superintendent of schools and as director in the various commercial institutions in which he is interested. Dougherty was one of the pillars of the First Congregational Church and a member of every club of importance in the city, as well as the Union Club, of Chicago.


Article from Valentine Democrat, October 12, 1905

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BANK DECIDES TO CLOSE. Dougherty Scandal Causes Peoria National to Go Into Liquidation. As a direct result of the indictment of N. C. Dougherty at Peoria, III., for forgery Thursday, the directors of the Peoria National Bank, of which he was president, announced shortly after midnight Friday morning that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable Friday and the only course was to liquidate at once. The loan of $100,000 by the Peoria clearing house was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in the neighboring towns.


Article from The Leader, October 14, 1905

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DECIDED NOT TO OPEN The Peoria National Bank, of Which N. C. Dougherty Was President, to Go Into Liquidation. Peoria, Ill., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery, the directors of the Peoria national bank, of which he was president, announced shortly after midnight that they decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable, and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria clearinghouse was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000.


Article from Vilas County News, October 16, 1905

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The jury in the case of R. D. Fletch- er, a white man, charged with assault- ing Mary Gladder, a German girl, in Russellville, Ky., returned a verdict of guilty and fixed the punishment at death. In a collision between a Louis- ville and Nashville light engine and a Southern railway freight near Boyles, Ala., H. E. Abercombe of Villa Rica, Ga., extra fireman on the Southern, was killed. The launch Maj. Wilcox, owned by the A. Booth Fish company, with a half ten of black bass caught with nets in Lake Erie, was held and seized by Ohio game wardens and may be confiscated. A diver located near Michigan City, Ind., the wreck of a three- masted schooner believed to be the Thomas Hum, which sailed from Chi- cago fourteen years ago and was never heard of afterward. Daniel McIntyre of Gladbrook, Iowa, gave $10,000 to the $150,000 endow- ment fund being raised by Western college at Toledo, Iowa. Leander Clark of Toledo and Andrew Carnegie had each given $50,000. Missouri demands that McCall re- pay the campaign contribution of $148,000 and that new officers of the New York Life be elected, giving the alternative of exclusion of the company from the state. A mistrial has resulted in the case charging "criminal negligence" against W. B. Caldwell, who was con- ductor on one of the trains wrecked on the Southern railroad near New Market, Tenn., Sept. 24, 1904. Failure of the Peoria National Bank, of which N. C. Dougherty was president, caused a run on two other banks, the 60-day notice being invoked in one instance. Financiers fear a spread of the panic among deposi- tors. Germany and other European coun- tries may bar big New York life in- surance companies from doing busi- ness because of the revelation as to graft and corruption. This action would mean a heavy loss to the con- cerns. District Attorney Jerome of New York asked for a special grand jury to investigate the big life insurance companies. The son of the president of the Mutual Life was paid $1,705,- 681 in commissions besides a salary of $30,000. Newton C. Dougherty, superintend- ent of Peoria schools and president of Peoria National bank, was indicted for forgery and larceny of public funds. His peculations extended over a period of 27 years and aggre- gate $500,000. Chief of Police John J. Donohue of Omaha has sent a cashier's check for $200 to Butte, Mont., to cover the reward offered by the chief personal- ly for the capture of Pat Crowe, who will be brought back handcuffed by two detectives. At Hickman, Ky., after he had re- turned from church, Emmett W. Roach, a prominent citizen and teach- er, was shot from ambush. Roach lived thirty minutes and gave the name of his assassin, which has not yet been made public. At Minneapolis, Ira Riddle, an aged sailor, has been stabbed almost to death in his bed in a lodging house. A deposit certificate for $150 was stolen. The bank refuses to give him the money without a bond, fearing the old man may have indorsed the cer- tificate to some one. Alfred, the younger son of the late David Shepard, founder of the Nichols & Shepard Thrashing Machine com- pany at Battle Creek, was cut off in his father's will without a cent. The estate of $1,000,000 is left to the elder son Freedom. Alfred contested, but the probate judge decided against him. Charles King, whose sentence of death was executed Sept. 30, at Fort Saskatchewan, Canada for the mur- der of a young Englishman, Edward Hayward, is believed to have been Robert Martelli, sentenced to death in 1900, but through the intervention of the Italian government given a new trial and acquitted. At Sheboygan, the damage suit of Nic Faber, whose arms were broken, jaw fractured in three places, one eye gouged out, teeth knocked out, and shoulder dislocated, was non- suited, because the supreme court, in ordering a retrial by the circuit judge, decided Faber had no case. He had been awarded $8,000 against the Reiss Coal company. Miss Hattie Dew Hirst, one of the pretty girls of Huron, Ohio, whose room was entered by robbers a few nights ago, received a letter, mailed


Article from The Topeka State Journal, January 1, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. 3-Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 24-Canton, O., state bank closes Lexington, Okla., First national bank falls. 26-Barberton, O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, III., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes. 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (I11.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Ch'cago. Chicago National, Home Savingsand Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis, Tenn., close doors; first named in liquidation.


Article from Belding Banner, January 4, 1906

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Peoria's Defaulting Schood Official Embezzled Nearly $1,000,000. DURING PERIOD OF 18 YEARS Audit Company Renders Its ReportScathingly Assails School Board for Negligence, and Declares Bank Is Liable for All Losses. Peoria, Ill., Jan. 3.-The report of the Everett Audit Co., on the defalcations of N. C. Dougherty, the former city superintendent of schools, who pleaded guilty to a charge of the embezzlement of public funds, and who is now serving in the penitentiary an indeterminate sentence, was made public at a meeting, of the school board last night. The total shortage for seven years is $541,408 50, from which will be deducted approximately $15,000, for unauthorized, but warranted expenditures. The audit company gave out the opinion that the total shortage for 18 years would fall slightly short of $1,000,000,stating that large amounts of forged script had been found in 1887 and 1889, but no totals or estimates on these years had yet been made. The report scathes the officers of the board. The report declares that if the board or any of its officers had used even ordinary diligence in, the erformance of their duty, the muleting of the school funds would have been impossible and that the members of the board are individually liable for all shortage which cannot be collected from Dougherty and the Peoria National bank, of which the latter was president. Cashed Fictitious Script. The report shows that $532,000 of the shortage was directly manipulated by the cashing of fictitious script through the Peoria National bank. It declares that the bank is liable for every cent of this amount, and the board, on the strength of the report, elected Judge David McCulloch to act as attorney in recovering the money f om the bank, instructing him to enjoin the bank from further payment of divideds or other disbursments until the claim of the board should be adjusted in the courts. Senator Orville Berry of Carthage, receiver for the bank, was present at the meeting and announced that be would fight in the courts the attempt to hold the bank liable. The investigation will be continued until complete.


Article from The Columbia Herald, January 5, 1906

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WHAT DOUGHERTY STOLE EXPERT SCORES THE PEORIA SCHOOL BOARDEven Ordinary Diligence Would Have Prevented Shortage-Bunk and Board Members Liable. Peoria, Ill., Jan. 4.-The report of the Everett audit committee on the defalcations of N. C. Dougherty was made public at a meeting of the school board. The total shortage for seven years is $541,408, from which will be deducted approximately $15,000 for unauthorized but warranted expeditures. Everett gave it as his opinion that the total shortage for eighteen years would fall slightly short of $1,000,000, stating that large amounts of forged script had been found in 1887 and 1889, but no totals or estimates on these years had yet been made. The report scores the officers of the board, the treasurers and presidents especially, the fianance and auditing committees and the members of the board individually. Everett declares that if the board, or any of its officers, had used even ordinary diligence in the performance of their duty the mulcting of the fund would have been impossiblt, and that the members of the board are individually liable for all shortage which can not be collected from Dougherty and the Peoria national bank. The report shows that $532,000 of the shortage was directly manipulated by the cashing of fictitious script through the Peoria national bank, of which N. C. Dougherty was president. It declares that the bank is liable for every cent of this amount, and the board, on the strength of the report, elected Judge David McCullogh to act as attorney in recovering from the bank, instructing him to enjoin the bank from further payment of dividends or other disbursements until the claim of the board should be adjusted in the courts. Senator Orville Berry, of Carthage, receiver for the bank, was present at the meeting and announced that he would fight in the courts the attempt to hold the bank liable.


Article from The Grenada Sentinel, January 13, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. 3--Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 24-Canton, O., state bank closes Lexington, Okla., First national bank fails. 26-Barberton, O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, III, national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes. 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (III.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Ch'cago. Chicago National, Home Savings and Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis, Tenn., close doors; first named in liquidation.