2986. Kiefer Savings Bank (Hazleton, IA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
March 10, 1913
Location
Hazleton, Iowa (42.621, -91.900)

Metadata

Model
gpt-5-mini
Short Digest
27455970ccd5d3d8

Response Measures

None

Description

Depositors started a run March 10, 1913 after concerns about the Kiefers' private bank; the savings bank voluntarily closed mid-March (Mar 18) and was examined/closed by the state examiner (Mar 20). Although initial reports mentioned a possible reopening, later coverage and indictments indicate the institution failed and did not resume normal independent operations.

Events (4)
1. March 10, 1913 Run
Cause
Bank Specific Adverse Info
Cause Details
Run began after the Kiefer private bank voluntarily closed (Mar 8) and depositors feared the savings bank's stability because the same officers were involved.
Measures
Officers paid depositors initially; later voluntarily closed doors and summoned state examiner.
Newspaper Excerpt
On the following business day, Monday, March 10, a run started on the Savings bank.
Source
newspapers
2. March 18, 1913 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Voluntary closure by officers following the run and suspicion tied to actions of officers of the related private bank; state examiner then took charge for investigation.
Newspaper Excerpt
Officers voluntarily close the bank March 18 and summon Bank Examiner A. O. Woelever of Des Moines.
Source
newspapers
3. March 20, 1913 Other
Newspaper Excerpt
The doors of the Kiefer Savings Bank were closed by a bank examiner ... He says the institution was closed owing to the embarrassment caused by a run on the bank by depositors. ... He says the savings bank so far appears solvent and will be reopened in a few days. (Also reported closed March 20 on order of state bank examiner.)
Source
newspapers
4. March 9, 1914 Other
Newspaper Excerpt
A verdict of guilty was read in court in the case of Iowa vs. Adam Kiefer... Kiefer is the former president of the Kiefer Savings Bank of Hazelton, which institution was closed March 20, 1913, on the order of a state bank examiner. ... indictments returned by the grand jury in connection with the failure of the bank.
Source
newspapers

Newspaper Articles (3)
1. March 21, 1913 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, March 21, 1913

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Article Text

HAZLETON BANK CLOSED. State Examiner Takes Charge of Savings Institution-May Reopen. Hazleton, March 21.-The doors of the Kiefer Savings Bank were closed by a bank examiner who came here from the office of the auditor of state at Des Moines yesterday. A sgin bearing the inscription, "Closed, being examined by the state auditor," was posted on the front door. A. O. Wolerber, state bank examiner, said that he had closed the bank and was making an investigation into the bank's affairs. He says the institution was closed owing to the embarrassment caused by a run on the bank by depositors. He places the liabilities at $49,000 and the assets at $62,000. He says the savings bank so far appears solvent and will be reopened in a few days.

2. March 26, 1913 Decorah Public Opinion Decorah, IA
Article from Decorah Public Opinion, March 26, 1913

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Article Text

HAZLETON BANK FAILS. Kiefer Savings Bank Closed After Run by Depositors Last Week. That the run on the Kiefer Savings Bank of Hazleton, which caused that institution to voluntarily close its doors on the afternoon of March 18, was occasioned by the action of the officers of the Kiefer private bank turning over its business to the trustees of the Savings bank, in which the officers of the private bank are interested, was the statement today made by Karl Kiefer, vice president of the Savings bank. On March 8 the Kiefer private bank voluntarily closed its doors and turned its books over to the trustees of the other institution. On the following business day, Monday, March 10, a run started on the Savings bank. One depositor grew suspicious that the closing of the private bank would involve the stability of the Savings Bank because the Kiefers Adam and Karl, who had the private bank, were president and vice president, respectively, of the other institution. He demanded his money; it was paid. He went out and told his neighbor. The neighbor hastened to the bank and demanded his deposit. While he was being paid, the first man found a number of other friends who hurried to the bank and demanded the full amount of their deposits. And so it went. The report started by the one man spread into a panic and the bank was stormed. Result-officers voluntarily close the bank March 18 and summon Bank Examiner A. O. Woelever of Des Moines. According to Vice President Kiefer, the liabilities of the institution are about $50,000, assets $60,000. The capital is $10,000. The elder Mr. Kiefer has been in the banking business in Hazleton for forty years. A nephew is identified with the only other bank in Hazleton and, altho' he bears the name of Kiefer, he has no business connection with the Kiefer Savings Bank. William Smith is the cashier. Mr. Woelever expects to complete his examination soon, after which the bank will reopen, probably under other management or a new bank will be organized.

3. March 9, 1914 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, March 9, 1914

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Article Text

FORMER HEAD OF HAZELTON SAVINGS BANK CONVICTED OF CHEATING. TRIE DON TWO OF FIFTY-ONE COUNTS IN INDICTMENT Institution Which Kiefer Headed Failed Failed and Affairs Were Found Badly Involved-Indictments Pending Against Several Other Members of Kiefer Family-Other News. Independence, March 9.-A verdict of guilty was read in court in the case of Iowa vs. Adam Kiefer, in which the defendant was charged with cheating by false pretenses. The specific charge was in connection with the payment of two notes, each for $700, and issued by D. B. Stoner. Kiefer is the former president of the Kiefer Savings Bank of Hazelton, which institution wos closed March 20, 1913, on the order of a state bank examiner. The Ktefer Savings Bank was organized in 1910, with a capital of $10,000. In 1863 a private bank was organized by the Kiefer brothers, Adam, John and William. The concern was known as the Kiefer Brothers' Banking Company. About five years ago It was rumored that the private bank was in a critical condition. The savings bank was then organized by the Kiefers, and it was generally supposed that the two banking institutions would be merged within a short time. However the private bank continued to do business and solicit deposits on the promise of payment of 6 per cent interest. while the savings bank offered 4½. About March 1, 1913, Adam Kiefer refused to pay depositors in the private bank. Shortly after this date the bank went into the hands of a receiver. Last October a large number of indictments were returned by the grand jury in connection with the failure of the bank. Those against whom in. dictments were returned, were Adam Kiefer, fifty-one count; John Kiefer, William Kiefer, Earl Kiefer, Kyle Kiefer and William Smith. Bonds from $1,800 to $15,000 were furnished by those indicted. The trial commenced last Monday and Friday evening the jury retired for deliberation. A motion for a new trial will be made, and if overruled an appeal will be taken.