aac17291None
Click image to open full size in new tab
COLFAX, IOWA-Receiver McElroy of the Bank of Colfax, owned by the late George D. Wood, who committed suicide, made a statement last night to the effect that the bank would pay dollar for dollar. The assets are $125,000 more than the liabilities.
Click image to open full size in new tab
Receiver's Report. Special to Times-Republican. Des Moines, Dec. 9.-Receiver McElroy, in charge of the Bank of Colfax, since the suicide of George D. Woods, the cashier, has prepared a preliminary report on the condition of the bank. His statement shows that the bank is solvent and creditors will be paid. The liabilities consist of $475,000 of deposits, from which should be deducted $26,000 which is owed to George and Alex Woods, partners in the bank and sole owners. The assets consist of $520,000 of bills receivable, $36,000 in overdrafts and $5,000 cash. In addition to this there is the bank building worth $6,000 and real estate owned by the partners estimated to be worth $200,000. The receiver estimates that there will be a shrinkage of probably $100,000 in the notes due, owing to large losses of creditors of the bank, but even at the worst the bank can pay out in full, and it is likely it will be reorganized.
Click image to open full size in new tab
WILL PAY DOLLAR FOR DOLLAR. Assets of Colfax, la., Bank Exceed Its Liabilities. Des Moines, Ia., Dec. 9.-Receiver McElroy, who has taken charge of the Bank of Colfax, owned by the late George D. Wood. who committed suicide, made a statement Tuesday night to the effect that the bank would pay dollar for dollar. The assets of the bank are about $500,000, and $125,000 more than the liabilities.
Click image to open full size in new tab
ive officers do not compel them TO move out of rooms assigned to them by the legislature." Custodian McCurdy was called in to issue orders. The janitor did not feel like clearing out of his room. "Where are these documents to 1 put?" the jaintor demanded. "Over in the new warehouse," was told. "And when a document is wa how are you to get it?" was ask "Send the janitor with a requir for it." was suggested. "Not for $55 a month," declar janitor. "We'll get a bicycle for you," a clerk. And the war was declared off. Mr. McCurdy felt for a time that he would have to get an act of the legislature to move the janitor from his fortress, but it is possible the moving process will be accomplished without further harm. There is a general shaking up of affairs in the state house since the executive council. which has full control of the state house. has decreed much changing about and refitting of rooms. There will be a state fair in Des Moines next year. There has never been any doubt about It. but some persons tried to make it appear that the board would abandon the fair in deference to the St. Louis exposition. But the members of the board. when they got together, decided unanimously that there should be a fair and that it would be a calamity to omit one fair. This was debated in the m ting, however, whether or not it was advisable to do something that would spur the people of Des Moines to greater efforts. The fair people have felt that Des Moines did not do enough for the state fairs. It was suggested that the decision as to a fair be held up until the Des Moines commercial bodies shall take some action assuring an interest; but this was felt to be an unwise action, as it might indicate fear on the part of the board that the fair would not be a success. It was agreed that the success of the fair must depend next year more than ever bef re upon the work of Des Moines people. It is probable that the fair will be managed a little cheaper than usual and an effort will be made to economize all along the line, because of the certainty that the gate receipts will be reduced. But it will be a state fair. And the managers of county and district fairs who were here the past week all agreed that it will be just as well to go ahead with all their fairs despite the big fair at St. Louis. The people who go to state fairs and district and county fairs either do not go to expositions, or if they go expect to go also to the local fairs. Receiver McElroy. who has charge of the Bank of Colfax. stated while in Des Moines this week that he has not completed his examination of the books and accounts of the bank and has made no statement as yet of assets and liabilities. He states that he is as yet unable to find out the value of the paper in the bank nor does he know of the debts of individual members of the firm. It will take him same time to get out a definite statement as to the condition of the bank. In the meantime there is a wide diversity of opinion as to what will happen. Some of the creditors are saying that they do not expect to get very much out of the wreck. while others are confident that the bank will pay out.
Click image to open full size in new tab
Three Banks Suspend. Des Moines, Ia. (Special).-Banks at Ira, Baxter and Mingo, owned by Geo. D. Woods, who committed suicide at Colfax, have closed their doors temporarily. A mechanic's lien on bank fixtures for $1500 filed by a Des Moines firm may precipitate the crisis. Polk county has formally demanded the return of $30,000 deposited in the Bank of Colfax. The demand has not been acceded to Ex-County Treasurer Layman has not recovered $20,000 that he deposited in the Colfax Bank during his adminstration.
Click image to open full size in new tab
THE COLFAX BANK. Will Not Reopen But Depositors Will be Paid in Full. Des Moines, Dec. 10.-Receiver McElroy, in charge of the Bank of Colfax since the suicide of George D. Woods, the cashier, has prepared a preliminary report on the condition of the bank. His statement shows that the bank is solvent and creditors will be paid. The liabilities consist of $475,000 of deposits, from which should be deducted $26,000 which is owed to George and Alex Woods, partners in the bank and sole owners. The assets consist of $520,000 of bills receivable, $36,000 in overdrafts and $5,000 cash. In addition to this there is the bank building worth $6,000 and real estate owned by the partners estimated to be worth $200,000. The receiver estimates that there will be a shrinkage of probably $100,000 in the notes due, owing to large losses of creditors of the bank, but even at the worst the bank can pay out in full, and It is likely it will be reorganized.
Click image to open full size in new tab
Bank Will Pay in Full. Receiver McElroy, in charge of the Bank of Colfax since the suicide of George D. Woods, the cashier, has prepared a preliminary report on the condition of the bank showing that the institution is solvent and the creditors will be paid in full. The liabilities consist of $475,000 of deposits, and the total assets amount to $767,000. The bank may be reorganized.
Click image to open full size in new tab
WOODS' NOTESARE SOLD Deceased Banker's $91,000 of Cattle Paper Sells at Auction For $325 COLFAX BANK PAPER GOES TOO Real Estate Of Banker Woods' Estate Brings $30,000, But The Notes Amounting to $176,000 Are Sold In Bunches For A Song - Ross Was Feeding Cattle For Wood. Colafx, Aug. 25.-At 1:30 o'clock at the city hall of this place occurred the sale of the notes and real estate held by W. O. McElroy, receiver of the defunct bank of Colfax. The total sum of the notes aggregated about $176,000 and the real estate was appraised at 34,500, making a total of $210,500. The total sum for which the notes sold was $678, they being sold in bunches. The largest collection, being signed by one man and amounting to $91,000, sold for $325. This was the largest individual signer in the lot, and of the two hundred notes sold the amounts ranged down to $1.50. The heaviest creditor of the bank whose notes were placed on sale was J. B. Ross, who has been the most extensive stock feeder of this locality, if not in the country. The notes signed by him footed up to about $91,000, but it is quite generally conceded here that, while his name appears on the notes, he was in reality but little if any more than an agent for George D. Wood, the dead cashier, who was in fact the stock feeder on so large a scale. The real estate sales were much better. The appraised valuation of the real estate belonging to the bank cashier as bank property was $34,500. This sold for over $30,000. One farm of 239 acres, brought at auction $87.75 per acre, or a total of $20,494.25. A vast number of the notes were bought at nominal prices for speculation, some bought by friends of the signers and turned back to the original signers of the notes for what was paid. A large number of interested people witnessed the sale, but only a very few notes sold up to 5 per cent of their face value.
Click image to open full size in new tab
TEN BANKERS IN IOWA SELF-SLAIN Record Year of Disaster in That State. CATTLE BROUGHT DOWNFALL Faced by Ruin, Half a Score of Hawkeye Officials Committed Suicide. DES MOINES, Dec. 28.-An unprecedented record of disaster among Iowa banks will be disclosed by a report now being prepared at the State auditor's office for 1904. Culminating last week with the closing of the savings bank at Dedham, this is the year's startling record: Ten bank cashiers dead by suicide. Forty banks wrecked and their surplus squandered. Twelve millions of dollars lost to depositors. In two instances bank officers have absconded with funds, thus accounting for the failure, but the remarkable number of failures due to similar circumstances has aroused the curiosity of the whole State to ascertain the cause. These are the suicides of the year due to bank failures, so far as the State officials know: H. C. Spencer and his son, cashier and assistant cashier of the Grinnell National Bank. George D. Wood, cashier of the Bank of Colfax, Colfax, Iowa. Charles Wood, cashier of the Citizens' Bank of St. Charles. F. L. La Rue, cashier of the Corning State Bank. G. D. Utterback, cashier of the Sigourney Savings Bank. H. W. Main, cashier of the Linn Grove Bank. Cashier of the Lone Tree Bank. Two other suicides early in the year, whose names are not recalled by the attaches of the State auditor's office. Tragedy Follows Tragedy. It is only within the past few days that the State has become aware of the magnitude of the disasters and the tragedies attending them, many of the failures having been kept quiet. Not until the two suicides in quick succession at Lone Tree and Linn Grove, and the failure of the Sheldon State Bank, with losses amounting to many thousands, created a State-wide sensation was general attention attracted to the serious condition of affairs. The failure of the bank at Collfax, the National Bank at Storm Lake, and the bank at Sigourney, with the suicide of the cashier, added to the sensation. The suicide of Cashier Utterback, of the Sigourney Bank, was followed by the discovery of extensive forgeries which he had perpetrated to cover up a shortage which had been running for some time. His shortage, like those of the eight other cashier suicides, was apparently due to one of two causesspeculation on the Chicago board of trade and the juggling of prices by the meat trust. Meat Trust Blamed. The meat trust is blamed by thousands throughout Iowa for the year's tragedies. In almost every bank that failed large quantities of paper, based on higher prices for five stock, were found, the makers being unable to meet their loans owing to the cut in prices of live stock. In almost every case the cashier had trusted to the prices of cattle remaining high, and this, coupled with speculative plunges on the board of trade, accomplished their ruin. Back of this recklessness. State Bank Examiner Cox declares, is the lax banking law of the State, and as a result of the year's melancholy record efforts are already making to amend this law. The epidemic of banking suicides started with that of Cashier George D. Wood, of the Bank of Colfax He was regarded as one of the shrewdest and most trustworthy bankers of the State, and his suicks caused a great sensation. Investigation developed that he personally had been a large investor in live stock and had loaned extensively for cattle purchases. The drop in eattle prices brought him face to face with ruin, if not dishonor, and he took his life. Wood had been accounted the wealthiest and most public-spirited man in his county, and imputation of dishonesty is hotly resented by every man in his home city. The cause of his downfall is illustrated by the sale, after his suicide, of paper representing a par value of $175,000 for $640. State Bank Examiner Cox declares that such worthless paper would never have been admitted to the bank if the institution had been subject to State inspection. A Six-Figure Failure. The death of E. H. McCutchon, one of the best-known politicians in the State, precipitated the wreck of the bank at Holstein. Directly after his death it was discovered that the loss at this bank would run into the six
Click image to open full size in new tab
account of age. He is a rich man. Mt. Ayr - Citizens' bank. Failed on account of bad management and bad loans, but not to farmers. Sigourney - Sigourney Savings bank. The cashier took $47,000 and used it in speculation on the board of trade, and when the discovery was made, shot himself. The bank paid out. Holstein - F. H. McCutcheon & Co.'s bank, Speculations on the board of trade. Corning - Corning State Savings bank. The proprietor of the bank used the funds as his own and when the discovery was made killed himself. Pella - People's Savings bank. Suspended but in settlement paid out. Coin - Bank of Coin. Broke up on account of bad loans, Banker speculated on board of trade. Garden Grove - Farmers' bank. Speculation on Chicago board of trade. Maquoketa - Exchange bank. Broken up on account of dishonesty, shiftlessness and extravagance. Pleasanton - Royal Richardson & Co.'s bank. Broken up on account of speculation. Dixon - Bank of Dixon. Broken up on account of embezzlement by the banker and his son. New Liberty - New Liberty Savings bank, Broken up by loaning money to a theatrical syndicate in Chicago and by speculation and extravagance on the port of the manager. Imogene - Citizens' bank. This bank did not fail; cashier skipped and his father put up shortage and bank flourishes. Birmingham - E. H. Skinner & Co.'s bank. Failed from bad management. Banker now under nine indictments. Olin - Bank of Olin. Broken up by speculation. Buck Grove - H. S. Green's bank. Banker skipped with the money. Dow City - H. S. Green's bank. Failed on account of speculation, and banker skipped. Waverly - German-American Loan and Trust Co. Failed, but paid out. Curlew - Bank of Curlew. Did not fail; moved to another town. Gaza - Bank of Gaza, Did not fail; sold out and moved away. Little Sioux - Little Sioux bank. Failed on account of speculation; president was a farmer and feeder and speculator; finally paid out. Tiffin - Corn Exchange bank. Did not fail; was the private bank and incorporated under the name of Tiffin Savings bank. Emerson - Farmers' bank. This bank never failed. It was consolidated with another bank under name of Emerson state bank. Sheldon - Sheldon state bank. This bank failed on account of politics and bad business methods. Ireton - Bank of Ireton. Failed because it had no capital; manager was a cranky man, and lost money in a brick plant. Ireton - F. M. McKeever's bank. There was no such bank. The bank referred to was the Bank of Ireton. Germania - State bank. This was one of the W. E. Brown banks and was loaded with northern and Canadian lands, hence its failure. Colfax - Bank of Colfax. This bank failed on account of speculations on the board of trade; the cashier suicided. Royal - Bank of Royal. This is one of the W. E. Brown banks and failed on account of speculations on the board of trade. New Providence - O. E. Miller & Sons' bank. This firm kept a store; had small capital; for various reasons lost public confidence and failed. Linn Grove - H. W. Main's bank. This was one of W. E. Brown's banks and failed on account of the speculation upon the part of Brown; Main suicided. Grinnell - National bank. Failed on account of misuse of funds by the Spencer family, extending over a period of years; Spencer and son were drowned, either by accident or intention. Storm Lake - National bank. This was W. E. Brown's bank and failed on account of Brown's speculations; Brown is under indictment. Le Mars - National bank. This bank failed about the year 1900, and the cashier was convicted of embezzlement. The bank failed for want of public confidence and on account of bucketshop speculations by cashier. In some cases it will be seen that the banks were not failures, but were incorporated with others. But in spite of the fact that the story is entirely wrong it is allowed to go out over the country and exert an influence dangerous to Iowa and her real estate interests. The fact is that loans to farmers in Iowa are sought after by country bankers and are valued by them. There is a great deal of legitimate and truthful ground upon which to fight the beef trust without damaging the reputation of the Iowa farmer. According to the magazine article, Senator L. W. Lewis of Page county is quoted as authority for the statements made by Mr. Russell. The Des Moines Capital wrote to Mr. Lewis and received the following in reply: "I am of the opinion that the Iowa bank failures are due to down-right rascality, outside speculation and over-loans.
Click image to open full size in new tab
WOOD ESTATE STILL TIED UP. Bank of Colfax Appeals From Decision Quieting Title to Land. Special to Times-Republican. Webster City, July 10.-The George D. Wood estate is now in the supreme court. The appeal has been perfected in a case involving a portion of it, a parcel of land of large value, being 400 acres, which is a substantial asset, but which, by the decision of Judge Preston of the Jasper district, is not available for distribution among the creditors of the Bank of Colfax, which Wood wrecked before he committed suicide. Receiver W. O. McElroy of that institution, brought the suit to quiet the title in the bank that the proceeds of the land might be distributed among the creditors of the estate. H. B. Alfree, as administrator of the estate. was defendant, as was the widow and
Click image to open full size in new tab
# Wood Cases Decided. The supreme court decided one of the George D. Wood cases from Colfax in the interests of the creditors of the Wood bank which collapsed when he killed himself. In the case of W. O. McElroy, as receiver for the Bank of Colfax, which was the Wood institution, against H. B. Alitree, the administrator of the estate of Cashier Wood, about $10,000 which it was charged that Wood had withdrawn from the bank for grain speculation with one Fowler, was involved. The receiver sued to require restitution of this fund or whatever portion of it still was due the bank from the estate. The heirs of the estate objected to paying the debt. The courts have now decided that the creditors of the bank are entitled to the money. In another case involving the title to certain lands in controversy with respect to the interests of Wood and the creditors of the bank with which he was connected, the court decreed that the land belonged to R. N. Stewart, so that the question of whether the bank or the estate was entitled to it was not settled.
Click image to open full size in new tab
BANK'S AFFAIRS CLOSED. Colfax Institution Will Pay About Thirty-six Per Cent. Newton, July 2.-W. O. McElroy, receiver of the Bank of Colfax, has been allowed $4,000 as a last payment for his services as receiver. This gives him a total fee of $10,000. The Bank of Colfax has paid a dividend of 32 1/2 per cent and Mr. McElroy states that he will be able to pay about 4 per cent more. The final dividend will probably be made some time next December.
Click image to open full size in new tab
RECEIVER M'ELROY DISCHARGED. Newton Man Was Appointed Receiver for Defunct Bank of Colfax. Newton, Feb. 7.-W. O. McElroy, who WS appointed receiver of the defunct Bank of Colfax following the suicide of George D. Wood, filed his final report yesterday, and was fully discharged. The amount of business was so great that it required a volume of about 300 pages to make this final report aside from the numerous reports and orders made every few months since the appointment. About 800 persons filed claims for unsecured claims against the receiver, claiming approximately $625,000, upon which three dividends, which altogether amounted to 39.45 per cent, were paid. Notwithstanding the fact that a vast amount of litigation was required to collect the assets of the bank, three cases being appealed to the supreme court, and that it took more than three years to close up the business, the total costs, clerk hire, attorney's fees, and compensation for the receiver, will amount to only about 6½ per cent of the actual cash handled by the receiver.