3250. Corning State Savings Bank (Corning, IA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
January 25, 1909
Location
Corning, Iowa (40.990, -94.741)

Metadata

Model
gpt-5-mini
Short Digest
42c36945

Response Measures

None

Description

The Corning State Savings Bank is repeatedly described as having gone defunct (failed) some years earlier due to the forgery/speculations of its president LaRue (also referenced as Larue). A receiver was appointed (C. F. Andrews) and dividends were being paid to depositors in 1909, indicating permanent closure and receivership rather than a temporary suspension or a run. OCR variant 'La Rue'/'Larue' normalized to LaRue. No article describes a depositor run or reopening.

Events (3)
1. January 25, 1909 Other
Newspaper Excerpt
ORDERED TO PAY DIVIDEND. Corning Bank Depositors Will Have Received Total of Sixty Per Cent. Corning, Jan. 25.-C. F. Andrews, receiver ... has been ordered by the court to pay a dividend to the depositors of 10 per cent.
Source
newspapers
2. * Receivership
Newspaper Excerpt
C. F. Andrews, receiver of the defunct Corning State Savings bank, has been ordered by the court to pay a dividend to the depositors of 10 per cent. This makes a total of 60 per cent received by the depositors and it is expected that about 8 per cent more will be realized on final settlement. (1909-01-25 article excerpt).
Source
newspapers
3. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank became defunct as a result of forgery and speculative actions by its president LaRue (fraud/embezzlement), undermining solvency.
Newspaper Excerpt
a suit against the Corning Savings bank, which went defunct some years ago thru the forgery of its president, La Rue
Source
newspapers

Newspaper Articles (5)
1. April 8, 1908 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, April 8, 1908

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Article Text

Supreme Court Gives Decision of Importance to All Banking Houses MUST PAY FOR BAD PAPER SOLD Savings Institutions Held Liable to Other Banks for Face of Forged Documents Sold as Good - Lower Court of Adams County Is Reversed. Special to Times-Republican. Des Moines, April 8.-In a suit against the Corning Savings bank, which went defunct some years ago thru the forgery of its president, La Rue, the Iowa National bank of Des Moines today won in a decision before the supreme court in a suit of vast importance, in which it is held that savings banks can be held liable for the commercial paper which they sell to other banks. In the district court of Adams county the reverse was held. The supreme court reverses this. The bank thru its president, La Rue, sold paper to the Iowa National of Des Moines. Some of this was later disclosed to have been forged. The statutes give savings banks the right to buy and sell commercial paper, but another statute prohibits, in that they can incur no liabilities other than to their depositors. The receiver of the bank contended that the bank could not be held liable under this latter section. The supreme court holds that the two sections are parts of the same chapter and are to be interpreted together, and that a bank could not buy and sell without incurring the liability. Had the court sustained the Adams county district court, big banks would have been prevented from further buying of commercial paper of savings banks.

2. April 16, 1908 Missouri Valley Times Missouri Valley, IA
Article from Missouri Valley Times, April 16, 1908

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Article Text

Valley, Iowa, class matter. Will Try Cement Bridge Logan Observer: The board of supervisors met in regular session Monday. All present. One of their first acts was to arrange to have a cement bridge constructed across the run at A. W. Jones' place. This bridge is of what is known as re-inforced cement, that is cemen and steel, so combined as to have a maximum of strength. This bridge will be 12 feet long with 14 foot roadway. The ends which are to be 12 feet high will be supported on posts encased with a casing have of 10 cement. foot wings The extending ends will an dea outward grees. Thus at insuring angle of 45 good roadway on the bridge. By the terms of the contract the Clinton Bridge company furnishes the steel for this bridge for $268 and a roreman at $5.00 to confurday struction. superintend The county the to a nish cement, sand and gravel and the required help. The contract price for such a bridge is $600, but the board wished to know the exact cost of the work and material, also the manner of construction so that local men may be employed on such work in the future. A very good idea, as the cement bridge is bound to be the bridge of the near future. Its first cost will be somewhat greater than the steel an wood bridge, but when properly erected the cement bridge will be very durable, outlast many steel and wood bridges. The floor of the proposed bridge will be cement. This bridge will be built under as a the very sandpit favorable is within conditions short distance and it is not far to Mo. Valley, where the steel and cement will be shipped. Savings Banks are Liable. Des Moines, Ia, April 8.The supreme court today decided a case of importance every bank in Iowa, when it held in the case of the Iowa National bank of Des Moines, vs. the Corning Savings bank, that savings banks can be held liable for commercial papers which they sell other banks. The district court of Adams county had taken an opposite view. The Corning bank through its the Iowa a president National sold bank, papers portion to of Subbank sequently which had the been Corning forged. went into the hands of a receiver as the result of the speculations of the president, LaRue The receiver contended that the Corning bank could not be held liable under the Iowa statute which provides that savings banks incur no liabilities other than to their depositors. The court holds that this section must be construed with another chapter which, section taken in the together, same case means bility. that The banks has do incur attracted liaattention in all parts of the state. The following was taken from the Covina (Cal.) Argus and is self-explanatory. Mr. Schofield was formerly employed in the local shops as machinist: Born, to Mr. and Mrs. Geo. B. Scofield, on Saturday, April 4, as glance another at Mr. bouncing Scofield's boy. face A he told was a in came the story; down town it this study week serene was joy reflected happiness. with in Not which his face, only he but the rapidity walked convinced all that he had one more to provide for. and Mother the and sunshine child doing brought nicely, into the home by this little new ar-

3. April 16, 1908 Missouri Valley Times Missouri Valley, IA
Article from Missouri Valley Times, April 16, 1908

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Article Text

# GUARANTEE GOES # WITH BANK PAPER Supreme Court Holds Banks Must Guarantee the Paper Sold to Other Banks. Des Moines, Ia., April 10. In a suit against the Corning Savings bank which became defunct some years ago through the forgery of its president Larue, the Iowa National Bank of Des Moines today won in a decision before the supreme court in a suit of vast importance in which it is held that the several banks be held liable for the commercial paper which they sell to other banks. In the district court of Adams county the reverse was held. The supreme court reverses this. The bank, through its president, Larue, sold paper to the Iowa National of Des Moines and some of this was later disclosed to have been forged. The statutes gave savings banks authority to buy and sell commercial paper, but another statute provides that they can incur no liabilities other than to their depositors. The receiver for the bank contended that the bank could not be held liable under this latter section. The supreme court holds that the two sections are parts of the same chapter and are to be interpreted together, and that a bank could not buy and sell without incurring the liability. Had the court sustained the Adams county district court the big banks would have been prevented from further buying commercial paper from savings banks.

4. July 9, 1908 The Leon Reporter Leon, IA
Article from The Leon Reporter, July 9, 1908

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Article Text

The Sioux City platform is one that all democrats and many republicans can endorse. The platform calls for a law creating a bank deposit guarantee fund that will prevent depositors losing their hard earned dollars they have placed in the banks. Had we such a law a few years ago hundreds of people of Adams county would today rejoice because it would have saved them from loss by the failure of the Corning State Savings bank. Oklahoma has the new law and it is working to the satisfaction of all. The plan was suggested by W. J. Bryan a number of years ago, but little attention was paid to the recommendation at the time. The recent panic and the renewed suggestion of Mr. Bryan and satisfactory test given the law by the new democratic state of Oklahoma has made the proposed law very popular. The democrats of the state propose to try and get such a law passed by the coming legislature. Some of the bankers are contending that it will place the unscrupulous banker in the same pot with the banker who conducts a legitimate business. But how is the public to know who is a safe banker? All people put their money in the bank with the expectation of getting it on demand, but do they always do it? No. It has only been a few months since cash was very scarce in this county and wholsale houses were asking their customers all over the country to make their remittances in cash because the city banks refused to pay cash. Give us a guarantee law. Then the people will be safe with their deposits in any bank. The clever banker will get the business and the banker with a boil on his liver may have to quit, but the depositor will be safe, boil or no boil.—Corning Free Press.

5. January 25, 1909 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 25, 1909

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Article Text

ORDERED TO PAY DIVIDEND. Corning Bank Depositors Will Have Received Total of Sixty Per Cent. Corning, Jan. 25.-C. F. Andrews, receiver of the defunct Corning State Savings bank, has been ordered by the court to pay a dividend to the depositors of 10 per cent. This makes a total of 60 per cent received by the depositors and it is expected that about 8 per cent more will be realized on final settlement. The general creditors have received nothing so far, but will participate in this dividend, as it comprised the receipts from sales of land and other property assigned by LaRue to the bank, after the failure and before he committed suicide. It is expected that the general creditors will receive from 12 to 15 per cent on final settlement.