e1b3a3ebFull suspension, Books examined
Other: Underlying cause later listed by Comptroller as 'excessive loans to officers and directors.'
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Bank Closes Doors Corning, Ia., May 15.- - The First National bank of Corning closed its doors today, following a run yesterday in which about $50,000 in deposits was withdrawn. B. Newcomb, the cashier, said today that all claims would be paid.
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EFFORT TO SAVE BANK. First National Bank of Corning Would Reopen With Naming of Receiver. Corning. May 16-Efforts to reopen the First National bank here, which suspended yesterday, without passing into the hands of a receiver, are being made today by the owners of the institution. Deposits amounted to $350,000. W. W. Smith, of St. Louis, national bank examiner, is now in charge of the institution. It was closed Friday on the demand of the comptroller of the national treasury,
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RUN ON CORNING BANK. Mere Gossip Results in Closing Doors of First National. Corning. May 16.-The First National Bank of Corning failed to open its doors yesterday. following a run in which about $50,000 in deposits was withdrawn. The institution was closed on order of the controller of the currency and a bank examiner is in charge. R. R. Newcomb is the president and B. Newcomb is the cashier. The latter said yesterday that all claims will be paid. The capital stock of the bank is $100,000 and surplus $28,430. In the Rand-McNally banks' directory for 1913, its deposits are given as $343,000. Resources not counting capital stock were placed at $280,000 in the last report. Most of the stock was owned by the Newcomb family. The presence of the bank examiner here for several days is believed to have given rise to the rumor that the concern was not in good condition. and the run was the result. Cashier Newcomb was positive in the statement that the bank's resources were ample. "The run started, and we were unable to get more funds into Corning is time to check it," he said. "We paid
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OWNERS OF BANK PLACED IN PRISON Himmel Brothers of Radcliffe, Iowa, Are Arrested on a Charge of Forgery. FARMERS LOSE $100,000 Run on the First National at Corning, lowa, Causes Officers to Close Its Doors. Eldora, Iowa, May 16.-Henry D. Himmell, president, and John E. Himmell, his brother, cashier of the Farmers' bank at Redcliffe, were arrested yesterday, charged with forgery. The Farmers' bank, a private institution, closed its doors yesterday. The warrant was sworn out by John Sampson, a farmer, who alleged that the Himmells deposited with a Webster City bank as collateral a forged note for $2,000. The two men were taken to Redcliffe, where they waived examination and were bound over to the grand jury. They were unable to secure bonds today. Cashier Himmell has given way under the strain and is seriously ill. The closing of the bank, it is said, will result in the loss of nearly $100,000 to farmers and others in this section. Banks in Chicago, Des Moines, Iowa City and Webster City are said to hold paper of the failed bank. The liabilities of the Himmell bank are $255,000 and the assets will not be over $95,000. Another warrant has been sworn out against J. E. Himmell for the a!leged forging of other notes held as collateral by banks in Webster City. Corning Bank Closes Doors. Corning, Iowa, May 16.-The First National bank of Corning failed to open its doors today, following a run yesterday in which about $50,000 was withdrawn. The capital stock of the bank is $100,000, with deposits of $220,000. Resources, not counting capital stock, were placed at $280,000 in the last report. Most of the stock was owned by the Newcomb family.
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ELSEWHERE Col. J. D. Jackling, Utah copper magnate, will live In San Francisco. Hamburg-American liner Vaterland, sails from Southampton to New York on maiden voyage. Methodist church, South, in conference in Oklahoma, prays for success of mediation conference at NIagra Falls. Mrs. Elizabeth Bonnemort, Utah cattle queen, is dead at Salt Lake City. Claim of Mrs. Woodrow Wilson to 60-acre claim in Coachella valley declared valid. Jean Gianini, 16, on trial for murder of Lyda Beecher at Herkimer, N. Y., declared insane. August Haneberg, retired millionaire of Oakland, 76, marries woman of 60, Owing to his illness, no demonstration will be made for Col. Roosevelt upon his return. President will raise American legations at Argentina and Chile to embassies. J. F. Payne appointed postmaster at Auburn. Senator Jones asks $200,000 appropriation for Alaska exhibit at San Francisco fair. First National bank at Corning, In., suspends after a run by deposttors. President and cashier of defunct Farmers' bank at Radcliffe, Ia., charged with forgery. Senate committee reports appropriation bill at $37,238,279, increase of $706,000 over house report. Tract of 230 acres In Tongass national forest In Alaska reserved for education of Indians. Emergency fund of $50,000 is asked for army hospital requirements.
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BANK CLOSES CORNING, Ia., May 16.-Following a run on its deposits the First National bank closed its doors here today.
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Run Closes Iowa Bank. Corning, Iowa, May 18.-The First National bank of Corning failed to open its doors following a run in which about $50,000 in deposits was with drawn. The institution was closed on the order of the comptroller of the currency and W. W. Smith, of St Louis, a bank examiner, is in charge R. R. Newcomb is the president and B. Newcomb the cashier. The capital stock of the bank was $100,000, with deposits at $220,000. Resources not counting capital stock already placed at $280,000.
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Run Closes lowa Bank. Corning, Iowa. May 18.-The First National bank of Corning failed to open its doors following a run in which about $50,000 in deposits was with. drawn. The institution was closed on the order of the comptroller of the currency and W. W. Smith. of St. Louis, a bank examiner. is in charge. R. R Newcomb is the president and B. Newcomb the cashier. The capital stock of the bank was $100,000, with deposits at $220,000. Resources not counting capital stock already placed at $280,000.
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BANK IS IN TROUBLE Gossip Among Residents Starts Run on Corning Institution BELIEVED WILL PAY IN FULL Presence of Examiner Starts Idle Talk Which Caused Many Depositors to Demand Their Money, With the Usual Result. Corning-The First National bank of Corning failed to open its doors following a run in which about $50,* 000 in deposits was withdrawn. The institution was closed on order of the controller of the currency and a bank examiner is in charge. R. R. Newcomb is the president and B. Newcomb is the cashier. The latter said that all claims will be paid. The capital stock of the bank is $100,000 and surplus $28,430. In the Rand McNally bankers' directory for 1913, its deposits are given as $343," 000. Resources not counting capital stock were placed at $280,000 in the last report. Most of the stock was owned by the Newcomb family. The presence of the bank examiner here for several days is believed to have given rise to the rumor that the concern was not in good condition, and the run was the result. Cashier Newcomb was positive in the statement that the bank's resources were ample. "I figure that we still have about $200,000 in deposits on our books, which I think will be paid dollar for dollar."
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The decidedly unusual incident of farmers buying right of way from a railroad, reversing the rule for the first time SO far as known, is being witnessed around Manning In the reconstruction of the Milwaukee railroad through Iowa many curves are taken out and the greatest change anywhere in the state is being made through that city and for a distance on either side of the town. At present the line runs through the south part of the town and the new line runs through the north section. In that vicinity the railroad has over three miles of right of way which it is disposing of to private parties. After seven years of hiding in Texas, John H. Standring, defaulting cashier of the First State bank at Corwith, Iowa, walked into the district court room at Garner and pleaded guilty to fifteen indictments charging forgery, which the Hancock county grand jury returned against him in the fall of 1907. He threw himself up. on the mercy of the court, and has been taken to the penitentiary at Fort Madison to begin serving a fifteen year term. To help Iowa fruit growers prevent an annual $3,000,000 damage to the apple crop by the codling moth, the entomologists of the Iowa agricultural experiment station have just prepared a complete bulletin on ways and means or ridding orchards of this pest. To keep it down trees should be sprayed immediately after the blossoms fall, and then if wormy apples up this second B 'sins up punoj are that month. Dr. E. E. Richardson of Webster City before the annual session of the Hahneman Medical association of Iowa at Iowa City in an address said he believes that the curriculum of every medical college ought to include work in osteopathy, chiropractic and the uses of the X-ray and radium. He would abolish all state boards of medical examiners and permit students to enter practice direct from graduation Daniel B. Ferguson, aged 80, a member of the soldiers' home at Marshalltown from Ida Grove, is dead. Ferguson was a veteran of Company E, Second Iowa cavalry, serving four years. He was one of the oldest members of the home, having entered '888L [II W. D. Cantillon, general manager of the Chicago & Northwestern railway, has retired after forty years of O S health. III TO account uo service Strickland, who has been assistant general manager, will become general manager The German opera house at Denison is now open. This amusement house has been built with popular subscription and represents an investment of $80,000, and is absolutely modern in every respect. It has seats for 1875 people. Members of the Iowa State Undertakers' association will meet in Iowa City June 2 to 4 in their thirty-fourth annual convention. The program for -xe most ene JO euo ST convention the tensive ever arranged for-a meeting of this kind. The Bank of Brooks, a state institution, capitalized for $10,000 and with deposits amounting to about $30,000, closed its doors. Its stock was mostly held by the owners of the First National bank of Corning, which closed recently. Arthur Robbins, for nearly a quarter of a century a conductor on the Rock Island, most of the time between=Cedar Rapids and Minneapolis, died soon after he had finished his run. Mr. Robbins was 49 years old. Ray Cross, a young man of Nevada, was arrested by Marshal Shaver and turned over to the decruiting station at Ames as a deserter from the army. He enlisted in the hospital corps at 1912. December, up "qeN Miss Ella Hitz, aged 20, of Tripoli, Towa, drank poison at the home of Louis Schwartz in Waterloo where she was employed, and died two hours dater A note explained that she was BUIAH jo perp Gilbert Currier was killed by William Elsberry during a scuffle at the McHose Tile factory near Fraser. The victim was struck on the back of the head and his neck broken The 4-year-old daughter of Mr. and Mrs. Frank Nokes of Nevada set fire to her clothing, and before the flames could be extinguished she was frightfully and perhaps fatally burned. All the officers of the supreme camp of the Royal Neighbors of America, headed by Mrs. Myra B. Enright of Kansas City, Kan., as supreme oracle, were reelected. Worrying over domestic troubles, Mrs. Amelia Hawkins attempted suicide at Ottumwa by shooting herself. Little hope is held out for her recovery Mrs. Hans Rasmussen, 58 years old, was fatally injured by falling from an interurban car at Cedar Falls. She was returning from Waterloo, where she had spent the day with her son. Clyde, the 11-year-old son of L. B. Bradley, living on a farm north of Numa, was killed by a bolt of lightning. The nineteenth annual convention of the Society of Music Teachers of Iowa will be held in Muscatine June 61 pus ST "LT To reform the wayward boy and take care of youths when they get into trouble with the law is the object of the "Big Brothers" band now being organized in Iowa City under the auspices of the Elks' lodge. When small boys
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WINTER RECEIVER FOR CORNING BANK Corning. June 24.-P. C. Winter of Creston has been appointed receiver of the First National bank which was closed by the comptroller of the cur rency several weeks ago. News of the appointment was received by Mr. Winter from Congressman Towner, It is probable that Mr. Winter will take charge of the bank at once. There has been considerable criticism at Corning over the delay in the appointment of a receiver and the manner in which time was being wasted in the settlement of the bank's affairs. Congressman Towner's telegram stated that the appointment had been made and that the commission would be is sued at once. It will probably reach Mr. Winter today.
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Receiver for Bank Appointed. Corning, Ia.-Announcement was made here Wednesday of the appointment of P. C. Winter of Creston as receiver of the First National bank of Corning, which was closed nearly two months ago.
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# START BANKRUPTCY ACTION. Creditors File Suit Against Cashier of Failed Corning Bank. Special to Times-Republican. Creston, Dec. 15.—In an involuntary action in bankruptcy filed before the referee in bankruptcy in federal court here, the United States court is asked to declare B. Newcomb, cashier of the First National Bank of Corning, which failed several months ago, a bankrupt. A trustee is also asked for Newcomb's property holdings, to be disposed of for the benefit of the plaintiff creditors. The action against Newcomb is brought by a township school board of Adams county, and by the Arlington Heights Bank of Arlington Heights, Ill. It is claimed that when the bank failed it was owing the school board about $3,400, and it is alleged that B. Newcomb and Ralph Newcomb, officers of the bank, had guaranteed the payment of the money. The claim of the Illinois bank is for approximately $2,500, notes of Barr & Abraham, of Prescott, which were discounted to the Illinois bank without recourse on the Corning bank. The filing of this action has served to call public attention to the bank failure and has resulted in many inquiries, it is said, about the status of the failed institution; when a report is likely to be had from the receiver and when the depositors may expect a dividend.
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Davenport. Because he could not find work and his family faced starvation Henry Eichner, aged 38, shot himself in the head with a revolver Thursday night, inflicting a wound that caused death. lowa City. The twenty-ninth annual meeting of the Iowa Academy of Science will be held at Iowa City on April 30 and May 1. At this meeting papers will be presented by the leading scientists of the state. Between fifty and sixty papers were read and discussed at the Cedar Falls meeting last spring. Keokuk. Father Stephen Davis, assistant to Rev. James H. Gillespie, has been appointed to take charge of the pastorate at What Cheer, Iowa. Father Davis has been in this city for some time. He is very well liked by all those who know him and it is with regret that his friends learned he was to leave Keokuk. Sigourney. Wednesday morning F. C. Schipfer, who for the past few years has been cashier of the Citizens Savings Bank of this place, tendered his resignation to the board of directors to take effect at once. Mr. Schipfer recently sold his interest in the bank to F. H. Tinsley of Oskaloosa. At the annual meeting of the stockholders and board of directors held on the same day Mr. Tinsley was elected cashier to succeed Mr. Schipfer. Des Moines. Eight cars were dumped in the ditch when the second half of freight train No. 910 on the Rock Island shortline from Mason City split on a switch at East Twentleth and Eastern Boulevard at 8 o'clock Friday morr.ing. The engine and first half of the train stayed on the rails. In the wreckage was a car load of oil and a carload of paper but they were not ignited and no one was injured. The wreckage was thrown onto the interurban tracks and the Fort Dodge electric was held up. Corning. After many months of delay and grumbling on the part of the depositors of the failed First National Bank of Corning, an order has just come from Washington to Receiver P. C. Winter to prepare checks and proofs of indebtedhess for a 30 per cent dividend that has been ordered paid by the comptroller. It is estimated by the recelver that the proved claims will call for the payment of more than $70,000 on this dividend, the first made. The deposits of the bank when it failed amounted to almost $250,000. Muscatine. The erection of the addition at the German Lutheran Old Folks Home n 111 be commenced during the early spring.
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DIVIDENDS DECLARED. Corning, Jan. 19.-The first dividend of the First National bank of Corning since that institution suspended business last May has just been declared.
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SPECIAL TRAIN CARRIES $200,000 FROM OMAHA TO SAVE CORNING BANK. BLIZZARD PLAYS PART IN DIFFICULTIES With Train Service Crippled and Wire Communication Interrupted, Bankers Have Difficulty in Arranging For Funds to Halt Run-Sunday Saves Bank From Serious Trouble. Special to Times-Republican. Corning, Feb. 3.-A special train carrying $150,000 in gold and currency and an additional $50,000 in cash received by express, aided materially yesterday in stopping a run on the Okey-Vernon National Bank of Corning, a run which had started Saturday -because of what-no one knows or can find out. The $200,000 in cash was secured from the banks of Omaha and Council Bluffs and the sight of so much money, coupled with the apparent readiness with which the officers of the institution were able to fortify themselves for a run, turned a feeling of nervousness and fear for their money into one of confidence and the deposits of the bank today are said to be greater than when the run began Saturday in the blizzard. Blizzard Adds to Troubles. The blizzard had its terrors not known to ordinary mortals for it threatened to increase the troubles of the bank officials as train schedules were slowly smashed and telephone and telegraph lines were being put out of commission, but Sunday came a day of respite and gave the officers of the bank time to reach Omaha and make their plans for the special train to carry their extra cash for the depositors. The bank is one of the strongest in southwestern Iowa, say business men. It has deposits of approximately $750.000 and when the run on it started the bank had over $300,000 in cash with unlimited resources. Failed Bank Pays Dividend. At. the time the run started there was being paid to depositors of the failed First National Bank of Corning, which has been closed about eight months, the first dividend of 30 per cent and the coincidence is so marked as to cause comment. Corning people have had other embarrassing experiences in banking and for this reason it is believed they are more than usually nervous and conditions make the life of the present bankers more than a simple burden at times like Saturday and early this week.
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NATIONAL BANKS AND CAUSES OF THEIR FAILURE DOCUMENT ISSUED BY COMP. TROLLER OF CURRENCY SHOWS THIRTEEN INSTITUTIONS, BESIDES FIRST NATIONAL OF PENSACOLA, WENT TO WALL. The annual report of the comptroller of the currency to the third session of the sixty-third congress of the United States, issued December 7th. 1914, as document No. 1467, volume two, contains some interesting information concerning the failure of the First National and other banks banks during 1914. This report gives the name of the bank failing, the date of the appointment of receiver, which is the first act by the government after the failure of a bank, and also gives the causes for the failure as found by the government investigation. Below is given a list of the national banks that have failed during 1914, the date of appointment of receiver. and the cause assigned by the comptroller of the currency for the failure. Marion National Bank, Marion, Kansas, January, closed by run. First National Bank, Superior, Neb., January, fraudulent management. Barnesville National Bank, Barnesville, Minn., January, fraudulent management. First National Bank, Pensacola, Fla, January, injudicious banking. Americus National Bank, Americus, Ga., February, fraudulent management. First National Bank, Gallatin, Tenn., March, wrecked by assistant cashier. First National Bank, Wyatusing, Pa., March, depreciation of securities. First National Bank, London, Ky., April, wrecked by assistant cashier. First National Bank, Corning, Iowa, June, excessive loans to officers and directors. First National Bank, Johnson City, IIL, August, injudicious banking. First National Bank, Sutton, W. Va., August, defalcation of officers. American National Bank, Pensacola, Fla., September, closed by a run. United States National Bank, Centralia, Washington, September, defalcation of officers. First National Bank, West Elizabeth, Pa., October, injudicious banking. According to this report, the government recognizes thirty-two different causes for failures, some relating to defalcation, some for excessive loans to officers, some to fraudulent management. Others are listed as wrecked by the president, cashier, or some other officer, and some for other causes. It will be noted that in this report they do not charge fraud against either of the banks which failed in Pensacola, the comptroller's report accounting for the failure of the American National Bank, which re-opened shortly after it closed its doors, gives as the cause, "closed by a run," meaning a run of the depositors. In accounting for the failure of the First National Bank, the report attributes as the cause, "Injudiclous Banking," which is a criticism of judgment against the officers of the bank, rather than a suggestion of fraud or intentional wrong doing on their part.
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SECOND PAYMENT READY, Creditors of First National Bank of Corning to Receive Dividend. Special to Times-Republican. Corning. Oct. 30.-Receiver P. C. Winter, of the First National Bank of this city, is busy making out the checks for another dividend of 20 per cent which has been ordered paid the creditors of the bank by the treasury department at Washington. This is the second dividend, the first being 30 per cent, and it is expected that before the affairs of the institution are wound up by the receiver, another dividend of possibly 10 per cent will be paid. A curious phase of the liquidation of the bank is in the fact that of the checks for the first dividend many have been uncalled for and yet remain in the hands of the receiver. When the first dividend was ordered it was expected there would be such a rush for their money by the creditors of the bank that extra clerical help was secured, which was not needed, and it has actually occurred that the receiver has almost had to force checks for dividends upon some, so indifferent have they been about the matter, and all sorts of advertising schemes have been resorted to to get them to call for their money.
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EFFORT TO BE MADE TO COLLECT LARGE SUM FROM CORNING BANK PATRONS. DREW MONEY OUT ON DAY INSTITUTION FAILED Claim Made That About $55,000 Was Withdrawn Outside Regular Course of Business-Atterneys Say Depositors Can Be Compelled to Return Money to Receiver. Corning. March 22.-A delegation of Corning men went to Bedford this week to consult with W. M. Jackson, an attorney of that place, relative to bringing an action to compet certain persons who drew their funds from the defunct First National Bank the day before it closed to return the funds for the benefit of all the depositors. It is the contention of those interested that certain parties about Corning were admitted to the bank the night before. the last day the bank was open on the theory that they were to look over the assets and probably take the bank over and keep It afloat. It is also contended that these men found the assets so worthless that they did not want to take the bank over and the next day drew their deposits and "put others wise" and that they drew their deposits, not in the course of ordinary business but because they had inside information relative to the solvency of the institution. It is reported that attorneys have said the inside information is sufficient cause to compel those drawing their funds to replace them for the benefit of all the creditors and in that event those who drew their deposits would be made creditors and would be entitled to partake in the dividends that have been made. About $55,000 is claimed to have been drawn the last day the bank was open It is said Mr. Jackson has given as his opinion that those who drew their deposits the last day outside of regular business transactions. can be compelled to replace them for the benefit of all the creditors. This has been talked of for some time. but this is the first step taken towards starting a suit. If this can be done it will mean about 10 to 15 per cent more to the depositors who were not "wise." If the suit is started it will be something new There may be other developments of a more serious nature. There are hints of a federal investigation.
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RECEIVER FOR CORNING INSTITUTION MAKES FINAL REPORT. DEPOSITORS EXPECT ANOTHER DIVIDEND Believed That 60 Per Cent in All Will Be Derived From Assets of Defunct Institution-Federal Judge Forestalls Action Against Depositors Who Withdrew Accounts Before Failure. Special to Times-Republican. Corning, April 10.-P. C. Winter, receiver for the First National Bank of Corning. has wound up the receivership. made his final report to Washington and is shipping the records of the institution and of his stewardship to the treasury department. It is believed that another dividend of probably 10 per cent will be paid depositors. which will make 60 per cent in all derived from the assets of the bank. For some time there has been much gossip about the probable action against certain depositors of the bank who withdrew their money the day prior to the closing of the institution, based upon the belief that these men had inside information of the bank's condition. Judge Evans. in charging the grand jury at a recent session of the Adams county district court. stated to the members of the jury that he had been advised by the county attorney that some criticism had been made by interested persons because grand jury and the county attorney had not investigated the rumored irregularities in connection with the bank failure. District Court Without Jurisdiction. The judge instructed the jury to the effect that because the bank was a federal institution the district courts were without jurisdiction over such alleged irregularities and that if indictments were returned it would be his duty to quash them. The court. in sustaining his position. reviewed the case of the state VS Easton. (188 U S 320) which was appealed from the Iowa supreme court. a case wherein the defendant had been convicted for receiving deposits when the bank was insolvent. The supreme court of Iowa sustained the verdict but the United States court held that the bank. being a federal instit rtion the courts of the state of Iowa had no jurisdiction. No action. so far as known. has been taken to present the matter to the federal authorities further than to consult attorneys whose advice is not known.