Commercial Savings Bank (Des Moines, IA)

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2 LARGE BANKS IN DES MOINES CLOSED TODAY

[By The Associated Press.] Des Moines, Ia., Dec. 31.—Two Des Moines banks, the Mechanics Savings Bank and the Commercial Savings Bank closed their doors today and were taken over by the State Banking Department. The cause in each case was given as prospective or actual heavy withdrawals of public and private funds.

The Commercial Savings Bank had $1,500,000 of public funds on deposit at the time it was closed. It was closed on orders of the state banking department.

Inability of the bank to obtain surety for public funds, deposited by the state, the city of Des Moines, Polk county and the school board is said to have caused the action, these depositors being compelled under the law to withdraw the funds in the absence of depository bonds. The bank, it is said, was unable to withstand such heavy withdrawals.

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FIVE BANKS CLOSE

Iowa Institutions Unable To Withstand DES MOINES. Dec. 31.-Five of of priv ate and Moines institutions closed almost bank did The Commercial Savings not open for business at all this ing the Merchants ving closed shortly o'clock after depositors started The First National at Denison closed account of its inability to collect funds withdraw taking with branch banks at Vail and Dow City.

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TO PROTECT DEPOSITORS

Des Moines, Ia., Dec. 31 (AP)—A combination of causes, including uncertainty as to rights of surety companies guaranteeing public deposits, the probable withdrawal of large sums of public money because of failure of banks to obtain depository bonds for public moneys and shaken public confidence, was assigned by various officials tonight for the series of bank suspensions in Iowa today.

Five banks closed their doors during the day and two of them were turned over to the State Banking Department, which, it was announced, will exert every effort to protect the interests of depositors. These two were the Commercial Savings and the Mechanics Savings Banks here.

The others included the First National Bank of Denison, Iowa, and private banks controlled by that institution in Dow City and Vail.

The Commercial Savings Bank here was the largest institution to close its doors. Officers declared they were unable to obtain surety for the $600,000 State funds on deposit and

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Five Iowa Banks Close on Last Day of Year

Des Moines, Iowa, Dec. 31.—A combination of causes, including the probable withdrawal of large sums of public money because of failure of banks to obtain depository bonds for public moneys, and shaken public confidence, was assigned by various officials tonight for the series of bank suspensions in Iowa today.

Five banks closed their doors during the day and two of them, the Commercial Savings and Mechanics Savings banks here, were turned over to the state banking department. The others included the First National bank of Denison, Iowa, and private banks controlled by that institution in Dow City and Vail.

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BANKS IN IOWA IN BIG CRASH

Combination of Causes Is Fatal to Five: Runs Met by Others.

DES MOINES, Iowa, Dec. 31. (A) combination of causes, including uncertainty as to subrogation rights of surety public deposits, the probable withdrawal of large sums of public money because of failure of banks to obtain depository bonds for public moneys and shaken public confidence, was assigned by various officials tonight for the series of bank suspensions in Iowa today. Five banks closed their doors during the day and two of them were turned over to the state banking department, which, it was announced, exert every effort to protect the interests depositors. These two were the Commercial Savings and the Mechanics Savings banks here The ohters included the First National bank of Denison, lawo, and pri(Continued on Page Three)

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BANKS WHICH CLOSED YESTERDAY

These pictures were taken yesterday by Register photographer, following the closing of the Mechanics Savings bank and the Commercial Savings bank The Mechanics bank is located at 319 avenue and the Commercial bank at the northwest corner of Fifth avenue and Locust street.

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FIVE BANKS of Causes Given for Combination Suspension of lic Money Withdrawn. DES MOINES, Ia., combination causes, including rights surety probable withpublic deposits, large sums of failure banks obtain depositary bonds for shaken public assigned various tonight for series Iowa today banks closed their doors and of them during day turned the state bankwhich, exert effort to interests depositors. protect These Commercial Savings and banks others included the First National and Savings bank institution Officers declared obtain funds

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Public Funds Removed on Ruling They Arn't Preferred Claims

DES MOINES, Ia. Dec 31—The Commercial Savings Bank here failed to open today, under orders of the State Banking Department. The bank had $1,500,000 of public funds on deposit.

Later another Des Moines bank, the Mechanics Savings, closed and was taken over by the State Banking Department, due, it was announced, to prospective or actual heavy withdrawals of public and private funds.

The banking department was this afternoon unofficially informed that the First National Bank of Denison, Iowa, the bank of Dow City, Iowa, and the Traders' Bank of Vail, Iowa, also had been closed, because of heavy withdrawals. These three institutions are closely related.

The Commercial Savings Bank was the first to close, officers stating they had been advised of the probable withdrawal of the public funds because surety companies declined to renew depository bonds.

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FIVE IOWA BANKS CLOSE DOORS IN DAY

Des Moines, tion of causes, uncertainty as to subrogation rights companies guaranteeing public posits, the probable withdrawal large sums of public money of failure banks to obtain itary bonds for public moneys shaken public confidence. signed by various officials for the series of bank suspension Iowa oday Five banks closed doors the day and two of turned over to the state partment which, was will exert every effort protect interest of depositors. One was Commercial Savings Mechan banks here The others included the ional bank of Denison. private banks controlled stitution in Dow City and The Commercial Savings here was the largest institution close its doors, Officers they were unable to obtain surety the state posit and that sum was in in the on Suspension of the Farmers' was also reported.

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FIVE IOWA BANKS CLOSE

Two of Institutions Turned Over to State Department

DES MOINES, Iowa, Dec. 31.—A combination of causes, including the probable withdrawal of large sums of public money because of failure of banks to obtain depository bonds for public moneys and shaken public confidence, was assigned by various officials tonight for a series of bank suspensions in Iowa today.

Five banks closed their doors during the day and two of them were turned over to the state banking department, which, it was announced, will exert every effort to protect the interests of depositors. These two were the Commercial Savings and the Mechanics Saving Bank here.

The others included the First National Bank of Denison, Iowa, and private banks controlled by that institution in Dow City and Vail.

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FIVE IOWA BANKS FORCED TO CLOSE

Failure of Banks Is Laid to Combination of Causes; Money Withdrawn

DES MOINES, Iowa, Dec. 31.—A combination of causes, including uncertainty as to abrogation rights of surety companies guaranteeing deposits, the probable withdrawal of large sums of public money because of failure of banks to obtain depository funds from their public moneys and shaken public confidence was assigned by various officials tonight for the series of bank suspensions in Iowa today.

Five banks closed their doors during the day or two of them were turned over to the state banking department, which, it was announced will exert every effort to protect the interests of the depositors. These two were the Commercial Savings and the Mechanic Savings banks here.

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FIVE BANKS IN IOWA ARE CLOSED DURING THE DAY

DES MOINES, Jan. 1.-A combination causes, including uncertainty as subrogation rights guaranteeing public deposits, the probable withdrawal of large sums of public money failure of banks obtain depository bonds public moneys and shaken public confidence, assigned by various officials night the series bank suspensions in Iowa terday. Five banks closed their doors during the day and two of them turned the bankexert every effort protest the interests deposiThese the Com* mercial Savings the Mechanics Savings banks here. others included First National bank Denison, private controlled by that institution Dow City and

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DES MOINES BANK FAILS

THE ASSOCIATED PRESS) Des Moines. Dec. 31 Com mercial Savings bank here failed to open its doors this morning under orders of the state banking department The bank had $1,500,000 of public funds on deposit.

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FIVE BANKS IN IOWA SUSPEND

Combination Causes Bring Failures.

DES MOINES, Ia., Jan. 1.—A combination of causes, including uncertainty as to subrogation rights of surety companies guaranteeing public deposits, the probable withdrawal of large sums of public money because of failure of banks to obtain depository bonds for public moneys and shaken public confidences, was assigned by various officials tonight for the series of bank suspensions in Iowa, today.

Five banks closed their doors during the day and two of them were turned over to the state banking department, which it was announced, will exert every effort to protect the interests of the depositors. These two were the Commercial Savings and the Mechanics Savings Banks here.

The others include: The First National Bank of Denison, Iowa and private banks controlled by that institution in Dow City and Vail.

The Commercial Savings Bank here was the largest institution to close its doors. Officers declared they were unable to obtain surety for the $600,000 state funds on deposit and that withdrawal of this sum was in prospect with the changing administration in the state treasury on Friday.

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FIVE BANKS IN

IOWA SUSPEND

Des Moines.-A combination of causes, including uncertainty as to subrogation of surety companies guaranteeing public deposits, the probable withdrawal of large sums of public money because of failure of banks to obtain depository bonds for public moneys and shaken public confidence, was assigned by various officials for the series of bank suspensions in Iowa Wednesday. Five banks closed their doors during the day and two of them were turned over to the state banking department, which, it was announced will exert every effort to protect the interests of depositors. These two were Commercial Savings and the Mechanics Savings bank here. The others nclude the First National bank of Denison. Iowa. and private banks controlled by that institution in Doe City and Vall.

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SCHOOL DISTRICT SEEKS PREFERENCE IN BANK FUNDS was begun yesterday in district court represent ing the independent school district Des Moines foreing R Leach receiver Com mercial Savings and Mechanics Savings banks, to accord preference to district accounts when begins to settle with the The petitions filed assert that at time the Commercial Sav ings bank suspended business on Charles Grabl. school district treasurer had $495,040 deposit district's claim against the Mechanics Sav. ings bank totals it was stated

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SURETIES SEEK PREFERENCE OF PUBLIC FUNDS

Guarantors in Three Closed Banks Begin Action to Test Ruling.

The first move to test the validity of the Iowa preference law the decision of the supreme court that public funds were not preferred accounts. In the United States Supreme court was started today by attorneys representing six companies who have bonded approximately $800,000 in three defunct banks in Des Moines The action was started an amendment pending against bond to the losses of the state and Polk county the Mechanics. Commercial and United State In the amendments filed in district court today the dam company of New York Globe Indemnity company. Fidelity and Deposit com pany of Maryland. Maryland Cas nity company the law which passed by the fortieth general assembly and which the supreme court ruled invalidated the preference void.

Attack Ruling. the law their amendments void and of effect in the rights of Bennett counstate then = in and posed to the constitution the state of United States in that it deprives them property without due process of

Plan to Appeal. Harley Stipp. attorney for four of companies today stated that the to their filed today failed in the courts his was appeal to United States preme contention in conflict with the constitution of the United States action was stated the thouse. taken would delay the liquidation the banks in Moines year at least

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YEOMEN WANT BANK DEPOSIT

Commercial Bank Receiver and Bonding Companies Are Sued

The of American Yeomen today filed suit the Polk county district court against defunct Commerical Savings Robert receiver for the closed bank and companies in the the papers filed for the except which bonded

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OUR CITY SCHOOLS FROM

The annual report of George L. Garton, secretary of the Des Moines school board. published elsewhere in dein this issue of Plain Talk, shows the total expenditures by the district for education of the youth of Des Moines, during the year ending June was against $3,872,671 for the previous year, and $5,106,351 for the year ending June 30. 1926. The report showed cash hand in school district funds, at the on close of the amounting to The district year has tied up in the receivership of the Commercial Savings bank. but has received from the bank receivers $100,000 during the year Most of the funds for operation of the schools of the city come from direct tax levies, but the report shows receipts from other sources amounting to more than 000. Tuition paid by patrons accounts for $90.067 of the miscellaneous receipts; other districts paid in tuition total of $9,831,999: rent of school property brought in from the state and federal aid funds came the state university contributed another the sum of to be used for child study and parent aid services for the pupils from inaccessiTransportation ble outlying districts the city, cost the board $14.the This sum paid for bus service during year. and also paid the car fare of children were sent treme distances the junior high schools. The district paid for its janitor services in all the schools, the sum of fuel for the year cost cost water cost electricity 50 and telephone came to $6,532.49. Bonds for were issued during the year for expenditures on new buildings. The board retired of bonds during the year, paid for new school sites, and $28,955.41 for general Annuities paid form teachers' pension fund during amounted to $13,002.01. The pension fund rethe year ceived $18,948.51 from the teachers salaries. which per cent of the pay roll. The fund now has interested bearing securities, and its investinvested in ment interest receipts for the year amounted to $10.212.70.

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BANK RECEIVERS TAKE OFFICES IN BUILDING

The combined receiverships of the three closed Des Moines banks will have offices. beginning today. on the eleventh floor of The Reg and Tribune building instead the banking quarters of the Iowa Loan Trust company in the Southern Surety building H. Vanderploeg. examiner In charge of the receiverships of Iowa Loan & Trust company the Commercial Savings bank and the Mechanics Savings bank. and his staff moved to their new quarters last night Distribution of dividends from the three banks will be made from The Register and Tribune building offices. The Southern Surety company owners of the building which housed the Iowa Loan & Trust company, will occupy the bank's former quarters. Cancellation of the Iowa Loan & Trust company lease, which had thirty years to run, will save the about $850 per month. 1. Andrew state super 'endent of banking. announced for the sale of the banking fixtures are nearing