f215598fFull suspension
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Another Bank Quits. "DES MOINES, Oct. 22.-Notice posted on the doors at United States bank of this city today that a threatened run made closing necessary, informed customers that the bank had suspended. The state banking department said that no inkling of the banks' suspension had been given state officials.
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FUNDS SUIT MAY BE FILED AGAINST BURBANK AND BONDSMEN. Moines, of suit probably will be filed by Attorney General Ben Gibson in the ordered instituted by the executive council against Burbank, forstate treasurer, and through which the state will seek to recover $1,060,000 which Mr. Burbank could not produce for his successor when he relinquished office January The department of justice obtained from the budget director the plete listings of state funds which were largely held by Des Moines banks that closed recently, and started preparation of proof of loss to accompany the filing of the are going to everyone concerned with the funds Burnot collect before he left Mr. Gibson. The action, would be taken without Burbank could not be reached statement on the executive council's action. Gov. Kendall, who framed the resolution calling for the suit, declared was merely move by the to protect its interests and that no to be made by the council of the former treasurer, who had been unable to produce the funds largely because of recent bank difficulties here. The possibility that the companies concerned with the funds might make settlement prior the filing of the suit discussed some official quarters, one official pointing out that the result of the case already in district court which Mr. Burbank is suing suredeposits placed the defunct United States bank might have bearing on the other state deposits. The money the state seeks to collect deposited with three banks and trust company. All the banks have been closed.
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PLANNING AFTER LOST STATE FUNDS Suit to Be Filed Against Former State Treasurer Burbank and His Bondsmen. Des Moines, of suit probably will be filed by Attorney General Ben Gibson in the case ordered instituted by the executive council against Burbank, for inez state treasurer, and through which the state will seek to recover approximately $1,060,000 which Mr. Burbank could not produce for his successor when he relinquished office January The department of justice obtained from the hudget director the plete listings of state funds ed, which largely held by Des Moines banks that closed recently, and started preparation of proof loss to accompany the filing of the are going to sue everyone concerned with the funds Mr. bank could not collect before he left said Mr. Gibson. The action, he said, would be taken without Mr. Burbank could not be reached late for statement on the executive council's action. Gov. Kendall. who framed the resolution calling for the suit, clared was merely move by the state to protect its interests that no criticism was to be made by the council of the former treasurer, who had been unable to produce the funds largely because of recent bank difficulties here. possibility state funds might make settlement prior to the filing of the suit cussed in some official quarters, one official pointing out that the result of the case already in district court which Mr. Burbank is suing sureties for state deposits placed with the defunct United States bank might have bearing the other state on posits. The money the state seeks to collect deposited with three banks and trust company. All the banks have been closed.
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PLANNING TO AFTER LOST STATE FUNDS Suit to Be Filed Against Former State Treasurer Burbank and His Bondsmen. Des Moines, of probably will be filed by Attorney General Ben Gibson the ordered instituted by the executive council against Burbank, for state and through which will seek approximately $1,060,000 which could not produce for his successor when he relinquished office January The department of justice obtained from the budget directo: the plete listings of state funds concern ed, which were largely held by Des Moines banks that closed recently, and started preparation of proof of loss to accompany the filing of the going to sue everyone concerned with the funds Bur bank could not collect before he left office," said Gibson The action, he said, would be taken without Mr. Burbank could not be reached late for statement on the executive council's Gov. Kendall. who framed the resolution calling for the suit, clared merely move state to protect its interests and that no criticism to be made council of the former treasurer, who had been unable to produce the funds largely because of recent bank difficulties here. The possibility that the surety companies concerned with the state funds might make settlement prior the filing of the suit dis cussed some official quarters. official pointing the result the already district court which Mr. Burbank suing sureties for state deposits placed with the defunet United States bank might have bearing on the other state posits. The money the state seeks to lect deposited with three banks and trust company. All the banks have been closed.
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PLANS AFTER LOST to Be Filed Against Former State Treasurer Burbank and Bondsmen. Des Moiries, of suit probably will be filed by Attorney General Ben Gibson in the case ordered instituted by the executive council against Burbank, state treasurer, and through which the state will seek to recover approximately $1,060,000 which Mr. Burbank could not produce for his successor when he relinquished office January The department of justice obtained from the budget director the comlistings of state funds concernwhich were largely held by Des Moines banks that closed started preparation of proof accompany the filing of the are going sue everyone concerned the funds could not collect before he left said Mr. The action, said, would be taken without Burbank could not be reached for statement on the executive action. Gov. Kendall. who framed the resolution calling for the suit, clared merely move by the protect its interests and that criticism by the council of the former who had been unable produce the funds because of recent bank diffihere. The possibility that the companies concerned with the funds might make settlement prior the filing the was discussed some official one official pointing out that the result already district court Burbank suing surefor state deposits placed with the defunct United States bank might bearing on the other state posits. The money the state seeks to deposited with three banks and company. All the banks have
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Bank Reorganization May Pay 75 Per Cent Des Moines, Jan. state banking department today nounced plans were under way for the bank stockholders and surety concerned of thru which depositors of three defunct banks might be paid 75 per cent of their claims. The banks are the United State bank, the Mechanics Savings Savings. The banking department, said, favors the plan.
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MUST TELL IF THEY KNEW BANK CLOSING Depositors Who Withdrew Accounts From Bank Subpoenaed. A list of fifty-nine depositors of the United State bank who withdrew their deposits from the bank Oct. 20 and 21 before the bank closed Oct. 22 have been subpoenaed appear before the Polk county grand jury and tell if they were informed the bank was going to close. Subpoenas were issued for them ago and they will appear before the grand jury this week it learned morning the bank closed John Gibson. president. issued a that unfounded rumors had started run on the bank and that the officers had decided It was better to turn the affairs over to the state banking department. $60,000 Drawn Out. The depositors called before the grand jury drew out more before the doors of the institution closed. Only partial list of those who withdrew accounts have been subpoenaed It was said at the courthouse. County Attorney Vernon Seewould not discuss the today Asked whether not the witnesses would be If they advised after condition of the bank revealed in conference in the office of Robert L. Leach, state department head, Oct. 19, he replied: cannot discuss the proceedings of the grand jury publicly. Accounts Withdrawn. The depositors subpoenaed and the money withdrawn by them from the are: Bankers Life company, cash, State Automobile Insurance company, cash. State Automobile Insurance State Automobile Insurance B. Lorenz of the State AutoInsurance company, Christmas savings account closed, savings account cash, Cleveland of the State Automobile Insurance his personal company account, the savings account of his sons. Don Cleveland. $100, and Jack Cleveland. $300.71 Daisy savings closed $100 George closed $300 savings closed Kruger, Christmas $50 Elder, savings savings accounts, $62, and William Kruger, Christsavings William Kruger, Christmas Blanche three Christmas $205, $135 and $135 in Mrs. John Christmas Christmas Gertrude Gavin savings $415. Emma Theta Epsilon Beulah Davis, Christmas Ings Florence Christmas savings Gertrude Gavin. Christmas Mrs. Christmas $20 Kennedy Christmas Epsilon club. Christmas Elder. Christmas savings, Less Elder, Christmas cash, accounts vithdrawn by Don Neiman. Des Moines Credand adjustment bureau. adjustDes Moines Men's Don Neiman, These drawn in Paul's 204 Hoyt, cash, and Mining company by Rudolph Surety company G. Churchill, cash, $539.
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WILL QUIZ DEPOSITORS Fifty-nine Who Drew Money From Bank Shortly Before Closing to Be Questioned. DES MOINES Jan. 30.-A list of fifty depositors of the United State bank who withdrew their deposits from the bank October 20 and 21 before the bank closed October 22 have been subpoenaed to appear before the Polk county grand jury and tell if they were informed the bank was going to close. Subpoenas were issued for them week ago and they will appear before the grand jury this week. The morning the bank closed John Gibson, president, issued a statement that unfounded rumors had started a run on the bank and that the officers had decided it was better to turn the affairs over to the state banking department The depositors called before the grand jury drew our more than $60,000 before the doors of the institution closed.
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WILL QUIZ DEPOSITORS Fifty-nine Who Drew Money From Bank Shortly Before Closing to Be Questioned. DES MOINES, Jan. 30.-A list of fifty-nine depositors of the United State bank who withdrew their deposits from the bank October 20 and 21 before the bank closed October 22 have been subpoensed to appear before the Polk county grand jury and tell if they were informed the bank was going to Subpoenas were issued for them a week ago and they will appear before the grand jury this week. The morning the bank closed John Gibson, president, issued a statement that unfounded rumors had started a run on the bank and that the officers had decided it was better to turn the affairs over to the state banking department The depositors called before the grand jury drew our more than $60,000 before the doors of the institution closed.
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DERS STOCK ARE SUED State Seeks to Recover Money Deposited in Des Moines Banks. Bank Suspended When State Sought to Withdraw Its Funds. Des Moines. Feb. against stockholders in three Des banks for state money involved in the 'closing of the institutions recently was filed today by Attorney General Ben Gibson. The suits are directed against all of the United State bank. the Savings bank and the Mechanics Savings bank. and set out that under the laws the are personally liable thru stock assessments. for losses by depositors. The state funds amount to more than $500,000. The amount of capitol stock to be assessed under the terms of the attorney general's suit is $100.000 the Mechanics Savings bank; for the United State bank. and $200.000 for the Commercial bank. have been granted are pending for three institations. The United State bank closed early in the winter. The Commercial and Mechanics bank suspended operations the first of this year when they failed to provide surety for the public money and the state funds were about to be withdrawn.
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BILL BANK BOARD Would Pass on Places for Public Deposits. Carriage by the state of its own insurance on public deposits it carries its own fire insurand do with depository bonds insuring them, proposed in in senate Senator Brookof Washington The bill provides for banking board composed the governor of bank ing and attorney duties the be pass upon the eligibility banks receive public deposits of the state and its municipalities. Require No Security. No security for these deposits or depository bonds would quired under the Brookhart bill Public treasurers would longer be required give official bonds be liability the deposits count the failure an approved bank depository In place of the depository and official bonds now required, any losses in public funds would made to the state and its municipalities state sink ing fund made up of portion state' receipts from the per cent interest paid on public Sinking Fund. This sinking fund would average balance in the office state treasurer The rest the interest account would kept on deposit in local banks Whenever the went below in his the state treasurer would proportionately interest fund maintained county, city and school board treasurers Whenever bank having public deposits the state treasurer once pay from his sinking fund, the amount the state municipality on deposits and subrogated in the rights of the treasurer he had paid Share With Individuals. The municipalities would then share individual dewithout any difference between the amount of the public deposit would be made of the sinking fund. The amount celved from bank receiver fund go back into the sinking The Brookhart bill provides that shall be made effective all banks now receivership where distribution of assets has not been started If the bill were passed by both houses would apply United State, Commercial Savings and Mechanics Savings banks Moines which there are school board and counfunds and to all other closed banks which distribution of assets has not been started.
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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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ORDER RELEASE OF PLEDGES TO UNITED BANK Move Made to Spread Liquidation. A move, that is expected to have a far-reaching effect in the liquidation of the affairs of the defunct United State bank was made yesterday, when District Judge Thomp son authorized Robert Leach, col- reof the to release ceiver lateral which was pledged to the bank by the United Cattle Loan & Livestock company several years before the bank suspended busi ness. The collateral consists of se curities given to the bank at the time loans were advanced to the cattle concern The court's order also provides that Mr. Leach is receive $33,200 in cash immediately from the Royal Union Mutual Life Insurance company which said to represent portion of the cattle firm's obligations to the bank Another provision the order specifies that the lease for the quarters in which the United State bank has been conducting its business at the southwest corner of Seventh street and Grand avenue, will be cancelled immedi ately by the United Cattle Loan Livestock company owners of the property and the bank' receiver will not be compelled to pay any more rental This will mean an approximate saving of $5,000 as the lease did not terminate until next January, according to the original agreement More than $44,540 worth of interest coupons on cancelled mortgages now in Mr. Leach's posses. sion will be exchanged, in accordance with provisions of the plan. for income trust certificates of the Transportation Building corporation of Chicago. The trust certificates. it was explained. will have value equal to or slightly in excess of the amount of interest coupons held by the receiver
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LIQUIDATION COST $36,000 Leach Makes Report Showing Closed Banks' Standings. Liquidation costs of the three closed Des Moines banks were given at in the report for the fiscal year ending at midnight last night. made by Robert Leach in turning his office Thursday over to Andrew new state superintendent of banking, who took office today Expenses of liquidation for each bank United State bank $15,826.93 Boys' Play Suits Commercial Savings 12,812.14 Flapper play made Mechanics State top styles. khaki. and plain In the United State bank. notes collected are given in the report as $158,932.62 and cash on 1.29 Notes collected in the Commercial Savings were given at $344.638.86. and cash on hand, $270.In the Mechanics Savings bank, notes amount to $158.and cash on hand $149,092 The itemized account for the Mechanics Savings follows: Bills bonds expenses First conserve Claims paid Capital profits Deposits credit 19 from banks bond interest A Complete Line Non N ledger 188018 Assessments $1,309,445.12 Of Khaki Apparel United State Bank. Assets and liabilities of the United State bank follow Bills for touring. picnicking. fishing and general sports wear All well made, correct fitting ap transit parel. None 24 Khaki Knickers, 1.95. Khaki Shirts, 2.49 assets Khaki Middies, 1.69 and 1.98 charges 143.36 Khaki Skirts, 2.49 Khaki Coats, 3.95 surplus and Khaki Hats, $1 and 1.25. deposits subject None Sizes for women and misses. Extra sizes for certificates Time large figures. -In The Economy Basement liability Expense None savings and 1923 None checks checks 7,358.29 Non Just Arrived--New Shipment collected Commercial Savings. Assets and liabilities of the Sacings bank are: Pretty New United bonds 35 bonds other than United transit Silk Dresses fistures Central receiver's National Trust Savings To Sell For National 000 assets .95 account funds notes Box assets account Rent 163
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DELAY LIKELY IN DIVIDENDS FROM 2 CLOSED BANKS Security Firm Appeals on Public Funds Preference. Depositors in the closed Commercial Savings bank and United State bank face long delay in payment of initial dividends, it became known yesterday with the filing by one surety company of notice of appeal from the decision of the district court denying surety companies preference of payment of public funds covered by their bonds. Attorneys for other bonding companies stated that similar notices of appeal are under way. The appeals will delay payment of depositors' dividends for months, perhaps year or so, unless the bonding companies decide at the hearing scheduled for today on the application of Andrew state superintender of banking. for permission to pay partial dividends, not to object to payment of dividends while their appeals are being prosecuted in the Iowa Supreme court and pos sibly the federal supreme court This decision, bonding company attorneys indicated. will depend upon the size of supersedeas bonds asked by Attorney General Gibson, representing Mr. Andrew receiver for the banks. The hearing on Mr. Andrew's application to pay dividends in the United State bank was scheduled for yesterday before Judge Thompson and Judge Meyer was expected to rule on the application in the Commercial Savings bank. Judge Thompson was trying another case and could not reach the application. and Judge Meyer waited to have the matter of supersedeas bonds determined in both banks at the same time. The matters are scheduled to be determined today. If the bonding companies object to payment of initial dividends, they will be required to post supersedeas bonds, staying the decision of the lower court that public funds are not entitled to preference and assuring depositors they will not lose because of the appeal. Attorney General Gibson while not disputing the right of the bonding companies to appeal their contends that if they prevent the payment of partial dividends now. they should be lia ble for interest on the amount of the dividends to be paid the rate of per cent the question of claimed vested rights has been finally determined He contends that in the case of the Des Moines school board. with deposit of approximately $500,000 the Commercial Savings bank the board should be interest on the amount of its di vidend If the initial dividend in this bank is increased to 20 per cent the school board would receive $100,000 Interest at per cent would be $6,000 year the bonding companies are required to post supersedeas bonds guaranteeing interest at per cent on the whole amount of the initial dividend in both banks, there is lit. tle chance of their the payment of the initial dividend, is said If the bonding companies do not object to payment of dividends. Mr. Andrew will ask the court he said yesterday. to increase the amount of the dividend in the United State bank to 30 per cent and in the Commercial Savings bank to 20 per cent.