3455. Green Mountain Savings Bank (Green Mountain, IA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: February 24, 1908
Location: Green Mountain, Iowa (42.102, -92.820)

Metadata

Model: gpt-5-mini
Short Digest: 466731c3

Response Measures

None

Description

The bank closed and was placed in the hands of a receiver for insolvency/mismanagement in Feb 1908. Articles document arrest of cashier, receiver appointment (Feb 26, 1908), auction/sale of bank property in April, and multiple creditor claims. No newspaper account describes a depositor run prior to suspension.

Events (4)

1. February 24, 1908 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank became insolvent due to mismanagement; capital exhausted and liabilities exceeded assets (assets ~$15,844.72 vs liabilities ~$17,759.86; capital $10,000 exhausted).
Newspaper Excerpt: Donald A. Johnson, cashier of the Green Mountain Savings bank, which closed its doors Monday,
Source: newspapers

2. February 26, 1908 Receivership

Newspaper Excerpt: Upon the application of Auditor of State B. F. Carroll today the Green Mountain Savings bank was placed in the hands of a receiver, and Judge Parker appointed A. A. Moore, ... to take charge of the insolvent institution.
Source: newspapers

3. April 1, 1908 Other

Newspaper Excerpt: For Sale at Public Auction, Wednesday, April 1, 1908 at 1 o'clock p. m., at Green Mountain, bank building, safe and fixtures. Subject to approval of court. A. A. Moore, Receiver.
Source: newspapers

4. April 2, 1908 Other

Newspaper Excerpt: Receiver A. A. Moore, of the Green Mountain Savings bank, sold Wednesday afternoon the property of the bank ... the bank building and its fixtures were sold for $2,500 to President A. F. Balch, of the Marshalltown State bank.
Source: newspapers

Newspaper Articles (12)

1. February 26, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, February 26, 1908

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Affairs of Green Mountain Sav: ings Bank to Be Wound Up Under Court's Direction IS BOND $30,000 RECEIVER'S State Auditor Carroll Makes the Application - Bank's Capital Stock is Exhausted, With Additional Liabilities of Over $17,000-Exceed Total Assets by $12,000. Upon the application of Auditor of State B. F. Carroll today the Green Mountain Savings bank was placed in the hands of a receiver, and Judge Parker appointed A. A. Moore, a director of the Marshalltown State bank, to take charge of the insolvent institution. Mr. Moore's bond was fixed at $30,000, which he furnished. He goes on his own surety, together with Cashier P. S. Balch and Vice President George A. Turner, of the Marshalltown State bank. T he bond has been approved by the court. The petition for the appointment of a receiver sets forth that the bank has become insolvent thru the mismanagement of its officers, and is in an unsafe condition. In order to protect the interests of its creditors, and preserve the assets of the bank from being lost or materially impaired, it is claimed necessary that a receiver be appointed. Windsor Outlines Condition. State Bank Examiner Leland Windsor is quoted in the petition on the condition of the bank. As far as the bank examiner can ascertain, the petition cites, the capital stock of the bank, $10,000, has been exhausted, and in addition thereto the liabilities of the bank amount to $17,759.86. The assets, according to Mr. Windsor's examination, are not to exceed $15,844.72, which leaves the liability of the bank, over and above its assets, at $12,000. Receiver Moore went to Green Mountain at 12:30 this afternoon to take charge of the bank. Cashier Johnson Talks. Cashier D. A. Johnson, of the bank, was in the city today, and accompanied Mr. Moore home this afternoon. No blame is attached to Mr. Johnson for the bank's condition, either by the officers, directors, or local bankers. They realize that he was not in control of the bank's policy, and that as soon as he was aware that things were not right he made efforts to get them straightened out. Mr. Johnson does not agree with President Mac Diarmid in the latter's statement, made on Monday, in which he said that the factionalism between the Lynch and Thomas crowds, was in a large measure responsible for the bank's condition. Mr. Johnson said: "While no doubt the factionalism referred to did hurt our business, I would not say that it was in any way responsible for the bank's condition. To my mind impractical business methods had everything to do with it. Those in charge were trying to do too big things on too little capital." Johnson Believes in Mac Diarmid. "I think Mac Diarmid is entirely innocent of any intentional wrong doing in the conduct of the bank's affairs," continued Mr. Johnson. "If he has done anything that is contrary to law he has done it because of his inexperience in the banking business, and not because he intended to do an unlawful act." This same sentiment is growing as the case progresses. A banker in this city said Tuesday night that he believed that Mac Diarmid had been used as a cat's paw, and did not intentional-

2. February 29, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, February 29, 1908

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D. A. Johnson Locked Up on Charge of Receiving Deposits For Insolvent Bank ARRESTED IN CEDAR RAPIDS Johnson's Movements Were Considered Suspicious, Which Was the Primary Cause of His Arrest-Brought to This City This Morning-Denies His Guilt or Any Intention of Doing Wrong. Donald A. Johnson, cashier of the Green Mountain Savings bank, which closed its doors Monday, was arrested at about 10 o'clock Friday night at Cedar Rapids. Johnson was brought to this city early this morning by Sheriff C. S. Hutson and locked in jail. According to the complaint filed by F. E. Roberts, chief clerk in the office of State Auditor B. F. Carroll, Johnson is accused of receiving deposits unlawfully for an insolvent bank. Specifically the information charges the cashier with accepting and receiving from divers persons, the names of whom are unknown, certain money, bills, notes, checks and drafts, which were by Johnson deposited in the bank when he well knew that the bank was insolvent. Aroused Suspicion; Arrested. Johnson's actions, and more especiallysthe alleged conflicting stories he and Mrs. Johnson told about where they were going late Friday afternoon, were the causes which led to the cashier's arrest. Mrs. Johnson and her husband were at the Great Western station at 6:30 o'clock last night, when A. A. Moore, the bank's receiver, and F. E. Roberts, alighted from the train from Geeen Mountain. Mrs. Johnson is said to have led Mr. Moore, when he questioned her, to understand that she and her husband were going to Omaha. Johnson, it is claimed, told Roberts that he was going to Waterloo, and Mrs. Johnson was going to Cedar Rapids. Feared He Would Leave State. The apparent fear that Johnson might leave the state prompted Mr. Roberts to file the information, and to place the warrant in the hands of Sheriff Hutson. By that time it was learned that both Johnson and his wife had left on an early evening train for Cedar Rapids. Sheriff Hutson notified the police of that city to meet the train and arrest Johnson when he stepped from it, which was done. Mrs. Johnson was not held. Sheriff Hutson took a later train for Cedar Rapids, and returned with the prisoner this morning. Mrs. Johnson reached the city on a later train today. Johnson Denies Guilt.

3. March 5, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, March 5, 1908

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Examination of President and Cashier Waived and Hearing Comes to End # MAC DIARMID'S BOND REDUCED Eighteen Missing Certificates Which Were Returned Are Turned Over to Bank's Receiver, A. A. Moore - Attorneys Go to Omaha Seeking Bonds For MacDiarmid and Johnson. The preliminary examination of Cashier Donald B. Johnson, of the Green Mountain Savings bank, came to an unexpected end late Wednesday afternoon, when his attorneys waived further examination, and allowed their client's case to go direct to the grand jury. President Stuart B. Mac Diarmid's lawyers also waived for their client, and his case likewise will go to the grand jury. Justice Millard bound both Mac Diarmid and Johnson over. The bankers' attorneys agreed to waive the preliminary examination of both their clients, when an agreement was reached with the state's attorney regarding the amount of the bonds for each of the prisoners. Mac Diarmid's Bond Reduced. As a result of this conference Mac Diarmid's bond was reduced from $10,000 to $5,000. Mac Diarmid's bond is made up of $2,000 on the original charge of fraudulent banking, and $1,000 on each of the three other charges of perjury, embezzlement and conspiracy. Johnson's bond was increased from $2,500 to $3,000. He is held on $2,000 for the first charge, receiving deposits when he knew the bank to be insolvent, and $1,000 on the charge of perjury, filed Tuesday. Up to the middle of this afternoon neither had secured bail, but efforts were being made to release them. Go to Omaha for Bonds. Daniel L. Johnson, an attorney of Omaha, who has been in the city in the interest of Johnson, representing him thru his brother, Ross B. Johnson, who is connected with the Omaha National bank, returned to Omaha last night. One of the local attorneys, who have been retained by Mac Diarmid and Johnson, also went to that city. It was expected today that perhaps no great difficulty would be encountered in securing Johnson's bond, but the local attorneys were not certain whether they would be able to secure surety for Mac Diarmid. Certificates Turned Over. This afternoon, the eighteen of the twenty-one missing certificates of deposit of the Green Mountain Savings bank were turned over to A. A. Moore, the bank's receiver, by Mac Diarmid's attorney, who secured them. All information regarding where, or from whom they came, or how they came, was denied. Of the eighteen certificates, only three have been filled out, altho these three, as well as the others, bear the signature of Stuart B. MacDiarmid. Three Total $7,600. The three, bearing the numbers of 1944, 1945 and 1946, which had been filled out aggregate the sum of $7,600. Two of them were for $2,600 and the third was for $2,400. Each one was issued in favor of George I. Robinson, Jr., who is understood to be a broker of New York. The certificates 1944 and 1945 were dated February 8. The latter was endorsed by George I. Robinson, Jr., across the back, and the endorsement has been scratched thru with a pen. Unlike any of the others, it was stamped across the face "not to exceed $3,000." The certificate 1946 was also made in favor of Robinson, and bore his endorsement on its back, which had been run thru with a pen. It was for $2,400, and was dated February 10. It is, of course, not known that altho these certificates were made in favor of Robinson, whether they had ever been negotiated. Three Still Missing. There are three certificates still missing. Their numbers are 1947, 1948 and 1949. All the others of the twenty-one, bearing the numbers from 1944 to 1964, both inclusive are now in the hands of the receiver. At least one of the missing certificates has been heard from. This is 1947. From the First National Bank of Algona, an inquiry asking about this certificate, which is also for $2,600, came to one of the local banks. This indicates that an effort was being made to negotiate it there. Previous to this inquiry another one on the same certificate came a few days before from a Boston bank. Drafts Are Out. How much other paper is outstanding against the bank is not known, but it is known that a draft for $2,500, issued by Edward L. Collins, the director, and drawn in favor of George I. Robinson, has gone to protest in New York. Notice of the protest has been received by Mr. Moore from New York

4. March 25, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, March 25, 1908

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# For Sale at Public Auction, Wednesday, April 1, 1908 at 1 o'clock p. m., at Green Mountain, bank building, safe and fixtures. Subject to approval of court. A. A. Moore, Receiver.

5. March 26, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, March 26, 1908

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For Sale at Public Auction, Wednesday, April 1, 1908, at 1 o'clock p. m., at Green Mountain, bank building, safe and fixtures. Subject to approval of court. A. A. Moore, Receiver.

6. March 30, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, March 30, 1908

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Building and Lots of Green Mountain Savings Bank to Be Disposed Of IS VALUE APPRAISED $2,600 Property is to Be Sold at Auction Bond of Cashier Donald A. J hnson Reduced From $4,000 to $3,000 by Judge Parker Kansas Man Files Preferred Claim Against Bank. On the order of Judge J. M. Parker, made in the district court Saturday afternoon, the bank building and property of the Green Mountain Savings bank was ordered sold. The order to sell was granted on the showing made in the petition of the receiver, A. A. Moore, who requested that he be auhorized to dispose of the property. The property consists of the bank building and all its fixtures, the lot that it is on, and the lot adjoining it. The appraisers, William Shipton, J. B. Classen and Leroy Thompson, who were appointed by the court to appraise the property, have set a value of $2,600 on it. It is Mr. Moore's plan to sell the property at public auction. The contention is made in Mr. Moore's application for authority to sell that there is not sufficient assets to pay the obligations of the bank without the sale of the property. Johnson's Bond Reduced. The bond for the appearance of Cashier Donald A. Johnson in the disrict court, was reduced Saturday afernoon by Judge Parker from $4,000 ) $3,000. The court originally fixed 1,000 as the bond on each of the four adictments returned against Johnson. n the reduction this amount was cut down to $500 in each of the charges if receiving deposits for an insolvent bank, and for knowingly making false entries in the bank's books. This reluction of the bond brings it to the same amount of the bond that was se:ured for Johnson when he was held .0 the grand jury, and on which he vas released. It is expected that a new bond for Johnson will be secured. Preferred Claim Filed. James A. Basiger, of Larned, Kas., Saturday afternoon filed a preferred claim in the district court against the bank. By it he seeks to secure $101 from the receiver. The petitioner claims that the bank is indebted to him by having collected that amount from D. F. Yetley, of near Green Mountain. Basiger, so the petition says, held a note against Yetley, which he forwarded to the Green Mountain bank for collection. Yetley paid the note ten days before the bank was closed, but the money was not forwarded to Basiger.

7. April 2, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, April 2, 1908

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Marshalltown State President Bids in Green Mountain Savings Bank RECEIVER SELLS EVERYTHING Lot Next to Bank Building Bought by Sellers & Dawson-Sales Made at Actual Appraised Value, $2,500 for Bank and $100 for Adjoining Lot— New Bank in Prospect. Receiver A. A. Moore, of the Green Mountain Savings bank, sold Wednesday afternoon the property of the bank as directed by an order of the district court, that the bank might realize on all assets in an effort to meet its obligations. The bank building and its fixtures were sold for $2,500 to President A. F. Balch, of the Marshalltown State bank, and Sellers & Dawson, of Green Mountain purchased the lots adjoining for $100. Both sales were exactly at the appraised values. There was a large crowd present at the sale, and included were several prospective buyers from this city, Gladbrook and Beaman. Mr. Moore announced that, while bids would be received on the property, he would consider no sale lower than the amount fixed by the appraisement. This had a tendency to stop the bidding, and Mr. Balch, who started the bank building at $2,500, was the only bidder. Sellers & Dawson had leased the lot adjoining and erected thereon a frame building used as a barber shop. They bought in the lot at private sale before the bank building was sold, in order to protect their own interests. New Bank is Assured. Green Mountain men say that a new bank for the town is assured just as soon as the present receivership is wound up. Farmers of the community, and others interested, including stockholders of the old bank, expect to organize and incorporate a new bank whenever the receiver is discharged. The lines of organization talked of are similar to those in existence in the county fair association, in which the stockholders from the country control the policy.

8. April 3, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, April 3, 1908

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WANTS MONEY RETURNED. Depositor of Green Mountain Bank Makes Application for Deposit. F. Gustafson, a depositor in the Green Mountain Savings bank, made application in the district court this morning for a return of $90, claimed to have been placed on deposit with the bank on February 19, a day or two before it was closed. The petition says that the deposit was made at a time when the bank was insolvent, and that it was kept separate from the other funds of the bank, and was not entered on the books of the bank usually kept for that purpose, but was entered in separate books, and that the sum has been kept intact. He asks that Receiver A. A. Moore be instructed to refund the money.

9. April 7, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, April 7, 1908

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# ELEVATOR AFTER NOTE. Green Mountain Corporation Files Claim Against Defunct Bank. Another claim against the defunct Green Mountain Savings bank, growing out of a loan and transaction involving notes, was added to the steadily increasing number of preferred claims Monday by an attorney representing the Green Mountain Farmers' Elevator Company. According to the claim and application for its allowance, the elevator company has $1,275 tied up in the bank's funds. This was paid to the bank to settle a note, but the note was not canceled or returned. The elevator company is now short both the money and the note. The petition alleges that the bank held two notes, aggregating $2,500, against the elevator company. The notes were paid on February 7, the petition says, and one of them was returned to the maker. The other note has passed into the possession of the Blackhawk National bank, of Waterloo. The money, $1,250, which was to have paid for this note, the petition alleges, is now in the possession of Receiver A. A. Moore. The petition asks that this sum, and in addition $25 in interest in the hands of Mr. Moore, be declared a trust fund to be applied on the outstanding note, and that Mr. Moore be ordered to acquire possession of the other note and cancel and return it to the maker.

10. April 7, 1908 Evening Times-Republican Marshalltown, IA

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Clark, land in Edenville, $1. H. W. Neff and wife to Ida Noble, lots in Rhodes, $300. Harry L. Clark and wife to Aaron L. Clark, land in Rhodes, $1. C. H. E. Boardman and wife et al., lot 13, block 1, Ferner's addition, $100. A. A. Moore, receiver of Green Mountain Savings bank, to Henry Merrill, of Tama county, land in Green Mountain, $100. Peter Anderson to Emma C. Sprecher, lot 27, block 2. Swayzie's addition, $125. Carolyn A. Duffield and husband to Walter W. Hixson, lot 7 and part of lot 8, block 5, Andrews' addition, $6,000.

11. April 11, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, April 11, 1908

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# JURY GIVES STEELE # VERDICT OF $1,278 Ireton Man Gets Damages of $900 and Seven Years Interest in Cow Case # ANOTHER CLAIM IN BANK CASE Green Mountain Woman Seeks to Have Court Order Receiver to Pay Over $100.30 Which She Paid to Green Mountain Bank for Draft - Court Makes Assignment of Cases. The jury in the case of C. R. Steele of Ireton, Sioux county, vs. M. E. Andrews & Sons, which went out at 11:30 o'clock Friday morning, came in at 4 o'clock in the afternoon with a verdict, fixing the amount that Steele might recover at $900 and interest at 6 per cent for seven years, a total of $1,278. Steele sued for $2,000. The action was the outcome of a sale of three blooded Shorthorn cows, sold by Andrews & Sons to Steele. Steele set up in his case that the animals were not breeders as represented. The defense was that they were breeders. In its verdict the jury found for Steele as to two of the cows, Cherry Fifth and Etta of Greenvale. Another Claim Against Bank. Another preferred claim was added to those already filed against the defunct Green Mountain Savings bank by attorneys for Miss Verna Myers, of Green Mountain, who seeks to have the court order Receiver A. A. Moore to return to her $100.30, which it is alleged she paid into the bank for a Chicago draft. The draft was issued, but payment on it was refused by the Chicago bank, because the Green Mountain bank had not enough funds on deposit in the Chicago bank to pay for it. The petition alleges that the money and checks she paid to Cashier Johnson were kept in a separate account for the purpose of settling with the Chicago bank for the draft issued against it. Cases Assigned for Next Week. The case of Mackaman vs. Hinecker, which was set for Friday of this week, was carried over into next week's assignment, which was made by Judge Bradshaw this morning. The Mackaman case is set for trial Monday. The assignment for the rest of the week is as follows: Tuesday, April 14-W. B. Kibbey vs. F. B. Wiley; probate in regard to the J. G. Leutenegger estate. Wednesday, April 15-Roy Plum vs. the Marshalltown Light, Power and Railway Company; J. A. Hinshaw vs. Brenneck & Heald. Thursday, April 16-Edwards vs. Stewart; probate in regard to the Charles Hoyt estate. Friday, April 17-J. Mulcahy vs. Myron Stouffer; city of Marshalltown vs. Charles W. LaPlant; George W. LaPlant vs. W. A. Fallgatter et al.

12. May 14, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 14, 1908

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Marion Trustees on Bank Assessment. The Marion township trustees, A. H. Rice, Charles Burt and A. W. Hausafus, have authorized the statement regarding the suit brought by A. A. Moore, receiver for the Green Mountain Sav-