3462. First National Bank (Grinnell, IA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 1629
Charter Number: 1629
Start Date: July 26, 1904
Location: Grinnell, Iowa (41.743, -92.722)

Metadata

Model: gpt-5-mini
Short Digest: 752c0f5b

Response Measures

None

Description

Directors closed the bank after the drowning of the cashier and discovery of large forgeries/defalcations. A national bank examiner was appointed and the Comptroller later appointed a receiver; the institution did not reopen as an operating bank and was wound up (receiver paid dividends). Classified as suspension leading to permanent closure (receivership). Dates drawn from contemporaneous newspaper reports.

Events (6)

1. July 26, 1904 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors closed the bank after discovery of irregularities following the drowning of the cashier and bookkeeper; concerns of shortages and forgeries prompted suspension.
Newspaper Excerpt: the First National bank of Grinnell ... has closed its doors pending an investigation by national bank examiners.
Source: newspapers

2. July 27, 1904 Receivership

Newspaper Excerpt: The Comptroller of the currency today appointed E. B. Shaw national bank examiner as receiver of the First National Bank, Grinnell, Iowa, whose doors were closed by directors yesterday.
Source: newspapers

3. August 2, 1904 Other

Newspaper Excerpt: H. C. Spencer ... was not merely a defaulter, but also a forger. ... nine fraudulent notes ... declared the signatures spurious.
Source: newspapers

4. August 25, 1904 Other

Newspaper Excerpt: The first report of the receiver of the First National bank of Grinnell, Iowa, was filed ... owing to the large amount of forged paper among the assets, an assessment against the shareholders for their full 100 per cent. liability is necessary and has been levied.
Source: newspapers

5. December 21, 1904 Other

Newspaper Excerpt: The depositors of the First National bank have received about $40,000 since the first check was given out ...
Source: newspapers

6. May 10, 1905 Other

Newspaper Excerpt: Receiver Swords of the First National Bank at Grinnell Authorized to Pay Depositors Another Dividend of 10 Per Cent. ... total of 55 per cent paid to the depositors so far.
Source: newspapers

Newspaper Articles (22)

1. July 27, 1904 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, July 27, 1904

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Spencers having suicided are not born out as matters were left in no state of preparation such as a man would naturally leave them in if he had planned his end. Washington, D. C., July 27.-The Comptroller of the currency today appointed E. B. Shaw national bank examiner as receiver of the First National Bank, Grinnell. Iowa, whose doors were closed by directors yesterday. The following statement of the condition of the bank was made June 9:Resources, loans and discounts, $389,700. Overdrafts, $2,500. United States bonds, $25,000. Banking house, $1.600. Due from bank, $32,100. Cash. $41,400. Redemption fund, $1,300. Total, $473.600. Liabilities: Capital, $100,000. and Surplus undivided profits, $26,600. Circulation. $25,000. Deposits, $322.000. Total, $473,600.

2. July 27, 1904 Evening Times-Republican Marshalltown, IA

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FORGED PAPER FOUND AT GRINNELL Admitted by Directors of Grinnell Bank That Large Shortage Was Caused by Forged Notes Not Yet Known What the Amount Will Be-Examiner Shaw Appointed Receiver-Believed That Cash on Hand and Stockholders' Assessment Will Pay Out-Rumors Are Many and Large But Can Not Be Verified. Today the suspicions of the two Grinnell, July 27.-E. B. Shaw, of Spencers having suicided are not born West Union, Iowa, national bank exout as matters were left in no state aminer, was today placed in charge of of preparation such as a man would the First National bank as receiver. naturally leave them in if he had planned his end. Stories leaking from several of those who know now point very strongly to Washington, D. C., July 27.-The conditions much worse than was exComptroller of the currency today appected. It is told from mouth to mouth pointed E. B. Shaw national bank examiner as receiver of the First Natin Grinnell by business men who were ional Bank, Grinnell. Iowa, whose depositors at the bank that a large doors were closed by directors yesteramonut of forged paper has already day. The following statement of the been discovered, aggregating over condition of the bank was made June 9:$100,000. At least two directors have Resources, loans and discounts, admitted that they have been ruined $389,700. by the failure and it is almost certain Overdrafts, $2,500. that the loss of their stock investment United States bonds, $25,000. Banking house, $1.600. and a possible assessment will wipe out Due from bank, $32,100. all that some of them have in the Cash, $41,400. world. It is not yet known whether Redemption fund, $1,300. the depositors will suffer. The bank, Total, $473.600. on July 5. had $41,000 in cash on hand Liabilities: Capital, $100,000. and a deposit showing of $321,000. One Surplus and undivided profits, $26,600. depositor claims, however, that the Circulation. $25,000. deposit account has been stuffed very Deposits, $322.000. Total, $473,600. greatly for the purpose of making a good showing for the bank and if this In Marshalltown today information is true the forged paper could be acpassed over the telephone wires to counted for as a stuffed asset to offset other towns that the Grinnell shortage the factitious deposits with no real will reach $200,000. but this can not be verified at Grinnell in fact, the best inharm done to the bank. The examiner formation that can be gained by the is at work and refuses to make a stateT.-R.'s regular Grinnell correspondent ment. Directors themselves admit that is to the effect that the shortage will forged paper has been found in large be much less. amounts and this is all that is known.

3. July 27, 1904 The Saint Paul Globe Saint Paul, MN

Article from The Saint Paul Globe, July 27, 1904

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COMPLICATIONS FOLLOW DOUBLE DROWNING Banker and Son Succumbed Though They Were Good Swimmers GRINNELL, Iowa, July 26.-The First National bank of Grinnell, whose leading director, H. C. Spencer, and Cashier W. C. Spencer, father and son, were mysteriously drowned here last week, has closed its doors pending an investigation by national bank examiners. The bank has been closed since the drowning, but no reason was assigned until today, when notice was posted stating that an examiner had been called for by the directors. It is known that there is a shortage due to the Spencers, but its amount will not be known until the examiner reports. The stockholders of the bank, however. will be abundantly able to take care of all deposits. The drowning of the Spencers. who were good swimmers, is a mystery which is still unexplained.

4. July 28, 1904 Ottumwa Tri-Weekly Courier Ottumwa, IA

Article from Ottumwa Tri-Weekly Courier, July 28, 1904

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APPOINTS RECEIVER. Comptroller Names Bank Examiner to Handle Grinnell Bank's Affairs. Washington, July 27.-The comptroller of the currency has appointed E. B. Shaw. national bank examiner, as receiver for the First National bank of Grinnell, Iowa, whose doors were closed by the directors yesterday.

5. July 28, 1904 Missouri Valley Times Missouri Valley, IA

Article from Missouri Valley Times, July 28, 1904

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Grinnell, In. July 28.-Since the tragle double drowning of H. C'. Spencer and son. the doors of the First National bank of this city have been closed, awaiting an examination and a reorganization under a new cashier. It is learned that some Irregularities, including complicated book entries, have been discovered and the directors have decided that the only safe plan would be to await an examination by a bank examiner. Either Examiner Shaw or Examiner Miller is expected today. The doors are still closed, with this notice posted: "By an order of the board of directors this bank will be closed until the national bank examiner has made an investigation of the bank's affairs." Public Is Nervous. The public is nervous, naturally. and all sorts of runiors are rife, but this much is certain, there will be a serious shortage but it will not be large enough to affect depositors, the directors even hope that what now appears to be a deficit may be explained away by the examiner. The national banking law holds all stockholders liable for an assessment equal to the amount of their stock besides the loss of the stock itself, which will amply protect depositors. The First National was capitalized at $100,000. Its surplus was $27,500, and its deposits ran about $300,000. Its list of officers included J. P. Lyman, president; David Vanderveer, vice president: W. C. Spencer, cashier, and W. C. Statt. assistant cashier. Its directorate was composed of J. Childs, C. F. Childs, II. K. Edson, W. S. Hendrixson, J. P. Lyman. L. F. Parker, C. H. Spencer, H. C. Spencer and D. Vanderveer, all of whom were heavy stockholders in the bank. One-fourth of the stock was owned by the Spencers, and H. C. Spencer has considerable property that can be applied to the liquidation of any liability. Old Affair Recalled. It will be recalled that when Charles H. Spencer was killed about ten years ago, there was talk of an alleged deficit or unsecured liabilities to the bank of $20,000. The directors were made to believe that this was fully settled. It is now claimed that securities were substituted and carried as assets, and that H. C. Spencer kept up the interest on them. The stockholders of the First National are pioneer settlers, who knew the Spencers years ago. The directors are men of known probity and character. They are men who will surrender every dollar they have in the world rather than wrong any creditors. Whoever suffers they will suffer the most. Every one of them had the most absolute confidence in their cashier. Should the worst develop in the examination the mystery of the drowning accident may be explained.

6. July 29, 1904 The Minneapolis Journal Minneapolis, MN

Article from The Minneapolis Journal, July 29, 1904

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CITY OF GRINNELL FEARS THE WORST WILD RUMORS AFLOAT ABOUT ITS FIRST NATIONAL. Stories of Forgeries and Shortages Aggregating Over $200,000-Nothing to Indicate Clearly that the Spencers Were Suicides or that Their Accounts Are at Fault. Special to The Journal. Grinnell, Iowa, July 29.-The directors of the First National bank, whose cashier and bookkeeper were drowned July 20, decided to close the bank pending an investigation into its affairs, and requested that a bank examiner be sent by the government. The examiner took charge yesterday, and is engaged in going over the accounts. This action caused the wildest rumors concerning the condition of the bank. The town is nervous and apprehensive and stories of forgeries and shortages amounting to over $200,000 have found ready circulation and belief. There appears to be no adequate reason for the sudden alarm. The bank directors had trusted implicitly in Cashier Spencer, whose connection with the bank covered thirty-one years of service. His tragic death by drowning, together with his son, last week, gave the town such a shock as it has not had since the tornado of 1882. Whether the bank directors had any further motive than a natural feeling of prudence in requesting the investigation has not been made public. Since the examiner assumed charge he has given out nothing, and will not until his work is finished. While a shortage may be found, there is as yet nothing to indicate that the death of the Spencers was due to suicide, in place of accident, or that anything is wrong with the bank's accounts. No receiver has been appointed, and none will be until the bank inspector sends in his report. The city is in the grip of a blind unreasoning fear, and the most absurd tales gain credence.

7. July 29, 1904 The Owosso Times Owosso, MI

Article from The Owosso Times, July 29, 1904

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WEDNESDAY. Fire at Two Harbors, Minn., de strcyed the car shops and their contents of the Duluth & Iron Range Railroad Co. Loss, $75,000. Henry Holmes, a colored man, shot his mother, Mrs. Ellen Holmes, and af terward blew off the top of his own head at South River, 'N. J. His mother cannot live. Rear Admiral H. C. Taylor ,U. S. N.. who commanded the Indiana at the battle of Santiago, died at Copper Cliff General hospital, Sudbury, Ont., of peritonitis. W. E. Livingston, the American who was injured at San Sebastian, Spain, Sunday in the panic following a fight between a tiger and a bull, is pushing his claim for indemnity and has engaged counsel. The Steel Company of America, with an authorized capital of $3,000,000, was incorporated at Trenton, N. J., to manufacture and deal in steel and other metals. The incorporators are A. H. Henderson, A. T. Smith and E. C. Sicardi of Jersey City. The First National bank of Grinneli, Ia., whose leading director, H. C. Spencer. and cashier, W. C. Spencer, father and son, were mysteriously drowned here last week, has closed its doors pending an investigation by the national bank examiner.

8. August 2, 1904 Rock Island Argus Rock Island, IL

Article from Rock Island Argus, August 2, 1904

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FRAUD SHOWN AFTER DEATH Bank Cashier, Mysteriously Drowned With His Son, Was a Forger. Grinnell, Iowa, Aug. 2.-H. C. Spencer, cashier of the defunct First National bank of this city, who was mysteriously drowned with his son two weeks ago, was not merely a defalter, but also a forger. Evidence of this fact came to light yesterday in the discovery of nine fradulent notes purporting to be signed by as many prominent farmers and business men of this section. The nine notes aggregate $7,479. The receiver of the bank sent notices to men whose names appeared on the notes and today they declared the signatures spurious. In each case there was a slight transposition of letters in spelling of names. How many more notes of the same character are extant is not yet known. The bank receiver is not yet ready to make a statement, the affairs of the institution being badly involved.

9. August 2, 1904 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, August 2, 1904

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DEVELOP FORGERIES. By the Associated Press. Grinnell, la, Aug. 1.-H. C. Spencer cashier of the defunct First National bank of this city, who met death with his son in a mysterious double drowning two weeks ago, it is alleged, was not merely a defaulter but also a forger. Evidence of this fact came to light today in the discovery of nine bogus notes purporting to be signed by as many prominent farm T8 and business men of this see tion. The notes aggregate $7,459. The bank's receiver sent notices to the men whose names were attached and hay app rel 00 y and declared the signatures spurious. In each case here wa: a slight transposition of he letters la the spelling of the names. How many more notes of this same character are extant is not yet known.

10. August 4, 1904 The Tomahawk White Earth, MN

Article from The Tomahawk, August 4, 1904

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LATER. At Sagamore Hill, President Roosevelt formally received and accepted the nomination of the republican party for president of the United States. The formal notification was made in an address by Speaker Cannon. The speech of the president will be circulated extensively in the campaign, as, aside from the letter of acceptance which he will issue in a few weeks, it will be his only public utterance during the campaign. The comptroller of the currency has appointed E. B. Shaw, a national bank examiner, as receiver of the First national bank of Grinnell, Ia., whose doors were closed by the directors. Twelve business houses were destroyed by fire at Mora, Minn., causing a loss estimated at about $70,000. George Stanley, of Cadillac, was nominated for congressman by the democrats of the Ninth Michigan district. Rear Admiral Philip H. Cooper, commander-in-chief of the Asiatic station will be retired August 4. The death of John Rogers, sculptor and designer of the famous "Rogers groups" of statuary, is announced. It occurred at his summer home in New Canaan, Conn. Russian refugees who have arrived at Chefoo report that theLieutenant Burukoff and two other Russian torpedo destroyers were torpedoed and totally destroyed by the Japanese on the night of July 25. The Japanese casualties in the fighting before Tatchekiao were 800. Hon. Cyrus P. Walbridge, of St. Louis, was nominated for governor of Missouri on the first ballot taken by the state republican convention in session at St. Joseph. Ex-Senator Davis, when asked for an expression of opinion in regard to the selection of Mr. Thomas Taggart, of Indiana, for natinoal chairman, refused to comment on the committee's action. Albert F. Dawson, private secretary to United States Senator Allison, was nominated for congress by republicans of the Second Iowa district. Justice Scott, of New York, has signed the formal decree of divorce, dissolving the marriage of Lillian Nordica, the singer, and Zoltan Doehme. There were 79 passengers and 840 employes of railroads killed and 1,590 passengers and 10,854 employes injured in accidents on railroads in the United States during the quarter ended March 31, 1904.

11. August 5, 1904 The Worthington Advance Worthington, MN

Article from The Worthington Advance, August 5, 1904

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THE NEWS IN BRIEF. For the Week Ending Aug. 1. Chicago is to be the democratic headquarters for the campaign in the west. The commercial treaty between Germany and Russia has been signed. Minister Leischmann insists that the sultan shall give protection to American schools in Armenia. Troops will be sent to Bonesteel to remain during the land filing from August 8 to September 10. Albert Phillips, aged 42, a labor leader, was fatally crushed at Wooley's mine, at Booneville, Ind. The state department awaits Minister Bowen's report before it acts on the Venezuelan asphalt seizure. Fire in an immoral resort at Nashwauk, on the Minnesota iron range, burned three persons to death. Twelve business houses were destroyed by fire at Mora, Minn., causing a loss estimated at about $70,000. A fire at Salisbury, Md., destroyed the mill and lumber yard of E. S. Adkins & Co., resulting in a loss of $40,000. The associated banks of New York make a favorable statement, showing $5,380,000 increase in the surplus reserve. The people of Great Britain are face to face with hard times, with no money in circulation and all business in a condition of stagnation. The house of John Harper, at New Haven, in Hamilton county, O., burned, and Mr. Harper and his wife, both over 80 years old. were burned to death. During a heavy rain at Elizabeth, N. J., Patrick Meckeesey, 60 years old, employed by the city, was drowned in a sewer which he was engaged in cleaning. F. A. La Roche reached Chicago from New York in an automobile endurance test, his machine having run 1,200 miles in 120 hours without stopping. Mrs. Minnie C. Love, of Chicago, was given a decree of absolute divorce from Sidney C. Love, with $50,000 alimony, $25,000 of which was paid in court. The death of John Rogers, sculptor and designer of the famous "Rogers groups" of statuary, is announced. It occurred at his summer home in New Canaan, Conn. Henry R. Hodges, his wife and three children, living about six miles from Statesboro, have been killed and their home burned. Robbery is supposed to have been the cause of the crime. -President Roosevelt told a committee of the National Grange that he would allow the organization to select the successor of the late J. H. Brigham as assistant secretary of agriculture. J. H. Murley, of Denison, Tex., a freight train brakeman, who recently inherited $30,000, and who was making his last trip as brakeman, fell under the wheels of his train and was killed. The comptroller of the currency has appointed E. B. Shaw, a national bank examiner, as receiver of the First national bank, of Grinnell, Ia., whose doors were closed by the directors Tuesday. Gov. Peabody, in a statement, defends his use of the militia in the Cripple Creek region, blaming the miners' union for crimes and holding that a vigorous policy was absolutely necessary. Samuel H. Cordell, an insurance agent, of Dallas, Tex., shot and killed his wife while she was asleep. Cordell then shot himself through the head, dying instantly. Jealousy is given as the cause. Gen. Leonard Wood, commanding the department of Mindanao, Philippines, has taken steps to have swimming taught the soldiers of his command as the result of numerous accidents in the water. Postmaster General Payne has given ten days' leave of absence to all postmasters at all first-class offices to attend the annual convention of the National Association of Postmasters at Niagara Falls, August 22-25. Capt. Van Schaick and Federal Steamboat Inspector Fleming and Former Inspector Lundberg were indicted in New York by the federal grand jury in connection with the disaster to the General Slocum on June 15 last when nearly 1.000 lives were

12. August 6, 1904 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, August 6, 1904

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STOCKHOLDERS ARE ASSESSED Grinnell Bank Failure Grows Much Worse as Facts Develop IS SUICIDE NOW BELIEVED Forgeries Tremendous and Even Heartless Thievery of Petty Amounts Appear-Stockholders Assessed 100 Per Cent-Depositors May SufferHave Three Months to File Claims. Special to Times-Republican Grinnell, Aug. 6.-As time passes, and the facts come to light the failure of the First National Bank grows worse instead of better. Stockholders today received notices from the receiver to the effect that they would be assessed to the full amount of their stock. This means that the depositors must lose something for it is estimated that only one-half the stockholders are able to pay. Just what the shortage will be will not be known for three months as notice has been published by Comptroller of the currency Ridgely that claims can be filed within that time. Henry Spencer and his wife owned one-third of the bank stock. His stock cannot be depended upon for an assessment for the reason that his estate will all be taken before the assessment is used. About one-fourth of the other stockholders had their all invested in the bank stock and when this is gone they will not be able to pay an assessment besides. As incidents come to light the diabolical work of the cashier becomes more and more apalling. It was learned today that when C. L. Gaddis of Hickory township, a very poor and aged farmer. died some two months ago, he prepared for his end by locking up in his safety deposit box at the Spencer bank a certificate of deposit for $700, and entrusted the key to Mr. Spencer with instructions to deliver the contents to the widow. When the old lady called after the death she deposited $500, the proceeds of their farm sale and asked for the certificate of deposit. Spencer denied all knowledge of the same and investigation shows that the certificates are marked paid. The old lady never got a cent of it and her $500 is tied up in the deposits. So hot had become the volcano over which the Spencers were sitting that there is no longer any doubt in the minds of Grinnell people that both father and son committed suicide. It now transpires that in Spencer's private desk was found a list of the forged paper amounting to $204,000. Henry Spencer had been in the habit of personally keeping the note register. the certificate register and the discount register. which constitute about all the books of the bank. By keeping all hands off from these records he was compelled to work till midnight often and did about all of the bank work himself. but was able to perform almost any kind of a trick with the record.s The Grinnell Herald yesterday published a story to the effect that The bank would not be re-opened That there will be a material loss to depositors. That the report of the receiver is likely to show that the deposits were even greater than reported, and that the false entries were made to cause them to show less rather than greater as at first supposed. That new evidences of forgery constantly appear. The Times-Republican correspondent reported more than a week ago that there were evidences of forgery. and that the bank would never re-open; but for this the newspaper was censured for disturbing the Bradstreets rating of all Grinnell citizens in generh al. However, it is not yet certain that there will be a loss to depositors altho this is possible, and the facts will not be known for three months or uno til all claims are filed in the legal way. h It is not true that the receiver's report will show any new developments in ret gard to the deposits for the men in charge of the investigation have not t taken up the deposit accounts except t to verify the official statement of $321. n 000 with the books which was p be correct. enr will develop will tries found deposits to What not their be false claims. known fl depositors file tl mistake as la newspaper errors be all The until such Herald's all is excusable exercised should si but more care should be or Bradstreets ratings in Grinnell will be demoralized by so-called "yellow journalism."

13. August 10, 1904 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, August 10, 1904

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Examiner's Report Reaches Washington But ( ontents Are Kept Secret RIDGELY CALLS IT TOTAL WRECK Comptroller of Currency Says Spencers Would Have Been In Penitentiary Had They Lived - Grinnell Still Insists That Depositors Will be Paid, Few Stockholders Are Ruined. Washington, Aug. 10.-Examiner Shaw's report on the bank failure at Grinnell was received by the comptroller of the currency yesterday but there is a continued air of mystery about the affair yet and the officials refuse to make the report public. Comptroller Ridgeley says the bank is completely wrecked and that is all there is to it. "The report received today from Mr. Shaw," said Comptroller Ridgeley, "indicates that the affairs of the Grinnell bank are in an almost interminable tangle, and their unraveling may take many weeks. According to the report gross frauds have been committed, criminal in character. The report also shows that the Spencers, father and son, were the parties to the commission of the crimes, and they are dead. So far as I can ascertain there does not seem to be anyone left connected with the Grinnell bank who can in any way be held responsible for the fraudulent actions of the Spencers. It is a most remarkable case, and bids fair to be one of the most interesting that has been brought to the attention of the department for years." In this connection Comptroller Ridgeley said when he was appaised of the death of the Spencers, he went over to see Secretary Shaw, and in his office found Representative Hepburn. He explained that the Spencers had been drowned, but there was a suspicion of sucide due to certain elements of the affairs of the First National bank at Grinnell. Col. Hepburn. it is said, spoke up and assured Mr. Ridgeley that there could not be the slightest doubt as to the probity of the Spencers, as they were held in the highest esteem in the community in which they lived. "Subsequent events would seem to disprove Col. Hepburn's judgment," said Mr. Ridgeley, "as it appears quite evident that the Spencers' were entirely and alone responsible for the disasterous wrecking of the First National bank at Grinnell, and that thru methods, which, had they lived, would probably have landed them behind the bars. "This only proves," continued Mr. Ridgeley, "that a man having made a reputation for honesty and fair dealing in a community may do almost any fraudulent thing for years until some such catastrophe as overtook the Spencers bring home the fact that they have played upon the credulity of the public for dishonest purposes." Comptroller Ridgeley said that in all probability Bank Examiner Shaw would be held at Grinnell for some time to continue further his examination into the bank's affairs. As to the appointment of a receiver for the bank, Mr. Ridgeley said he could not under present conditions say whether such'an official would be appointed or not; he would await further advices from Mr. Shaw. The fact of the matter is the bank is completely wrecked and the wreckers are dead.

14. August 11, 1904 Ottumwa Tri-Weekly Courier Ottumwa, IA

Article from Ottumwa Tri-Weekly Courier, August 11, 1904

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SHORTAGE INCREASES FORGED PAPERS AMOUNTING TO $204,000 FOUND IN GRINNELL BANK. Grinnell, Aug. 9.-Forged paper to the amount of $204,000 has been found in the private accounts of J. C. Spen. cer, cashier of the First National bank of this city, which institution was closed shortly after he and his father were drowned in an artificial lake near this city a few weeks ago. The defalcations are so large that the bank will never be able to re-open. It will also undoubtedly financially ruin a large number of people in this vicinity. The theory that the Spencers committed suicide and were not accidentally drowned, is generally believed. The exact amount of the defalontions will not be known until Receiver Snaw has finished his examination of the bank's effairs.

15. August 12, 1904 Twice-A-Week Plain Dealer Cresco, IA

Article from Twice-A-Week Plain Dealer, August 12, 1904

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HAPPENINGS IN IOWA EVENTS OF A WEEK THROUGHOUT THE STATE. Irregularities in the Management of the First National Bank of Grinnell Said to Include Extensive Forgeries. The irregularities in the management of the First National bank of Grinnell, whose cashier, H. C. Spencer, met death with his son in a mysterious double drowning three weeks ago, include not only the embezzlement of funds, but also extensive forgeries. Evidence of this fact came to light last week in the discovery of nine bogus notes purporting to be signed by as many prominent farmers and business men of that section. The nine notes aggregate $7,942. The bank sent notices to the men whose names are attached, and they appeared and declared the signatures spurious. In several cases there was a slight transposition of letters in spelling of names. How many more notes of the same character are extant is not yet known. The bank receiver is not yet ready to make a statement, the affairs of the institution being badly involved. The receiver of the First National bank of Grinnell, Mr. Shaw of West Union, Ia., is still at work endeavoring to straighten the bank's affairs. Large numbers of forged notes have been found, and Mr. Shaw is mailing letters to those whose names are attached to them. A curious fact in connection with many of these notes is that the name or initials, or both are misspelled, or wrong initials are given. Mr. Spencer was familiar with all those people, and knew how their names were spelled. As instances, Alex Fraser received notice that a note for a large sum, $700 or $800 was in the bank, and requesting him to call at the bank to identify or deny the signature. Mr. Fraser's name was spelled Frazier; Joseph Eisele's name was written Eisle on the fraudulent paper. Nearly every farmer of means has discovered that forged notes bearing his name are in the bank. One note found had what purported to be the name of the firm of Johnson & Meredith, which firm went out of business eighteen years ago, which proves that the irregularities have been going on at least that length of time. This fact confirms many in the belief that the former cashier, Charles H. Spencer, father of the dead cashier, had the affairs in very bad condition many years before his accidental death, some twelve or fifteen years ago, at Colorado Springs, Colo. This shortage was held at the time at $20,000, but the condition now warrants the opinion that it was much larger, perhaps, two or three times as large as believed. There have been many wild and false statements sent out from Grinnell regarding financial conditions there, it being stated that scores of business men were on the verge of ruin as a result of the First National bank trouble. The facts seem to be that not more than four stockholders of the bank will suffer serious losses.

16. August 25, 1904 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, August 25, 1904

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STOCKHOLDERS TO PAY DEFICIT First Report of the Receiver of First National at Grinnell Filed Today FULL ASSESSMENT NECESSARY Owing to Large Amount of Forged Papers Among the Assets Shareholders Have Been Assessed the Full Amount of Their Liability, of 100 Per Cent-Other News. Washington, Aug. 25.-The first report of the receiver of the First National bank of Grinnell, Iowa, was filed with the comptroller of the currency today. The comptroller authorizes the statement that owing to the large amount of forged paper among the assets, assessment against the shareholders for their full 100 per cent of liability is necessary and has been levied.

17. August 25, 1904 The Fairmont West Virginian Fairmont, WV

Article from The Fairmont West Virginian, August 25, 1904

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FORGED PAPERS ARE PLENTIFUL AMONG THE ASSETS OF FIRST NATIONAL BANK OF GRINNELL, 10WA-REPORT FILED TO-DAY. (By Publishers' Press.) WASHINGTON, D. C., Aug. 25.The first report of the receiver of the First National Bank of Grinnell, Iowa, was filed with the comptroller of the currency to-day. The comptroller authorizes the statement that owing to the large amount of forged papers among the assets, an assessment against the shareholders for their full 100 per cent. liability is necessary and has been levied.

18. September 7, 1904 The Denison Review Denison, Dow City, IA

Article from The Denison Review, September 7, 1904

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# AROUND THE STATE. Ex-Congres-man Joe R. Lane of Davenport has consented to take a two months vacation from nis business as an attorney and accept the chairmanship of the Second district congressional committee to manage the campaign of Candidate A. F. Dawson. The democrats of the first congressional district have nominated as their candidate for Congress Jonn E Craig of Lee County. A peculiar case in the district court at Fort Dodge is that in which one M. M. Wheeler sues the city of Fort Dodge for $20,000 damages for personal injuries sustained on July 4, 1933, being struck by a "slide for life" performer, who met her death there on that date by the breaking of the harness which she wore. The case involves a question of liability on the part of the city for the accident and the injury of the plaintiff, who was a spectator. The receiver of the First National bank at Grinnel, is mailing notices to stockholders of the assessment that has been made against them of $100 per share to meet the deficit in the bank's funds. The language of the comptroller demands the fuil payment and directs the receiver to proceed "Dy suit or otherwise to enforce" to the extent of $100 per share the ind voual liability of each share holder. Charles Anderson, aged 17, of Iowa City was run over and suffered a crushed right leg and a concussion of the brain, which resulted in his death three hours later, while jumping a freight train in the switch yards. E. O. Sou.e the cashier who embezzled over $50,000 from the Home Savings bank at Iowa Falls, has been taken to the penitentiary at Anamosa to serve cut a sentence of eighteen mouths. A few years ago a man who stole a bicycle in the same county was sentenced to the penitentiary for three years and the bicycle was recovered. After a short but hot fight between the silver and the gold democrats in the Ninth district convention, Hamilton Wilcox, a wealthy farmer of Griswold and a well-known anti-Bryan democrat was nominated for congress. A couple of hundred coal miners employed by the Colfax Consolidated Coal company in its mines at Andersonville and Seevere, mining camps just over the line from Polk. to Jasper county, quit work because the company would not provide them with free transportation to and from the coal mines.

19. September 19, 1904 The Minneapolis Journal Minneapolis, MN

Article from The Minneapolis Journal, September 19, 1904

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IOWA DRAINAGE LAW Constitutionality Raised Again While the Farmers Suffer. SIOUX CITY, IOWA.-Again an effort is to be made to establish the unconstitutionality of the law under which farmers of Iowa are now planning to construct drainage ditches costing millions of dollars. The old ditch law was declared unconstitutional a year ago, putting a stop to all these ditch enterprises. Last winter the legislature passed a new law prepared by a committee of attorneys headed by P. A. Sawyer of Sioux City. Now Judge Addison Oliver of Onąwa, Iowa, the best posted attorney in Iowa on drainage law, announces that he will attack the constitutionality of the new law in his fight against the $275,000 Monona-Harrison drainage ditch. He and other lawyers declare the new law is so defective that a dray could be driven thru it. Farmers who has lost three crops for want of drainage suffer from these sallies of attorneys, but cannot help themselves. In northwestern Iowa there are millions of acres which are useless in wet years, but wonderfully fertile. GRINNELL, IOWA.-In place of the illfated First National bank that was compelled to go into the hands of a receiver, a new bank has just been organized here, to be called the Citizens' National bank. The officers are: Rev. E. M. Vittum, president; W. F. Vogt, vice president: H. F. Lanphere, cashier; A. Shadbolt, teller, and D. W. Norris, attorney. ATLANTIC, IOWA-In the momentary absence of Cashier C. H. Miller, a thief entered the Rock Island freight office and made off with $1,545 from the cash drawer.

20. November 10, 1904 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, November 10, 1904

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Secretary of the Treasury Leslie M. Shaw, who spent Wednesday in Grin nell, to consider the petition of depositors of the First National bank, who are dissatisfied with the appointment of Receiver Swords, the present incumbent, arrived in the city at 4:53 Wednesday evening, and left at 5:29 for Denison, where he will remain for a short time before returning to Washington.

21. December 21, 1904 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, December 21, 1904

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'Phone Company Reorganized. Special to Times-Republican. Grinnell, Dec. 21.-At the reorganization of the Newburg and Grinnell Telephone Company, whose affairs have been in the hands of a receiver and the property sold at public aution, the following officers were elected: President, J. L. Burroughs; vice president, N. W. Cox; secretary, Thos. Mason; treasurer, A. H. Palmer. Trustees-J. M. Campbell, E. P. Bonsall and John Newcomer. Thirty-one members signed the constitution and by-laws and the company is ready for a prosperous business. The depositors of the First National bank have received about $40,000 since the first check was given out about 3 o'clock Saturday afternoon. T. R. Cessna drew the first check given out, and, so far as known, J. F. Wilson drew the smallest, one, calling for 22 cents.

22. May 10, 1905 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 10, 1905

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ANOTHER DIVDEND Receiver Swords of the First National Bank at Grinnell Authorized to Pay Depositors Another Dividend of 10 Per Cent. Grinnell, May 10.-The settlement of the affairs of the broken First National bank is progressing satisfactorily under Receiver G. W. Swords. Word was received Monday from the comptroller of the currency authorizing the payment of another dividend sometime between the first and the middle of June. It is understood that the dividend will be one of 10 per cent, which will make a total of 55 per cent paid to the depositors so far. This last dividend will put about $35,000 in circulation here as the total amount of deposits was in the neighborhood of $350,000. It is the policy of the receiver to pay off the depositors as fast as he can obtain the money instead of holding it for the payment of larger dividends at rarer intervals. It is generally believed that other dividends will follow and that the depositors will receive at least 75 per cent of their money back. Bank property and the property of the Spencer estate is being rapidly sold off and in most cases at higher prices than the appraised valuation. A satisfactory settlement to all parties concerned was made with Mrs. Spencer recently. Shortly after the settlement she purchased what is known as the old Hatch row of tenement houses in the west part of the city, which was built by her father, G. M. C. Hatch, about twenty years ago, and which were turned over by Mrs. Spencer as part of the assets of the bank after the failure.