Kiefer Savings Bank - Hazleton, IA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: savings bank
Start Date: March 10, 1913
Location: Hazleton, Iowa (42.621, -91.900)

Metadata

Model: gpt-5-mini
Short Digest: ad5f86ac

Response Measures

Full suspension, Books examined

Other: Prosecution/indictments of officers followed failure; private bank related to same family went into receiver earlier.

Description

Depositors began running March 10, 1913 after the related Kiefer private bank closed; officers voluntarily closed the savings bank March 18 and a state examiner took charge March 21. Contemporary reports state the savings bank 'so far appears solvent' and 'will be reopened in a few days' (likely under new management). Later articles describe criminal charges against the Kiefer family and the private bank went to a receiver, but the provided texts do not show a permanent closure/receivership of the savings bank.

Events (4)

1. March 10, 1913 Run

Cause: Bank Specific Adverse Info
Cause Details: Run triggered by suspicion after Kiefer private bank voluntarily closed and officers of the private bank were also officers of the savings bank; one depositor's withdrawal and word spread into a panic.
Measures: Depositors were paid as they demanded until officers voluntarily closed the bank March 18; bank officers summoned state bank examiner.
Newspaper Excerpt: On the following business day, Monday, March 10, a run started on the Savings bank.
Source: newspapers

2. March 18, 1913 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Voluntary closure by officers following the run prompted by the private bank's closing and resulting depositor panic; state examiner then posted 'Closed, being examined by the state auditor.' and took charge on March 21 while investigating affairs and assets/liabilities showed apparent solvency ($62,000 assets, $49,000 liabilities).
Newspaper Excerpt: officers voluntarily close the bank March 18 and summon Bank Examiner A. O. Woelever of Des Moines.
Source: newspapers

3. March 21, 1913 Other

Newspaper Excerpt: The doors of the Kiefer Savings Bank were closed by a bank examiner... He says the savings bank so far appears solvent and will be reopened in a few days.
Source: newspapers

4. * Reopening

Newspaper Excerpt: He says the savings bank so far appears solvent and will be reopened in a few days. ... after which the bank will reopen, probably under other management or a new bank will be organized.
Source: newspapers

Newspaper Articles (3)

1. March 21, 1913 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, March 21, 1913

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Article Text

HAZLETON BANK CLOSED. State Examiner Takes Charge of Savings Institution-May Reopen. Hazleton, March 21.-The doors of the Kiefer Savings Bank were closed by a bank examiner who came here from the office of the auditor of state at Des Moines yesterday. A sgin bearing the inscription, "Closed, being examined by the state auditor," was posted on the front door. A. O. Wolerber, state bank examiner, said that he had closed the bank and was making an investigation into the bank's affairs. He says the institution was closed owing to the embarrassment caused by a run on the bank by depositors. He places the liabilities at $49,000 and the assets at $62,000. He says the savings bank so far appears solvent and will be reopened in a few days.

2. March 26, 1913 Decorah Public Opinion Decorah, IA

Article from Decorah Public Opinion, March 26, 1913

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Article Text

HAZLETON BANK FAILS. Kiefer Savings Bank Closed After Run by Depositors Last Week. That the run on the Kiefer Savings Bank of Hazleton, which caused that institution to voluntarily close its doors on the afternoon of March 18, was occasioned by the action of the officers of the Kiefer private bank turning over its business to the trustees of the Savings bank, in which the officers of the private bank are interested, was the statement today made by Karl Kiefer, vice president of the Savings bank. On March 8 the Kiefer private bank voluntarily closed its doors and turned its books over to the trustees of the other institution. On the following business day, Monday, March 10, a run started on the Savings bank. One depositor grew suspicious that the closing of the private bank would involve the stability of the Savings Bank because the Kiefers Adam and Karl, who had the private bank, were president and vice president, respectively, of the other institution. He demanded his money; it was paid. He went out and told his neighbor. The neighbor hastened to the bank and demanded his deposit. While he was being paid, the first man found a number of other friends who hurried to the bank and demanded the full amount of their deposits. And so it went. The report started by the one man spread into a panic and the bank was stormed. Result-officers voluntarily close the bank March 18 and summon Bank Examiner A. O. Woelever of Des Moines. According to Vice President Kiefer, the liabilities of the institution are about $50,000, assets $60,000. The capital is $10,000. The elder Mr. Kiefer has been in the banking business in Hazleton for forty years. A nephew is identified with the only other bank in Hazleton and, altho' he bears the name of Kiefer, he has no business connection with the Kiefer Savings Bank. William Smith is the cashier. Mr. Woelever expects to complete his examination soon, after which the bank will reopen, probably under other management or a new bank will be organized.

3. March 9, 1914 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, March 9, 1914

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Article Text

FORMER HEAD OF HAZELTON SAVINGS BANK CONVICTED OF CHEATING. TRIE DON TWO OF FIFTY-ONE COUNTS IN INDICTMENT Institution Which Kiefer Headed Failed Failed and Affairs Were Found Badly Involved-Indictments Pending Against Several Other Members of Kiefer Family-Other News. Independence, March 9.-A verdict of guilty was read in court in the case of Iowa vs. Adam Kiefer, in which the defendant was charged with cheating by false pretenses. The specific charge was in connection with the payment of two notes, each for $700, and issued by D. B. Stoner. Kiefer is the former president of the Kiefer Savings Bank of Hazelton, which institution wos closed March 20, 1913, on the order of a state bank examiner. The Ktefer Savings Bank was organized in 1910, with a capital of $10,000. In 1863 a private bank was organized by the Kiefer brothers, Adam, John and William. The concern was known as the Kiefer Brothers' Banking Company. About five years ago It was rumored that the private bank was in a critical condition. The savings bank was then organized by the Kiefers, and it was generally supposed that the two banking institutions would be merged within a short time. However the private bank continued to do business and solicit deposits on the promise of payment of 6 per cent interest. while the savings bank offered 4½. About March 1, 1913, Adam Kiefer refused to pay depositors in the private bank. Shortly after this date the bank went into the hands of a receiver. Last October a large number of indictments were returned by the grand jury in connection with the failure of the bank. Those against whom in. dictments were returned, were Adam Kiefer, fifty-one count; John Kiefer, William Kiefer, Earl Kiefer, Kyle Kiefer and William Smith. Bonds from $1,800 to $15,000 were furnished by those indicted. The trial commenced last Monday and Friday evening the jury retired for deliberation. A motion for a new trial will be made, and if overruled an appeal will be taken.