24b0aa91Full suspension
Other: President absconded and later arrested; receiver appointed.
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RUN-AWAY BANK PRESIDENT CAUGHT HEAD OF PRIVATE BANK IN IOWA SKIPS AFTER A RUN ON HIS INSTITUTION. Des Moines, Ia., Feb. 21.-E. J. Penfield, president of the Bank of Kelley, a private institution at Kelley, Ia., was apprehended today at Watertown, S.D. He will be returned to Kelley to answer charges filed by the sheriff of Story county Penfield's bank closed yesterday, following a run. The depositors today estimated that the shortage is $52,000.
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ARREST KELLEY BANKER E. J. Penfield, Story County Bank President, Apprehended in South Dakota-Depositors Estimato Shortago at $52,000-Institution Forced to Close. Des Moines, Feb. 21.-E. J. Penfield, president of the bank of Kelley, a prlvate institution at Kelley, Story county. was apprehended today at Watertown, S. D. He will be returned to Kelley to answer charges filed by the sheriff of Story county. Penfield's bank was forced to close yesterday following a run, which was occasioned by rumors that Penfield had decamped. Depositors today estimated that the shortage is $52,000. Mrs. Penfield, who is ill in bed from the shock, received a postal card today from her hsuband, it is said, in which h stated that he would not return This was prior to the news of his arreat at Watertown. [The story of the closing of the bank appears on page 2.]
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INSTITUTION CLOSED AND PRESIDENT PENFELD SUPPOSED TO HAVE LEFT STATE. MUCH OF BANK'S PAPER HAS BEEN HYPOTHECATED Only a Few Notes and $400 in Cash Left to Pay Liabilities of $52,000 Supposed That President Has Absconded-Boone Bank Holds Bulk of Negotiable Paper. Ames, Feb. 21.-The Bank of Kelley, located at Kelley, a small village south of Ames, suspended business yesterday afternoon as a result of a run made by depositors, said to have been due to disclosures made concerning the financial conditoin of the institution, coupled with the disappearance of E. J. Penfield, its president. President Penfield is said to have left Kelley last Saturday morning, ostensibly for Watertown, S. D., where he has land interests. Following his departure it is alleged that discovery was made that almost all the notes and negotiable paper in the bank had been hypothecated or sold to the Boone National Bank and that the bank's assets were represented by a few notes and about $400 in cash to offset liabilities of $52,000 due depositors. Rumors spread rapidly thru the small village and surrounding community, and when Cashier A. M. Eggleston opened the bank for business yesterday morning a large number of depositors were in line waiting an opportunity to secure their money. The $400 on hand was paid out quickly and announcement was made to the disappointed patrons that the bank would be compelled to suspend payment. An examination made yesterday afternoon is said to have revealed 30 cents as the amount on hand, made up largely of pennies. Absconded is Belief. Patrons of the bank believe that Penfield has absconded with all of the bank's assets and a request has been made of the Iowa Bankers' Association that an effort be made to apprehend him before he makes his escape from the country. Penfield is known to have been in Des Moines Saturday morning. and is said to have transacted considerable business here. He is also said to have been in Boone during that day where he repeated his announcement of an intention to go to Watertown Nothing is known of his whereabouts since that time. The missing official was president and sole owner of the Kelley bank. He was formerly in the insurance business at Nevada. Iowa. and went to Kelley about five years ago and organized the bank. Following its organization he embarked in the real estate business and dealt extensively in Dakota lands. He was credited with being a shrewd business man and altho he was not actively engaged in handling the details of the bank work. giving most of his time to his real estate business. the people residing in the vicinity had confidence in his ability and integrity and the deposits of the new institution grew rapidly. Industrious Habits. He is reported to have been of industrious habits and exhibited exemplary traits in his private life It is said that there had never been the slightest apparent foundation for rumor of speculation or ill-advised investments and the patrons of the bank are at a loss to account for what they believe to be the embezzlement of the entire assets of the institution. The community in which the bank is located is made un largely of Scandinavians and the patrons were almost entirely of that type. In many instances the deposits represented the entire savings of the patron and if the report of the looting of the institution proves true then it means the wiping out of their entire fortune and in some cases the involving of others in their failure. At least three Des Moines banks were connected with the defunct institution as correspondents and may suffer some loss as a result of the condition revealed vesterday. The amounts involved are not large however or sufficient to cause the local depositories worry or financial embarrassment Bank officials from here will 20 to Kelley this morning. according to announcement made last night. for the purpose of investigating conditions there and the exact status of the suspended bank Officials Investigate. Officials from the bank at Boone which purchased the notes and negotiable paper from Penfield are said to have been of Keller last night for the
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Bank of Kelley Suspends. Boone, la., Feb. 21.-Special: The Bank of Kelley, located at Kelley, la., a small village between Des Moines and Ames, suspended business yesterday afternoon as a result of a run made by depositors said to have been due to disclosures made concerning the financial condition of the Institution, coupled with the disappearance of E. J. Penfield, its president. President Penfield is said to have left Kelley last Saturday morning, ostensibly for Watertown, S. D., where he has land interests. Following his departure it is alleged that discovery was made that almost all the notes and negotiable paper in the bank had been hypothecated or sold and that the bank's assets were represented by a few notes and about $400 in cash to offset liabilities of $52,000 due depositors.
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Bank of Kelly Suspends. Des Moines. - The Bank of Kelley, located at Kelley, Ia., a small village between Des Moines and Ames, suspended business as a result of a run made by depositors said to have been due to disclosures made concerning the financial condition of the institution, coupled with the disappearance of E. J. Penfield, its pres. ident.
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BANK PRESIDENT ARRESTED Head of Kelley (la.) Financial Concern Captured. Des Moines, Feb. 23.-E. J. Penfield, president of the Bank of Kelley, private institution at Kelley, Ia., was apprehended at Watertown, S. D. He will be returned to Kelley to answer charges filed by the sheriff of Story county. Penfield's bank closed following a run. Depositors estimated that the shortage is $52,000.
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GRAEBER MADE RECEIVER. Cashier of Sheldahl Savings Bank Takes Charge of Kelley Institution. Kelley, March 3.- R. S. Graeber, cashier of the Sheldahl Savings Bank, was today named as receiver of the Bank of Kelley, which was forced to close its doors last week following a run occasioned by the disappearance of the president, E. J. Penfield.
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BOWMAN PROTESTS TO FALL Alumni at Fort Dodge Cannot Block Choice of Uni President. YOUNG MAN TO LEAD SCHOOL Still College of Osteopathy at Des Moines to Be Abandoned Unless Consolidation is Effected Before June. (From a Staff Correspondent.) DES MOINES. Ia., March 2.-(Special Telegram.)-The State Board of Education, through its president, James Trewin. gave out today a statement that the board will pay no attention to attacks made on the board at Fort Dodge by alumni who have protested against the selection of Dr. Bowman as president of the state university. "He was recommended by the best educators of the country," said Mr. Trewin, "as the most capable educator who could possibly be secured for the place. We believe we have secured the best man possible." The protest of Fort Dodge alumni on the university was based on the theory that Bowman is too young and his position at the head of the university over men who had been members of the faculty while he was a student there would be embarrassing. May Abandon Still College. It was announced here today that unless a consolidation can be effected with other colleges the Still College of Osteopathy here will be abandoned June 1 next. The owners have planned to effect a consolidation of the college at Kirksville and one at Chicago and put them all here, but President Rummeil states that this does not seem probable and the college may be abandoned. It was established about fourtecn years ago and for some time enjoyed great prosperity. Want Receiver for Bank. Depositors of the Bank of Kelley to the number of 120 have filed in the federal court a petition for a receiver for the bank. A committee has been appointed to look after their interests and the committee believes from the fact that two others were interested with Penfield as partners in the bank they may be able to protect all creditors from loss. Paying Off the Deficit. Owing to too small an allowance for support at the various state institutions the last two years the legislature had to make a special appropriation for a deficit of $26,000. This was made available at once and the Board of Control has just completed paying off bills that had accumulated. The legislature is asked to increase the regular support funds so that no deficit will occur in the future. Taken Back to Pennsylvania. A sheriff from Carlisle, Pa., today secured from Governor Carroll a requisition to take back to Pennsylvania one Joseph E. Brown, who is accused of having furnished medicine to a girl for an illegal purpose. He was a school teacher and he has been arrested in Marshalltown. Insurance Funds Coming In. Nearly all the large insurance companies have finished paying their annual taxes to the state. State Auditor Bleakly today received a check for $10,603 from the Metropolitan Life. Another recent check was for over $35,000 from the Northwestern Mutual of Milwaukee, the largest single payment based upon the amount of business done in the state. Will Help Out Paint Dealers. W. B. Barney, state dairy and food commissioner, -has-hadsprepared a bill for the legislature that will give relief to the dealers in paints. Some years ago a law was passed requiring them to have all paint labeled to show the ingredients. Time was given for selling old stock and later this time was extended. It is now said that upwards of $60,000 worth of paint of the old stock is still left on hand. It is proposed that a special label be provided for this. Road Fund from Direct Levy. Secretary of State Hayward is in favor of a direct tax levy for the benefit of good roads in Iowa. A. half mill levy would bring in about $325,000 a year and with this fund a great amount of permanent road building could be done in the state. The present otulock is for very small appropriations for the road funds. Experts on Street Railway. Bion J. Arnold, Chicago street railway expert, has been employed by Mayor Hanna and Councilman MacVicar to aid in negotiations for the purchase of the Des Moines street railway. Mayor Hanna wired to the city hall this morning of Arnold being employed. They will also hire L. J. Myers of Chicago. Myers is at present in Panama. Both men will charge the city about $250 per day. Their assistants will ask $50 per day. Hearing for Shippers. The Iowa railroad commission today gave notice to shippers and all other interested that there would be an informal conference March 13 upon the interestate rate cases. which have been brought by the commission. It will be held at the office of the commission at 2 o'clock, and plans will be laid for carrying on these cases in which Iowa shippers are interested.
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DEPOSITORS MAY NOT LOSE Committee Claims Henry Banks and C. F. Siverly Must Stand Back of Banker. Des Moines, March 3.-Depositors of the Bank of Kelley filed a petition in the federal court yesterday asking that a receiver be appointed to take charge of the bank. The petitioners are George Holland, who said he had a deposit of $3,000, H. O. Sandness, with a deposit of $1,000, and Anton Reinertson, with a deposit of $1,184. All are residents of Kelley. Attached to the petition is a list of 120 depositors but the amount each one had in the bank is not named. It may be that depositors in the Bank of Kelley will not lose their savings in the defunct institution. A committee of five, named by the depositors, has discovered a statement issued some months ago in which Henry Banks and C. F. Siverly are named as partners with Penfield, the missing president. If that is true Banks and Siverly can be held for the shortage and the depositors will probably bring action against them, so Des Moines attorney says. Banks is the father-in-law of Penfield.
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Receiver for Iowa Bank. Des Moines, Iowa, March 3.-R. 7 Graeber has been named as receiver for the bank of Kelley which closes last week following a run occasionet by the disappearance of President Penfield.
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ROAD EXPERTS GROW CAUSTIC Declaration Des Moines Traction Hopelessly Involved. CITY OWNERSHIP IS ADVOCATED R. F. Graeber of Sheldahl Appointed Receiver of Bank of KelleyRailway Commission Prepares Complaints. (From a Staff Correspondent.) DES MOINES. March 3.-(Special Telegram.)-At a meeting of a committee of citizens held today to consider the street car situation, C. E. Collins. an expert employed by the city to investigate the advisability of city ownership, reported that in his opinion the city can own and operate the system at a profit. He said: "Your car system here is rotten. The only solution is municipal ownership. A private corporation could never untangle the affairs of the city railway. The bonds are in bad condition and repairs are needed badly. I find that no one department of the traction company is progressive." B. J. Arnold of Chicago is also expected to investigate the situation as an expert. Receiver for Bank of Kelley. R. F. Graeber of Sheldahl has been appointed receiver for the Bank of Kelley by Judge French, referee in bankruptcy of the federal court. Mr. Graeber filed a bond of $8,000 today and will assume charge of the institution supposed to have been wrecked by the disappearance of its president, E. J. Penfield. Commission Has Complaints. The Iowa Railroad commission this afternoon prepared complaints to submit to the Interstate Commerce commission in which twenty-two Iowa railroads are made defendants. The railroads are charged with violation of the western classification freight rates into and from Des Moines to out-of-state points, in that they charged higher rates than provided in the schedules. Odd Fellows Have Celebration. Over 800 Odd Fellows and members of the Rebekah lodges held a celebration here today with a banquet in the evening in Shrine temple. Addresses were made by Grand Master Ring, Grand Patriarch Chapin, Grand Secretary R. L. Tilton of Des Moines, Grand Chaplain Kight, Grand Reporter C. E. MacCanon of Des Moines and others. Farmers Are Organizing. There was filed with the secretary of state today articles of incorporation for the Farmers' Shipping company of Kimballtown, with $15,000 capital; the Owens Grove Telephone company, Cerro Gordo county, $9,990, and the Farmers' Mutual Co-operative Creamery company, Orange City, $10,000. Deyoe is Lecturing. State Superintendent A. M. Deyoe is engaged in doing lecture work for the benefit of the schools of the state and is already in demand, though he has been in office but a short time. He went to Buchanan county last week and will go to Butler county, where the school patrons are interested in consolidation and desire information as to how to proceed. Lewis is Congressman's Clerk. William M. Lewis of this city, now journal clerk of the state senate, will become the clerk for Congressman Prouty of this district, who takes his office Saturday to succeed Captain Hull, who will retire to his home in Virginia. Judge Prouty has been in Washington some time and is expected home tomorrow. Assist in Enforcing Laws. Forty creamery men from Iowa, Missourl, Nebraska, Minnesota and Illinois met in Des Moines and appointed a committee to assist Food and Dairy Commissioner Barney in the enforcement of the Iowa pure food laws. The committee appointed to assist Mr. Barney is made up of J. W. Fowler, Grinnell; H. B. Dunlap, Des Moines; W. S. Wilcox, Mason City; F. A. Leighton, Des Moines, and J. J. Jeck, Atlantic. How to better the butter making of Iowa was the principal subject for discussion. Burned Up His Money. Going to his home in Winterset, Charlie Anderson, a young farmer of Madison county, placed $2,900 in currency, which he had taken from the bank to buy a farm with, in a trunk in his home. It was his life's savings. His one desire had been to purchase the farm so his mother and four brothers would have a home. He was awakened in the morning by the smell of smoke and going to the trunk found it burned to ashes together with/all the money, Iowa News Notes.