3593. Commercial Bank (Marshalltown, IA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 6, 1899
Location
Marshalltown, Iowa (42.049, -92.908)

Metadata

Model
gpt-5-mini
Short Digest
846af4aa

Response Measures

None

Description

Commercial Bank of Marshalltown failed and was placed in receivership in Oct 1899; depositors and stockholders met and receiver George Whitton handled assets and paid dividends; affairs wound up by 1901. No contemporaneous newspaper description of a depositor run is present — events describe failure, receivership, asset liquidation and dividends. I classify the cause of suspension as government_action (bank placed in receivership) with underlying mismanagement/poor assets noted in reports.

Events (6)
1. October 6, 1899 Suspension
Cause
Government Action
Cause Details
Bank closed and placed in receivership; court/receiver actions to wind up affairs after bank failure and alleged mismanagement.
Newspaper Excerpt
BRINGING MATTERS TO A HEAD. Motions Filed in the Commercial Bank Case. in the Commercial Bank receivership case, C. H. E. Boardman...
Source
newspapers
2. October 14, 1899 Other
Newspaper Excerpt
They simply got together to devise ways and means of getting their money out of the mismanaged and defunct Commercial Bank. Judge Caswell returned from Toledo to hold a special session of court today to take steps to wind up the affairs of the bank.
Source
newspapers
3. October 14, 1899 Receivership
Newspaper Excerpt
Receiver Whitton reported the amount of cash on hand to be $2,400 ... The result was that the depositors were placed in a frame of mind to go after some of the bank officers and stockholders ... Receiver George Whitton, was called in and was asked to make a report
Source
newspapers
4. November 20, 1899 Other
Newspaper Excerpt
A DIVIDEND ORDERED Messrs. Perrin and Bash Put up $14,000 For Division Among Commercial Bank Depositors. Receiver Authorized to Pay Another Dividend of 20 Per Cent
Source
newspapers
5. November 6, 1900 Other
Newspaper Excerpt
Commercial Bank Depositors. I am now paying the interest on deposite at the Hawkeye dry goods store. GEORGE WHITTON, Receiver.
Source
newspapers
6. June 19, 1901 Other
Newspaper Excerpt
HAVE SOMETHING LEFT Stockholders of the Commercial Bank Will Receive Back a Portion of Assessments. Receivership Practically Wound Up and Final Orders of Court Are Made.
Source
newspapers

Newspaper Articles (11)
1. October 6, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 6, 1899

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BRINGING MATTERS TO A HEAD. Motions Filed in the Commercial Bank Case. in the Commercial Bank receivership case, C. H. E. Boardman, attorney for certain creditors and depositors, has filed several motions, the decision upon which it would seem ought to bring matters to a speedy determination. In these motions it is requested that the court order: first, that the receiver be instructed to figure and pay interest on all deposits and certificates; second, that the receiver be ordered to sell and dispose of all remaining assets of the bank at public auction: third, that the court order an assessment of 100 per cent upon all the stockholders of the bank, and that demand be made upon them, and upon their refusal to pay. suit be brought against them; fourth, that the receiver make a report giving the data for this assessment. The motions also provide for notice to be given by the receiver to all parties interested. that they may appear and object. The hearing of these matters will come on Saturday morning of the 14th, at 10 o'clock.

2. October 14, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 14, 1899

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this city today. Politics was not the object, however, and the assemblage was composed of people of all shades of political belief and of both sexes. They simply got together to devise ways and means of getting their money out of the mismanaged and defunct Commercial Bank. Judge Caswell returned from Toledo to hold a special session of court today to take steps to wind up the affairs of the bank. The depositors and stock-" holders had been requested to be present, and when court convened at 10 o'clock there were in the neighborhood of 100 of the latter in the room. All sections of the county were represented. The outcome of the gathering is that the depositors have made an offer to the stockholders that will wind up the affairs at once, but if this is not accepted steps will be taken to sell the assets at auction, assess the stockholders to the full amount of their stock and the grand jury will be called upon to investigate certain transactions on the part of the officers and directors of the bank about the time it closed its doors. When Judge Caswell learned that the depositors had not met and agreed upon a plan of action, and that the stockholders were as much at sea as the depositors, he suggested that the former assemble in the east court room and agree upon some line. He also suggested that the stockholders get together, but so far as observed but two of the latter were present. The depositors at once went into session in the east room and a pretty lively meeting, lasting until the noon hour, ensued B. F Cummings called the meeting to order and S. O. Lampman was asked to preside. F. G. Pierce was chosen secretary Several lawyers are among the depositors and they led in the discussions and suggestions. As the first step in the proceedings and in order to find where they are at, Receiver George Whitton was called in and was asked to make a report He was under a cross fire of questions for some timeall good natured and not directed at him, but with the object of revealing some things in regard to the affairs of the Institution prior to his appointment as receiver. The result was that the depositors were placed in a fraine of mind to go after some of the bank of ficers and stockholders with a legal club if they do not show a disposition to tote fair, although the depositors are probably feeling much better over the condition of affairs than are some of the stockholders who are well to do and who will have to bear the burden of any shortage in the assets. Receiver Whitton reported the amount of cash on hand to be $2,400 Dividends to the amount of 60 per cent have already been paid. Among the assets are $4,100 due from the Farmers Loan and Security Company, the wheel formed within the bank for the purpose of handling its real estate: stock in the Carbondale Land and Coal Company to the amount of $26,500. secured by first mortgage and good in time; $10,000 of stock in the Credits Commutation Company, of Sioux City, which is worth practically nothing: stock in a LeMars and a Kansas City bank, the value of which is indefinite, and various notes for smaller amounts, most of which can be realized upon. The total assets amount to about $65,000, and in the receiver's judgment about 40 per cent, or $25,000 worth, are good. There is due depositors $48,000, provided no Interest is collected, or $52,000 if interest is insisted upon. This leaves a deficiency of about $25,000 for the stockholders to make good if an assessment is levied on the stock. The receiver was questioned closely about certain notes which were not turned over to him. All he knew about this was that a creditor had called upon him to pay a note and he did not have it among the assets. It was revealed, however, that this man owed three notes, and that Vice President Hildreth had one in his possession and the money, about $800 was paid to him. Mr. Bash and the Sherman estate held the others. It was also developed that some of the stockholders had disposed of real estate, taking in payment certificates of deposit on the bank and collecting a portion of the dividends declared by the receiver. The depositors obtained more light on the condition and affairs of the bank than had before been revealed, and with the information at hand were ready to take some action. A committee, consisting of Henry Stone. J. C. Myers and T. C. Cronkleton, was selected to draw up a proposition to the stockholders to the effect that if the latter would pay the depositors the face of their claims all the interest would be thrown off and the assets of the bank would be turned over to them for handling as they saw fit. This proposition was unanimously adopted, and five days were given the stockholders to accept and sixty days in which to make the payments. In case this offer is not acceptable, it was thought best to be ready to take action in another direction, and a com mittee consisting of C. H. E. Boardman Dr. W. C. Payne and Mr. Whealen was appointed to draw up in writng some of the suggestions mutually agreed to. The committee reported a set of resolutions, dependent on the acceptance of the first proposition, asking the court to order the receiver to dispose, at public auc tion. of all the assets of the bank: that he levy an assessment of 100 per cent on the stock to make good any deficien cy; that the receiver enforce the payment of the full amount of the stock of the Farmers' Loan and Security Com pany, which was never paid; that no further dividend be paid to stockhold

3. October 17, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 17, 1899

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Hopkins for trousers. Fine country butter at Adams'. Dr. Janss, physician and surgeon. Some very new styles in trouserings at Hopkins'. We sell fur collarettes tomorrow. Archie Parker. Ladies' fleece lined union suits for 25 cents. M. F. Andrews. New sheet music just received at Harlan's. The latest out. New stamped doylies in late designs, embroidery, silks, etc., at Newcomer's. For Rent-My 320 acre farm, one and one half miles north of St. Anthony. Geo. A. Turner, over Marshalltown bank. J. C. Dunn has commenced his sewer work on South Second street. Good men can secure work at $1.75 per day by applying on job. Earl Stubbs, son of E. W. Stubbs, has accepted a position as conductor on the Marshalltown Light, Power & Railway Company's car No. 2, taking the place of Conductor Ed Drake. The philanthropy and applied Christianity department of the Women's Club will meet at 2:30 o'clock Wednesday afternoon with Mrs. Charles H. E. Boardman, 405 East Main street, instead of Mrs. E. Lee. Mr. Melzar M. Dickson, of this city, who has been in the employ of the Lake Shore & Michigan Southern at Toledo, O., for over a year, in the engineering department, has accepted a position as assistant engineer of the Central, with headquarters in this city. Rev. H. G. Cooley, of Ogden, was in the city over night as the guest of Rev. C. P. Boardman, going to Montour this morning, where he will attend the Central Association of Congregational Churches, in session today and tomorrow. Rev. Boardman went to Montour this afternoon. From a card received by a friend from Mr. J. M. Cox, of Pella, it is learned that Mr. Murray A. Cox is very much improved and practically out of danger. His fever has been broken and he is now recovering rapidly. Mr. Cox says that, Providence not preventing, his home will be open to his son's friends in a week or two. Dr. Harry Echternacht returned Monday evening from Des Moines, where he had been over Sunday, going especially to attend the ordination to the priesthood of his friend, Rev. Milton S. Runkle, who is the new rector of the Church of the Good Shepherd. Bishop Morrison conducted the ordination at St. Paul's Episcopal church. Mr. Henry Bash, who was one of the stockholders of the failed Commercial Bank, was in the city today, and says that the statement made at the depositors' meeting last Saturday to the effect that he had in his possession one of the notes missing from the assets of the bank is a mistake. Mr. Bash, who is one of the few financially responsible stockholders, says he would like to be able to get hold of something from the wreck, if he could do it honorably, but of the transaction in question he knows nothing. A large number will go from this city to State Center on Tuesday night of next week to hear the address of A. C. Rankin, who discusses the political issues at that place on the evening of the 24th. Under the new train service of the northwestern the trip can be made without breaking into the sleep of those who desire to go. A train leaves this city at 5:05, and the return trip can be made on one of the new trains, which leaves State Center at 10.25. As the latter train starts from Des Moines, it is sure to be on time. Yesterday was considered about the busiest day in local freight circles of the Iowa Central experienced in many years. The shipments to the city of all kinds of freight were extremely heavy, likewise the export business. Today four switch engines were kept busily engaged in the yards, and two work trains were equipped and sent out from this point. Every engine the company has is being worked to its utmost capacity and the employes of the shops are making all the repairs necessary as quickly as possible, so as to get the machines back on the rails again. The farmers of Marshall county and the state desiring an excellent receipt for the cure of hog cholera will do well to apply either in person or by letter to Brittain & Co., this city. The receipts are just from the press, published in circular form, and will be mailed free to any address. The remedy for the disease most dreaded to farmers is that advocated and recommended for use by the government bureau of animal industry and has been tried with excellent success by the government expert at the company's packing house upon herds of farmers residing near this city. It is compounded at a very nominal cost and is easily applied. The Marshalltown mills commenced yesterday to grind buckwheat and can supply patrons in the future with that product. As an evidence of the superiority of the home-made buckwheat flour it is only necessary to cite the fact that Mr. Benson sold two sacks of his flour to one sold by merchants of the eastern buckwheat flour. It will be several weeks before the improvements are completed and the mill running to its full capacity, but when the time does come Mr. Benson will be in a better position than ever to accommodate his patrons, as the latest improved machinery is being put in and the mill will be among the best equipped in the state. Mr. John S. Black, who has been in the city for a week's visit with his family, went to Gilman this morning and will be absent a few days in some of the

4. October 20, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 20, 1899

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# BLUE PENCIL NEEDED. Des Moines Capital Reporter's Prejudiced Views. The Des Moines Capital has on its reportorial staff a youngster who sojourned in Marshalltown a short time in a vain effort to show other people how to run a newspaper. His name is H. De Veaux Matthews, and since his connection with the Capital he has been engaged in rehashing and coloring Marshalltown news for his employers. The Marshalltown publication with which Matthews was connected managed to get some of the good money of the Commercial Bank before it failed, and because the bank receiver sought to collect what was due and the court tried to protect the paper's creditors, it had a grievance against both court and receiver. Matthews, since going to Des Moines, is still "sore," and the city editor of the Capital should blue pencil

5. November 17, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, November 17, 1899

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AFFAIRS OF FAILED BANK Another Meeting of Commercial Bank Depositors Held and Encouragement is Held Out. Messrs Ferrin and Fash, Stockholders, Offer to Make `acrifices if Necessary. Proposition if Still Open Will Be Accepted-Attorney to Be Employed. Another meeeting of the depositors of the failed Commercial Bank was held in the east court room this forenoon, called by Chairman Lampman and Secretary Pierce at the request of many of the depositors to decide on plans for future action in connection with the bank affairs. The meeting was attended by between seventy-five and 100 depositors, and although considerable time was consumed in getting at the objects of the meeting. the final result was most encouraging, especially in connection with an offer of Messrs. Ezra Perrin and Henry Bash to turn over to the receiver enough money for a 20 per cent dividend. Mayor Pierce stated the object of the meeting briefly, saying that in his opinion it was not business for the depositors to be unrepresented in court while the stockholders were. Then discussion commenced. Opinions were expressed that It looked as though the receiver had favored the stockholders more than the depositors; the action of the receiver in allowing stockholders who were now reported insolvent to draw dividends from the bank was questioned, and the old story that some depositors had been paid in full was repeated. Rev. Bordahl thought that too many lawyers were interested in the matter already. Mr. Henry Stone wanted the received summoned to explain why depositors had been paid between $200 and $300 as settlement in full. All these questions were later explained to the apparent satisfaction of all, and the depositors were in much better humor when they were informed that at least two of the stockholders had manifested a disposition to do even more than their share towards paying the claims in full Mr. J. C. Myers, of Liscomb, said he had been approached with a proposition from Mr. Ezra Perrin and Mr. Henry Bash, two of the stockholders, which was in effect that they would turn over to the receiver enough cash to pay an other dividend of 20 per cent, thus bringing the total of the dividends paid up to 80 per cent. provided the sale o the remaining assets was postponed for a time so they would not have to be sacrificed, the two stockholders then to receive back any amount left after the banks affairs were settled. Mr. Myer: said that so far as he was concerned he favored accepting the offer, but be un $ derstood that the receiver, on the ad vice of his attorney, had refused it, al though Judge Caswell favored it. A there is now about $5,000 in the receiv er's hands, the offer of Mr. Perrin and Mr. Bash was equivalent to turning over $15,000 in cash. Mr. Cummings and Mr. Boardmar expressed decided opinions in favor 0 accepting the proposition if it could again be secured from the gentlemen and a motion was made that a commit

6. November 20, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, November 20, 1899

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A DIVIDEND ORDERED Messrs. Perrin and Bash Put up $14,000 For Division Among Commercial Bank Depositors. Receiver Authorized to Pay Another Dividend of 20 I er Cent-Other Stockholders Put up. Considerable Other Business Transacted in District Court-The Loughrey Case. District court disposed of considerable business this forenoon-business that had accumulated during the progress of the Loughrey-Great Western trial. The item of most importance was and order to Receiver Whitton, of the failed Commercial bank, to pay another dividend of 20 per cent to the depositors. Receiver Whitton will pay this dividend at once, as he has the funds on hand. The dividend was made possible through the action of Messrs. Henry Bash and Ezra Perrin, the two stockholders who offered to advance enough money to make, with that already in the hands of the receiver, enough to pay 20 per cent. Messrs. Perrin and Bash have placed in the receiver's hands $14,000 in cold cash. Mr. Bash owned $10,000 worth of stock in the bank, and he put up $10,000 more for the benefit of the depositors. Mr. Perrin, who held only $1,000 of stock, advanced to the receiver, $4,000 or $3,000 more than the amount for which he was legally liable. As Mr. Whitton had about $10,000 on hand, it will be seen that he will have a little left after the dividend is paid. Two other stockholders have also paid the assessment on their stock in full. They are George Woodruff, who held $1,000 of the stock, and John Berry, who held $500. It is understood that some of the other stockholders who are financially responsible are preparing tho follow suit. The $20,000 that will be distributed among the depositors by this last dividend will at least give them a little Christmas money. This will make a total dividend of 80 per cent. After the assets are disposed of and the depositors are paid in full. the stockholders who put up the cash will receive back their per cent of the money paid in if there is any remaining. OTHER COURT MATTERS. Attorneys for Rev. Abrams and A. J. Mabie came into court this morning and asked that a temporary injunction be issued in the case ogainst C. E. Frost, of Melbourne. This application was made because a motion had been filed by defendant's attorneys to have the case set for the 15th of December. The plaintiffs had subpoenaed witnesses for the hearing for a temporary writ, without asking the court whether the hearing could be had immediately, and Judge Burnham thereupon taxed the costs thus made to the plaintiff. He intimated that he did not propose to have witnesses summoned by the wholesale and costs run up unless the attorneys knew when the cases could be heard. He refused the writ and said he would set the hearing for the first week in December. Mrs. Lydia Wyatt was granted a divorce from her husband, Calvin Wyatt, on the grounds of adultery.

7. February 2, 1900 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, February 2, 1900

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FINAL ACTION POSTPONED. Commercial Bank Matter to Come UpOne Week Hence. Judge Caswell convened court again this morning. after a recess of five days. The Commercial Bank receivership matter. which was the especial business to come up, was postponed until Saturday, Feb. 10. when the receiver will make a full report and steps will be taken to close the affairs up. A motion to dissolve the injunction issued in the creamery company controversy was made, and Judge Caswell took the matter under advisement. Another squabble occurred as to the taxing of the costs in the Frost case from Rhodes, the prosecution objecting to a previous order made.

8. February 10, 1900 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, February 10, 1900

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THE RECEIVER'S REPORT Mr. Whitton Files in Court a Statement of Condition of Commercial Bank Affairs. Ordered to Dispose at Once of the Assets on Hand For What They Will Bring. Balance of $24,400 Due Depositors, With Interest-Stockholders Backward. Judge Caswell held an adjourned session of the district court today for the especial purpose of taking steps to wind up the affairs of the Commercial Bank. But little was accomplished further than the filing of the report by Receiver Whitton and an emphatic suggestion from the court that the assets remaining on hand should be disposed of at the earliest possible moment for what they will bring. If these can not be disposed of soon they will be turned over to the stockholders and proceedings commenced to . collect on the stock. Receiver Whitton's report shows the assets and liabilities now on hand to be as follows: Amount notes and other securities $47,082.86 Cash in Marshalltown State Bank 2,597.27 Cash in City National Bank.. 2,227.01 Amount in American Trust .... 1,711.50 and Savings Bank 353.7 Cash on hand Total $53,972.4 ESTIMATE OF LIABILITIES. Balance due on first, second 60.00 $ and third dividends Balance due on fourth dividend 2,964.7 Balance dividends unpaid on 30.01 small accounts $ 3,054.8 Balance due depositors of 20 per cent $24,400.0 Interest owing depositors to 7,300.0 February 10 The total amount due depositors. i will be seen, is $31,700, including Inter est of $7,300. Of the assets of $47,000 : considerable per cent are considered worthless, or practically so The Car

9. November 6, 1900 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, November 6, 1900

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Commercial Bank Depositors. I am now paying the interest on deposite at the Hawkeye dry goods store. GEORGE WHITTON, Receiver.

10. November 13, 1900 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, November 13, 1900

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Commercial Bank Depositors. I am now paying interest on the bank deposits at the Hawkeye dry goods store. GEORGE WHITTON, Receiver.

11. June 19, 1901 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, June 19, 1901

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HAVE SOMETHING LEFT Stockholders of the Commercial Bank Will Receive Back a Portion of Assessments. Receivership Practically Wound Up and Final Orders of Court Are Made. Stockholders Will Receive 13 or 14 Per Cent, Besides Remaining Assets. The Commercial bank receivership is practically ended, Judge Caswell on Tuesday afternoon making an order for the final disposition of the funds and assets in Receiver Whitton's hands. Several of the former stockholders were present at the hearing and were well satisfied with the court's final order. Receiver Whitton was allowed $2,275 for his entire services, and "said receiver is ordered to make a favorable distribution, pro rata, out of the balance of the funds after payment of his salary and costs, among those stockholders who have paid their assessments in full: and it is further ordered that he turn over the assets of the said bank. if any, to the stockholders thereof, or any one designated by them, and make further report of his doings at later date to this court, and upon SO doing he will be discharged." The order also provides that in the cases of those depositors of the bank entitled to dividends and whose addresses are unknown. the money shall be left with the clerk of the courts. More than one-half of the stockholders had paid in full the special assessment called for, and Receiver Whitton, after having paid the depositors in full and all expenses, has enough money on hand with which to pay back to these stockholders about 13 or 14 per cent. There are also on hand notes and other assets to turn over to the stockholders. but these are not of great value and it is not thought that much can be realized on them, altho it may be possible to secure something in the course of time. It is probable the stockholders will appoint a trustee to handle these assets. The affairs of the bank have been well handled. both by the receiver and the court, and neither depositors nor stockS holders have reason to complain. altho S the affair has been an unpleasant chapter in the history of Marshall own's otherwise solld financial institutions.