3595. Commercial State Bank (Marshalltown, IA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 1, 1898*
Location
Marshalltown, Iowa (42.049, -92.908)

Metadata

Model
gpt-5-mini
Short Digest
bb8367c2

Response Measures

None

Description

The Commercial State Bank in Marshalltown closed in July 1898 and was placed in receivership (George Whitton). The articles (1899) discuss the ongoing receivership, assessments of stockholders, asset sales and periodic dividends to depositors. No run on the bank is described; this is a suspension that led to permanent closure and receivership.

Events (6)
1. July 1, 1898* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank failure/insolvency: bank closed its doors in July, 1898 and entered receivership; assets insufficient leading to assessments of stockholders and liquidation.
Newspaper Excerpt
which closed its doors in July, 1898.
Source
newspapers
2. August 12, 1899 Receivership
Newspaper Excerpt
Mr. George Whitton's Appointment As Receiver of Commercial Bank Continues... Mr. Whitton's term as receiver expired today, but there was no disposition made in the case... Mr. Whitton will therefore serve as receiver until the September term, and may be then there will be no change.
Source
newspapers
3. October 14, 1899 Other
Newspaper Excerpt
stockholders and depositors of the Commercial State Bank are hereby notified... to appear... on Saturday, Oct. 14... to investigate the affairs of said Commercial State Bank, and decide in regard to a final settlement of the bank's matters. GEORGE WHITTON, Receiver.
Source
newspapers
4. October 31, 1899 Other
Newspaper Excerpt
meeting of the depositors of the Commercial State Bank, which was held on Saturday, October 14... receiver's report... sale of assets... 100 per cent assessment on the stock of the bank for the purpose of paying the deficiency due depositors.
Source
newspapers
5. November 22, 1899 Other
Newspaper Excerpt
I am now paying the fourth dividend of 20 per cent at the Hawkeye dry goods store. GEORGE WHITTON, Receiver.
Source
newspapers
6. November 23, 1899 Other
Newspaper Excerpt
Judge Caswell announced another 20 per cent. dividend on deposits... Perrin and Bash have placed in the receiver's hands $14,000 cash... This makes a total of 80 per cent. paid on deposits.
Source
newspapers

Newspaper Articles (9)
1. August 12, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, August 12, 1899

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Article Text

WHITTON REAPPOINTED Continuation of April Session of District Court Develops Nothing New. Mr. George Whitton's Appointment As Receiver of Commercial Bank Continues. Salary Cut In Two, However-An Administrator Is Appointed. Judge Caswell convened the adjourned April term of court this morning at 10 o'clock, at which time there came up the matter of the old Commercial State Bank failure as regards the report of the receiver, Mr. George Whitton. Mr. Whitton's term as receiver expired today, but there was no disposition made in the case in any way whatever and his appointment will continue until the September term, at least, although at a more moderate salary. Mr. Whitton has been receiving $100 per month for acting as receiver of the property, but hereafter, or during the remainder of his term, will receive but half that amount. Mr. Whitton's report for the year was made to the court, being filed this forenoon. The report showed the condition of the property, the amount of the assets on hand and the disposition of the funds during the year. The report was neither approved nor disapproved, but was continued over till next term, in order to allow time for the filing of any objections that might be made. Mr. Whitton will therefore serve as receiver until the September term, and may be then there will be no change. Upon petition Mr. E. G. Swift, of State Center, was appointed by the court as administrator of the estate of A. C. Babcock, deceased. Mr. Babcock resided at the time of his death in Chicago and was a well-known Illinois politician. In his estate is included considerable real estate and personal property in Marshall county. Court was adjourned for dinner, and after some routine matters in connection with the bank case after the noon hour adjournment sine ale was taken.

2. October 6, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 6, 1899

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AFFAIR TO BE WOUND UP Judge Caswell Takes Action to Bring End to the Commercial Bank Receivership. Date Fixed For the Appearance of Depositors and Stockholders In Court. Amount of Deficiency Stockholders Must Pay to Be Determined At That Time. Considerable time this forenoon was consumed in the district court by a discussion of the affairs of the failed Commercial State Bank, and a course was decided upon that if followed by all those in interest will have the result of winding up the affairs of the bank and the receivership. Judge Caswell expressed himself as dissatisfied with the delay in bringing matters to a head. Saturday, Oct. 14, was the day fixed for a general hearing of all parties interested. The judge said he would suggest to the receiver that he dispose of the assets still on hand at the best figure possible, and that he would Instruct him to issue a notice to all the stockholders and depositors that a hearing would be held on the 14th for the purpose of determining in reference to the payment of the deficit by the stockholders, and in what manner this assessment shall be made. At that time Receiver Whitton will be asked to make a written report of the amount of ast sets on hand and how much money it will require to close the business up. One important point to be determined, and one on which there is a diversity of S opinion on the part of the attorneys, is in regard to when and how the deficit should be paid by the stockholders. From all indications the latter will have to dig pretty deep into their pockets if it is shown that they are responsif ble for and must make good to the deS positors the deficit. Some of the attore neys interested hold that this assessS ment should be levied before the receiver disposes of the assets, and should be based on his estimates, Il while others contend that the sale of all the assets should be made before it can be determined the amount of the liabilg ity of the stockholders. Judge Caswell n suggested that the dépositors should get f together and employ counsel to repreS sent them at the hearing. It is probable the case against the B New York Life, brought by Miss Elva Wilkinson as the beneficiary of the late g Private Ole Lunstrum, of Company H. d will be appealed by Miss Wilkinson. e The company, before the hearing d Wednesday, had tendered the plaintiff 1 $100, acknowledging liability for that e amount under the policy, and this much in was allowed, so that the decision was is not altogether in favor of the company Court did little business today aside y from the discussion of the bank matter e.

3. October 10, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 10, 1899

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Dysentery Quickly Cured. "Last summer I had an attack of dysentery," says Mr. J. A. Kelly, the well-known merchant of Henderson, N. C. "I purchased a bottle of Chamberlain's Colic, Cholera and Diarrhoea Remedy, which I used according to directions and with entirely satisfactory results. The trouble was controlled much quicker than former attacks when I used other remedies." This is the most successful medicine in the world for bowel complaints and is pleasant and safe to take. For sale by druggists. Notice. The stockholders and depositors of the Commercial State Bank are hereby notified by authority of Obed Caswell, judge of the district court, to appear, either in person or represented by an attorney, at the court house in Marshalltown, Iowa, on Saturday, Oct. 14, at 10 a. m., to investigate the affairs of said Commercial State Bank, and decide in regard to a final settlement of the bank's matters. GEORGE WHITTON, Receiver.

4. October 12, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 12, 1899

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Article Text

Notice. The stockholders and depositors of the Commercial State Bank are hereby notified by authority of Obed Caswell, judge of the district court, to appear, either in person or represented by an attorney, at the court house in Marshalltown, Iowa, on Saturday, Oct. 14, at 10 a. m., to investigate the affairs of said Commercial State Bank, and decide in regard to a final settlement of the bank's matters. GEORGE WHITTON, Receiver.

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

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Article Text

EueningTYmes-Republican, Marshalltown, Jowa, Friday, October 20, 189 FIGHT ALLEGED TO BE CO some of his stuff. His latest is a garbled report of the action of the stockReported That an Effort W holders and the court in the bank matMade to Take Soldiers' Hom ter. Among other things he says: SE M'PHERSON REPLIES Board of Control. "Some of the securities of the CarThe Des Moines Leader indul bondale Coal Company to the amount the following gossip concerni of $26,000 will be sold at public auction The Timber Creek Voter's Letter board of control and the S in Marshalltown on November 11. The Home: About Sheriff's Expenses Elicits securities are a portion of what R. E. "There is little doubt that the ( Sears put up with the banks in Mara Reply. and affiliated organizations of th shalltown in floating the bonds of the will make a fight against the m company. This $26,000 worth are what ment of the Soldiers' Home 1 Been were put up with the Commercial State Admits Showing of Figures and board of control in the coming Bank, which closed its doors in July, tive session. Developments rece Denies Responsibility For 1898. The securities are to be sold now dicate pretty plainly that the G under an order just given from the Stories to the Contrary. people are getting ready for the ( Marshall county court ordering the baland yesterday Assistant Ad ance of the assets of the bank, which it Black and Chairman Larrabee has been impossible to raise any money Says He Has Something to how meeting at which some of tl on, to be sold at public auction. The For His Expense-His Record changes were portentous. order was issued after a meeting held "Some time ago the board ad by the depositors and creditors of the Explained. the salary of the chief seamstres defunct bank in which several resoluhome from $12 to $17 per monti tions were passed denouncing the lady, however, has indicated the The article that appeared in these method of the receiver and directors in considers $20 little enough, and S the conduct of the bank and its affairs. columns a few days ago regarding the will be compelled to resign unl At the same time that the order was comparative cost of the sheriff's office salary is further raised to that given for the sale of the remainder of and during the present and former terms The Women's Relief corps has ta the assets of the bank the court was alhas elicited a reply from Mr. McPherher cause, and yesterday Mrs forced to issue an order for a 100 per Hutchinson of Lake City, state son, the present sheriff, in which he adcent assessment on the stock of the dent, called on the board. She 1 bank for the purpose of paying the demits the showing made by the figures companied by Mrs. Black. Mrs. ficiency due depositors. This assesswill furnished this paper by the auditor, but inson asked if she might have ai ment was petitioned by the depositors explains from the records of his office club view with Governor Larrabee, T of the bank a year ago and the court, sented. She then stated the facts why they are such. hout Judge Obed Caswell, failed to issue the understood them, adding that the order. It is now said that some of the In giving publication to both of these is stress considered she ought to h stockholders have since disposed of the articles the Times-Republican believes the per month, and is able to earn th property which had been held in their that it is performing dutifully its elsewhere. Governor Larrabee S names in order to avoid the possibility board could not grant the adva been function as a newspaper and wishes to of the assessment being finally made." said the schedule of wages ha The facts are that Receiver Whitton thank Mr. McPherson for his candor prepared after careful inquiry, was not criticised in any manner in the and frankness for bringing his reply grant an increase in one place W lease stockholders' meeting, and never before volve increases at others. first to this office for publication. the had the stockholders petitioned that an "Mrs. Hutchinson then asked Standing as it does as the only paper assessment be levied against the stock. board would allow the W. R. C. to of very large general circulation in all An attorney who was connected with the lady the additional $3 per m ither Matthews' paper may have done so, but districts of the county it is in duty' bring her salary up to $20 a the never the stockholders. All this is said bound to open its columns to the public Governor Larrabee sald this co to simply to keep history straight. regardless of political affiliations. be permitted. Here Mrs. Black orth-

6. October 31, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 31, 1899

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COMMERCIAL AFFAIRS Mr. H. De Vaux Matthews Contributes a Chapter From the Capital City. Feels Aggrieved Because the T.-R. Sought to Keep the History Straight. He Finds Fault With the Receiver's Methods of Doing Business— Grinding an Old Axe. The following communication has been received from H. D. Matthews, formerly engaged in the newspaper business in this city, but now a reporter on the Des Moines Capital: Editor Times-Republican, Marshalltown, Ia.: In justice to myself I desire the publication in your columns of a few words from myself and of the appended sworn report of the answers of Receiver Whitton to a number of questions put to him at the meeting of the depositors of the Commercial State Bank, which was held on Saturday, October 14. In a recent Issue of your paper you devoted some gratuitous space to me in a few remarks that were in perfect accord with the present babyish policy of the paper. In the minds of those who have been familiar with the progress of events in the Commercial Bank failure there is little doubt of the extreme friendship of the Times-Republican at all times to the stockholders and officers of that bank. In the early days of its failure an attempt was made to make Cashier Woodworth the scapegoat for the wrath of the depositors and the Times-Republican of that time was notorious for its laughter at the efforts made by Mr. Woodworth and a few others to secure the depositors something by the reorganization plan which was proposed. It is barely possible that the reorganization might have succeeded In paying out to the depositors the 60 per cent which the last report of the receiver shows that they have received. With the exception that some fifty-two or more, as shown in the report of Mr. Whitton, filed in January, would not have been pain in full. And some fifty more would not have been paid 75 per cent at that time. They must have been pets of the receiver. It is a kindness to Mr. Whitton to say he was merely incapable of the duties which devolved upon him and that he lacked the business ability to carry them out instead of saying that he has used his powers, as receiver, in a way that was to the advantage of himself and his friends. It must have been lack of capability that prevented him from doing anything until he had consulted the court having authority over him to see if a certain course of procedure was agreeable. Even in the little matter of permitting the attorneys for the depositors to see the books of the bank.

7. October 31, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 31, 1899

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Mr. Lacey have disposed of their property. I understood that they traded it for certificates of deposit in the bank." "Then a lot of these insolvent stockholders hold certificates of deposit in the bank and are collecting dividends, are they?" "Yes." "Tell us, Mr. Whitton, anything you know about any note for $800 that Mr. Thomas Swearingen owed and that he paid." "He came into the bank one day to pay a note for $800 that he said he owed, and I told him that there was no such note there. Director Hildreth was in the back room and he took Mr. SwearIngen back there and produced the note, and I understood that Mr. Swearinger paid it." Marshalltown, Iowa, Oct. 28, '99.-To Mr. H. D. Matthews: Regarding the testimony heard at a depositors' meeting on the 14th of October, 1899, would say that I was secretary of the meeting and heard the testimony and report of Mr. Whitton, receiver. While I did no take any notes of the meeting, and no notes were taken, yet, as I now recollect the matter, you have the matter substantially correct, and to that extent so certify. Notes of testimony returned annexed. FRANK G. PIERCE, Secretary, pro tem, of the meeting o the depositors of the Commercia State Bank. Space is given the above for the ben efit of whatever truth there may be il Mr. Matthews' personal statement, and because the T.-R. is and always ha: been anxious to throw any light on th Commercial muddle-for muddle it ha been from the first, and there hav been some who were apparentl: anxious to plunge the bank's af fairs into endless litigation, althoug that is just what the court and the re ceiver aimed to avoid. Some of Mr Matthews' conclusions-admitting fo the moment that he is the author o the communication, although there i very good grounds to think the articl was inspired and dictated if not wholl written in this city-can not be passe without notice. He seeks to take th T.-R. to task for its alleged friendlines to the stockholders and directors. Th columns of this paper show whether o not this charge is warranted. The de funct bank held no notes against th T.-R. and this paper had no quarre with the bank officials, the court or th receiver. This paper has been interest ed only in giving the news of the fail ure as it developed, without fear o favoritism, which it will continue to d as fairly as possible. It has n axes to grind-which is not the cas with some of those who have had muci to say about the bank's affairs. If i becomes apparent that any one, be h officer, stockholder or creditor, has bee guilty of wrong doing the T.-R. will no hesitate to say so. Mr. Matthews speaks of "com

8. November 22, 1899 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, November 22, 1899

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Notice. Commercial State Bank depositors- I am now paying the fourth dividend of 20 per cent at the Hawkeye dry goods store. GEORGE WHITTON, Receiver.

9. November 23, 1899 Missouri Valley Times Missouri Valley, IA
Article from Missouri Valley Times, November 23, 1899

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Marshalltown Bank Dividend. Marshalltown, la., Nov. 23.-The affairs of the defunct Commercial State bank took a decidedly bright turn when, just before the adjourning of court, Judge Caswell announced another 20 per cent. dividend on deposits. The dividend is made possible through the action of Henry Bash and Ezra Perrin, stockholders, who advanced money after the decided stand made by the depositors at Friday's meeting. Perrin and Bash have placed in the receiver's hands $14,000 cash. Bash owned $10,000 of stock and he puts up $10,000 more. Perrin heid only $1,000 and puts that amount up, with $3,000 more than the amount for which he is legally liable. Two other stockholders who held small amounts of stock have paid their full assessments. This makes a total of 80 per cent. paid on deposits. and it now looks probable that the full amount will be realized.