3598. First National Bank (Marshalltown, IA)

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 411
Charter Number: 411
Start Date: May 24, 1907
Location: Marshalltown, Iowa (42.049, -92.908)

Metadata

Model: gpt-5-mini
Short Digest: 99271597

Response Measures

Accommodated withdrawals, Capital injected

Description

A short-lived run occurred in late May 1907 driven by wild street rumors about differences among officers and questionable assets; local banks and a syndicate (new owners) stepped in, depositors were paid in full and business continued. No suspension or permanent closure is reported.

Events (1)

1. May 24, 1907 Run

Cause: Rumor Or Misinformation
Cause Details: Wild street rumors about differences between bank officers and reports of questionable assets triggered withdrawals.
Measures: Local banks supplied cash support; a syndicate of local capitalists purchased and reorganized the bank; officers guaranteed questionable paper and pledged assets; depositors were paid in full as presented.
Newspaper Excerpt: RUMORS CAUSE WITHDRAWALS ... the wild and untrue rumors spread over town like wild fire, and caused more withdrawals during the afternoon.
Source: newspapers

Newspaper Articles (13)

1. May 24, 1907 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 24, 1907

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D. T. DENMEAD BECOMES HEAD OF FIRST NATIONAL President John P. Woodbury Resigns This Afternoon and President of City National Succeeds Him sistance possible if needed are amply RUMORS CAUSE WITHDRAWALS secured by the best of collateral. Later a syndicate of local capitalists will Differences Between Cashier T. J. effect a reorganization of the bank. This syndicate will take over the stock Fletcher and President Woodbury, held by the retiring president, J. P. Which Reached a Crisis Thursday, Woodbury. the Direct Cause of the Resignation Today, and especially this afternoon, -Local Banks Furnish Money on there was some little excitement about First National's Gilt Edged Securithe bank, and some, especially the ties-Bank to Be Reorganized. smaller depositors, withdrew their money. At the same time they were doing so, others, and especially busiPresident D. T. Denmead, of the ness men, and other larger depositors, City National bank, one' of the oldest who have confidence in the bank, were bankers and bank presidents of the making deposits. This had a tendency city, and conceded to be one of the to restore to the public the confidence richest men and most conservative in the bank's stability. The withdrawal bankers in central Iowa, at 1:25 this of money this morning did not apafternoon became president of the proach a run. altho the wild and unFirst National bank, succeeding John true rumors spread over town like wild P. Woodbury. fire, and caused more withdrawals durThe change in officials of the First ing the afternoon. At no time, however, National, which is the oldest bank of did it approach a serious run. the town, came about following a failure between Cashier T. J. Fletcher and Cashier T. J. Fletcher, of the First President Woodbury to agree on the National, said this afternoon that there was no danger unless the public besale of Mr. Woodbury's stock to Mr. Fletcher and his friends. came wild, and lost its head entirely. This caused wild and greatly exagerAt the present time there are plenty ated stories to become current on of prime assets to pay each and every the streets. When it became impossidepositor. This afternoon there was no exciteble for Mr. Fletcher and Mr. Woodbury ment at the bank, and all who wanted to make an adjustment of their diftheir money were being paid cheerfully. ferences, following the breach of The fact that Mr. Denmead has become Thursday, Mr. Woodbury consented to president has restored confidence to a step down and out. great degree, and some of those who This morning the other banks of the were depositing were joking as they city, led by Mr. Denmead, stepped in passed their money over the counter. to give support to the First National The bank's assets have been thorif it should be forced to face a crisis, oughly examined by President Denby purchasing some of the approved mead and found amply sufficient to securities of the First National. meet all demands of depositors. The Just prior to his taking the office Mr. bank will be open at 9 o'clock SaturDenmead became a stockholder in the day morning as usual. bank. The banks that have made as-

2. May 25, 1907 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 25, 1907

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The crisis in the affairs of the First National bank, which was reached late Friday afternoon, when a run was started, on mere street rumors, was reached at noon today, and the bank has emerged with flying colors, with more money on hand than its depositors can possibly withdraw should they want it./ There is more cash in Marshalltown today than there has been in many years, fully $600,000 being in the hands of the various banks to meet all demands. The Bank paid out $60,000 Friday, but not much more today, as depositors were bringing back their money by 2 o'clock. New Owners in Possession. The new owners of the First National bank, a syndicate of the most responsible business men of the city,

3. May 25, 1907 Evening Times-Republican Marshalltown, IA

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are in possession of the First National today, and have been since Friday night, when final arrangements looking toward reorganization were completed. President D. T. Denmead, of the City National, as stated Friday afternoon, is the new president of the bank, and this one thing, above all others, assisted in restoring the public's confidence in the institution. As an Iowa Central engineer put it Friday evening to a T.-R. man, upon reading the evening paper, and after he had intended going up early Saturday morning to draw his money, "If 'Dave' Denmead is president of the First National, my money is all right. I guess I can trust him, for I know that if the bank wasn't solvent he wouldn't take a cent of anybody's money." It was similar sentiment that assisted materially in the run not assuming greater proportions than it did. In the purchase the Woodbury's guaranteed every dollar's worth of paper which was in any way questionable as well as guaranteeing any loss that might occur as the result of the run. For this purpose the ice plant, valued at $100,000, the building valued at $75,000, and fully $80,000 of cash and securities held in California have been deeded over as a pledge. When complete reorganization occurs the losses if any do finally occur, will be paid out of this property of the Woodbury's. J. P. Woodbury owned $41,000 of the stock and the Fred Woodbury estate $56,000. At the First National. Shortly after noon today the First National was practically deserted, and inside there was an air of confidence and a quietness that seemed to say the run was at an end. President Denmead and Cashier Fletcher were both in the best of humor, and about the former was piled bundles of paper money and gold pieces enough to fill many large baskets. The feeling of confidence which was present in the place was borne out by the statements of both Mr. Denmead and Mr. Fletcher, who said they believed the worst was over unless withdrawals began again this afternoon from unexpected sources, which they did not think likely. The many friends of both officials and of the bank were

4. May 25, 1907 Evening Times-Republican Marshalltown, IA

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been for many a day. The banks have more than they ever had, and the people have it d own their breeches, in their stockings, and in their coal hods. We have $125,000 on hand, and $25,000 more coming Monday. Ordinarily we keep on hand only between $35,000 and $60,000, altho we always have larger sums available if we need it. We prefer to have our money in the million dollar banks in New York and Chicago, rather than here, and let the big banks assume the responsibility of keeping it. Unless the unexpected happens, and I am not looking for it, the First National has passed its crisis." At the City National. At the City National bank at noon everything was quiet and cheerful. Harry Blackburn, cashier of the Iowa National bank of Des Moines, had wired that he had sent over $45,000, in currency without being asked. As the newspaper man stood in the bank an expressman came in with a package of currency so large he had to lift it over the top of the wicker. It was $30,000 from another Des Moines bank. Cashier St. Clair said that the First National run was over. Business Men Confident. Mr. L. C. Norris, manager of the Letts, Fletcher Company, began depositing in the First National yesterday, and notified Mr. F. C, Letts what he had done. Mr. Letts wires back today: "Letter received. I have every confidence in Denmead's judgment. Do "F. C. LETTS." what he advises. Mr. George McNeely, who with W. F. Treadwell, owns the State Bank of Fairbanks, at Fairbanks, Iowa, has $8,000 on deposit in the First National, which he is leaving there and offers to cash certificates personally to the extent of his means. Mr. Ed. Watson came down from Union with a greedy smile on his face and promptly began buying certificates of deposit from firightened people in order to get the accummulated interest for his profit. Robberies Will Occur. Frightened depositors who have been drawing out their money have not been putting it back in other banks as fast as they should so there are thousands of dollars in currency to be carried home and put in the chimney corners. Professional thieves flock to the scene of a bank run always and there will be several robberies to report in all probability.

5. May 27, 1907 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 27, 1907

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ALL QUIET AT BANK Excitement of Saturday Entirely Subsided and People Are Depositing Instead of Withdrawing - Run Was of Remarkably Short Duration. The excitement of Saturday incident to the run on the First National bank was not in any way apparent today, and business at the bank was being conducted as tho nothing had happened. There was not the least sign of a crowd about the bank this morning excepting what would ordinarily be expected in a day's business. Better than that, nearly all the people at the bank were depositing money rather than withdrawing it. Among the depositors were many who had, either Friday afternoon or Saturday, withdrawn their deposits. Their fright had been overcome, and they were as anxious to get their money back to a safe place as they were to get it out of the bank. The run was of a very short duration, and people who have witnessed bank runs before state that the excitement at the First National was hardly deserving of the word "run."

6. May 27, 1907 The Washington Times Washington, DC

Article from The Washington Times, May 27, 1907

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# FINANCIAL GOSSIP. Rumors concerning difficulties among its officers caused a serious run on the First National Bank of Marshalltown, Iowa, which was checked only after hundreds of depositors had been paid in full. The bank is the oldest in the city. On the New York Central railroad the increase in dividends from 5 to 6 per cent, makes a difference of about $1,780,000 yearly, whereas the advance in wages is about four times that amount. It is practically admitted that the Standard Oil Company is considering the question of readjusting its capitali-zation to harmonize more with the market valuation of the stock, but this change will not be brought about in the near future. The New York, New Haven and Hartford railroad has notified the Stock Exchange of an increase in its capital stock from $100,000,000 to $130,000,000. The new stock is believed to be that which the directors in January voted to offer stockholders when conditions favored. The appellate division of the supreme court of New York has handed down a decision to the effect that a street railway need not give transfers that will permit a passenger to ride about town indefinitely on one fare, thus reversing a previous judgment.

7. May 29, 1907 Manchester Democrat Manchester, IA

Article from Manchester Democrat, May 29, 1907

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Run on an Iowa Bank. Marshalltown, Ia., May 27.-A run on the First National, the oldest bank in the city, caused a flurry here. The run was due to rumors concerning differences between the bank officials as to matters of policy. Depositors were paid in full as fast as they came. John R. Woodbury, president for many years, resigned. D. T. Denmead, president of the City National, was elected as Woodbury's successor upon the purchase of the First National by a syndicate of local capitalists. Giftts by Mrs. Robert T. Lincoln. Mount Pleasant, Ia., May 25.--The home of the late James Harlan, once United States senator, as well as part of his library, has been presented to Iowa Wesleyan university at Mount Pleasant by Mrs. Robert T. Lincoln, of Chicago, his daughter. This gift was announced by the president of the institution. The structure will be used as the residence of the head of the school, according to the stipulation of Mrs. Lincoln. Mr. Harlan was long a trustees of the university.

8. May 29, 1907 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 29, 1907

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DROVE HORSES TO A LATHER Only to Find That \ Supposed Account in Bank Was $9 Overdrawn. During the Saturday run on the First National, when the officers of the bank saw anything but amusement in the situation, there were amusing occurrences which, after the affair is all over, can be enjoyed to their fullest extent. One incident in particular proved amusing. A farmer from near Beaman, who was a customer of the bank, was coming to town Saturday to trade. Along the way some one from a farm house came running out to the road to "tell the news." It was to the /effect that the First National was going under. The farmer didn't wait to hear anything else. He whipped up his horses, and drove them on the run all the way to town. The animals, almost ready to drop, and covered with lather from head to foot, were driven to a feed yard and left without ceremony. The farmer got to the bank as soon as he could and demanded all the money to his credit. He was informed that his balance was on the wrong side of the ledger, and that he was $9 overdrawn. Other instances of customers being overdrawn and yet hastening to the bank to save their money, came to the notice of those at the bank windows.

9. May 30, 1907 The Citizen-Republican Scotland, Parkston, SD

Article from The Citizen-Republican, May 30, 1907

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RUN ON IOWA BANK HALTED First National of Marshalltown Goes Through Strenuous Period--Changes Hands. Marshalltown, Is., May 28.-A run on the First National bank, the oldest banking institution in the city, which began late yesterday afternoon, on wild street rumors regarding differences having arisen among bank officers continued throughout the forenoon today, but by noon had materially abated A syndicate of Marshalltown capitalists had been negotiating for a weeh or more to buy the ank and succeeded last night and the new owners are in possession. President John P. Woodbury resigned after turning over the $100,000 plant of the Artificial Ice and Refrigerator company here and the $30,000 electric light plant in Nevada, besides his interest in the three-story Woodbury block, where the bank is located, to insure the new purchasers against loss. Big Estate Put Up. The F. J. Woodbury estate at Pasadena, Cal., valued at a quarter of a million, put up its portion of collateral to secure the purchasers, although both F. J. and John P.'s holdings are in the nature of insurance to guarantee and will far more than represent the actual loss. All banks in the city went to the First National's aid as well as Chicago and Des Moines institutions, and depositors were paid in full as fast as they come. D. T. Denmead, president of the City National bank, the wealthiest man in the city, was made president of the First National. The run practically ceased shortly after noon. Business men have put up window signs offering $1.10 in goods for every dollar on First National checks. This is having good effect.

10. May 31, 1907 Twice-A-Week Plain Dealer Cresco, IA

Article from Twice-A-Week Plain Dealer, May 31, 1907

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Run on lowa Bank. Marshalltown, Ia., May 27. - A run on the First National, the oldest bank in the city, caused a flurry here Saturday. The run which was due to rumors concerning differences between the bank officers as to matters of policy. Depositors were paid in full as fast as they came. John P. Woodbury, president for many years, resigned. D. T. Denmead, president of the City National, was elected as Woodbury's successor upon the purchase of the First National by a syndicate of local capitalists.

11. June 1, 1907 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, June 1, 1907

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bedecked in red and yellow ribbon from head to foot. "What's that?" the newspaper man inquired in passing. "Are those your hair ribbons?" "Naw," the chap replied, "them's the color of the schoolhouse." The sophomores of the Marshalltown high school had much sport and made much ado over the fact that they were successful in the capture of the junior "frap," ordered for use at the recent junior reception, but they say nothing about how many of their number were made sick by an over indulgence in the "stolen sweets." With each year, on Memorial day, the fact becomes more noticeable that the number of civil war veterans is rapidly decreasing, and that in a few years the exercises in honor of the soldier dead will be in the hands of others than those who have looked upon Memorial day as their day for so many years. At Gilman this year the scene was especially pathetic, for not only was the number of veterans present a mere handful, but the age and decrepit condition of the few survivors made it necessary that the citizens of the town take all of the arrangements in charge in order to give a Memorial day program. The Marshalltown high school graduated last night a class of fine young people, twenty-six in number, the members of which have completed all the requirements of the course of study. Marshalltown is proud of its high school, and of the young people who have realized the advantages of spending their time in securing the fundamentals of an education. A college course is the next step to consider. It should be the aim of every member of the class, and taken by all who can afford it. The high school is but a stepping stone, and prepares the graduates for entrance to halls of higher learning. Boys and girls, go to college if you possibly can. While there is genuine pride in the representatives of the high school who have been extended the honors of graduation, one can not refrain from repeating the suggestion made last year at this time. It is to the effect that too much money is spent in overindulgent parents upon the dressing of their daughters. More than one girl had expended upon her this year for graduation more money than many a bride for her wedding The graduating gown was only a small portion of the expense, and another dress and outfit was necessary for the receptions and other functions of commencement week. The poor girl, and she has just the same right of graduation, sheds bitter tears when alone, tho she smothers her pride before others, because she is not able to have the same finery bestowed upon her. There would be more girl graduates if so much was not expected at graduation time. The school board would do well to install the cap and gown system. There is nothing prettier or more appropriate at commencement time, and the cost is very nominal. down to renting. as is done in the large universities. This would standardize dress and make graduation, less expensive for the parents. It would place each girl on an equal footing as to feathers and plumage, and prove more satisfactory generally. This community has experienced a bank run within the past ten days. but the scare is all over, now. Mr. J. P. Woodbury. former president of the First National Bank had overloaned to the Iowa Artificial Ice Company, in which he is personally interested, and the controller of the currency had ordered some of the notes removed. It was at this time that negotiations were in progress for the purchase of the Woodbury interests. Before such a purchase could be perfected, news of the condition of the bank leaked out and the run started from a good and sufficient cause. When Mr. Denmead became president of the bank, however, all of the questionable assets had been guaranteed and the bank had been made sound again. It took some hard work and strong talking to quiet public alarm. All is well now and notices have been sent to depositors stating that the bank is in Mr. Denmead's hands for reorganization. When he perfects the details of such reorganization, the personnel of those who are to be identified with him will be made public. If the bank had been alowed to fail it would have proved a calamity from which this community could not have recovered in many years. It would have discouraged enterprise and deadened business progress. Mr. Denmead is entitled to praise for the risk he has taken in throwing himself into the breach as the responsible officer to stop the run. Deafness Cannot be Cured By local applications, as they cannot reach the disease dportion of the ear. There is only one way to cure deaf-

12. October 12, 1907 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, October 12, 1907

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# WOODBURY SUES # FOR ACCOUNTING Frank Woodbury Begins Important Action on Behalf of Father's Estate GLICKS ARE MADE DEFENDANTS Old Notes, Claimed to Have Been Negotiated to Reduce Excessive Loan to George Glick, Basis of Action—Entanglement Greatly Complicated—Statement of Defense. As a relic of the Woodbury failure which recently involved the First National Bank of this city and resulted in its entire reorganization by Mr. D. T. Denmead with new capital and stockholders, a petition in equity was filed today for the October term of court, by Frank Woodbury, of Pasadena, Cal., as trustee of the estate of his father, F. J. Woodbury, non compos, and J. P. Woodbury's interest therein, against George Glick, the Holland Land and Lot Company, Charles, F. E., and A. G. Glick, C. J. Lander, T. J. and Mrs. Alice Glick Fletcher. He seeks to recover on some of the old bank's questionable assets which he was compelled to take out when the bank was reorganized. The entanglement is a complicated one, and had its origin many years ago, when George Glick was president of the First National bank, which was prior to Dec. 8, 1891. The plaintiff claims that George Glick was indebted to the bank in a sum largely exceeding $10,000, the largest amount permissible on the part of a national bank to loan any one person under the national banking laws. In order to reduce the excessive loan to George Glick it is averred by the plaintiff that George Glick delivered to the bank notes as follows: Charles Glick, Jan. 9, 1892, $6,000; F. E. Glick, July 1, 1897, $5,300; F. E. Glick, same date, $3,342; C. J. Lander, Dec. 8, 1891, $5,000; Holland Land and Lot Company, Aug. 29, 1892, $4,700; a total of $24,342. This left remaining, according to the petition, $9,264 of the original indebtedness on the part of George Glick. The Holland Land and Lot Company, mentioned as a defendant, was a former corporation, now not in existence, of which George Glick was president, having been formed to establish the town of Holland, in Grundy county, a German settlement. Securities Are Listed. Collateral securities, deposited by George Glick, are listed in the petition, viz: Certain shares of National Linseed Oil Company stock, First National bank stock, and life insurance policies. The oil and bank stock, it is claimed, was afterwards sold by T. J. Fletcher, as cashier. A controversy as to how the proceeds from the sale of this collateral should have been applied on the George Glick indebtedness is also involved. The different insurance policies assigned, all carried on the life of George Glick, aggregate $8,918.60. The children of George Glick, made defendants in the action, are claimed to have a contingent interest in the insurance, and that some of them assigned the same on Dec. 12, 1904, to the First National bank as collateral security for George Glick's indebtedness. The petition also cites that George Glick is, and has been, for several years, incapacitated by reason of physical and mental infirmities, from transacting any business, and can not make the necessary assignment to fully invest the plaintiff with legal title and right to collect the policies upon the death of George Glick. Prays for An Accounting. The prayer asks for an accounting with T. J. Fletcher of the sale and disposition of the National Linseed Oil and bank stocks, and for such orders and judgment as the plaintiff may be entitled to in respect to same; and that it be ascertained how much is due on each of the notes set out, and a judgment against each maker for the amount so found due; and an order investing the plaintiff with the authority to collect and receive the proceeds of the insurance policies against any right the children of George Glick may have therein, and for such other and further orders, decree and judgment the plaintiff may be entitled to in a court of equity upon a full hearing of the matters involved. Mr. Glick Explains Controversy. Mr. A. G. Glick, in behalf of the defendants, gave out the following statement of the other side of the controversy as follows: "The transactions over which this controversy arise are too involved and intricate to attempt any detailed statement. Our family has lived in Marshalltown over forty years, and has never denied a just debt or repudiated an obligation. We do not intend to begin now. Mr. Woodbury seeks to recover against us as sureties upon the debt of George Glick. It suffices therefore to say that George Glick has not been indebted to Mr. Woodbury or the bank for many years, and that not one dollar of George Glick's paper is today outstanding. We naturally object to paying a claim which long ago was paid in full. In other words, plaintiff's suit is based upon something which does not exist. What our obligations would have been, had the bank failed, is a different question. We concede we tried to save an institution our father helped to found. If an existing debt of George Glick can be ascertained, we shall pay it, whether it be a moral or a legal obligation. But so far no proof has been offered that would imply either. "While we regret the falling fortunes of others, which seem to have inspired this suit—yet we cannot believe but that plaintiff is deceived or ill-advised. We offered to submit the matter to arbitration.

13. May 18, 1908 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, May 18, 1908

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Marshalltmum Joura, May 18 1908 Crocker's death, and was the first Lake, warning that the controller and Reon hem ceiver Bostwick had that Degalyer was was A trying to get away from them. MRS. STOCK TRAIN IN GREEK After the change in the receivership evening most here, Judge Vincent of Chicago took charge of the prosecution of Degalyer, many Pionee the and got him in such close quarters Northwestern Engine Crew that last Thursday Degalyer went inCount to bankruptcy, which means that he Forced to Swim For Their will avoid the payment of the claims of the First National here, and the deLives, Near Paullina Turns positors will get nothing from him. This takes away another hope of inWAS M creasing the probable dividend from STORM WAS ENTIRELY LOCAL the bank, unless Degalyer's partner, elming olution Mr. Chapman, can be held for part of the amount. BurHad Bee of the Degalyer listed his assets at $300 and The Rain Which Caused the Disaster his liabilities at $500,000, but Chapman ProBut E Was Only a Light Shower a Few is said to be well off. aftilv Loc ...... A