3650. New Liberty Savings Bank (New Liberty, IA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
October 12, 1904
Location
New Liberty, Iowa (41.718, -90.879)

Metadata

Model
gpt-5-mini
Short Digest
cb8111bf

Response Measures

None

Description

No newspaper article describes a depositor run. The bank was put in hands of the state bank examiner, cashier (Arnold/Arnold Beuthien) was arrested for embezzlement, a receiver (George Leuders/Leuders) was appointed (Oct 1904) and the institution was operated in receivership and wound up (dividend declared May 16, 1905). Cause is bank-specific adverse information (embezzlement and bad loans, notably large loans to a Cleveland Amusement Company and to related ND banks). OCR name variants (Beuthien, Beauthieu, Benthein, Bethuen) refer to same individuals; I corrected these in notes.

Events (5)
1. October 12, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier Arnold Beuthien (also spelled Beauthieu/Benthein/Bethuen) arrested for embezzlement; large bad loans and diversion of funds (about $50,000) to the Cleveland Amusement Company and loans to North Dakota banks; suspected defalcation.
Newspaper Excerpt
A receiver will be appointed at once for the New Liberty Savings bank in this county which has been in the hands of the state bank examiner, and A. Beuthien the cashier under arrest for embezzlement is expected here from Chicago Thursday for his hearing.
Source
newspapers
2. October 17, 1904 Receivership
Newspaper Excerpt
George Leuders, who was appointed receiver to take charge of the affairs of the bank, has taken over the affairs of the institution and is now in full charge at New Liberty, as State Bank Examiner M. T. Buchan has left the village.
Source
newspapers
3. November 28, 1904 Other
Newspaper Excerpt
An order was also issued by Referee Helmick, ordering the books of the New Liberty bank to be brought to Davenport and subjected to an examination. ... The bank of Dixon was a private bank ... Almost the entire stock in both institutions was held by the Beuthiens, so that they used one bank as the adjunct of the other whenever such an occasion presented itself.
Source
newspapers
4. February 10, 1905 Other
Newspaper Excerpt
The bank building and property owned by the New Liberty Savings bank is to be sold to the German Savings bank of New Liberty. ... receiver notify each of the stockholders that they should pay to the receiver of the bank $100 for each $100 share held in the bank which is insolvent.
Source
newspapers
5. May 16, 1905 Other
Newspaper Excerpt
A dividend has been ordered in the New Liberty Savings bank matter and the creditors of the bank are to receive 20 per cent on the dollar. ... the bank became insolvent on March 29, 1904.
Source
newspapers

Newspaper Articles (11)
1. October 12, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 12, 1904

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Article Text

New Liberty Bank Backed an Amusement Company and Dakota Banks AN INSURANCE ORDER SUFFERS Believed by Members of Bankers' Pioneer Association That the Assets of the Company Have Been Lost Beuthien's Father-in-Law Ran the Amusement Company. Special to Times-Republican. Davenport, Oct. 12.-A receiver will be appointed at once for the New Liberty Savings bank in this county which has been in the hands of the state bank examiner, and A. Beuthien the cashier under arrest for embezzlement is expected here from Chicago Thursday for his hearing. It now develops that one of the causes of the bank's embarrassment was the failure of the Cleveland Amusement Company of Chicago, operated by Beuthien's father-in-law. It has been disclosed that some $50,000 went into that company from New Liberty. This failure has also embarrassed the Bankers' Pioneer Association, a fraternal insurance order which has been in existence in eastern Iowa. Beuthien is grand treasurer for the association and all of the funds of the association were kept in the New Liberty bank. It is believed by the members that the assets of the company have been lost in the collapse. For some time the association has been trying to effect a consolidation with another fraternal insurance order, but the other order evidently could not see the advantage. It is now feared that the Bankers' Association will meet with some trouble as a result and at a meeting which was held at Hibernian hall, it is understood, that Mr. Benson, one of the high officers, of the order, was put on the witness stand and a number of pertinent questions as to the stability of the order was asked. Beuthien is under arrest for embezzlement in that he loaned money to himself, and others connected with the bank without authority. The examination may also disclose that there is an actual defalcation. Information from New Liberty is to the effect that Cashier Beuthien loaned from $17,000 to $18,000 to his father, the president of the bank, and that money was loaned to persons connected with two banks in North Dakota in which they were both interested.

2. October 17, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 17, 1904

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Bond is Forfeited. Arnold Beuthien, cashier of the New Liberty bank, failed to show up at his preliminary hearing at Davenport Saturday on the charge of embezzling $1,750 from the bank. In consequence Jacob Ohlsen, H. Brauch, and Mrs. Elise Beuthien, mother of the missing man, will have to pay the $5,000 bail which was declared forfeited by the justice. George Leuders, who was appointed receiver to take charge of the affairs of the bank, has taken over the affairs of the institution and is now in full charge at New Liberty, as State Bank Examiner M. T. Buchan has left the village. No meeting of the directors has been held as yet, but it is understood that the officials will meet soon to decide on the settlement of the affairs of the bank.

3. October 20, 1904 Audubon Republican Audubon, IA
Article from Audubon Republican, October 20, 1904

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TES FROM THE Des Moines, Oct. 15, 1904. ction will be taken at the comin sion of the Iowa State Conferenc Charities and Correction at y in November to place the count I city jails under the supervisio state inspectors. The topic n quite generally discussed ious workers of organization inite action will be taken on el conference will be in session First Baptist church there Novem 9-11, and will be attended ne of the leading workers of intry, many of whom will take the programme. It is claimed tha conditions in county and city oughout Iowa are worse than inty poor farms and insane als ever were. While the y is supposed to investigate ditions at least once per year, it imed that the investigations her not thorough or that the recon ndations are not enforced. In ion to this special preparation , made to receive the grand juries th a state inspector, no prepara n could be made as he would ely to "drop in" on them at e. Professor Isaac A. Loos of te university will present a the subject which will start cussion. Assistant Attorney General DeGra $ returned from Liberty, inty, where a bank known as w Liberty Savings bank has wn. He says that the bank r has reported that the bank is rible condition. Bogus ounting to about $95,000. has ind. The deposits amount to 30,000. A. Benthein, the eashier, arged with the defalcation. He t on bonds and is in Chicago : to raise money to square that it. It seems that the money gely on the Cleveland Amusemer mpany of Chicago. It is understoo it young Benthien, whose wife ad recently, had experimented king money on the side by estments and finally got entangle a losing venture in an amusemer npany. To square himself it imed he began the system of tuting bogus paper for good gling the bank's accounts so tha managed to keep it running whil , effort of trying to recover , amusement company and of throv : good money after bad occupie of his energy and time. Georg uders, a stockholder in the 8 been appointed receiver for titution on petition of the office , state attorney general. Prof. W. J. McGee, chief of the tment of anthropology, in the uis exposition, has recommende , award of the grand prize to Iow its historical exhibit. The dal will go to Curator Aldrich collection out of whose treasure display was made, and the dal to go to Professor Cumming laborator. This recommendation fessor McGee is made to the si of the exposition, who will ve it. It is understood that ther no possibility of dissent on thei t from the award as announce rator Aldrich will receive the ments of his friends not only a but all over the country for litional testimony that the histo 1 department of Iowa now "enou 07 place puo: The executive council will take sus of Iowa according to the tem next year. Statistican Patte 1, who will assist the secretary , council in the compilation of ds. isus, has been asked to prepare The work of collecting the statistic in the hands of the assessors va. The state furnishes the county auditors, who give them assessors in January. The S send them directly to the y of state, who turns them over executive council for compilatio I County auditors will have no tion over the returns, or the ement of their collection. The

4. November 28, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, November 28, 1904

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son, Arnold Beuthien, who was cashier of the New Liberty Savings bank. In the last transaction, however, in which the good paper was forwarded from the Dixon bank to the New Liberty bank, Mr. Stinger testified that said transfer was made by him under the instructions of the Beuthiens and also State Auditor Carroll and Bank Exam- iner Buchanan. In answer to a ques- tion from Attorney Block, Mr. Stinger admitted that he would not have made such a transfer or consented to such, except under the instructions of the Beuthiens and the state officials. At the conclusion of Mr. Stinger's rather sensational testimony, a motion was made and carried that State Audi- tor Carroll, Bank Examiner Buchanan and Receiver Leuders, of the New Lib- erty bank, be subpoenaed to appear at the next meeting and be subjected to an examination in regard to the af- fairs of the New Liberty Savings bank at the time that they investigated its affairs. An order was also issued by Referee Helmick, ordering the books of the New Liberty bank to be brought to Davenport and subjected to an ex- amination. # Creditors Will Sue. The meeting thereupon adjourned until 10 o'clock next Monday morning, at which time it is hoped to have the state officials present and the books of the New Liberty bank in court. From the statement of the attorneys interested in the case and who repre- sented the creditors of the Dixon bank, it is to be inferred that later an action will be brought by the credi- tors of the Dixon bank to recover the good securities which were transferred from that bank to the New Liberty bank. The bank of Dixon was a private bank and therefore was not under the supervision of the state bank examin- er, as was the case with the New Lib- erty bank. Almost the entire stock in both institutions was held by the Beu- thiens, so that they used one bank as the adjunct of the other whenever such an occasion presented itself,

5. December 15, 1904 Northern Wisconsin Advertiser Wabeno, WI
Article from Northern Wisconsin Advertiser, December 15, 1904

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DOMESTIC. At Mishawaka. Ind., on the day following his marriage to Edith Marsh, while hunting, Louis Hall received a gunshot wound which resulted in his death from lockjaw. The Warner Silver Manufacturing company of Dixon, III., was forced into involuntary bankruptcy, the liabilities being estimated at $25,000 and the assets at $10,000. The National Commission company of Indianapolis suspended business, notifying its customers that the failure is due to the sustained bull movement An affiliated company will pay in full. Engineer M. Shearwood and Fire man F. J. Lewis, both of Trenton, Mo., were probably fatally scalded in a collision between a Rock Island passenger train and a gravel train near Clio, Iowa. At St. Paul the final attack of Dr. T. E. W. Villiers Appleby on his wife's will in an effort to break the trust clause giving the entire $3,000,000 estate to the Wilder charity for the worthy poor of St. Paul began. Pyramided profits and paper values in stocks are scattered by an almost record-breaking slump in Wall street, in which Amalgamated copper was the chief loser. Lawson gloats over the crash, but bankers and brokers see only good in it. F. A. Roath, who recently inherited $250,000 from the $1,000,000 estate left by his uncle, Stephen Roath of Chicago, has bought Pinehurst, the estate of the late E. N. Gibbs, near Norwich, Conn. It is understood the purchase price was $50,000. By the bursting of a steam pipe aboard the British steamer Murica bound from New Orleans for Br stol, England. shortly after sailing from Baltimore, Md., the fireman and en gineer were severely scalded. the formr's injuries being probably fatal. The war department has directed that Recruit Stephen Putney, Jr., who disappeared while visiting the world's fair and was found at Jeñerson Parracks. Mo., be discharged without honor from the army on the ground that he enlisted under false pretenses. A petition for the appointment or a receiver of the bankrupt Elkhorn Valley bank of O'Neill, Neb., was filed and the sheriff of Holt county offered a reward of $800 for the arrest of President Bernard McGreevy and Cashier Patrick Haggerty, who disappeared at the time of the failure. After ten days of courtship, Miss Mabel D. Everett, a Boston millionaire heiress, and T. E. Walton, clerk for an insurance agent, were married at Golden, Colo. The bride is an orphan and is a granddaughter of a member of the Eastabrook firm of bankers. Her relatives opposed the match. At an adjourned hearing in the matter of the bankruptcy of the Dixon and New Liberty, Iowa, banks Cashier Arnold Beauthieu, who had just been arraigned and pleaded not guilty on a charge of embezzling $95,000 of the funds, asked for further time before giving testimony as to the bankruptey, and it was granted. The suit against Thomas W. Law. son for $350,000 for alleged failure to accept stock for which he had subscribed, brought by Paul Fuller and F. R Coudert of New York, was entered in the Massachusetts supreme court, the papers showing that Mr. Lawson's place at Scituate, Mass., has been attached for $350,000. Theodore Kraut, a traveling sales man of Karleruhe, Germany, who claims he has traveled 4,000 miles and spent $500 in search of his child. began habeas corpus proceedings al Detroit to recover his 9-year-old daughter Marie, from her grandmother. Mrs. Mary Scholl, who, he alleges, "absconded" with her from Germany. FORSICN

6. January 24, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 24, 1905

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WILL SUE DIRECTOR George Leuders, Receiver for New Liberty Savings Bank, Charges That William Leusch Overdrew Account and Then Illegally Replenished It. Special to Times-Republican. New Liberty, Jan. 24.-William Leusch, one of the directors of the New Liberty Savings bank, will be sued by George Leuders, the receiver, the latter having begun an action to recover in the case of the state of Iowa upon the relation of B. F. Carroll, state auditor, vs. the New Liberty Savings bank, and for the cause of such action, alleged in his application for authority to sue, that one William Leusch, a director of the institution, had overdrawn his account with that institution to the amount of $838.25. The receiver alleges that when the said William Leusch well knew that the bank was insolvent he caused his son to make over to him a check in the sum of $838.25 to cover the overdraft, which he placed on deposit in the said bank. To the son, it is further alleged, there was at the time a deposit due, amounting to $5,700. It is further stated in the petition that later the said father and son had secured from the bank, then insolvent, and the fact known to both of them at the time, a mortgage secured by the note of one G. Spikermann, in the sum of $3,900. The applicant, Mr. Leuders, desires that the court grant him the authority to bring suit to recover the amount due upon the said note, as also the recovery of the amount of the overdraft, amounting in all to $4,738.25. Judge Bollinger signed an order allowing the receiver to institute suit, thru Lane & Waterman, his attorneys.

7. February 10, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, February 10, 1905

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BANK BUILDING ORDERED SOLD. Judge So Orders in the New Liberty Matter. Davenport, Feb. 10.-The bank building and property owned by the New Liberty Savings bank is to be sold to the German Savings bank of New Liberty. The order was made by the judge yesterday in response to a petition of George Leuders, the receiver for the old bank filed by his attorneys, Lane & Waterman. Mr. Leuders states that he has been offered $2,500 for the property and he recommends the sale which the judge ordered. Mr. Lueders is to have rooms in the buildIng until the receivership matter has been closed. An order was also made by the judge yesterday ordering that the receiver notify each of the stockholders that they should pay to the receiver of the bank $100 for each $100 share held in the bank which is insolvent. This action was taren as allowed by law which states 11: hen a bank becomes insolvent the stop holders are liable for as much as they hold in stock in the bank. The receiver is instructed to bring suit at once if the stockholders do not pay the amount. The court also orders that suit shall be instituted immediately on any claim that is past due and owing to the bank and that the receiver shall bring suit on any claim that is soon to become due should he think that he can collect the sum by so doing. Lane & Waterman are handling the legal end of the business for the receiver, Mr. Lueders.

8. February 24, 1905 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, February 24, 1905

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# Bank Sues Bank. H. J. McFarland, trustee of the bank of Dixon, has entered suit in the United States court for the southern district of Iowa, at Davenport, against the New Liberty Savings bank and George Leuders, its receiver. Mr. McFarland sues an accounting for and the recovery of 23 notes, amounting to a total of $31,702.27, which are alleged to be in the possession of the New Liberty bank and which it is claimed rightfully belong to the bank of Dixon. It is also claimed that there is a balance of $1,288.83 due the Dixon bank from the New Liberty bank, as well as 16 shares of stock of the Farmers' & Merchants' bank of Lansford, N. D., of the par value of $1,600, making a grand total of $34,551.10 that is alleged to be due the bank of Dixon from its sister bank of New Liberty.

9. May 16, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, May 16, 1905

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NEW LIBERTY DIVIDENDS. Creditors of Failed Bank Are to Receive 20 Per Cent. Special to Times-Republican. New Liberty, May 16.-A dividend has been ordered in the New Liberty Savings bank matter and the creditors of the bank are to receive 20 per cent on the dollar. The order for the dividend was drawn today by Lane and Waterman. attorneys for the receiver and the judge has consented to it. By the terms of the order the receiver is to figure interest on the deposits and on the certificates of deposit up and until the time the bank became insolvent on March 29, 1904. In declaring the dividend the interest added to the principal is to be the basis on which the dividend is declared. The total amount of indebtedeness of the the bank, according to the figures of the receiver, will be about $150,000. The last report of the receiver showed some $37,000 on, hand, but since that time $11,000 has been collected. There has been several claims against the New Liberty Savings bank, which are in dispute, however, as the notes claimed by the bank of Dixon. For this reason the dividend was made low enough so that there would be surplus enogh to make a dividend on these amounts should the courts decide that it was necessary. In the report the receiver is allowed $1,100 for his services and the attorneys $840.

10. June 3, 1905 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, June 3, 1905

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account of age. He is a rich man. Mt. Ayr - Citizens' bank. Failed on account of bad management and bad loans, but not to farmers. Sigourney - Sigourney Savings bank. The cashier took $47,000 and used it in speculation on the board of trade, and when the discovery was made, shot himself. The bank paid out. Holstein - F. H. McCutcheon & Co.'s bank, Speculations on the board of trade. Corning - Corning State Savings bank. The proprietor of the bank used the funds as his own and when the discovery was made killed himself. Pella - People's Savings bank. Suspended but in settlement paid out. Coin - Bank of Coin. Broke up on account of bad loans, Banker speculated on board of trade. Garden Grove - Farmers' bank. Speculation on Chicago board of trade. Maquoketa - Exchange bank. Broken up on account of dishonesty, shiftlessness and extravagance. Pleasanton - Royal Richardson & Co.'s bank. Broken up on account of speculation. Dixon - Bank of Dixon. Broken up on account of embezzlement by the banker and his son. New Liberty - New Liberty Savings bank, Broken up by loaning money to a theatrical syndicate in Chicago and by speculation and extravagance on the port of the manager. Imogene - Citizens' bank. This bank did not fail; cashier skipped and his father put up shortage and bank flourishes. Birmingham - E. H. Skinner & Co.'s bank. Failed from bad management. Banker now under nine indictments. Olin - Bank of Olin. Broken up by speculation. Buck Grove - H. S. Green's bank. Banker skipped with the money. Dow City - H. S. Green's bank. Failed on account of speculation, and banker skipped. Waverly - German-American Loan and Trust Co. Failed, but paid out. Curlew - Bank of Curlew. Did not fail; moved to another town. Gaza - Bank of Gaza, Did not fail; sold out and moved away. Little Sioux - Little Sioux bank. Failed on account of speculation; president was a farmer and feeder and speculator; finally paid out. Tiffin - Corn Exchange bank. Did not fail; was the private bank and incorporated under the name of Tiffin Savings bank. Emerson - Farmers' bank. This bank never failed. It was consolidated with another bank under name of Emerson state bank. Sheldon - Sheldon state bank. This bank failed on account of politics and bad business methods. Ireton - Bank of Ireton. Failed because it had no capital; manager was a cranky man, and lost money in a brick plant. Ireton - F. M. McKeever's bank. There was no such bank. The bank referred to was the Bank of Ireton. Germania - State bank. This was one of the W. E. Brown banks and was loaded with northern and Canadian lands, hence its failure. Colfax - Bank of Colfax. This bank failed on account of speculations on the board of trade; the cashier suicided. Royal - Bank of Royal. This is one of the W. E. Brown banks and failed on account of speculations on the board of trade. New Providence - O. E. Miller & Sons' bank. This firm kept a store; had small capital; for various reasons lost public confidence and failed. Linn Grove - H. W. Main's bank. This was one of W. E. Brown's banks and failed on account of the speculation upon the part of Brown; Main suicided. Grinnell - National bank. Failed on account of misuse of funds by the Spencer family, extending over a period of years; Spencer and son were drowned, either by accident or intention. Storm Lake - National bank. This was W. E. Brown's bank and failed on account of Brown's speculations; Brown is under indictment. Le Mars - National bank. This bank failed about the year 1900, and the cashier was convicted of embezzlement. The bank failed for want of public confidence and on account of bucketshop speculations by cashier. In some cases it will be seen that the banks were not failures, but were incorporated with others. But in spite of the fact that the story is entirely wrong it is allowed to go out over the country and exert an influence dangerous to Iowa and her real estate interests. The fact is that loans to farmers in Iowa are sought after by country bankers and are valued by them. There is a great deal of legitimate and truthful ground upon which to fight the beef trust without damaging the reputation of the Iowa farmer. According to the magazine article, Senator L. W. Lewis of Page county is quoted as authority for the statements made by Mr. Russell. The Des Moines Capital wrote to Mr. Lewis and received the following in reply: "I am of the opinion that the Iowa bank failures are due to down-right rascality, outside speculation and over-loans.

11. August 25, 1905 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, August 25, 1905

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# SUIT AGAINST BANK DIRECTORS. Those of a New Liberty Institution Accused of Lack of Diligence. Claiming that the directors did not use due diligence and that the officials of the New Liberty Savings bank made bad loans, without property security, George Leuders, receiver of this bank, acting on the order from the court, has brought suit against the directors of the bank for $45,500. The petition states that M. Bethuen was president of the bank, and Arthur Bethuen, cashier, and that through the negligence of these parties and without due diligence on the part of the directors, loans were made which cannot be collected. The directors' names are William Lensch, William Dahms, Fred Thiering, Hans Meeves and J. H. Arp, The petition states that all of these loans were made without security and that they are non-collectible. The Iowa banking law provides for the appointment of an examining committee from the directorship of the bank, requires a quarterly examination of the bank, as well as quarterly reports of such examinations to be made to the entire board of directors.