City Savings Bank - Ottumwa, IA

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: February 11, 1902
Location: Ottumwa, Iowa (41.020, -92.411)

Metadata

Model: gpt-5-mini
Short Digest: 06dc3647

Response Measures

None

Description

Commissioner Maltz closed the City Savings Bank after discovering large unauthorized advances by Vice-President Frank C. Andrews (appears to be embezzlement). The article reports the bank was closed by the commissioner; no run is described and no reopening is mentioned. Classification as suspension_closure chosen because the bank was closed by the regulator and there is no evidence in the article of reopening.

Events (1)

1. February 11, 1902 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Vice-President Frank C. Andrews had advanced/withdrew large sums (over one-third of deposits) by certified checks and overdrafts without directors' knowledge; apparent embezzlement/unauthorized advances led commissioner to close the bank.
Newspaper Excerpt: When I learned of the bank's condition I closed it.
Source: newspapers

Newspaper Articles (1)

1. February 11, 1902 Ottumwa Semi-Weekly Courier Ottumwa, IA

Article from Ottumwa Semi-Weekly Courier, February 11, 1902

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Article Text

Maltz." Implicates Vice-President. Asked the reason for the suspension Commissioner Maltz said: "Frank C. Andrews, vice-president of the bank and commissioner of police, is the reason. The bank had total deposits of something over $3,000,000. Andrews had more than one-third of this money out on certified checks and over drafts. Henry Andrews, cashier of the bank, advanced this money to Frank C. Andrews without the knoweldge of the directors. They are entirely blameless in the matter. When I learned of the bank's condition I closed it. I do not know whether any steps will be taken by the directors toward legal proceedings against the Messrs. Andrews. I will issue a statement this afternoon on the bank's condition." The capital stock of the bank was $150,000. Turns Over Property. The funds amounting to about $400,000 belonging to the county auditors, county clerk, board of education and public library are on deposit in the City Savings bank. Frank C. Andrews has filed a quit claim deed to the City Savings bank on several pieces of valuable property. Commissioner Maltz said it did not look as though Andrews had much to cover the amount he had drawn from the bank. The directors in a public statement outside of F. C. Andrews' indebtedness and checks amounting to over $900,000, the bank never was in better shape and it is hoped to pay depositors in full.