3717. Bank of Royal (Royal, IA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 21, 1903
Location
Royal, Iowa (43.066, -95.284)

Metadata

Model
gpt-5-mini
Short Digest
3f8ec379

Response Measures

None

Description

Articles report the Bank of Royal failed and a receiver (H. F. Schultz) was appointed on Dec 21, 1903; subsequent reporting (Mar 1904) documents owner W. E. Brown's insolvency, indictment, and that the Royal bank failed and would pay a fraction (about 40 cents). No contemporaneous run is described; failure appears due to owner speculation/embezzlement, leading to suspension and receivership/closure.

Events (3)
1. December 21, 1903 Receivership
Newspaper Excerpt
H. F. Schultz has been appointed receiver of the Bank of Royal ... Neither bank will be opened for business for the present,
Source
newspapers
2. December 21, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank found insolvent due to speculative losses/mismanagement by owner/operator W. E. Brown (speculation on board of trade and misuse of funds).
Newspaper Excerpt
H. F. Schultz has been appointed receiver of the Bank of Royal ... Neither bank will be opened for business for the present.
Source
newspapers
3. March 17, 1904 Other
Newspaper Excerpt
W. E. Brown ... owner of ... the Bank of Royal, all failed, was indicted by a Buena Vista county grand jury on eight counts for receiving money after he knew the banks to be insolvent.
Source
newspapers

Newspaper Articles (11)
1. December 21, 1903 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 21, 1903

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Article Text

Bank Receivers Appointed. Special to Times-Republican. Royal, Dec. 21.-H. F. Schultz has been appointed receiver of the Bank of Royal and F. E. Fayville, of Sioux Rapids, receiver of the Farmers' and Merchants' Bank of Linn Grove. In a cursory examination of the books of the Linn Grove bank Thursday, everything seemed to be in good condition. It is probable the depositors will be paid in full, but the condition of the Royal bank is not likely to be so favorable. H. W. Mayne was cashier of the former and president of the latter. Neither bank will be opened for business for the present,

2. March 17, 1904 Evening Star Washington, DC
Article from Evening Star, March 17, 1904

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Article Text

An Iowa Banker Indicted. A dispatch from Sioux City, Iowa, last night says: W. E. Brown, president of the First National Bank of Storm Lake and owner of the Farmers and Merchants' at Lynn Grove, the Farmers and Merchants' at Sioux Rapids, and the Bank of Royal, all failed, was indicted today by the Buena Vista county grand jury on eight counts for receiving money after he knew the banks to be insolvent. A. J. Wilson, receiver of the banks, testified that Brown's liabilities were over $500,000.

3. March 17, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, March 17, 1904

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Article Text

BROWN IS INDICTED President of the First National of Storm Lake Indicted for Receiving Deposits After Bank Was Insolvent. Special to Times-Republican. Storm Lake, March 17.-W. E. Brown who was indicted here yesterday, went south on the Milwaukee last night. No warrant for his arrest has been issued. Sioux City, March 17.-W. E. Brown. president of the First National bank of Storm Lake, and owner of the Farmers' and Merchant's Bank at Lynn Grove., the Farmers' and Merchants' Bank at Sioux Rapids, and the Bank of Royal, all failed, was indicted by a Buena Vista county grand jury on eight counts for receiving money after he knew the bank to be insolvent. Seven of these counts were for receiving money in the Lynn Grove bank and one for receiving money in the Sioux Rapids bank. The later indictment was returned on testimony of H. E. Barrick of Storm Lake, who gave Brown a deposit of $2,000. A. J. Wilson, receiver of the banks testified that Brown's liabilities were more than $500,000.

4. March 17, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 17, 1904

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Article Text

HALF A MILLION. Liabilities of President Brown of Several Iowa Banks. Sioux City, Iowa, March 16.-W. E. Brown, president of the First National Bank of Storm Lake, and owner of the Farmers' and Merchants' at Lynn Grove. the Farmers' and Merchants' at Sloux Rapids, and the Bank of Royal, all failed, was indicted, today, by the Buena Vista county grand jury on eight counts for receiving money after he knew the banks to be insolvent. A. J. Wilson, receiver of the banks, testified that Brown's liabilities were over $500,000.

5. March 23, 1904 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, March 23, 1904

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HALF A MILLION LIABILITIES Brown of Storm Lake !ndicted On Eight Counts. SIOUX CITY, Iowa, March 23.-W. E. Brown, president of the First National bank of Storm Lake and owner of the Farmers and Merchants' at Linn Grove, the Farmers and Merchants' at Sioux Rapids, and the Bank of Royal, all failed, was indicted today by the Buena Vista county grand jury on eight counts for receiving money after he knew the banks to be insolvent. Seven of these counts were for receiving money in the Linn Grove bank, and one for receiving money in the Sioux Rapids bank. The latter indictment was returned upon the testimony of H. E. Barrick of Storm Lake, who gave Brown a deposit of $2000 upon promise of 7 per cent interest receiving a certificate of deposit from the Sioux Rapids bank. A. J. Wilson, receiver of the banks testified that Brown's liabilities were

6. March 24, 1904 Iron County Register Ironton, MO
Article from Iron County Register, March 24, 1904

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For the first time in three years or. ders were posted, on the 15th, at all collieries in the Schuylkill region announcing that they would be worked only half time until further notice. All mining operations will shut down until the 21st. W. E. Brown, president of the First national bank of Storm Lake, Ia., and owner of the Farmers' and Merchants' at Lynn Grove, the Farmers' and Merchants' at Sioux Rapids, and the Bank of Royal, all failed, was indicted on the 16th by the Beuna Vista county grand jury on eight counts for receiving money when he knew the banks to be insolvent. Mrs. Margaret Mitchell Griffin, daughter of United States Senator Mitchell, of Oregon, and wife of Francis Griffin, died in New York on the 15th. The senate, in executive session, or the 18th, by a vote of 46 to 16, confirmed the long-pending nomination of Brig.-Gen. Leonard Wood to be majorgeneral. John J. Lavin, member of the democratic city committee, and eight policemen, including one sergeant, were indicted, on the 18th, by the St. Louis grand jury on the charge of intimidating and aiding and assisting in intimidating voters at the recent democratic primary. The policemen have been suspended pending trial. The tellers of the United Mine Workers completed their work, on the 18th, and announced the vote, as follows: Total vote cast, 165,837. For accepting the scale, 98,514; against the scale and in favor of a strike, 67,373. Majority against a strike, 31,141.

7. March 24, 1904 The Cooperstown Courier Cooperstown, ND
Article from The Cooperstown Courier, March 24, 1904

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Article Text

Banker Indicted. Sioux City, Ia., March 17.-W. E. Brown, president of the First National bank of Storm Lake and owner of the Farmers' and Merchants' at Lynn Grove, the Farmers' and Merchants' at Sioux Rapids, and the Bank of Royal, all failed, was indicted Wednesday by the Buena Vista county grand jury on eight counts for receiving money after he knew the banks to be insolvent. A. J. Wilson, receiver of the banks, testified that Brown's liabilities were over $500,000.

8. March 24, 1904 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, March 24, 1904

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Article Text

Banker Indicted. Sioux City, Ia., March 17.-W. E. Brown, president of the First National bank of Storm Lake and owner of the Farmers' and Merchants' at Lynn Grove, the Farmers' and Merchants' at Sioux Rapids, and the Bank of Royal, all failed, was indicted Wednesday by the Buena Vista county grand jury on eight counts for receiving money after he knew the banks to be insolvent. A. J. Wilson, receiver of the banks, testified that Brown's liabilities were over $500,000.

9. March 25, 1904 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, March 25, 1904

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INDICTED ON EIGHT COUNTS. I Banker Brown Accused of Receiving Money After Banks Were Insolvent. W. E. Brown, president of the First National bank of Storm Lake, and owner of the Farmers and Merchants' at Linn Grove; the Farmers and Merchants' at Sioux Rapids, and the Bank of Royal, all failed, was indicted last week by the Buena Vista grand jury on eight counts for receiving money after he knew the banks to be insolvent. Seven of these counts were for receiving money in the Linn Grove bank, and one for receiving money in the Sioux Rapids bank. The latter indictment was returned upon the testimony of H. E. Barrick of Storm Lake, who gave Brown a deposit of $2,000 upon promise of 7 per cent interest, receiving a certificate of deposit from the Sioux Rapids bank. A. J. Wilson, receiver of the banks, testified. that Brown's liabilities were over $500,000, including his liability for assessment and mortgage on 6,000 acres of land in Polk county, Minnesota, and South Dakota land. The First National bank will pay about 70 cents; the Linn Grove bank, 20 cents on $120,000 liabilities; the Sioux Rapids bank, 20 cents, and the Royal bank, 40 cents. Harry B. Mayne, cashier of the Linn Grove bank, killed himself before the bank's failure.

10. October 8, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 8, 1904

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BROWN'S SHORTAGE. Charged That He Speculated Funds. Shamefully' With Bank's Sioux City, Oct. 8.-In W. the E. new Brown indictment National of the the federal inLake, defunct brought by First against grand in Bank the jury of Storm original count of the first and embezzlement dictment of charging the funds of the First allow- Na$76,000 bank of Storm Lake, was second tional before. The ento the old bill alleged the in wrongful reports to tries currency. was ened count and stand of the as falsified replaced false con- by troller specifying alleged the connew tries counts, and bogus statements to troller. that this was done of the in The reason true bill, was because the first time between the time the and gov- the short was given the case, ernment of the grand jury. Subsequent of justce meeting time the department assistant to to that appointed a special the perhad Attorney McMillan in Ft. Dodge, to District Thomas D. Healy of Brown's son investigate of the affairs of bank. with Receiver A. J. Wilson, books, Together went over the bank's the govMr. Healy page and found what enpage by alleges were fraudulent ernment numerous statements made tries required and by law which misrepresent- bank. as actual condition of the the irIt are convinced that attorneys were inexcusable skillful ed regularities the is understood government's and the refrom deliberate and On sulted of the bank's funds. therefore. it is this the prosecution in manipulation make theory, vigorous, the will purpose aid and to overlook nothing which banker. the to conviction of the accused Recently a meeting of stockholders held the bank and depositors was More of Fonda attended by Mr. Healy. which evidence it was found at this time will be used in the trial. is a likelihood that the next case There come on trial before the be will of court, which will likely will in term 1905. Meanwhile Brown bond. doubtless May, be released on another that is charged against Mr. Brown National It the funds of the First he Storm Lake to the most unrestrained bank with used in of indictment speculate manner. he is charged in the bank, While $76,000 from the that his it will approximate and with is indirect embezzling alleged liabilities company $500,000. direct said he organized a coal DakoIt is Omaha, bought land in the and in and Iowa in immense tracts various tas speculated here and there in with it His bank had associated Sioux ways. closely a private bank at one at Rapids, very one at Linn Grove, and Royal, first all Iowa crash, towns. which resulted in the The of four banks, and the came open failure of fraud against Brown, of the charges Harry Mayne, cashier and when Grove bank, shot himself, found to Linn funds of the bank were of the been dissipated. The failure Sioux have Bank of Royal, and of the and the institution followed closely, First NaCity then came the collapse of the tional at Storm Lake. fact that this bank had more The double the number of depositors had, than other bank in Storm Lake that any that many of its The the poor were was enraged indicated among community people. depositors over the eswhole Brown had been highly evident, failure. His prosperity was reposteemed. utmost confidence was foland the The disclosures which the ed in him. the failure still more angered lowed and stockholders, and banker a gendepositors for punishment of the let out on eral cry He was indicted and to was bonds. raised. He then moved his family St. Louis.

11. 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.