3728. Farmers & Drovers State Bank (Seymour, IA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 1, 1907*
Location
Seymour, Iowa (40.683, -93.121)

Metadata

Model
gpt-5-mini
Short Digest
879fdc83

Response Measures

None

Description

Articles describe the Farmers & Drovers State Bank of Seymour failing, appointment of a receiver, large embezzlement by cashier LeRoy (Roy) Ware, court proceedings, paying a small dividend, and later settlement among stockholders. No article describes a depositor run prior to suspension; the failure is tied to internal embezzlement/false entries and prosecution. Thus this is a suspension (failure) that remained closed and went into receivership/settlement (closure).

Events (5)

1. April 1, 1907* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large shortage/embezzlement discovered in bank books connected to cashier LeRoy (Roy) Ware; false entries and alleged fraudulent banking led to failure.
Newspaper Excerpt
LeRoy Ware, cashier of the defunct Seymour bank ... Receiver Fry ... said he believed the shortage would reach $250,000.
Source
newspapers
2. April 30, 1907 Receivership
Newspaper Excerpt
Receiver Fry, in a statement, stated that he believed the shortage would reach $250,000. ... Frye of Corydon ... was appointed receiver of the ... bank (article mentions receiver).
Source
newspapers
3. September 19, 1907 Other
Newspaper Excerpt
Receiver B. F. Fry ... stated that the claims presented against the bank reach a total of $410,749.39. The assets he roughly estimated at $140,000, aside from the assessment of $80,000 to be made on the stockholders. (claims and asset estimate).
Source
newspapers
4. November 26, 1907 Other
Newspaper Excerpt
J. B. Fry, receiver of the defunct Farmers' and Drovers' State bank, is now paying the 10 per cent dividend to depositors as ordered by the court; (dividend payment to depositors).
Source
newspapers
5. August 8, 1908 Other
Newspaper Excerpt
SEYMOUR BANK CASES SETTLED ... The stockholders will pay the $80,000 assessment on the capital stock and $40,000 on unpaid stock ... There will be about 70 per cent left for the depositors after all expenses have been paid. (settlement of claims and assessments).
Source
newspapers

Newspaper Articles (6)

Article from Evening Times-Republican, April 30, 1907

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COURT HELD IN CASHIER'S HOME. LeRoy Ware Bound Over Under Bonds of $5,000 - Shortage Growing. Seymour, April 30.-Leroy Ware, cashier of the defunct Seymour bank, who was placed under arrest Saturday night by Sheriff Merrick, of Corydon, was yesterday given a hearing. Court was held in the cashier's home by Justice W. O. Jamison, and Ware was bound over to the grand jury under $5,000 bonds on the charge of embezzlement. Receiver Fry, in a statement, stated that he believed the shortage would reach $250,000. Whether the bank will be able to pay out in full or what percentage it will pay he was unable to say. Ware is still delirious and in a serious condition. Suit was filed in the district court at Centerville by the Ottumwa National bank against S. G. Houser, a wealthy stock man living in this county, southeast of Seymour, asking that an attachment be issued against any property, real or personal, of the defendant for the amount of $9,000, claiming to be due the Ottumwa bank on a certain promissory note for that amount with 8 per cent interest, given by the Farmers and Drovers' bank, of Seymour, on January 18. 1907. The petition states that the note was assigned to the plaintiff bank by the Farmers and Drovers' bank. That the interest was paid on March 18, and the note renewed until May 2. Mr. Houser denies that he owned the Seymour bank that amount, and claims the note is fraudulent to the amount of about $7,000.


Article from Ottumwa Tri-Weekly Courier, August 20, 1907

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SEYMOUR BANKER DEFENDS HUSBAN Mrs. Leroy Ware Threatens to Send Pro inent Wayne County Men to Penite tiary if Spouse is Convicted Jamison, who hated leaving his Seymour, Iowa, Aug. 17.-Mrs. Le fortable bed for a midnight ride o Roy Ware, wife of the cashier of the teen miles in a raw March Farmers' and Drovers' State bank of "Business connected with my i Seymour, la. has thrown down the ance," was the answer, and then auntlet to her husband's accusers in chocking whisper "The bank." he statement that she will send five go with you Roy," said Jamison other men to the penitentiary if her as they passed through the stree usband is convicted of the crime for the Ceeping town Ware said to which he is now under five indictnents. companion, 'Seymour will awake new conditions in the morning.' Who the five men are and the exact The two men drove to the hon in which they are implicated Lewis Miles and the three sat Mrs. Ware refuses to divulge, but in dawn talking it over. Exactly interview she has given out the passed between Miles and Ware tatement and says she will stand by hever been known. But at dayl Aaron Evans, the president of Mrs. Ware's devotion to her husbank, and Dr. Cover, one of the o and is a remarkable example of a tors were sent for. The old pres love. When the news of the of the bank upon his arrival at N failure became knewn, her office asked immediately to talk nother, Mrs. Bullard, went to the his cashier. Ware was in a state aughter's home and entreated her to mental collapse which was painf eave her husband and return to her see, but Mr. Evans greeted him of her girlhood. The unusual nothing had happened. "Let's ta nstance of a woman choosing be all over," he counseled kindly, ween her mother and her husband see what can be done." afforded. Mrs. Ware told her I'll never live to bear this disgr nother that she would obey the Biblisaid the desparing man; "I'll kill injunction to forsake all and cling self." Cover who had been his her husband, and that she would friend and family physician for : listen to such advice. cade, said "No. Roy, if you are 8 Town Divided. to talk like that we will lock you And then he talked to him of his Roy Ware and his affairs divided to his family, and all that, and \ town as cleanly into two factions handed him a 38-caliber revolver a steel wedge splits pine. his hip pocket, saying, "You are I Seymour has always regarded Roy Cover; I'll take my medicine li Vare as something particularly her man." and of her own making. When The trip was made back to Sey was first accused of appropriating and Ware placed under guard in bank's money to his own use the own home. He was then suff stood aghast. There were a from the effects of a fall received many people who would not be runaway accident and was und it, and they do not believe it physicians care for several weeks in spite of the fact that there are lowing. Ten of the leading despos indictments against the man, any and stockholders in the bank si of which might mean a term in his bond. Then the grand jury prison. and two indictments were retu The history of the bank's failure is Several of the men on the bon long story. It is fraught with many came angered because Ware did the elements of a stern tragedy. make a clean breast of everythin here are a number of people in fore the grand jury and dema Wayne county to whom it spells utter their release. At the July sessio nancial ruin, and yet some of these the grand jury three more indictn Roy Ware's staunch friends towere returned. Ware went hom There is a reason for all this, his wife in a panic. His despair reason not far to seek. These peoed her to say something theu V believe that Roy Ware was only a she had been longing to say for instrument in the hands of other time. She faced his enemies with assertion. "They are making a sc Aged President. goat of Roy, and if he sees the 1 Aaron Evans, the aged president of of state's prison I'll see that he he bank said the other day: "Ther some others with him." The cat been a thief in the bank for many out of the bag at last and the p The problem is to find the of Seymour were treated to a S and his accomplices." tion of many startling disclos Even those who believe Roy Ware They are still waiting apprehens are repeating this question over Never Used a Dollar. over, "What did he do with the Roy Ware said the 200,000?" It was town pride that he day that he never used a dollar o not smoke, drink, swear or gamble bank's money. He admits that he Sunday he passed the plate in the fied the bank's records but say resbyterian church and on week days did not make the first false entry worked in the bank. There is Ware sat in the little parlor o one way they say, for him to father's home in Seymour when spent the money, and that is made this statemnt. His own hor vhispered softly under the breath. leased to Mr. Frye of Corydon, Bucket shops. But that is a story was appointed receiver of the which might involve others and no As he talked, Ware held a copy o accusations are being made. Saturday Evening Post in his Roy Ware was a poor boy. He was He had just finished reading a sto only poor, but he was afflicted the Post "The Respectability S by Will Payne. with a spinal disease, which dwarfed physical growth. Up until the The story has to do with a ime he was sixteen he went to school failure and the punishment mete studied hard. He was determined to a bank teller in order to satisf his affliction should not altolaw. The story interested Ware bank teller had to go to state's p tether hamper him in the fight for When he was fourteen Senator for a year because he had overewis who about that time founded fied a check with the free and full sent of the bank's officers. But Farmers' and Drovers' bank, took law was appeased with out enta harge of the boy as his own special rotege. Senator Lewis was only a any hardship upon the officers. "I did wrong," said Ware, closin oung man himself, but he thought he nervous hands to keep them good material there which might the world some good. The senator while he talked. "The trouble ed nine years ago. Some of the conducted a little print shop and who knew about it at that time put Ware there that he might earn dead and some of them are out o few odd dollars and still keep up his tudies. After Ware was sixteen he bank. Some others are still in bank. With me it was a case of taken into the bank as a clerk. loyal to my employers. I was we Then he rose steadily. Every day the people gained new confidence in him. admit it. But I want to say that will be something more definite 1 The bank was solid beyond a doubt they could trust Roy Ware. When from me when the proper time con was twenty-three he was made A Peculiar Position. cashier. One of the other clerks in The officers and directors of bank. Jim Phillips had a pretty Farmers' and Drovers' bank have young sister-in-law. Daisy Bullard lordbeen placed in a peculiar and hum it over the town boys like any ing position. They are standin queen. But nothing succeeds like sucgether to a man against the whi and Ware won her for his wife. ed comments of Roy Ware's fri They were married the same year he The situation has resolved itself reached the goal of the cashier's cage. one which will eventually make this time Jim Phillips was assistant ter enemies of men who have ashier. Senator Lewis had sold out lifelong friends. One thing is no interests and moved away. Ware nied by either faction. This is the practical head of the bank. the conduct of the bank's affairs honesty went unquestioned, just a monumental piece of careless the faith in one's mother. and neglect which is unprecedent An Unbroken Calm, banking annals. The life of the town flowed for ten As late as last week Receiver ears in the unbroken calm. Business unearthed unopened mail which prosperous, the corn crop never tained good checks. Several hur failed and the people rested secure in dollars have been added to the b belief that the bank was as firm assets in this way. solid masonry. Where the money went no one The discovery to the contrary came say But the way in which the distinet ords were juggled is now know


Article from The Leon Reporter, September 19, 1907

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Receiver B. F. Fry, of the Farmers & Drovers' state bank at Seymour, which failed recently and was followed by the sensational arrest of Cashier Ware on the charge of embezzlement, made a statement today in which he stated that the claims presented against the bank reach a total of $410,749.39. The assets he roughly estimated at $140,000, asside from the assessment of $80,000 to be made on the stockholders.


Article from Ottumwa Tri-Weekly Courier, November 26, 1907

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Death of Mrs. Bonner. Seymour.-Mrs. Samuel Bonner died Thursday morning very unexpectedly to her many friends. She had been sick with intermittent fever for a week or ten days, but was not considered to be in a serious condition. Death was caused by acute peritonitis. Interment was made at South Lawn cemetery. Marvin Wade the eleven months old son of Worth and Josie Wade, died on Wednesday night of tonsilitis complicated with croup. Dr. Banning reports a daughter born to Mr. and Mrs. Ed Condra Thursday morning. Frank Wharton is at work on the wrecked Jamison building with a force of men and will straighten up the building and put it in good condition again. J. B. Fry, receiver of the defunct Farmers' and Drovers' State bank, is now paying the 10 per cent dividend to depositors as ordered by the court. J. A. Keller has purchased the Chas. Earnest property and will move to town and take possession about the first of March. S. E. Campbell and family are moving to Trenton, Mo. Mrs. F. E. Rouse, who has been visiting relatives in Seymour, returned to her home in Ottumwa Tuesday. Miss Lena Smith of Kansas City is visiting friends in this city. Rev. W. O. Smith of Kansas City stopped off in Seymour for a short visit with former parishioners, and in company with his daughter, Lena, went to Ottumwa Thursday to visit his daughters, Mesdames J. O. Mullen and Morris Tracy. Caroline McClean returned to her home in Quincy, Ill., Thursday.


Article from Ottumwa Tri-Weekly Courier, August 11, 1908

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SEYMOUR BANK CASES SETTLED ATTORNEYS COME TO AN AGREEMENT - DEPOSITORS GET TO PER CENT. Corydon, Augst 8-The famous Farmers & Drovers bank cases of Seymour was settled this week In Judge Towner's court. The sults in which the stockholders', the Evans' and Owens' brought suit against J. C. Phillips, J. C. Calhoun and O. A. Cover for stock, was settled by the parties sued paying a large amount of the claim. The stockholders 1 ill pay the $80.000 assessment on the canitol stock and $40,000 on unpaid stock. This includes all but LeRoy Ware at one time connected with the bank, who is not now in a position to pay. He owned about $1,000 worth of stock. There will be about 70 per cent left for the depositors after all expenses have been paid. The court thought that was the best that could be done for all parties concerned and so ruled. The following is his decree: The Court: It is proposed in this settlement that the following cases which are now pending and which involve claims against individuals and estates, are to be settled, towit: No. 7371, entitled, F. B. Fry. Receiver, vs. O. A. Cover, et al: No. 7379 entiled, F. B. Fry, receiver, vs. W. L. Evans, administrator of the estate of Aaron Evans deceased, et al; and No. 7464, which is entitled F. B. Fry, receiver, vs. J. C. Phillips. et al. It is proposed by this settlement, as the court understands, to end a n large amount of uncertain and vexa1 tious litigation. Suits have been brought against the stockholders of the hank bee the 100


Article from The Oskaloosa Herald, May 20, 1909

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PAROLE MAY CALL OUT SENSATION LeRoy Ware Said to Be Scapegoat of Bank Officials. ATTORNEY IS ALSO CRITICISED Invalid Freed From Penitentiary Only to be Re-Arrested on Another Charge of Making False Entries. Des Moines, May 19.-The parole of Leroy Ware, former cashier of the defunct Farmers and Dovers bank at Seymour, who was sent up for five yeaars for alleged irregularities of over $329,000 has brought to the surface startling evidence which was taken by the state board of parole in its investigation of the case. Ware was paroled after serving just *hirteen months, because the state board of parole believed that the evidence indiciated him to be the scape goat for others connected with the bank, so Secretary B.- W. Garrett declared to-day. Ware was liberated Saturday and was started soliciting insurance for a man named Bullard at Fort Madison. He was re-arrested yesterday on another charge of fraudulent banking, filed at Corydon. An lowa Sensation. The Ware case has been an Iowa sensation. No bank in years has failed for an amount so large as that at Seymour, the Iowa records show. Then came the indictment of Ware and his conviction. The officials of the bank who appear to have figured in the case, as shown by the evidence before the state board of parole, are: President W. S. Llewellyn, Viee President J. C. Phillips and Director Aaron Evans. The evidence upon which the board of parole based its action largely was furnished by former Senator L. W. Lewis, now of Seattle; W. C. Sanger, a newspaper man; I. W. Wagner and Attorney Livingston, of Corydon. County Attorney Criticised. There were seven reasons why the board of parole found that Ware should be paroled. One of these relates to County Attorney Carter who prosecuted the case. The evidence showed before the board of parole, that Carter is a partner of W. H. Tedford. who was attorney for the defunct bank, which appears to nave been back of the prosecution of the young cashier. The evidence showed that Carter refused to permit the grand jury to take any evidence which tended to show that any one other than Ware was implicated in the shortages. Another reason for the granting of the parole was that the claim was madé to the board that the false entries in the bank books were made by Ware with the knowledge and consent