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Iowa Farmers Slow Pay. Sheldon, Ia., Nov. 6.-The Sheldon bank closed its doors and will go Into the hands of a receiver. Officers of the bank assign the cause of the failure to the slow payment of notes by farmers for the past two years.
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Iowa Farmers Slow Pay. Sheldon, Ia., Nov. 6.-The Sheldon bank closed its doors and will go into the hands of a receiver. Officers of the bank assign the cause of tne failure to the slow payment of notes by farmers for the past two years.
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THE SHELDON BANK. Preliminary Statement of the Condition of the Failed Institution. Sheldon, Nov. 18.-The petition of Earl W. Brown, Ed C. Brown, and R. E. Brown, asking for the appointment of a receiver for the Sheldon bank, has been filed with the clerk, together with the order of the court appointing R. W. Ady receiver, at a salary of $100 per month. The petition alleges that Eari W. Brown, owns fifty shares of the bank stock and the balance is owned by the other plaintiffs, but 370 shares of it has been assigned as collateral security to an Indebtedness of Ed C. Jr., Ed C., Earl W. and C. S. Brown, to D. D. Myers and B. B. Richards, of Dubuque, and E. B. Northrup of Sloux Falls. The assets of the bank aggregating $231,000, are said to consist of bills recelvable, $194,000: cash on hand and in banks, $6,800; real estate, $19,200; overdrafts, $11,000. The liabilities are $175.000 and consist of deposits and the following loans: $5,000 due December 2: $5,000 due March 1, 1904; all to the National Bank of the Republic, Chicago: $7,500 to the Des Moines Savings bank, due Jan. 1, 1904; $5,000 to the First National bank of Minneapolis, due March 1, 1904, also a $4,000 note, making a total of $31,500 money borrowed. all of which is secured by $32,600 of the bills receivable, given as collateral. The notes rediscounted by the bank, on which there is a contingent liability and not included in the $175,000 amount to some $25,000 of which the National Bank of the Republic holds $5,000 that would be due in a few days and had refused an extension. Received Ady was made no report as yet and is busy at work getting his schedules ready so as to give a statement of the bank's condition as he finds it.
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THE SHELDON BANK. Preliminary Statement of the Condition of the Failed Institution. Sheldon, Ia., Nov. 18.-The petition of Earl W. Brown, Ed C. Brown, jr., C. S. Brown, Ed C. Brown and R. E. Brown, asking for the appointment of a receiver for the Sheldon bank, has been filed with the clerk, together with the order of the court appointing R. W. Ady receiver at a salary of $100 per month. The petition alleges that Earl W. Brown owns fifty shares of the bank stock and the balance is owned by the other plaintiffs, but 370 shares of it has been assigned as collateral see curity to an indebtedness of Ed C., jr., Ed C., Earl W. and C. S. Brown to D. D. Myers and B. B. Richards of Dubuque, and E. B. Northrup of Sioux Falls. The assets of the bank, aggregating $231,000, are said to consist of bills receivable, $194,000; cash on hand and in banks, $6,800; real estate, $19,200; overdrafts. $11,000. The liabilities are $175,000, and consists of deposits and the following loans: $5,000 due December 2; $5,000 due March 1, 1904, and $5,000 due May 1, 1904, all to the National Bank of the Republic, Chicago; $7,500 to the Des Moines Savings bank, due January 1, 1904; $5,000 to the First National bank of Minneapolis, due March 1, 1904; also a $4,000 note, making a total of $31,500 money borrowed, all of which is secured by $32,600 of the bills receivable, given as collateral. The notes rediscounted by the bank on which there is a contingent liability and not included in the $175,000 amount to some $25,000, of which the National Bank of the Republic holds $5,000 that would be due in a few days and had refused an extension. Receiver Ady has made no report as yet and is busy at work getting his schedules ready so as to give a statement of the bank's condition as he finds it.
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Court Holds That He Fraudulently Loaned Bank Money to Himself SILENT PARTNER OF N. F. WORTH in October Tried to Transfer His Personal Obligation by Accepting New Set of Notes From Worth-Federal Court Holds That This Was a Fraud -Came Up in Bankruptcy Case. Special to Times-Republican, Sioux City, May 31.-Ed C. Brown, president of the failed Sheldon bank was on trial in Judge Reed's court yesterday for alleged irregularities in loaning money of the bank to himself as member of a co-partnership. After lengthy arguments the court ruled in favor of the charge of fraud" and allowed the claim of the bank for $9.377.64 against the bankrupt clothing firm of N. F. Worth. Some twelve years ago Worth, then a traveling salesman, induced Brown to buy a stock of goods and put him in charge. Because Brown's own notes could not be put up at the bank, Worth's notes were given for $6,683. For ten years Worth paid interest at the rate of 10 per cent. In October of last year Brown wanted to retire from the co-parnership and Worth made out a new set of notes for $9,377.64, representing all the firm owed at the bank plus unpaid interest. In November the bank failed. When the bank failed proceedings were begun to force Worth into involuntary bankruptcy which he forestallby petitioning for voluntary bankruptcy, but in listing the liabilities of the co-partnership, he omitted the claim of the bank. The bank's receiver sought to file a claim for the $9,377.64. Attorneys for Hart, Schaffner & Marx, of Chicago, leading creditors of Worth, argued to prevent the filing of the bank's claim, contending that the claim was against Worth personally and not against the co-partnership. The copartnership had assets while Worth was worth nothing. Attorneys for the bank receiver contended that the debt was originally one of co-partnership and that it constituted a fraud on the bank because the bank loaned money to a firm in which a managing officer of the bank was interested. This fraud would would give the bank the right to recover at this time. The Chicago attorneys answered with the contention that so long as the bank benefitted from interest received