3812. First National Bank (Storm Lake, IA)

View Charter #2595 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
2595
Charter Number
2595
Start Date
January 1, 1904*
Location
Storm Lake, Iowa (42.641, -95.210)

Metadata

Model
gpt-5-mini
Short Digest
4a261105

Response Measures

Full suspension, Books examined

Other: Receiver appointment and later criminal indictments of president W. E. Brown.

Receivership Details

Depositor recovery rate
29.0%
Date receivership started
1904-01-02
Date receivership terminated
1911-09-30
OCC cause of failure
Fraud
Share of assets assessed as good
39.2%
Share of assets assessed as doubtful
19.0%
Share of assets assessed as worthless
41.8%

Description

The First National Bank of Storm Lake was closed by the Comptroller (reports dated Jan 2–4, 1904) and a receiver appointed. Local withdrawals (about $30,000 over two weeks) following the failure of a private bank at Linn Grove and a related suicide are cited as the immediate trigger for withdrawals; the institution was placed in receivership (A. J. Wilson appointed) and later legal proceedings and assessments indicate permanent failure. Thus a run preceded suspension and the bank did not resume normal independent operations.

Events (5)
1. December 1, 1881 Chartered
Source
historical_nic
2. January 1, 1904* Run
Cause
Local Banks
Cause Details
Withdrawals precipitated by the failure of the Farmers' and Merchants' private bank at Linn Grove (in which Storm Lake president was a heavy stockholder) and the sensational suicide of H. W. Mayne; confidence shaken, ~$30,000 withdrawn over two weeks.
Measures
No specific liquidity measures described in articles prior to suspension; president posted notice promising claims would be paid in full; later receiver assessment and receivership actions followed.
Newspaper Excerpt
With the failure of the Farmers' and Merchants' private bank at Linn Grove ... little by little deposits were withdrawn ... It is estimated that in all very nearly $30,000 were taken out in the past two weeks.
Source
newspapers
3. January 2, 1904 Receivership
Source
historical_nic
4. January 2, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Comptroller closed the bank on evidence of insolvency revealed by examiner; insolvency linked to mismanagement and heavy related exposures (later revealed) and preceding withdrawals after the Linn Grove failure.
Newspaper Excerpt
The First National Bank of Storm Lake, Ia., has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner Shaw has been appointed temporary receiver.
Source
newspapers
5. January 6, 1904 Receivership
Newspaper Excerpt
Abner J. Wilson of Boone, Ia., has been appointed permanent receiver of the failed First National Bank of Storm Lake... has entered upon his duties as receiver; receiver Wilson later made assessments and pursued legal action against president W. E. Brown.
Source
newspapers

Newspaper Articles (22)
1. January 3, 1904 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, January 3, 1904

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TELEGRAPHIC BREVITIES. Quebec, Jan. 2.-The destruction by fire today of Morin's wholesale drug house and McCall, Shephyr. & Co.'s wholesale dry gods house is now considered to have caused a loss of $250,000. Paris, Jan. 2.-A dispatch to the Patrie from Seoul says the French minister has delivered to the Emperor of Corea the decoration of the grand cross of the Legion of Honor. . Huntington, W. Va., Jan. 2.-One thousand employes of the American Car and Foundry company struck today against a 10 per cent reduction in wages. Munich, Bavaria, Jan. 2.-Leon Hard Seyoth, a member of the reichstag and a manufacturer of this city, has been sentenced to fifteen months imprisonment and the loss of civil rights for five years for forging bills of exchange. New York, Jan. 2.-Charles Hall Rockwell, well known in the east' and on the Pacific coast, is dead in Tarrytown, N.Y. Colon, Jan. 2-The reported sinking of the Colombian gunboat General Pinzon by an American warship is still unconfirmed and is discredited here. St. Petersburg. Jan. 2.-The Associated Press is officially informed that there is absolutely no truth in the report from Berlin that the czar yesterday received a dispatch from Viceroy Alexieff and called his ministers to a midnight conference which was still sitting early this mornIng. Berlin, Jan. 2.-Emperor William told Admiral Von Hollman at an audience on Thursday, according to a report accepted on the bourse today, that he was confident peace would not be broken in the far east. Washington, Jan. 2.-The First national bank of Storm Lake, Ia., has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner Shaw has been appointed temporary receiver. New York, Jan. 2.-Through a representative of the Harriman syndicate which controls the Union Pacific. it was learned this afternoon that President Burt's resignation has been tendered but has not been accepted and the question of a successor has not been considered. St. Petersburg. Jan. 2-An imperial de'cree just issued grants Viceroy Alexien a special flag consisting of the blue cross of St. Andrew on a white ground with a black eagle in the center. The viceroy is also accorded a salute of 21 guns. Cologne, Jan. 2.-Navigation of the Rhine has been completely suspended by ice. Paris, Jan. 2-The Princess Mathilde, only daughter of Prince Jerome Bonaparte, died at 7 o'clock this evening. Rome, Jan. 2.-Although the fact is not yet officially announced, it is believed General Pittalauga of the Italian army will be appointed to command the gensdarmes in Macedonia in accordance with the Russian-Austrian reform scheme. Washington, Jan. 2.-Cold wave warnings have been issued for Ohio, West Virginia, Mississippi, Alabama, western Georgia, western Florida, Arkansas, Oklahoma and Indian Territory. Chicago, Jan. 2.-Fire broke out today in the building erected by Wilbur F. Storey to house the old Chicago Times. The structure has of late been occupied by the Freie Presse and a number of manufacturing concerns. Tokio, Jan. 2.-Owing to the demand of the government for a guarantee deposit upon its legal reserve funds the Equitable Life Insurance society of New York has announced its withdrawal from Japan. Manila, Jan. 2-The New Year reception given by Acting Governor Wright was a brilliant affair. About 3,000 persons were present, including representatives of foreign nations, officers of the ermy and navy. civil officials and promi-

2. January 3, 1904 Arizona Republican Phoenix, AZ
Article from Arizona Republican, January 3, 1904

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IOWA BANK CLOSED. Washington, Jan. 2.-The First National Bank of Storm Lake, Iowa, has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner Shaw has been appointed temporary receiver.

3. January 3, 1904 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, January 3, 1904

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The U. S. Gov't Reports show Royal Baking Powder superior to all others. IOWA BANK CLOSED. Washington, Jan. 2.-The First National bank of Storm Lake, Iowa, has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner Shaw has been appointed temporary receiver.

4. January 3, 1904 The Washington Times Washington, DC
Article from The Washington Times, January 3, 1904

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COMPTROLLER CLOSES IOWA NATIONAL BANK The First National Bank of Storm Lake, Iowa, has been closed by direction of the Comptroller of the Currency, on evidences of insolvency. National Bank Examiner E. E. Shaw has been appointed temporary receiver. The report of condition of the bank at the close of business on November 17, 1903, the date of the last call, showed Its resources and liabilities each to be $296,532.03.

5. January 4, 1904 The Daily Pioneer Bemidji, MN
Article from The Daily Pioneer, January 4, 1904

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BRIEF BITS OF NEWS. The Princess Mathilde, only daughter of Prince Jerome Bonaparte, is dead at Paris. Congressman W. W. Skiles is lying critically ill of pneumonia at his home in Shelby, O. The Citizens' State bank of Luton, Ia., has been robbed of $700. There is no clue to the burglars. All the union job printers of Du. buque, Ia., have struck for an eighthour day. News men are awaiting instructions from the international union. The exports from Germany to the United States during 1903 did not fall far short of $130,000,000, or from $14,000,000 to $15,000,000 more than in 1903, which was the previous record year. Leonhard Seyboth, a member of the German reichstag and a manufacturer of Munich, has been sentenced to fifteen months' imprisonment and the loss of civil rights for five years for forging bills of exchange. The First National bank of Storm Lake, Ia., has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner E. B. Shaw has been appointed temporary receiver.

6. January 6, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 6, 1904

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WILSON FOR RECEIVER. 1 Boone Man to Take Charge of Failed Bank at Storm Lake. Special to Times-Republican. Storm Lake, Jan. 6.-The First National bank of Storm Lake which was closed by the comptroller of the currelcy last Saturday, will be placed in the hands of A. J. Wilson, of Boone. as receiver. Mr. Wilson was formerly representative from Buena Vista county, and is now cashier of the Boone National bank at Boone. Mr. Wilson's appointment gives much assurance to the depositors and stockholders that the bank here will be placed on its feet soon. Mr. Wilson is a thorough manager and has a knowledge of the situation here that will be of service to him. It is generally believed here that the First National bank will pay out practically in full, If not in full. The expectation is that it will be reopened. President Brown has given promise that all claims will be paid in full in a notice pasted on the bank's doors.

7. January 6, 1904 The Fulton County News McConnellsburg, PA
Article from The Fulton County News, January 6, 1904

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In the Departments. At the instance of Acting Secretary Clements, of the Interstate Commerce Commission, an investigation was begun of persistent rumors that there have been irregularities in the conduct of Secretary Edward A. Moseley. The president approved the sentence of dismissal and imprisonment impos ed on Second Lieutenant Paul B. M MacLane, of the Thirteenth Cavalry. convicted of embezzlement. The Comptroller of the Currency has directed the closing of the First Na tional Bank of Storm Lake, Ia. President and Mrs. Roosevelt inaugu rated the official social season in the nation's capital with a brilliant reception at the White House. The President and his Cabinet dis cussed the Panama situation at length. On account of the illness of Secretary Hay the negotiations with General Reyes, the Colombian commissioner, will be conducted by Secretary Root. The year book of the Carnegie Institution makes announcements of the work and plans laid out for scientific research throughout the world. Minister Lyon, of Liberia. reports the massacre of J. G. Tate, a missionary, and 18 of his following by Doo tribesmen. Preparations have been made to hurry Governor Taft across the Continent immediately upon this arrival at San Francisco and put him in his position as secretary of war by the first of February. Col. Robert L. Meade, of the Marine Corps, was placed on the retired list two years in advance of the date to which he might have served on the active list. The Comptroller of the Currency appointed R. L. Van Zandt, of Fort Worth. Tex., receiver of the Farme National Bank of Henrietta, Tex. A naval court-martial was to try Gunner Fries and Brooks on account of the e the naval magazine at lo Col. Henry L. Thom translator in the St died at his resident The executive of the Cumbe members of corps. Secretari ville, Ga., his bron Unies the no lom) wb

8. January 7, 1904 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, January 7, 1904

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STORM LAKE, IOWA-The First National bank, which closed its doors Saturday, will be put in the hands of A. J. Wilson of Boone, receiver. It is expected depositors will be paid in full and the bank reopened. DUBUQUE, IOWA-The Land Agents' association of Iowa will convene in this city Jan. 13.

9. January 7, 1904 Courier Democrat Langdon, ND
Article from Courier Democrat, January 7, 1904

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Monday, Jan. 4. The Princess Mathilde, only daugh ter of Prince Jerome Bonaparte, is dead at Paris. Congressman W. W. Skiles is lying critically ill of pneumonia at his home in Shelby, O. The Citizens' State bank of Luton, Ia.. has been robbed of $700. There is no clue to the burglars. All the union job printers of Dubuque. Ia.. have struck for an eight hour day. News men are awaiting in structions from the international un ion. The exports from Germany to the United States during 1903 did not fall far short of $130,000,000. or from $14, 000,000 to $15,000,000 more than in 1903, which was the previous record year. The First National bank of Storm Lake. Ia., has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner E. B. Shaw has been appointed temporary receiver.

10. January 7, 1904 Audubon Republican Audubon, IA
Article from Audubon Republican, January 7, 1904

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NATIONAL BANK GOES TO WALL Institution at Storm Lake Is Closed By Comptroller of the Currency. THE FAILURE IS NOT SERIOUS Closing of a Private Bank at Linn Grove Led to Withdrawal of Deposits Believed Depositors Will Lose Nothing. Storm Lake, Jan. 4.-Shortly before the end of banking hours Saturday afternoon the First National bank of Storm Lake was forced to slose its doors and suspend operations on an order from the comptroller of the currency at Washington. The national bank examiner who recently made an inspection of the business of the institution found such evidence of insolvency, that it was deemed best to suspend and give time for a readjustment of the bank's affairs. W. E. Brown is the chief stockholder in the bank and its president; he came here six or seven years ago from Sioux Rapids and later bought a controlling interest from the First National bank of Fort Dodge, which had been a heavy stockholder. L. J. Metcalf is vice president of the institution, and J. B. Alexander cashier. The report of the bank at the close of business on November 17, 1903, the date of the last call, showed its resources and liabilities to be as follows: Loans and discounts, $188,974; United States bonds, $50,000; stocks, securties, claims, etc. $5,714; real estate, $15,192; due from banks and bankers, $28,723; cash and cash items, $7,926; total, $296,532. Liabilities: Capital stock, $50,000; surplus and undivided profits, $9,157; circulation, $49,997; deposits, $184,977; other liabilities, $2,400; total, $296,32. The management of the First National bank has always been conservative enough in itself and it held the confidence of the people until the sensational suicide of H. W. Mayne at Linn Grove and the failure of the Farmers' and Merchants' private bank at that place, in which President Brown of the Storm Lake bank was a heavy stockholder. With that failure the confidence in the solvency of the Storm Lake bank was somewhat shaken, and little by little deposits were withdrawn from the latter. It is estimated that in all very nearly $30,000 were taken out in the past two weeks. This made matters stringent, for the First National bank, under ordinary circumstances, would in all probability have avoided suspension, but with such a heavy strain on its deposits it was unable to continue in business safely. It is not believed, however, that the depositors in the bank will lose anything. The general opinion of those who are informed is that the bank will ultimately be able to pay out, and that before very long it will resume business. The condition off the bank at Linn Grove is not yet known, but it is believed that when Receiver F. F. Faville makes his report it will show quite a deficit. It transpired yesterday that President Brown of the Storm Lake bank and chief owner of the Linn Grove bank deeded to the receiver 240 acres of Clay county land and three business lots in Storm Lake to help cover the deficit in deposits.

11. January 7, 1904 The Princeton Union Princeton, MN
Article from The Princeton Union, January 7, 1904

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TELEGRAPHIC BREVITIES Burglars dynamited the safe of the Ambridge, Pa., postoffice Tuesday and got away with $300 in cash and stamps. Abner J. Wilson of Boone, Ia., has been appointed permanent receiver of the failed First National Bank of Storm Lake, Ja. John Redmond, leader of the Irish parliamentary party, says that when parliament reassembles the Irish party will continue its fight for home rule. Mayor McClellan of New York has requested the fire commissioner to have an inspection made of all the theaters and public halls in the five boroughs. Governor L. F. C. Garvin of Rhode Island was Tuesday inaugurated for his second term, and new state officers were installed and the general assembly organized. Marvin Hart of : Lo: sville, and George Gardner of Lowell, boxed fifteen rounds to a draw at Boston Tueg. day night. Over 5,000 people witness. ed the bout.

12. January 8, 1904 Highland Recorder Monterey, VA
Article from Highland Recorder, January 8, 1904

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in the Departments. At the instance of Acting Secretary Clements, of the Interstate Commerce Commission, an investigation was be. gun of persistent rumors that there have been irregularities in the conduct of Secretary Edward A. Moseley. The president approved the sentence of dismissal and imprisonment impos ed on Second Licutenant Paul B. M MacLane, of the Thirteenth Cavalry convicted of embezzlement. The Comptroller of the Currency has directed the closing of the First National Bank of Storm Lake, Ia. President and Mrs. Roosevelt inaugurated the official social season in the nation's capital with a brilliant reception at the White House. The President and his Cabinet discussed the Panama situation at length On account of the illness of Secretary Hay the negotiations with General Reyes, the Colombian commissioner, will be conducted by Secretary Root. The year book of the Carnegie Institution makes announcements of the work and plans laid out for scientifi research throughout the world. Minister Lyon, of Liberia, reports the massacre of J. G. Tate, a missionary and 18 of his following by Doo tribesmen. Preparations have been made to hurry Governor Taft across the Con. tinent immediately upon his arrival at San Francisco and put him in his po. sition as secretary of war by the first of February. Col. Robert L. Meade, of the Marine Corps, was placed on the retired list two years in advance of the date to which he might have served on the active list. The Comptroller of the Currency ap. pointed R. L. Van Zandt, of Fort Worth, Tex., receiver of the Farmers' National Bank of Henrietta, Tex. A naval court-martial was ordered to try Gunner Fries and Sergeant Brooks on account of the explosion at the naval magazine at Iona, N. Y. Col. Henry L. Thomas, for 34 years translator in the State Department, died at his residence.

13. January 8, 1904 The Worthington Advance Worthington, MN
Article from The Worthington Advance, January 8, 1904

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LATER. A cry of "fire" at a funeral in Chicago created a panie, in which several peaple were injured. China prepares to take a hand in the row between Russia and Japan. Samuel Olson instantly killed and and Frank Divel fatally hurt, his skull crushed to a sickening mass, is the latest result of the Heinze-Amalgamated underground dynamite battles for the possession of ore bodies worth thousands of dollars at Butte, Mont. General James Longstreet, soldier, statesman and diplomat, and the last lieutenant general of the confederate army, with the exception of General Gordon, died in Gainesville, Ga., from acute pneumonia. The First National Bank of Storm Lake, Iowa, has been closed by direction of the comptroller of the currency on evidence of insolvency. The 12-year-old son of Mr. and Mrs. S. A. Hoveland, residing four miles east of Randall, Ia., was shot and instantly killed by his half brother, a boy of about his own age. Princess Matilde, only daughter of Prince Jerome Bonapart, died in Paris the 2d. May wheat sold for 87½ cents on the Minneapolis board of trade the 2d. Dollar wheat is freely predicted. A band of 120 Fins will leave Finland Jan. 15 for America. They expect to settle in Wisconsin and Minnesota. The national convention of the socialist party will be held in Chicago May 1. All the theaters in Chicago were closed by Mayor Harrison until proper safeguards against fire were established.

14. January 9, 1904 The Dickinson Press Dickinson, ND
Article from The Dickinson Press, January 9, 1904

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Monday, Jan. 4. The Princess Mathilde, only daugh. ter of Prince Jerome Bonaparte, is dead at Paris. Congressman W. W. Skiles is lying critically ill of pneumonia at his home in Shelby, O. The Citizens' State bank of Luton, Ia., has been robbed of $700. There is no clue to the burglars. All the union job printers of Dubuque, Ia., have struck for an eighthour day. News men are awaiting instructions from the international union. The exports from Germany to the United States during 1903 did not fall far short of $130,000,000, or from $14,000,000 to $15,000,000 more than in 1903, which was the previous record year. The First National bank of Storm Lake, Ia., has been closed by direction of the comptroller of the currency on evidence of insolvency. National Bank Examiner E. B. Shaw has been appointed temporary receiver.

15. January 9, 1904 Democratic Messenger Snow Hill, MD
Article from Democratic Messenger, January 9, 1904

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In the Departments. At the instance of Acting Secretary Clements, of the Interstate Commerce Commission, an investigation was begun of persistent rumors that there have been irregularities in the conduct of Secretary Edward A. Moseley. The president approved the sentence of dismissal and imprisonment imposed on Second Lieutenant Paul B. M. MacLane, of the Thirteenth Cavalry, convicted of embezzlement. The Comptroller of the Currency has directed the closing of the First National Bank of Storm Lake, la. President and Mrs. Roosevelt inaugurated the officia! social season in the nation's capital with a brilliant reception at the White House. The President and his Cabinet discussed the Panama situation at length. On account of the illness of Secretary Hay the negotiations with General Reyes, the Colombian commissioner, will be conducted by Secretary Root. The year book of the Carnegie Institution makes announcements of the work and plans laid out for scientific research throughout the world. Preparations have been made to hurry Governor Taft across the Continent immediately upon his arrival at San Francisco and put him in his position as secretary of war by the first of February. Minister Lyon, of Liberia, reports the massacre of J. G. Tate, a missionary, and 18 of his following by Doo tribesmen. Col. Robert L. Meade. of the Marine Corps, was placed on the retired list two years in advance of the date to which he might have served on the active list. The Comptroller of the Currency apinted R. L. Van Zandt, of Fort W orth, Tex., receiver of the Farmers' nal Bank of Henrletta, Tex. al court-martial was ordered 'nner Fries and Sergen count of the explesio

16. January 15, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 15, 1904

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Storm Lake News. Special to Times-Republican. Storm. Jan. 15.-Thomas Bell was buried from the Methodist church Wednesday. He was 82 years of age at the time of his death and had lived in Storm Lake five or six years, having come from Cedar county. About forty relatives attended the funeral. Hon. A. J. Wilson has entered upon his duties as receiver at the First National Bank. Nothing has been done yet except getting the run of the situation. The tying up of the bank has crippled business badly in the whole community.

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

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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.

18. 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.

19. 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.

20. December 13, 1904 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, December 13, 1904

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bank, and receiver for the First National bank of Storm Lake, has just secured a judgment in the United States court at St. Louis for $36,000 against W. E. Brown, president of the defunct Storm Lake bank. Receiver Wilson made a 100 per cent assessment against all the stockholders to pay claims and this assessment has been paid by all but the holders of forty shares.

21. June 2, 1905 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, June 2, 1905

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# BIG DIFFERENCE IN REPORTO, President of Storm Lake Bank Accused of Gross Misrepresentations. If the testimony of Receiver A. J. Wilson is to be accepted, W. E. Brown, president of the First National bank of Storm Lake, is guilty of gross misrepresentations to the controller of the currency. Brown in on trial in the federal court at Sioux City for making false entries in his books and false reports to the controller. Taking Brown's report to the controller for Nov. 17, 1903, Receiver Wilson declared that whereas Brown reported $712.75 of worthless accounts, this item really amounted to $55,426; that while Brown reported no overdue paper, there was really $14,086.15; while he reports no unsecured overdrafts by directors, there was $26,974.76. He did not mention at all loans to individuals of more than 10 per cent of the capital stock, which is forbidden by law. Wilson says there was a total of over $100,000 of such loans. While Brown reported he had himself borrowed but $7,592.28 from the bank, Wilson says he borrowed $69,912. Brown's attorneys say the difference between the two reports is merely one of classification.

22. October 6, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, October 6, 1905

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SECOND TRIAL OF BANKER Damaging Testimony Given Against W. E. Brown at Sioux City Court. SIOUX CITY, IOWA.-For the second time W. E. Brown, president of the failed First Na. tional bank of Storm Lake is on trial in the federal court here, charged with falsifying the bank's books and making false reports to the controller. Damaging testimony has been brought out, showing that Brown, finding he had a personal overdraft of $10,800, issued a certificate of deposit from the Sioux Rapids bank, controlled by him, to the one at Storm Lake for $8,000, leaving the overdraft but $2,800. The transac. tion took place when W. H. Mayne was cashier of the bank at Sioux Rapids. Shortly after the deal, Mayne shot himself and the bank went into the hands of the receiver, F. F. Faville. SPARTA, WIS. - Thomas Evans of this city was sentenced to eighteen months in state prison for robbing John Johnson's saloon.