Canton State Bank (Canton, OH)

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Ohio Bank Closes By Associated Press. CANTON, Ohio, May 25.-The People's Deposit bank of Mineral City, Ohio, closed its doors today. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank yesterday. Directors of the Mineral City say it may resume business in a day or two.

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Ohio Firm Fails

Canton, Ohio, May 26.-The People's Deposit bank of Mineral City, Ohio, has closed its doors. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton state bank yesterday.

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ANOTHER OHIO BANK CLOSES Canton, Ohio, May 25.-The people's Deposit bank of Mineral City, Oh'o. closed today. The president of the institution says loans of $50,000 were made by the bank to W. L. Dav's of Canton. whose heavy loans are said to have caused a suspension of the Canton state bank yesterday,

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Ohio Bank Failed

The People's Deposit Bank of Mineral City, Ohio, closed its doors yesterday. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank yesterday. Directors of the Mineral City Bank say it may resume business in a day or two.

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Another Canton Bank Falls

Canton, O., May 26.-The People's Deposit Bank, of Mineral City, O., has closed its doors. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis, of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank. Directors of the Mineral City Bank say it may resume business in a day or two.

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Suspension of an Ohio Bank

CANTON, Ohio, May 25.-The People's Deposit Bank of Mineral City, Ohio, closed its doors to-day. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank yesterday. Directors of the Mineral City say it may resume business in a day or two.

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Ohio Bank Closed

Canton, 0., May 25.-The People's Deposit bank of Mineral City, O., closed its doors today. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank yesterday. Directors of the Mineral City bank say it may resume business in a day or two.

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Another Ohio Bank Fails

Canton, O., May 26.-The People's Deposit bank of Mineral City, O., closed its doors during the day. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank Wednesday.

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of the doors of the Canton State bank has subsided, and the feeling of the depositors, stockholders and creditors is that the only thing now to do is to turn the affairs over to competent parties who can be trusted and liquidate ffairs as economicaly and quickly as possible. The plans of the stockholders and creditors for the continuing of the business of the bank had to be given up when it was discovered that W. L. Davis had large obligations outside of bis indebtedness to the bank, and that these outside creditors will, of course, share in the property that was turned over to the bank some days ago. It is thought that Davis' indebtedness aside from that of some of the companies In which he is interested will reach between $600,000 and $700,000. The great majority of the stockholders seem to be willing to do all that they can to protect the depositors, and it is expected that the greater number will promptly pay the 40 per cent on their shares of stock, thus bringing quite a sum to the relief of the bank. It is not expected, however, that anything can be realized upon the stock of Davis and Bachtel. The former is the heaviest stockholder, having 805 shares, while Bachtel has 490. MINERAL CITY FAILURE. The Mineral City bank, in which Davis was a heavy stockholder, closed its doors Thursday morning to prevent a run. Its condition IS being investigated and no definite news as to its solvency can be secured until the inspection is completed. The bank was started by Alfred Davis, now deceased, the father of W. L. Davis. The bank has a capital stock of $25,000 and it is said that Davis has borrowed sums aggregating $50,000, to secure which there are some collaterals, the real value of which cannot be ascertained. The depositors are quite numerous, and there is a great deal of excitement ( in the village. ( THE CITY IS SAFE. The city of Canton will not lose TO anything at the hands of the State F bank. Treasurer Bidwell, who is ill in a Cleveland hospital, will be at home E Sunday, it is thought. The city is proE tected by a bond of $200,000 given by M the Bankers' Surety Co. of Cleveland, C and the records show that the council L had not at any time created a deposA itory for the city funds, but on the N other hand the Surety company had M given its consent to Treasurer Bidwell I to deposit money with the State bank, G and also seven other banks of Canton. J The State bank held the largest G amount. L The directors of the State bank had M a meeting last evening and decided to M submit a proposition to the creditors. J J It is thought that the affairs of the institution can be better subserved by и H the appointment of competent persons M to close up the affairs, rather than go M through the expense of bankruptcy. A W resolution was adopted which will be K submitted to all interested parties for M approval. E The stockholders of the Canton State A bank include many of the substantial G citizens of this city. From the recB ords at the auditor's office the News A has secured the complete list of stockM holders, with the amount of stock, Je which is published below. There are in all 6,000 shares, each share having a face value of $50, upon which $30 has been paid. The list follows: Shares 5 John L. Allman, Canton

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GIRL'S QUICK WIT How Mins Florence Bidwell. Saved $30,000 to Canton's Treasury. The failure of the Canton (O.) State bank developed a heroine in the trim little person of Miss Florence Bidwell, daughter of City Treasurer Bidwell, says a special dispatch from Canton, O., to the Washington Post. Miss Bldwell saved the city of Canton $30,000. The State bank was a city depository and had $106,000 on deposit there the day It suspended. The bank opened its doors as usual the other morning. But they were open only twenty minutes. This was enough for Miss Bidwell. When she reached the city treasurer's office, where she had been in charge in the absence of her father, who is ill in a hospital in Cleveland, Assistant City Treasurer Coyle, who was also employed at the bank, gave her a tip over the telephone on what was going to happen. Miss Bidwell is only eighteen, but she showed quickness of thought and mature judgment enough for a person twice her age. Quickly putting on her hat, she slipped over to the bank and asked Coyle how much cash the city could have. About all the cash in the bank was a bag containing $30,000 in gold. The proper check was made out, Coyle took the gold from the vault and at the girl's request helped her with It back to the city treasurer's office. By the time Coyle reached the bank again it had been decided to suspend, and the doors were closed.

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THE CANTON BANK, Receiver Appointed For the Property of Vice President W. L. Davis. Cleveland, O., June 2.-Judge Tayler, of the United States district court here, appointed Jacob P. Faweett receiver of the assets and property of William L. Davis, vice president of the closed Canton State bank. The receiver's bond was fixed at $50,000. The court also named C. C. Bow as receiver for the Davis Railroad Coal Co. and William L. Stolzenbach, of Canton, as receiver for the Mineral City Supply Co. Stolzenbach was also named as receiver for the Cleveland Brick Co., of Canton, with a bond of $50,000 in each case.

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CORWIN BACHTEL RECEIVES NOTICE

TO TELL COURT THE AMOUNT OF HIS PROPERTY.

Suit on Promissory Note-Action For Divorce-Suit to Set Aside a Davis Deed.

A motion was made before Probate Judge Aungst yesterday afternoon, asking that Corwin D. Bachtel be summoned to the probate court to answer under oath the amount of property now in his possession. The motion was filed by Attorneys Lynch, Day & Day in behalf of Henry A. Wise and James G. Barbour, receivers of the Canton State bank. A recent decision of the common pleas court rendered judgment in favor of the plaintiffs in this action against Mr. Bachtel in the sum of $8,196.20. The purpose of the motion made yesterday is to recover the amount of this judgment. The case will be given a hearing on Monday at 1 o'clock.

Leonard M. Neyens has brought suit against W. C. Watson for $42.50, claimed to be due on a promissory note. The case is appealed from the court of Mayor O. U. Walker of Alliance. Attorneys Hart and Koehler represent the plaintiff.

Through his attorneys, Hart & Koehler, Charles J. Knapp has filed a suit for divorce against Nettie Knapp. The plaintiff charges that his wife has been absent for the past three years. They were married in 1896 and have no children.

As trustee in bankruptcy for Wm. L. Davis, J. P. Fawcett has filed a suit in common pleas court to set aside the deeds of W. L. Davis conveying property to the W. L. Davis company and his wife. The property transfers, it is charged, were made shortly before the Canton State bank failure, and with the intent to hinder and defraud the creditors of Mr. Davis. The property in question is valued at $170,000. Shields, Thayer & Pomerene filed the petition. Webber & Turner represent the defendants in the action.

Yesterday afternoon T. H. Seaman and other property holders on Henry street of Massillon, filed by their attorneys, Sterling & Braucher, of Canton, a petition in the court of common pleas, asking that an order be issued restraining the city council of Massillon from levying assessments for the paving of Henry street and restraining the board of service from paying for the work.

The order is issued temporarily, pending the hearing, which is appointed for next Monday morning at 9 o'clock, when the order will be made permanent or dismissed.

The petitioners contend that the pavement is not laid according to contract and that the specifications have not been lived up to, and for that reason object to the assessment.

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Totals $764,016.20

SUMMARY OF LIABILITIES.

The report of the liabilities as made by the receivers of the bank, follows:. Total checking accounts claimed, not making claim for set-off or pref-erence, $150,670.87. Total checking accounts for which no claims have been filed, $3,070,52. Total checking accounts claiming set-off, $20,263.73. Total checking accounts claiming preference, $25,130.31.

SAVINGS ACCOUNTS.

Total savings accounts claimedl not making claim for set-off or pref-erence, $74,270.84. Total savings accounts for which no claims have been filed, $2,555.55 Total savings accounts, claiming set-ofi, $21,001. Total savings accounts, claiming preference. $1,302.97.

DEMAND CERTIFICATES.

Total demand certificates, not making claim for set-off or prefer-ence, $3,325.18. Total demand certificates for which no claims have been filed, $20.08. Total demand certificates, claim-ing set-off, $30. Total demand certificates, claim ing preference, $2,731.23.

TIME CERTIFICATES.

Total time certificates claimed, not making claim for set-off or pref-erence, $99,208.23. Total time certificates for which no claims have been filed, $5,142.65. Total time certificates, claiming-set-off, $16,073.81. Total time certificates, claiming-preference, $846.99. Total miscellaneous claims, drafts, current bills, etc., filed, $1,676.62. Total miscellaneous claims. claim-ing set-off, $60. Total miscellaneous claims. claim-ing preference, $27. Total claims on drafts, claiming set-off, $377.08. Total claims on drafts, claiming preference, $1,507.64. Total miscellaneous items as shown by the books of the Canton State bank including drafts, no claims filed, $22,380.61. Total of all liabilities, $451,763.30.

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Bank Officials Indicted, Canton, O. (Special).-The grand jury returned indictments against W. L. Davis, vice president, and Irwin D. Bachtel, cashier, of the Canton State Bank, now in the hands of receivers. Davis is held for embezzlement of $15,300 and for grand larceny of the same amount. Bachtel is indicted for the same two offenses, and an additional indictment is placed against him charging false entries on the bank's books.

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Canton Bankers Indicted

The Grand Jury at Canton, O., returned indictments against W. L. Davis, vice president, and Corwin D. Bachtel, cashier of the Canton State bank, now in the hands of receivers. Davis is held for embezzlement of $15,300, and for grand larceny of the same amount. Bachte1 is indicted for the same two offenses and an additional indictment is placed against him charging false entries on the bank's books.

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BANK RECEIVERS ASK TO HAVE EX-CASHIER BACHTEL DECLARED A BANKRUPT. Allege That He Has Been Insolvent Six Months and Has Transferred Property to His Wife. Special to Morning News. Cleveland, O., Oct. 18.-In a report filed in the United States district court Tuesday, Henry A. Wise and James G. Barbour, receivers for Canton State bank, which failed several months ago, ask that Corwin D. Bachtel be adjudged bankrupt. Both Wise and Barbour are among the creditors of Bachtel, who is said to owe over $8,000 on promissory notes executed to the Canton State bank, of which he was cashier. The receivers also allege that Bachtel has been insolvent for six months, and that he has broken the laws, in bankruptcy by transferring all of his property to his wife since that time.

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Echo of Bank Failure.

Frank A. Schwertner, of the Berger Manufacturing Co., bought the property of the Swain and Reed Stave & Lumber Co., at public auction Saturday for a trifle over two-thirds of the appraised value of $2,500. The company was forced to suspend at the time of the Canton State bank failure and the sale was ordered by the probate court, after the stock had been closed out by the assignee, Harry E. Fife. After a few repairs have been made business will be resumed.

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OHIO NEWS

Happenings in the Buckeye State. INDICTMENTS FOR SIX. They are Returned in Connection with the Affairs of a Canton Bank that Suspended. Canton, O., Jan. 20.-Corwin D. Bachtel, cashier, and William Davis, vice president of the defunct Canton State bank, have been reindicted by the Stark county grand jury for embezzling funds of the bank and for making false entries. Bachtel and Davis were indicted last September, but a clerical error was made in the indictments, making a date 1904 instead of 1905. The indictments were nolled. The embezzlement charges for which Bachtel and Davis are indicted cover loans amounting to $30,000 which it is claimed were made without warrant of law to Davis by Bachtel. There were also alleged misstatements made as to about $300,000 of the bank's funds. Harvey H. Miller, a prominent business man and politician, C. A. Walters and C. C. Lawrence, former bookkeep. ers in his employ, and C.C. Van Horn, teller of the defunct Canton State bank, have also been indicted. Mr. Miller is charged jointly with Cashier Bachtel with embezzling funds of the bank by having a draft of a fraudulent nature on the Mansfield Linseed Oil Co. cashed. Van Horn, Lawrence and Walters are charged with Miller and Bachtel with having made false entries and with a fraudulent issue of a certificate of deposit. The amounts named are over $10,000.

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TWO BANKS ANSWER

ASK DISMISSAL OF CROSS PETI- TIONS IN CANTON STATE BANK CASES

Claim That Defunct Bank Collected $59,000 on Notes Involved in Liti- gation, After Receivers Were Named.

The First National bank of Massillon and the Central Savings bank of Canton have filed answers in the court of common pleas in which they ask the dismissal of the cross petitions of the receivers of the Canton State bank, regarding outstanding claims and preferences thereto, which were previously filed in the case of Harry E. Linton et al. against the Canton State band.

The First National bank denies that the notes involved were transferred by the cashier of the Canton State bank without authority, or for the purpose other than to pay the liabilities of the institution. Whether the notes were discounted by the local bank neither of the other banks are able to state.

The First National bank alleges that after the appointment of the receivers for the Canton State band it collected $59,849.61 from the notes involved, which it retained and now claims as its own. The Central Savings bank charges that after May 24 when the Canton State bank was insolvent, it collected $15,803.46 on the notes held. It claims all the notes the local bank transferrred were as security for loans.

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was competent, and admitted it. Then Attorney Craine read the resolution of the directors passed on May 5, 1900, appointing a teller at a salary of $65 a month. Leroy Coyle was also named as a bookkeeper at that time The appointments were for one year. Mr. Wagner's evidence was important as showing Van Horn to be a regular employe of the bank. He was not cross-examined.

### W. H. HOOVED CALLED.

W. H. Hoover, of New Berlin, was next called. He said he was about the bank during the last two years. He saw Van Horn there acting as both teller and bookkeeper. Bachtel, the witness said, was cashier. Hoover was not cross-examined.

### HARVEY P. PACKER.

Harvey P. Packer, a bookkeeper for W. L. Davis, vice president of the Canton State bank, was called and said he was employed by Davis for 13 years. He was shown a check which he identified. This he deposited in the Canton State bank. It was the one which figures in the Indictment. On a note attached to this was the word "hold." Packer made out the check to himself and endorsed it in the absence of Davis, supposed to be the real maker, and took it to the bank, together with the deposit check.

The witness was shown the stub on the check book. The defense objected strenuously to the reading of the stub which was allowed under objection. The word "hold" was written by the witness an hour or two after the deposit was made. He went to the bank and asked an employe to pin the slip marked "hold" upon it after the bank had closed.

The witness could not remember when he saw the check the second time, so a second check, a duplicate of the first, was shown him. This was made May 1, 1905, to replace the original. Packer said he went to the bank with the second check to take up the first one. The first check, made Dec. 22, 1904, the deposit slip and the check made May 1, 1905, were offered in evidence, together with the slip marked "hold." All except the second check were admitted under exceptions, which were sustained in the case of the second check.

### AFTERNOON SESSION.

When court reconvened at 1 o'clock Tuesday afternoon Packer was put on the stand again and cross-examined by Attorney Siddall. He was questioned at length as to the notations on one of the check-book stubs. Witness could not tell where Davis was when he (Packer) drew the check on Dec. 22, 1904. The checks, he said, were left blank and signed by him.

Attorney Siddall persisted in declaring that Packer did not appear positive as to anything, but had merely used his best recollection. To this side remark Attorney Craine objected, and the court sustained this objection. Davis, it appeared, drew up a check on a stone company for the purpose, he admitted on redirect examination, to give credit to Davis' personal account and not the account of the stone company.

### RECEIVER BARBOUR ON STAND.

James G. Barbour, one of the receivers of the Canton State bank, was next called to explain about the bookkeeping system in vogue at the bank. He described the various books and records, which be brought along.

He was asked to produce a daily ledger and brought up a book. He said it was the daily ledger. He turned to an entry of Dec. 22, 1904. He said Van Horn made the entries on page 286. Attorney Craine offered the book and entry as evidence. This was strenuously objected to by the defense, which sought to interrupt the direct examination so as to cross-examine. The court ruled against Attorney William A. Lynch, and declined to admit the entry at the present time.

Barbour was shown another book, the journal, and identified an entry made there by Van Horn corresponding with the entry in the daily ledger. It was soon after this that the question of admitting this in evidence was brought up. This precipitated the above move on the part of the defense to knockout the indictment.

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MORE MONEY To be Paid Creditors of the Canton State Bank. 20 Per Cent Dividend. Judge Ambler, who has been holding court in Lisbon all week, returned Friday and took up the second 20 per cent dividend matter, which Receivers Wise and Barbour asked authority to pay the creditors of the Canton State bank. The court ordered dividends to be paid as shown by the list of creditors filed September 11th last, subject to the orders of the court heretofore made touching the validity of any and all claims. The receivers stated Friday morning that all persons holding drafts or certificates of deposit may call at their office on the second floor of the Eagle block and receive the money due them. Judge Ambler ordered the receivers to retain a sum equal to 40 per cent of all disputed claims to further orders of the courte A num-

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A Number of Rulings Made by Highest Tribunal in the Land Yesterday. MOODY'S FIRST DECISION NEY YORK'S STOCK TRANSFER CASE DECLARED VALID-OHIO BANK CASES WERE DISMISSED FROM DOCKET. [Publishers' Press.] Washington, Jan. 7.-In an opinion by Justice Brewer the supreme court dismissed the so-called Canton bank wrecking cases dealing with questions involved in the failure last spring of the Canton (Ohio) State bank. There were five of the Canton cases before the court, representing 25 indictments, and of the five two were against Corwin D. Bachtel, cashier of the bank, and one each against William L. Davis, a vice president and director; Charles H. Van Horn, teller, and Har- and H. Miller, a customer. These vey other indictments were returned 19 the grand jury of Stark county Ohio last May, by under what is known as the free banking law of the state, which provides for imprisonment from -one of to ten years.of any officer or agent to a bank who in any way attempts deceive or defraud. The indicted men made an immediate effort to secure release by means of writs of habeas corpus, and failing in the state courts, brought their suits to the supreme court. As that court refused to take cognizance of the case, they met with no better success. They relied entirely on establishing the unconsti- the tutionality of the law under which' proceeding against them was brought, contending that as the punishment provided for was made only to banks there incorporated under that statute, was discrimination such as to prevent in equal treatment before the law that provision was intended to apply some members of a class of persons, to and not to the class as a whole. order The effect of the supreme court will be to leave the cases in the state courts, at least for the present. The supreme court of the United g States announced its decision in the t stubbornly fought contest over street privileges in Cleveland, Ohio. The by opinion car of the court was presented deJustice Peckham and affirmed the 0 cision of the United States circuit i court for the northern district of II b Ohio. The suit involved the right to opera street car line on Central aveCleveland, for which both the and old t company, iue, the Cleveland Electric the new, the Forest City, contended, the former under a franchise, it urged, and S perpetual, or good until 1913, 5 was the latter under an ordinance passed of I 1904, granting to it a "renewal Central 00 the right to operate a line on for venue." The old company asked N njunction against the city, and the by company, which was granted the Judge new Taylor, who also held that ranchise of the old company expired h March 22, 1905. The city was prohibA ted from putting the Forest City V company in possession of the the ordinance other

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Important Claims Settled.

Two most important claims against the Cleveland Brick company were settled by Probate Judge Bow, who is acting in capacity as trustee for the company. A check amounting to $36,766.62 was given to receivers of the Canton State bank and one for $3342.42 to the Merchants' National bank of Massillon. The settlements represent the amount the banks were entitled to on preferred claims of mortgage bonds which were issued within one year of the time the company went into bankruptcy.

"The brick company has not made any dividend to its general creditors, because we have been expecting daily the settlement of a few accounts coming from other companies in which William L. Davis was interested," said Receiver Bow. "When I receive dividends from these companies the brick company will have a dividend. This can be expected within the next 60 or 90 days."