Middleton Bank (Waverly, MO)

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The good people of Waverly and vicinity have suffered a serious calamity in the failure of the Middleton bank by the defalcation of a trusted official of that institution. The total loss in money is doubtless much less than the people of that com munity and of every community have suffered without knowing it in periods of business depression and financial panic. But the injury of the present misfortune is much greater. It can hardly fail to create a paralyzing distrust which some will never get over and which many will be influenced by to their own harm and to the harm of the business interests of the place. Business courage and confidence have received a stunning blow. Even if the de-

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For the Week Ending May 15. The protected cruiser St. Louis was successfully launched at Philadelphia. As a result of anarchy growing out of the strike at Limoges, France, all city officials have resigned. Julius Rosenthal, a prominent Chicago attorney, was run over by a cab and died of his injuries. Germans in general indorse the government's policy toward the United States regarding the tariff. Vice Admiral Beresford proposes that the navies of the United States and Great Britain unite in maneuvers. Emerson Bennett, a well-known writer and composer, is dead at the Masonic home in Philadelphia, aged 83 years. Santa Fe passenger train No. 17 was ditched by train wreckers a mile east of Emporia, Kan. Six passengers were injured. If the supreme court decision on the tax franchise law is favorable $27,000,000 will be added to the New York treasury. Eleven yachts, representing America, England and Germany, will leave Sandy Hook on a race across the ocean to England. Mayor Dunne is worried over the cost of the strike to the city of Chicago, which amounts to $2,500 a day for extra police. The Middleton bank in Waverly, Mo., has failed for $30,000. The cashier, E. H. Lewis, is accused of disappearing with $30,000 of the funds. Floyd Sackett, of Wilbank, Mont., was shot and killed at the 0 X ranch by Mark White. They had an altercation over some sheep. A. Brightman shot and killed Mrs. Charles H. Gurney and then committed suicide at Los Angeles, Cal. Unrequited love was the motive. A report received in Paris says the nurse of the czar's son tried to boil the infant to death, but that the attempt. was frustrated by the empress. While playing with a rifle which was not known to be loaded, Harvey Schleuter, 12 years old, was killed by his little sister at Cedar Rapids, Ia. The American cruisers Brooklyn, flagship of Rear Admiral Sigsbee, and Olympia, flagship of Rear Admiral Bradford, have arrived at San Domingo. The Lindell hotel, a landmark of St. Louis, patronized for a generation by noted men, has been closed. The building is to be razed to make way for a store. A speech of Pius X. to John Redmond concerning the Irish situation resulted in protests to the pope from English bishops and the British government. Joseph Lewis, 104 years of age, is dead at his home in New York city. He served, with two sons, throughout the civil war. Lewis was the father of 27 children. The case of Mrs. Anna Valentina, the New Jersey woman under sentence of death, will not be reached in the supreme court of the United States before next fall. Four persons were killed and about 40 hurt as the result of an explosion of a United Gas Improvement company's tank at Point Breeze, in the southern section of Philadelphia. Two runabout automobiles started from New York to: race to Portland, Ore., for a cash prize of $1,000, offered by the National Good Roads association, whose convention opens in Portland on June 21. At Adel, Ga., John Hewitt shot and killed his wife, shot her sister and brother, wounding them slightly, and when surrounded by a posse of citizens, shot and killed himself. The cause of the tragedy is unknown. Francis H. Palmer, former cashier of the Peconic bank, of Sag Harbor, L. I., was arrested on charges based upon an alleged shortage in his accounts, which caused the bank temporarily to suspend operations on May 1. The formal opening of the new Union passenger station, which is to replace the antiquated structure in use for years, was made a gala event at Atlanta, Ga., about 50,000 persons accepting the invitation of the railroads to be prese THE MARKETS.

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Proceedings in the Circuit Court

At the adjourned April term of the circuit court held in Lexington June 22, Charles Lyons, receiver for the Middleton Bank of Waverly, filed inventory. Various set offs and allowances were made by the court. The Union National Bank of Kansas City and Mechanics American National Bank of St. Louis were granted permission to institute suits against the receiver of the Middleton Bank.

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Bank Building Sold

Waverly Watchman: Charles Lyons, receiver of the Middleton bank, came down from Lexington today and gold to the highest bidder the bank building and fixtures. The Waverly bank bought the property for $3,950,

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Big Suits Filed

A receiver brings suit against the directors of the defunct Middleton bank for $77,000. All of the defendants of the suit are prominent and well-to-do citizens of the Waverly country and it will doubtless be a warmly contested legal battle from start to finish. The defendants in the suits are S. McCalloway. James L. Bray and Rena C Chappell and Nannie C. Steel, executrices of the estate of Nathan Corder, John E. Corder and Anna Galbraith.Waverly Times.

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WEEK'S WORK OF CIRCUIT COURT Evidence All In In Case of Chas. Lyons, Receiver, vs. National Surety Co. DECISION IN DECEMBER Eight Uncongenial Couples Receive Boon of Divorce Decrees. Seven of the Plaintiffs were Women FRIDAY AUG. 9. In the sweltering heat of last Friday the Circuit court managed to transact some business and adjourn until Monday. The cases of J. C. McGrew vs. Mo Bedford and Shawberg vs. Ry., Catherine Western Coal Mo. vs. Pac. Ry., Pac. Mining Co., Goodwin were continued generally by commant. of August vs. Coal Mining Co. was conWestern The case Anderson tinued at cost of defendant. The case of John Kuech vs. Mary Kuech et al was continued by the court. John J. Woodruff received judgment against the unknown heirs of Morgan Day, deceased, quieting title. H.C. Wallace was-appointed guardian for the minor defendants in the case of Benedict T. Wiley vs. Eliza J. McFadden et al. MONDAY AUG. 12. Monday the suit of Chas. Lyons, receiver of the Middleton Bank of vs. the National Surety in the Co. Waverly came up Circuit was on the Court. The National Surety Co. E.H. Lewis, the of the Middleton cashier bond of defaulting Bank. A good deal of the evidence was heard and the case continued until this morning. The commissioners filed an amendd report in the case of Bettie T. Hall vs. Susie Shewalter et al. In the case of Wm. Beall et al vs. Richard H. Lee et al, cause was ordered docketed and filed, and writs of summons ordered issued. In the case of Wm. E. Ridings vs. J. G. Worthington et al case was continued on application of defendants. In the case of Benedict T. Wiley vs. Eliza McFaddin et al H. C. Wallace, guardian ad litem, filed answer on behalf of defendants. TUESDAY AUG. 13. Most all of the time of the Circuit Court Tuesday was taken up by the the case of Chas. Lyons, receiver of of the Middleton Bank of Waverly. Several of the directors and Assistant Cashier Warner were examined. The the evidence is not yet finished and case is being heard today. In the case of Nannie B. Chamblin et al vs. Frank E. Chamblin et al judgment for partition was set aside and Jas. A. Kemper of Warrensburg to was made party defendant. Time answer was continued until Dec. 2. In the case of Chas. Lyons, receiver vs. John E. Corder et al and in the of Chas. Lyons, receiver, vs. Samuel Callaway et al defendants filed answers. / WEDNESDAY AUG. 14. The circuit court Wednesday resumed hearing the evidence in the case of Chas. Lyons, receiver, vs. National Surety Co. The evidence was concluded and the court took the cause under advisement. Decision to be given in December term. In the case of Hydraulic Press Brick Co. vs. Jno. E. Burden, defendent filed motion to strike out amended petition. Benedict T Wiley was given a decree against Eliza J. McFaddenet al and H.C. Wallace, Guardian adlitem was awarded $5.00 Thos. C. Bailey, guardian, filed V. plication for admission of Alice Hall to the Feeble Minded Colony at Marshall. In the case of Eimer Phillips et a VS. Diana Waters, the report of the commissioner was approved and cost fixed at $54.08, which was charged to plaintiffs. The report of Chas. Lyons, receiver was approved. THURSDAY AUG. 16. The Circuit Court finished its work of the term after a strenuous day Thursday Aug. 15 and Judge Davis and Jas. Roberts have gone home. The case of Watson P. Aull vs. Mo. Pacific R. R. was continued at cost

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The Circuit Court Held That the Jurymen Went Against Evidence. AN APPEAL WAS TAKEN It Will Probably Be Some Time Before the Middleton Bank Matters Can Be Settled-Becker's Writ Refused. After listening to many arguments on both sides Tuesday, Judge Davis of the Circuit court gave his decision setting aside the verdict of the jury in the case of Chas. Lyons, receiver, vs. John E. Corder et al. Judge Davis gave as his reason that the verdict was against the weight of the evidence. The plaintiff immediately made a motion for an appeal, which was allowed. So it will be some time before this case gets out of the courts. C. Lyons, as receiver of the old Middleton bank of Waverly, which was put out of business by the absconding cashier, E. H. Lewis, brought suit against the directors of the bank on the ground that they had not exercised due vigilance in watching the cashier. A jury last week gave a verdict for the plaintiff for $18,955.90. Mr. Lyons also got a verdict of $10,000 from the National Surety company, which was on the bond of the defaulting cashier. The defendant appealed and the decision has not been given. The case of E.C. Becker, relator, vs. County Court of Lafayette County et al took up most of the time of the Circuit court Wednesay. The case was argued all day. The relator filed a motion to strike out part of the respondant's answer, which motion was overruled by the court and a writ of mandamus refused. The relator then filed a motion for a new trial, this motion being overruled also. Anappeal was taken to to the Kansas City Court of Appeals. The case of the Hy dralic Press Brick Company V8, John E. Burden was dismissed by the plaintiff.

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department has been entirely self-supporting

The fund which had accumulated In this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,830.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny, and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed. others that were unsafe required to liquidate: others have consolidated, making stronger Institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier), where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will criuse a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State, It has been the carnest effort of the present administration, whenever It was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stock-

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department has been entirely self-supporting

The fund which had accumulated in this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,330.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny, and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed, others that were unsafe required to liquidate; others have consolidated, making stronger institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier), where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will cause a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State. It has been the earnest effort of the present administration, whenever it was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stockholders by the efforts of Mr. Swanger to

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DECISON AGAIST DIRECTORS Supreme Court Sustains Contention of Receiver LyonsDirectors Liable. Alexande: Graves and Horace F. Blackwell, attorneys for Charles Lyons, receiver of the Middleton Bank at Waverly, received word recently that the Missouri Supreme Court had rendered a favorable decision in the case of Charles Lyons, Receiver of the Middleton Bank VS. John E. Corder, Jas. L. Bray, Samuel Mc. Callaway, Annie E. Galbreath, Nannie C. Steele and Rena C. Chappell, Executrices of last will and estate of Nathan Corder, deceased, and E. H. Lewis, the absconding cashier, who wrecked the bank. This was a suit against the directors of the defunct bank in which the receiver alleged that the directors were guilty of neglect in looking after the bank's affairs. It was tried at the August term 1908 of the Lafayette county circuit court and the jury returned a verdict for $18,955.90. Judge Samuel Davis set aside the verdict on the grounds that it was against the weight of evidence, and Grave3 and Blackwell appealed from this ruling. The recent decision of the supreme court sustains their contention. The amount involved now, counting accrued interest, foots up about $23,000. Auother suit is now pending against another set of directors who served during a part of the period of Cashier Lewis' peculations.

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CIRCUIT COURT

Many Cases Disposed of Including Middleton Bank Receivership. The case of Herman Arndt VS. Henry R. Eisenmann which was begun Friday morning was concluded Saturday afternoon when the jury returned a verdict for the plaintiff in the sum of $175.00. On November 12, 1915, Mr. and Mrs. Arndt were passing the home of Mr. Eisenmann when the latter's dog ran out barking and frightened Mr. Arndt's team. They ran away throwing Mr. Arndt out, breaking his arm and causing permanent injury. The suit was to recover damages to the amount of $5,000. Aull & Aull represented the plaintiff, and Lyons & Ristine the defendant. The case of J. T. Larkin VS. Mabel Strodtman, damages, was commenced Monday before a jury, and was given to the jury Tuesday. This case grew out of an automobile collision. The plaintiff was represented by Chas. A. Keith, and the defendant by Lyons & Ristine. The jury failed to agree and was discharged. The case of Rolla Jones VS. Waverly Coal Co., damages, was settled out of court by the defendant paying the plaintiff $900.00. Chas. Lyons, receiver Middleton Bank, Waverly, Mo., filed his final settlement and was discharged. The litigation in this case was finished about ten years ago, and the intervening time has been taken up by Mr. Lyons collecting the assets and making proper distribution of the proceeds. Through the efforts of Mr. Lyons the depositors realized 95% of their deposits.