4483. Peoria National Bank (Peoria, IL)

Bank Information

Episode Type
Suspension β†’ Closure
Bank Type
national
Bank ID
2878
Charter Number
2878
Start Date
October 6, 1905
Location
Peoria, Illinois (40.694, -89.589)

Metadata

Model
gpt-5-mini
Short Digest
c817b4d5ec3c9503

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1905-10-07
Date receivership terminated
1907-11-13
OCC cause of failure
Run
Share of assets assessed as good
82.2%
Share of assets assessed as doubtful
13.9%
Share of assets assessed as worthless
3.9%

Description

Directors closed the Peoria National Bank after withdrawals following indictment of president N. C. Dougherty for forgery/embezzlement. Comptroller/receiver (C. H. Bosworth / later Orville Berry) appointed and bank went into liquidation; deposits to be paid in full. Multiple articles date the closure to Oct 6–7, 1905.

Events (5)

1. February 12, 1883 Chartered
Source
historical_nic
2. October 6, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Hundreds of depositors withdrew funds after disclosure/indictment of president N. C. Dougherty for forgery and embezzlement.
Measures
Directors closed the bank's doors late at night to stop further withdrawals; requested Comptroller of the Currency to appoint a receiver; refused to open until receiver appointed.
Newspaper Excerpt
Since the indictment of N. C. Dougherty ... hundreds of depositors have withdrawn their accounts and this caused the hasty action tonight.
Source
newspapers
3. October 7, 1905 Receivership
Source
historical_nic
4. October 7, 1905 Receivership
Newspaper Excerpt
The comptroller of the currency received a telegram announcing that the Peoria National bank ... has closed its doors upon order of its directors. National Bank Examiner Bosworth has been appointed receiver.
Source
newspapers
5. October 7, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors voted to suspend and liquidate due to the Dougherty indictments and the resulting loss of confidence and withdrawals; they asked the Comptroller to take charge and wind up affairs under receivership.
Newspaper Excerpt
The Peoria National bank ... did not open its doors today. National Bank Examiner Bosworth has been appointed receiver.
Source
newspapers

Newspaper Articles (22)

Article from Evening Star, October 7, 1905

Click image to open full size in new tab

Article Text

THE PEORIA SHORTAGE NATIONAL BANK WILL CLOSE UP ITS BUSINESS. PEORIA, III., October 7.-"We had several offers from banks who wished to take over our business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liguidate under the law. Every, depositor will be paid in full, and I am confident that the stockholders will receive a good return." This is the statement of S. O. Spring, cashier of the Peoria National Bank, which decided last night to close its doors as the result of the Dougherty investigation. Early today large numbers of depositors appeared at the bank, but the doors were closed, and it was announced that they would not be open again until a receiver had been appointed. The Dime Savings Bank, in which Dougherty is a large stockholder, experienced a small run today, but paid all depositors as they asked for their money. The officers announced that they have plenty of funds to meet all inquirers. The controller of the currency has received a telegram announcing that the Peoria National Bank of Peoria, Ill., has closed its doors upon the order of its directors.


Article from Albuquerque Evening Citizen, October 7, 1905

Click image to open full size in new tab

Article Text

WHY THE PEORIA BANK WAS CLOSED Peoria, Ill., Oct. 7.-Cashier Spring, of the national bank, which closed its doors this morning, said that every depositor would be paid in full. The di. rectors decided to close the bank as the result of the disclosures concerning the operations of its president, School Superintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars. Government Takes Charge. Washington, D. C., Oct. 7.-The comptroller of the currency received a telegram announcing that the Peoria National bank, Peoria, III., had closed its doors upon order of its directors. National Bank Examiner Bosworth has been appointed receiver.


Article from Albuquerque Morning Journal, October 7, 1905

Click image to open full size in new tab

Article Text

DOUGHERTY EXPOSURE PRECIPITATES PANIC BANK GOPEORIA NATIONAL ING TO WALL AS RESULT. Peoria, Ill., Oct. 6.-At a meeting of directors of the Peoria National bank late tonight it was unanimously voted to close the doors of the institution and ask the controller to take charge. Since the indictment of N. C. Dougherty, until yesterday president of the bank. on many counts for forgery, hundreds of depositors have withdrawn their accounts and this caused the hasty action tonight.


Article from Ottumwa Tri-Weekly Courier, October 7, 1905

Click image to open full size in new tab

Article Text

THAT MANY INDICTMENTS PROMISED AGAINST PEORIA SCHOOL OFFICIAL. THIRTEEN RETURNED That Number of True Bills Have Already Been Voted Against Dougherty-Clearing House Association Will Protect Bank Against a Run. Peoria, Ill., Oct. 6. - A total of thirteen indictments thus far have been returned against Newton C. Dougherty, city superintendent of schools and President of the Peoria National bank. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the state's attorney's office and it was announced from that office today that the total would reach more than 200. School Scrip Missing. According to a statement made by a member of the grand jury today hundreds of pieces of school scrip which it is alleged have been changed after being signed by the president of the school board are missing. Fear Run on Bank. At a meeting of the Peoria Clearing House association today it was voted to tender a loan of $100,000 to the Peoria National bank if in the judgment of the directors it became necessary owing to the unsettled condition of the financial affairs of the bank following the withdrawal of President Dougherty. Following his arrest yesterday Dougherty resigned as superintendent of schools and gave up his offices in financial institutions, principal among which was that of president of the Peoria National bank. Leonard is Indicted. New York, Oct. 6.-An indictment for forgery in the second degree against Henry A. Leonard, the youth who secured more than $359,000 worth of securties from the City National bank on forged checks last week, was returned by the grand jury today.


Article from The Spokane Press, October 7, 1905

Click image to open full size in new tab

Article Text

DOUGHERTY'S BANK CLOSES ITS DOORS (Scripps News Association.) PEORIA, III., Oct. 7.-The Peoria National bank, of which Dougherty was president, failed to open this morning. The run on the Dime Savings bank, in which Dougherty was interested, started again. It has taken advantage of the 30-day rule.


Article from The Cairo Bulletin, October 7, 1905

Click image to open full size in new tab

Article Text

PEORIA BANK CLOSES DOORS TO STOP RUN Directors Realized That Depositors Would all Withdraw OFFICIAL'S INDICTMENT ON MANY COUNTS FOR FORGERY LEAVES INSTITUTION IN A SHAKY CODITION-COMP. TROLLER PLACED IN CHARGE. Peoria, Ill., Oct. 6.-At a meeting of the directors of the Peoria National bank late tonight, it was unanimously voted to close the institution and ask the comptroller to take charge. Since the indictment of N. C. Dougherty, until yesterday the president of the bank, on many counts for fergery, hundreds of depositors have withdrawn their acounts and this caused the action of tonight. It was admitted at the directors meeting that a disastrous run was inevitable tomorrow, and as a proffered loan of $100,000 by the Pecria Clear-


Article from Omaha Daily Bee, October 7, 1905

Click image to open full size in new tab

Article Text

DOUGHERTY IN DEEP Thirteen Indietments Returned Against Peoria School Superintendent. FORTY MORE IN COURSE OF PREPARATION Indication that Total Number Will Reach Two Hundred. CHARGES FORGERY AND EMBEZZLEMENT Committee Appointed by School Board Will Continue Investigation ANK CLERK EXPLAINS THE OPERATIONS Queer Methods of Dougherty brought to Attention of Authorities and Clerk Discharged from Bank for Doing So. PEORIA, III., Oct. 6.-A total of thirteen inaictments have thus far been returned against Newton C. Dougherty, city superintendent of schools and president of the Peoria National bank. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the states attorney's office. It is announced from that office today, that the total would reach for more than 200. The bail required Dougherty thus far returned is $52,700 Mr. Dougherty is in receipt of messages of from all over the country, many them expressing sympathy and a belief in his innocence. According to a statement tomade by a member of the grand jury day the hundreds of pieces of school scrip which, it is alleged to have been changed the after being signed by the president of school board are missing. A committet appointed by the school board to continue the investigation after the grand jury gets through, announced through its chairman, John S. Stevens the today that they would go back over books of the board for twenty years. In some- cases both stubs and couchers are missing, representing according to the cash book, large amounts. How Dougherty Was Detected. Erwin J. Schnebly, discount and exchange clerk at the Peoria Nationel bank, the man who first discovered irregularities in Mr. Dougherty's method of handling school funds, made a statement today. He said: I took charge of the individual books there- at seven years ago and to notice the queer after the bank I began shortly the methods funds had of handling Peoria school board. He and of payable to various local firms checks Mr. the Dougherty would smaller make his person al check for the give I called the attention of the bank amount. officials to this state of affairs and business. was informed that it was none of our and was then transferred to the discount exchange Mr. Dougherty department. would bring in checks for amounts, payable in most instances to a furniture firm in Chicago or firm would in St. purchase New large a checks plumbing school he Louis. With York, these Chicago or St. Louis exchange, made payto his own order. Upon examination able drafts found of the endorsements on the I used instances they had been private business affairs. local he would endorse the names or on the draft without their cases firms in.his that in many knowledge, signature. In some his own Initials under the the matter before Mr. bank examiner. for this puting National laid Cook, district. before the advice I laid the matter general at me to talk to the state's of Upon advised the Peoria attorney his county. which I Springfield. did. I also attorney laid He the matter before S. O. Spring. cashier of bank. Transactions of that kind then the ceased. In explaining them to me Mr. said that he kept of in New York. Chicago and St. I was called before the exhibited many changed checks. funds, Dougherty When were three grand sets Louis. jury instance a check charged to the had been raised from to The stub showed $24. In $2,450. school there In one fund which another $24 had was drawn for $2.1 750. The stub orginally read $27 had been raised to were $2.750. The last two figures on the stub green ink. the first two in black. in was discharged from the bank only last Saturday. At the meeting of the Peoria Clearing House association at noon it was voted to tender a loan of $100,000 to the Peoria National bank. if in the judgement of the directors it became necessary. owing to the unsettled condition of financial affairs of of the bank, following the withdrawal President Dougherty, under indictment. Bank Closes Its Doors. As a direct result of the indictment of N. C Dougherty for forgery yesterday the directors of the Peoria National bank. of which he was president, announced shortly after midnight this morning that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable today, and the only course was to liquidate at once. The loan of $100,000 by the Peoria Clearing house was tied up in such wise was bank learned that it had could that been quiet not going withdrawals be on accepted. all day. from It the


Article from Alexandria Gazette, October 7, 1905

Click image to open full size in new tab

Article Text

Today's Telegraphic News Bank Closed. Peoria, III., Oct. 8.-The Peoria Jational Bank, of which N. C. Dougherty was president, did not open its doors this morning. At a meeting of director's of the institution last night is was dec ded that the Comptroller of the Currene be asked to appoint a receiver. Withorawals of money by banks about the state and in Chicago and the loss of confisience, caused by the alleged wholesale peculations of Dougherty were causes that led to this action. Dougherty has turned over his entire fortune to Oliver J. Bailey, and vainly tried to borrow more. His friends fear insanity. With the closing of the PeoriΔ… National Bank by order of its directory, the voting of indictments, making the total against N. C. Dougherty one hundred, and the refusal of friends on wbom he had counted to give him financial assistance, the banker and noted educator faces the probability of going to jail. Washington, D. C., Oct. 7th.-The resources and liabilities of the Peoria National Bank, according to the last statement of condition made to the Comptroller of the Currency, on August 25, were $1,806,370,57 each.


Article from Alexandria Gazette, October 7, 1905

Click image to open full size in new tab

Article Text

From Washington. (Correspondence of the Alexandria Gazette.] Washington, D. C., Oct. 7. Friends of Representative "Hal" Flood, of the Tenth Virginia district, are beginning to boom him for the chairmanship of the democratic congressional committee, which will conduct the campaign of 1906. It was "Hal" Flood who managed the campaign for Senator Martin in his recent contest with Gov. Montague for the senatorial honors and the chairmanship is a sort of reward for the faithful. Another democrat who would like to have the honor of succeeding Representative Cowherd, defeated at the polls, is James M. Griggs, of Georgia. At a meeting of the provincial chapter of the Dominician Order of America this morning at the new House of Studies near the Catholic University, Very Rev. L. F. Kearney, of Zanesville, Ohio, was re-elected provincial for a period of four years. The election was preceded by a solemn high mass after which the delegates, numbering about twenty five, entered a secret room and proceeded to choose the provincial. Congressman Dalzell, of Pennsylvania, told the President today that he had not changed his views on tariff revision, to-wit, that there was no general or insistent demand for revision of the Dingley schedules. He also talked rate railroad legislation, in a general way. Discussing the platform plank adopted by the Massachusetts republican convention, urging the Massachusetts Congressional delegation to work for a revision of the tariff, he said: "That declaration is a straddle and a bluff. It doesn't mean anything, and doesn't go any farther than the other State declarations, asking that the tariff be revised, when the proper time comes, by its republican friends. These fellows in Massachusetts want free raw material and protected products." The Comptroller of the Currency has appointed National Bank Examiner C. N. Bosw receiver of the Peoria National Bank, of Peoria, Ill., on notification that the institution had been closed by order of the directors. The President has appointed Charles H. Berryman postmaster at Lexington, Kentucky. Senator Allee, of Delaware, has received recognition from the administration, the first since his breach with Ad dicks, of gas fame, by virtue of the appointment of John W. Burgess as assistant appraiser in the customs service for the port of New York. The formal announcement was made from the White House today that this appointment was made especially for Senator Allee. Chief Engineer Stevens cabled the Panama Headquarters here today that he has appointed John G. Sullivan assistant chief engineer of the canal. Mr. Sullivan has been chief engineer of construction of the Canadian Pacific railroad.


Article from The Evening World, October 7, 1905

Click image to open full size in new tab

Article Text

BANK CLOSED BY FORGERY CHARGE Run Feared Through Indictment of President Dougherty, of Peoria National, So Directors Decided to Wind Up Affairs. PEORIA. III., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery yesterday, the directors of the Peoria National Bank, of which he was president, announced early today that they had decided to suspend business and would call in the Comptroller of the Currency to wind up the affairs of the institution. The meeting of directors lasted all evening and was behind closed doors. It was admitted that a run would be inevitable to-day, and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria Clearing-House was tied up in such wise that It could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day yesterday, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000. The bank will not be open for business to-day and a representative of the Comptroller is expected from Chicago before noon. WASHINGTON, Oct. 7.-The Comptroller of the Currency has received a telegram announcing that the Peoria National Bank of Peoria, III., has closed its doors on the order of its directors.


Article from The Salt Lake Herald, October 8, 1905

Click image to open full size in new tab

Article Text

BANK FAILED TO OPEN ITS DOORS Dougherty Trouble Involved the Peoria National. DEPOSITORS HAVE A SHOW FIGURES SHOW A VERY FAIR CONDITION. Peoria, III.. Oct. 7.-The Peoria National bank did not open its doors today. C. H. Bosworth has been appointed receiver and will take charge of the affairs of the bank pending liquidation. This is the result of the action by the board of directors at a midnight meeting. "We had several offers from banks who wished to take over our business. but our directors decided that the best thing to do would be to liquidate under the law. Every depositor will be naid in full and I am confident that the stockholders will receive a good return." This is the statement of R. 0. Spring. cashier of the Peoria National bank. which closed its doors as the result of the Dougherty investigation last night. Run on Savings Bank. When the news that the Peoria National had been closed had spread. depositors began to flock into the Dime Savings bank, in which Dougherty is a heavy stockholder, and by 12 o'clock th bank was experiencing a heavy run. At 1 o'clock the officials posted the sixty days notice. It was announced that the bank would be kept open until depositors were satisfied. In financial circles it is not though that the bank is in danger, as it has $500,000 cash on hand. Shortly after 11 o'clock this morning Mr. Dougherty came from the Dime Savings bank. where he had been closeted with O. J. Bailey and others concerning the securities which he had deposited. Had Nothing to Say. Mr. Dougherty. in reply to questions, said he had nothing to say on the situation. "The putting un of securities is construed as a confession by most people, Mr. Dougherty,' was suggested. "All I have to say in this regard.' replied Mr. Dougherty. "is simply this: "In butting up the securities I have in Mr. Baileys hands, it was not for the purpose of extenuating anything, but simply that I believe things will be shown to be right, and that the amoun' thus deposited is much more than any one claims the shortage to be. It has no reference whatever to guilt or innocence and it was furtherest from my idea in


Article from Albuquerque Morning Journal, October 8, 1905

Click image to open full size in new tab

Article Text

Peoria Bank Closes. Washington, Oct. 7.-The comptroller of the currency received a telegram announcing that the Peoria National bank, Peoria. III., has closed its doors upon the order of its directors. National Bank Examiner Bosworth has been appointed receiver. Will Be Paid in Full. Peoria, Ill., Oct. 7.-Cashier Spring. of the National bank, which closed its doors this morning said every depositor would be paid in full. The directors decided to close the bank as a result of the disclosures concerning the operations of its president, School Sup nerintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars.


Article from Durango Semi-Weekly Herald, October 9, 1905

Click image to open full size in new tab

Article Text

ONE HUNDRED INDICTMENTS AGAINST PEORIA BANKER PEORIA, III., Oct. 7.-The Peoria National bank, of which Newton Dougherty, the indicted school superintendent, was president, did not open for business today, pursuant to a decision of the directors reached at midnight. Dougherty has turned over his private fortune to the bank. It is expected that Dougherty will be lodged in jail this afternoon when he has been arraigned on 87 additional indictments. He has turned over securities worth $200,000 to cover the alleged shortages. He may not be able to raise bail. He has already given bail on thirteen charges. He does not deny his guilt. His friends advance the kleptomania theory. National Bank Examiner Bosworth was appointed receiver of the institution. Runs were started this afternoon on the Dime Savings bank and the City National bank.


Article from Alexandria Gazette, October 9, 1905

Click image to open full size in new tab

Article Text

Quiet After Financial Storm. Peoria, III., Oct. 9.-Calm has succeeded the financial storm that stirred the city last week, and ended with the incipient run on the Dime Savings Bank. This morning the bank is carrying on its business as usual. The grand jury will probably not assemble until this afternoon. When they do meet, it is considered very probable a demand will be made that N. C. Dougherty's bond be increased. C. N. Bosworth, receiver for the Peoria National Bank, took active charge of affairs this morning. He refused to say anything further than that as soon as possible he would make a detailed report of the financial condition of the bank.


Article from The Morris County Chronicle, October 10, 1905

Click image to open full size in new tab

Article Text

ARRESTED FOR SCHOOL GRAFT. Professor Dougherty. Peoria's Superintendent. Accused of Forgery. Peoria, Ill-The arrest on a forgery charge of Professor Newton C. Dougherty, Peoria's foremost citizen, former President of the National Educational Association, banker, School Superintendent, and friend of Nicholas Murray Butler, of the Columbia University, of New York, has furnished this city with the most amazing sensation in its history. A second indictment, charging him with the embezzlement of $3000, was returned against Mr. Dougherty, and it is now said the stealings will reach the $250,000 mark, and perhaps more. The authorities declare they have evidence to show that Dougherty's life has been a living lie; that while posing as the apostle of civic righteousness, preaching education and good morals, he has appropriated money entrusted to him in a business capacity. Professor Dougherty has resigned as President of the Peoria National Bank, thereby staying a "run." He also sent in his resignation as superintendent of schools and as director in the various commercial institutions in which he is interested. Dougherty was one of the pillars of the First Congregational Church and a member of every club of importance in the city, as well as the Union Club, of Chicago.


Article from Valentine Democrat, October 12, 1905

Click image to open full size in new tab

Article Text

BANK DECIDES TO CLOSE. Dougherty Scandal Causes Peoria National to Go Into Liquidation. As a direct result of the indictment of N. C. Dougherty at Peoria, III., for forgery Thursday, the directors of the Peoria National Bank, of which he was president, announced shortly after midnight Friday morning that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable Friday and the only course was to liquidate at once. The loan of $100,000 by the Peoria clearing house was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in the neighboring towns.


Article from The Forrest City Times, October 13, 1905

Click image to open full size in new tab

Article Text

DECIDED NOT TO OPEN The Peoria National Bank, of Which N. C. Dougherty Was President, to Go Into Liquidation. Pecria, Ill., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery, the directors of the Peoria national bank, of which he was president, announced shortly after midnight that they decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable, and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria clearinghouse was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000.


Article from Vilas County News, October 16, 1905

Click image to open full size in new tab

Article Text

The jury in the case of R. D. Fletch- er, a white man, charged with assault- ing Mary Gladder, a German girl, in Russellville, Ky., returned a verdict of guilty and fixed the punishment at death. In a collision between a Louis- ville and Nashville light engine and a Southern railway freight near Boyles, Ala., H. E. Abercombe of Villa Rica, Ga., extra fireman on the Southern, was killed. The launch Maj. Wilcox, owned by the A. Booth Fish company, with a half ten of black bass caught with nets in Lake Erie, was held and seized by Ohio game wardens and may be confiscated. A diver located near Michigan City, Ind., the wreck of a three- masted schooner believed to be the Thomas Hum, which sailed from Chi- cago fourteen years ago and was never heard of afterward. Daniel McIntyre of Gladbrook, Iowa, gave $10,000 to the $150,000 endow- ment fund being raised by Western college at Toledo, Iowa. Leander Clark of Toledo and Andrew Carnegie had each given $50,000. Missouri demands that McCall re- pay the campaign contribution of $148,000 and that new officers of the New York Life be elected, giving the alternative of exclusion of the company from the state. A mistrial has resulted in the case charging "criminal negligence" against W. B. Caldwell, who was con- ductor on one of the trains wrecked on the Southern railroad near New Market, Tenn., Sept. 24, 1904. Failure of the Peoria National Bank, of which N. C. Dougherty was president, caused a run on two other banks, the 60-day notice being invoked in one instance. Financiers fear a spread of the panic among deposi- tors. Germany and other European coun- tries may bar big New York life in- surance companies from doing busi- ness because of the revelation as to graft and corruption. This action would mean a heavy loss to the con- cerns. District Attorney Jerome of New York asked for a special grand jury to investigate the big life insurance companies. The son of the president of the Mutual Life was paid $1,705,- 681 in commissions besides a salary of $30,000. Newton C. Dougherty, superintend- ent of Peoria schools and president of Peoria National bank, was indicted for forgery and larceny of public funds. His peculations extended over a period of 27 years and aggre- gate $500,000. Chief of Police John J. Donohue of Omaha has sent a cashier's check for $200 to Butte, Mont., to cover the reward offered by the chief personal- ly for the capture of Pat Crowe, who will be brought back handcuffed by two detectives. At Hickman, Ky., after he had re- turned from church, Emmett W. Roach, a prominent citizen and teach- er, was shot from ambush. Roach lived thirty minutes and gave the name of his assassin, which has not yet been made public. At Minneapolis, Ira Riddle, an aged sailor, has been stabbed almost to death in his bed in a lodging house. A deposit certificate for $150 was stolen. The bank refuses to give him the money without a bond, fearing the old man may have indorsed the cer- tificate to some one. Alfred, the younger son of the late David Shepard, founder of the Nichols & Shepard Thrashing Machine com- pany at Battle Creek, was cut off in his father's will without a cent. The estate of $1,000,000 is left to the elder son Freedom. Alfred contested, but the probate judge decided against him. Charles King, whose sentence of death was executed Sept. 30, at Fort Saskatchewan, Canada for the mur- der of a young Englishman, Edward Hayward, is believed to have been Robert Martelli, sentenced to death in 1900, but through the intervention of the Italian government given a new trial and acquitted. At Sheboygan, the damage suit of Nic Faber, whose arms were broken, jaw fractured in three places, one eye gouged out, teeth knocked out, and shoulder dislocated, was non- suited, because the supreme court, in ordering a retrial by the circuit judge, decided Faber had no case. He had been awarded $8,000 against the Reiss Coal company. Miss Hattie Dew Hirst, one of the pretty girls of Huron, Ohio, whose room was entered by robbers a few nights ago, received a letter, mailed


Article from Willmar Tribune, October 18, 1905

Click image to open full size in new tab

Article Text

THE DOUGHERTY SCANDAL. Because of the complications arising from the forgery indictments returned against Newton C. Dougherty, the Peoria national bank, of which he was president, has been closed. Faced by 84 new indictments charging forgery or embezzlement and hopeless of being able to furnish $64,500 bail, Newton C. Dougherty, the Peoria banker, surrendered and was locked in a cell. Failure of the Peoria national bank, of which N. C. Dougherty was president. caused a run on two other banks, the 60-day notice being invoked in one instance. Financiers fear a spread of the panic among depositors. Newton C. Dougherty's alleged stealings from the Peoria school funds are believed to have been swallowed in unfortunate mining operations in the west.


Article from Evening Times-Republican, October 19, 1905

Click image to open full size in new tab

Article Text

PEORIA BANK PROBE DELAYED. Present Federal Grand Jury Not to Inquire Into Methods. Peoria, III., Oct. 19.-Bank Examiner C. H. Bosworth, of Chicago, will not finish the examination of the finances of the Peoria National Bank in time for an investigation by the federal grand jury at this term of court, and the prospects are that if there is an early investigation into the methods of N. C. Dougherty it will have to be done by a special grand jury. Senator Berry, who yesterday was appointed receiver for the failed bank, was in the city yesterday and said that he would take permanent charge of the institution within a few days. O. J. Bailey, the indicted chairman of the school board, said last night that if he was guilty of the gross negligence charged all of the other members of the school board were equally guilty.


Article from The Topeka State Journal, January 1, 1906

Click image to open full size in new tab

Article Text

Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. 3-Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 24-Canton, O., state bank closes Lexington, Okla., First national bank falls. 26-Barberton, O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, III., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes. 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (I11.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Ch'cago. Chicago National, Home Savingsand Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis, Tenn., close doors; first named in liquidation.


Article from Omaha Daily Bee, January 3, 1906

Click image to open full size in new tab

Article Text

PEORIA SCANDAL IS GROWING Auditor Says Members of School Board Are Responsible for Mox , Stolen by Dougherty. PEORIA. III.. Jan. 2.-The report of the Everitt Audit company on the defalcation of N. C. Dougherty was made public at a meeting of the school board tonight. The total shortage for seven years is $541,408, from which will be deducted approximately $15,000 for unusual but warranted expenditures. Everett gave it as his opinion that the total shortage for eighteen years would fall slightly short of $1,000,000. stating that large amounts of forged script had been found in 1887 and in 1889, but no totals or estimates on these years had yet been made. The report scores the officers of the board, the treasurers and presidents especially, the finance and auditing committees and the members of the board individually. Everett declares that if the board. or any of its officers, had used even ordinary diligence in the performance of their duties, the mulcting of the fund would have been impossible (and that the members of the board are individually liable for all shortage which cannot be collected from Dougherty and the Peoria National bank). The report shows that $532,000 of the shortage was directly manipulated by the cashing of fictitious script through the Peoria National bank. of which N. C. Dougherty was president. It declares that the bank is liable for every cent of this amount. and the board, on the strength of the report, elected Judge MeCulloch as attorney in recovering from the bank. instructing him to enjoin the bank from further payment of dividends or other disbursements until the claim of the board should be adjusted in the courts. Judge Orville Berry of Carthage, receiver of the bank, was present at the meeting and announced that he would fight in the courts the attempt to hold the bank liable.