Oto Bank (Oto, IA)

Episode Information

Episode UID
4724011191234
Episode Type
Suspension โ†’ Closure
Bank Type
private
Bank ID
472401119 hash
Start Date
October 10, 1902
Location
Oto, Iowa (42.284, -95.893)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
462faff5796a8bf9

Response Measures

None

Description

Multiple articles report the bank's failure, appointment of a receiver, and alleged fraud/speculation.

Events (2)

1. October 10, 1902 Receivership
Newspaper Excerpt
application for a receiver...Receiver John B. Knudson was appointed by the court; later J. T. McVay appointed receiver in bankruptcy and took property from Knudson.
Source
newspapers
2. October 10, 1902 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Losses from financing board-of-trade grain speculation, tied-up funds with Chicago firms, alleged misrepresentation of collateral and fraudulent note transactions leading to insolvency.
Newspaper Excerpt
Failure of the Oto Bank...the failure of the Oto bank...application for a receiver and dissolution of the firm.
Source
newspapers

Newspaper Articles (9)

Article from Evening Times-Republican, October 10, 1902

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Article Text

THE SAME OLD STORY Failure of the Oto Bank Alleged to be Due to Grain Speculation a THE DEPOSITORS MAY SUFFER Now Stated That the Failure Was Worse Than at First Reported and That Board of Trade Dealing Got the Bank Into Financial Difficul. ties. Special to Times-Republican. Sioux City, Oct. 10.-It is being claimed here that speculation on the board of trade was the cause of the failure of the Oto bank. The failure was more serious than at first supposed. It is now doubted whether the depositors will be paid in full. Nobody in possession of detailed information is able to tell the facts, but people in position to know the inside said that they expected the failure would prove a pretty disastrous one. They also attributed speculation on the board as one of its causes. Report is that money of the bank has been used for some time past in handling deals on the Chicago board. In these deals it is'said the bank was not directly interested, /tho it furnished money to customers to finance them. For a time they were successful and considerable profits accrued. In connection with these deals, the McNeil Grain Company held a considerable amount of money payable to the bank. when the McNeil firm got into its trouble with the Weare Commission Company. The Weare company held out some $32,000 of the McNeil company's money, claiming it on some ground not yet very well explained to the public. At any rate it was money which, but for this action of the Chicago concern, should have been distributed by the McNeil company to customers. The money is still in possession of the Chicago firm. The litigation is getting fairly started between the McNeil company, and there is no knowing when the money will be released. The Oto bank's interest in the fund is placed as high as $10,000 or $12,000. After it became evident that this money could not be got at a crisis was soon precipitated in the business, ending in the application for a receiver and dissolution of the firm. Mr. Cutting's friends here and et Oto insist it is unfair to place the entire responsibility on his shoulders. A telephone message from Oto said that G. N. Sweetser of the Farmers' Loan & Trust Company, is there looking into the business of the failed bank. There have been rumors of various difficulties in connection with the securities and loans which the bank had outstanding. Charles McNeil, of the McNeil Grain Company; said: "The bank had some customers who did some trading on the board. Say a customer would place a deal thru us, and the bank would finance it for him -that was all the bank had to do with it. The tie-up of a lot of money in our litigation in Chicago of course made customers unable to get it: but the Oto bank was not enough involved in this way to make any difference at all."


Article from Omaha Daily Bee, October 11, 1902

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Article Text

CREDITOR CHARGES FRAUD Asks for Ousting of Receiver of Oto Bank and a Hot Legal Fight - is Impending. | SIOUX CITY. Ia., Oct. 10.-(Special Telegram.)-Charges of a conspiracy on the part of Cutting & Willett and numerous parties in and around the town of Oto, for the purpose of looting the Oto bank of its assets and wrecking the institution are made in a sensational petition of intervention, which has been filed in the district court by the Holstein Savings bank. The petitioner demands the removal of the receiver, John B. Knudson, who was appointed by the court upon the application of John T. Willet, and the appointment of another person as receiver. A hard fight is to be made not only over the assets of the bank, but over the individual property of the owners. John T. Willett, one of the owners of the bank, is one of the state representatives from Woodbury county.


Article from Audubon County Journal, October 16, 1902

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Creditor Charges Fraud. Sioux City, Oct. 13.-Charges of a conspiracy on the part of Cutting & Willett and numerous parties in and around the town of Oto, for the purpose of looting the Oto bank of its assets and wrecking the institution are made in a sensational petition of intervention, which has been filed in the district court by the Holstein Savings bank. The petitioner demands the removal of the receiver, John B. Knudson, who was appointed by the court upon the application of John T. Willett, and the appointment of another person as receiver.


Article from Audubon Republican, October 16, 1902

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Article Text

BANK WRECKING ALLEGED. Claim Set Up That Conspiracy Exists to Loot the Oto Bank. Sioux City, Oct. 11.-Charges of a conspiracy on the part of Cutting & Willett and numerous parties in and around the town of Oto, for the purpose of looting the Oto bank of its assets and wrecking the institution, are made in a sensational petition of intervention which has been filed in the district court by the Holstein Savings bank. The petitioner demands the removal of the receiver, John B. Knudson, who was appointed by the court upon the application of John T. Willett, and the appointment of another person as receiver. A hard fight is to be made not only over the assets of the bank, but over the individual property of the owners. John T. Willett, one of the owners of the bank, is one of the state representatives from Woodbury county. The Holstein Savings bank alleges in its petition that it is a creditor of the Oto bank and that it appears not only for itself, but on behalf of a large number of banks and individuals over the country who are creditors of the Oto bank, and who have claims aggregating at least $70,000. It is alleged that the Oto bank had but few depositors and that almost its entire indebtedness is due for money obtained upon notes sold to other banks and persons, the bank indorsing the notes In these transactions the Holstein bank charges that the Oto bank proprietors knowingly misrepresented the value of the paper and the character and financial standing of the makers of the paper, that in fact nearly, if not all, of the indebtedness of the bank was created by the copartnership by the making of false and fraudulent representations.


Article from Evening Times-Republican, October 17, 1902

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FRAUD IS IMPUTED. Oto Paper Says Failed Bankers' Conduct Was Questionable. Sioux City, Oct. 17.-The Oto Leader prints an apparently well founded story of the conduct of the Oto bank, which failed two weeks ago, which imputes to the proprietors, F. H. Cutting and J. T. Willett, questionable conduct. It is stated that the bank issued first mortgages as many as three or four times on the same surety, afterward negotiating the paper to other banks. The partnership is said to have written letters' to other banks grossly misrepresnting the worth of the property of farmers about here whose notes the bank were seeking to negotiate. Receiver J. D. Knudson is quoted as saying that the bank will pay about 50 cents on the dollar, and the representatives and attorneys of other banks who have visited Oto since the failure of the bank are quoted as saying that the bank will not pay more than 5 or 10 cents on the dollar. It is stated that three first mortgages upon the property of Grant Hall have been found. Hall is a farmer of this county and all of the mortgages were accepted by the Oto bank, and were identically upon the same property, it is stated. All of the notes were transferred to other banks, having been discounted. The security of a mortgage upon 127 cattle owned by Bart Howe was investigated and but twenty-seven cattle were found. A letter written by the firm of Willett & Cutting to the Holstein Savings bank was seen by the editor of the Leader. It states that Charles Spengler, a farmer near here, is a rich young farmer, worth $40,000. The opinion about Oto is that If Spengler's liabilities were paid he would be worth very little, if anything at all. On the strength of these assurances, the Holstein bank discounted notes issued by Charles Spengler, in a sum said to be between $8,000 and $10,000.


Article from Evening Times-Republican, October 28, 1902

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THE oTo BANK PROPERTY, First Report of the Receiver for the Failed Bank. Special to Times-Republican. Sioux City, Oct. 28.-The receiver for the Oto bank, which failed some weeks ago, has made his first report to the judge of the district court, estimated the assets of the co-partnership of Cutting & Willett at $20,519.49, and the liabilities at $85,580.42. In addition to this he reports that Messrs. Cutting & Willett have turned over to him their property as individuals, upon which he places no estimate but whose value may be anything from $20,000 to $75,000. In the assets of the bank proper, he summarizes the accounts on deposit and due the bank at $10,300.05 and $10,219,48. The personal property of the co-partnership as individuals includes the following items: The bank building. the building of the Van Marel property, the building of the Hallet implement property, threefifths equity in the Oto creamery, forty acres of land, $4,000 of life insurance upon the life of Mr. Willett, $12,000 insurance on the life of Mr. Cutting: due from the Weare commission company, Chicago, $12,000; mining property in Cripple Creek, Col. notes securing bills, pay in Sioux City, $3,000; notes securing bills, pay in Chicago, $5,000; one $5,000 life insurance policy, Arthur; one $1,000 life insurance policy, Graybill; cash in the First National bank, Sioux City, $1,000; in P. G. Riedesel's bank, Oto, $357.87; eighteen town lots; one team, harness and buggy. The liabilities include time certificate in the sum of $12,155; demand certificates, $1,036.25: accounts due by the bank, $37,389.17; bills payable, $10,000; contingent liabilities the bank may have to pay by reason of indorsement on paper sold, estimated at $25,000.


Article from The Minneapolis Journal, October 29, 1902

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OTO, IOWA-The wrangle over the assets of the Oto bank, which failed three weeks ago, has been transferred from the district to the federal court by a petition from three creditors. J. T. McVay has been appointed receiver in bankruptcy pending the hearing, and has taken the property from Receiver John B. Knudson, appointed by the district court.


Article from Manchester Democrat, December 3, 1902

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State News in Brief. A toilet soap factory will be located at Boone. A. Alexander, a well known banker of Jewell, is dead. The question of uniform text books is being agitated in Sac County. C. C. Bigler and sons, breeders of Shorthorn cattle, Hartwick, assigned. Mrs. Maude Grnwell, wife of a wellknown farmer near Ottumwa, has disappeared. A company for the manufacture of washing machines has been organized at Davenport. Two companies of Iowa investors are interested in the speculative ventures in the Isle of Pines. Des Moines policemen are seeking an increase in salaries. Their present pay is $65 per month. The proposition to erect a $75,000 court house carried in Crawford County by a majority of 602. Harry Bingham, a 12-year-old boy who resided near Shenandoah, was accidentally killed while hunting. A "Jack the Kisser" is operating at Clinton, unattended women on the streets at night being the victims. The store of J. 10. Bunger at Thayer was robbed of $40 in cash and a quantity of merchandise. No clue. Unknown robbers looted the general store of Barr & Dunco, at Berwick. The loss is estimated at $500. No clue. Owners of button factories at Musca tine and other eastern Iowa cities are considering a proposition to merge their plants. The flyer on the Sioux City line of the Illinois Central ran into a drove of eattle near LeMars, killing nearly forty of the animals. Mrs. Sampel Yapp. wife of a farmer near Pierson, committed suicide by jamp ing into a pond near her home. Despondency the cause. The Waterloo police department has begun the taking of a census of that city. It is estimated that the job will be completed in three weeks. The grand jury at Davenport found "no bill" against Mate Dan Breen, the slayer of the Leonidas medicine men. The jury found the killing justifiable. Postmasters appointed in Iowa: Ar kins, A. C. Stewart, vice R. W. Lavenby, resigned: Gladstone, F. B. Corson. vice H. H. Hand, resigned: Otranto Station. J. D. Kelley, vice Anton George, Jr., resigned. Joseph Arumin. engaged in painting the steeple of the Holy Ghost Church at Dubuque, fell from the scaffolding, a distance of one hundred feet, and sustained fatal injuries. Returns from the recent election show that the Prohibition party failed to poll 10,000 votes in Iowa. The ticket will have to be placed on the ballot by petition next year. The liabilities of the Oto bank, which ecently failed, are $75,688; available assets less than half that amount. A dozen or more banks will enter the fight for th division of the assets. The effort of the saloon element to seeure the signatures of 65 per cent of the voters of Boone County to a mulct petition was a failure. unknown thief broke into the office of broke a up and loosa, An the Rand open Lumber desk Company and tore in Oskaalso burned a number of papers it contained. Albert Richardson, who lived at Linn Grove. committed suicide by hanging. He was a prosperous farmer, aged about and leaves a ily children. 52 of years, young The widow supposed and he cause famof the suicide is in the fact that had rented his farm and became discontented over the arrangement. Emma Schwemm, a domestic employed in the household of Frank Kimball, a Tripoli farmer. is the heroine of a shooting affray with a tramp in which the girl proved victorious. The young lady was alone in the house when the tramp approached and demanded something to eat, attempting to enforce his demands at the point of a revolver. The also procured a plucky girl revolver during and several shots were exchanged, it was thought was which the made thug his wounded in the arm. He esa carcape. George Shernman, Des Moines scaffold, penter, fell twenty feet from a and received possibly fatal injuries,


Article from Manchester Democrat, January 7, 1903

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Stevens Bros., Boss grocers, have assigned. Mrs. Susanna Mitchell, a pioneer Iowa woman, is dead at Osceola. Jesse Higbee, a promittent business man of Bloomfield, is dead. Thomas S. Cameron, a pioneer citizen of Buchanan County, is dead. Bell telephone girls, Des Moines, have returned to work. More money. John Varenkamp has been appointed postmaster at Sully, vice Henry Dewitt. At a sale of Short-Horn cattle at Albion, forty-five head sold for over $5,000. Willis Anibal, aged 12, was drowned while skating on the Cedar river at Waterloo. J. O. Wade has been appointed postmaster at Elwood, vice W. S. Hill, resigned. J. H. Leavitt of Waterloo is the possessor of a clock that has kept time for 142 years. Fort Dodge is after a Michigan health food company that employs seventy-five men. Fire in one of the show windows of Beno & Co. at Council Bluffs caused $500 damage. The Hotel Downing at Oskaloosa will be rebuilt into a modern hostelry, at a cost of $75,000. Frank R. Porter has been appointed postmaster at Van Wert, vice A. T. Rome, removed. A number of Iowa City factories are running on short time on account of the scarcity of coal. Mr. and Mrs. E. Hatton of Clinton have just celebrated their sixty-first wedding anniversary. J. S. Wright, one of the oldest dentists in Clinton, dropped dead of heart disease in his office. Davenport savings banks have raised the rate of interest paid to depositors from 3ยฝ to 4 per cent. Charles Seimer, aged 14, of Nora Springs, is minus one foot as the result of a hunting accident. It is estimated that the creditors of the defunct Oto bank will get about 50 per cent of their claims. J. B. Johnson, postmaster at Bancroft and president of the First National Bank at that place, is dead. The postoffice at Parkersburg was robbed of stamps and money to the amount of $500. There is no clew. The dedication of the new Drake free public library at Centerville has been definitely fixed for Jan. 15. The Union Electric Company of Dubuque is planning to build a $200,000 power plant the coming summer. Woodson Reagan was sentenced at Centerville to fifteen years in the penitentiary for the murder of his sweetheart, Ella Clark. The State Horticultural Society has inaugurated a movement to secure the building of a $2,500 conservatory on the State fair grounds. Charles A. Gilbert, one of the oldest conductors on the Illinois Central, was run down by a switch engine at Waterloo and instantly killed. Dubuque authorities have adopted the plan of fencing in sidewalks in the business part of town which the owners neglect to keep free from snow. Rev. Herman Forrester, a member of the Simpson College, Indianola, class of 1898, has been chosen pastor of the only American church in Rome. Government architects are now at work on plans and specifications for Marshalltown's new federal building. The contract will be let in the spring. Harvey St. Clair, aged 20, a young farmer of Vienna township, was kicked by a horse and lived five hours. He was married less than three weeks ago. Workmen on the Masonic Temple at Harlan let fall a heavy plate glass which was being unloaded. The glass, which cost $600, was broken into fragments. Thomas Meredith, a wealthy philanthropist of Cass County, is dead. One of his last acts was a gift of $5,000 and a site for a Y. M. C. A. building in Atlantic. The attempt to establish saloons in Hancock County has failed. Although 67 per cent of the voters signed the paper, yet many names were signed that were not on the poll books. In a head-on collision on the Chicago, Rock Island and Pacific at Oskaloosa between work and freight trains, four section men were injured, two locomotives demolished, and a number of freight cars reduced to kindling wood. Judge McPherson of the federal court in Keokuk has handed down an opinion in the case of the United States vs. the Adams Express Company, in which the corporation was indicted for carrying on the business of a retail liquor dealer without having paid the special tax as required by law. The federal court, in its opinion, holds that the express company is only an agent of the venders in carrying liquors and collecting and returning money. As the express company did not sell liquors it was not engaged in the business of a liquor dealer. The court, in this opinion, has overridden the decision of the Supreme Court of Iowa. A scheme has been sprung at Ottumwa which has for its object the organization of a new water company for the purpose of circumventing the recent decision of the United States Circuit Court at St. Louis. The point raised against the water levies is that they are unconstitutional because the city of Ottumwa is already in debt up to the full limit allowed by law. The scheme now on foot is the organization of a mammoth water company which will include every citizen of Ottumwa, so that the indebtedness is against the taxpayers personally rather than against the city. The plan has been tried successfully in but one instance. Under the scheme every citizen would be a stockholder in the water company. At George August Bunge shot and mortally wounded Helmer Deboor as a result of a quarrel over rent of land. Bunge is under arrest. Both men are farmers. Mrs. Etta Kitchen, a fashionably dressed young woman, was arrested while trying to steal valuable furs in a department store at Ottumwa. She confessed and disgorged other stolen goods. A bobsled containing a coasting party of fifteen boys and girls collided with a wagon at the foot of the Sixth street hill in Des Moines. Several of the children were injured, and two may die. A movement is on foot in Hardin County to postpone primary elections, which the Republicans usually hold in March, to a later date in the summer. Because he thought he had failed to pass his examinations, Everett Harman of Malcomb, a student at the Iowa Wes-