Ayers National Bank (Jacksonville, IL)

Episode Information

Episode Type
Suspension β†’ Closure
Start Date
November 21, 1932
Location
Jacksonville, Illinois (39.734, -90.229)
Bank Type
national
Charter Number
5763

Metadata

Receivership Details

Depositor recovery rate
30.0%
Date receivership started
1932-11-21
Share of assets assessed as good
20.1%
Share of assets assessed as doubtful
56.3%
Share of assets assessed as worthless
23.7%

Notes

Suspension followed by appointment of a receiver and later criminal prosecutions for missing/embezzled securities.

Events (4)

1. March 30, 1901 Chartered
Source
historical_nic
2. November 21, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended Nov. 21, 1932 after discovery of large missing college bonds, alleged misuse of safedeposit contents and other insolvency/embezzlement problems.
Newspaper Excerpt
Nov. 21: Ayers National Bank, Jacksonville, Ill., resources, $8,285,998.
Source
newspapers
3. November 21, 1932 Receivership
Newspaper Excerpt
The Ayers National Bank suspended business on Nov. 21, 1932: that on the same day pointed receiver ... (bill filed by receiver).
Source
newspapers
4. November 21, 1932 Receivership
Source
historical_nic

Newspaper Articles (25)

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COUNCIL VOTES TO PURCHASE NEW FIRE TRUCK HERE

Ordinances Are Adopted At Meeting of City Officials Last Night

A resolution providing for the completion of the purchase of a new fire truck, and the adoption of ordinances constituted most of the business transacted by the city council which met last night. The report of City Treasurer Francis R. Rantz concerning his demand upon the former city treasurer, H. C. Clements for funds in his possession, was adopted, and the act of City Treasurer Rantz in refusing to accept certificates and notes offered by the former city treasurer was approved by the council.

A brief summary of the audit made by Bishop & Estes of the accounts of city finances prior to the closing of the Ayers National Bank on November 19, 1932, was presented at the meeting by the chairman of the finance committee, Alderman Frank Mathews.

The plan presented by Alderman Homer G. Bradney for the purchase of the fire truck was approved by the council, and the mayor and city clerk were instructed to enter into an agreement for the purchase of the equipment. Negotiations for the fire truck were halted when the Ayers National bank failed and tied up city funds. Under the present plan a contract will be entered into for the payment of $1,500 on July 15, 1933 and subsequent payments in three installments. The purchase price of the new equipment is $7,000 and the old truck. The new truck will be a 750 gallon machine and will take the place of a 350 gallon pumper.

An amendment to the ordinance providing for sewer connections which was recently adopted, was given its first reading. The amendment to the ordinance provides for property connections with sewers by July 1, 1934, whereas the original ordinance made provision for connections by July 1, 1933.

An ordinance with emergency clause was adopted providing for the discontinuance of a road district commissioner and clerk for the new road district created in Jacksonville.


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JEFFERS, OF THIS CITY, SETS RECORD

SAFETY BOXES WILL OPENED TODAY

Husks Net Total of 31 Bushels Receiver Announces Plan To and 20 Pounds in Hour Make Securities Available And 20 Minutes To Box Holders

Shucking record breaking pace, Jeffers, statement husked total bushels. 20 pounds in one and setting new record for Morgan and compete in corn on the the watched by Strawn and Jake Strawn inspected his the the deductions, the load Julius ised which must before notary place for Jeffers in The record five bushels short bushels shucked in same period of time the contest which record made, there 18 huskers and only seven eight of them were toss corn speed equal better than that made report that Jeffers husked total pounds had less three husks for every 100 pounds, which under deduction was for net 2,990 the equivalent 20 The Jake Strawn is located Strawn's Crossing.

Announcement that holders of deposit boxes closed Ayers National Bank sigh hundreds word the the The safety vault will be for the first the and banking Frank statefor the yesterorder to expediate handling the crowd Mr McRoberts only persons would safety deposit vault time that soon they had completed more persons would taken the check contents each protect the bank His statement in follows This accommodation safe deposit boxholders those hold receipts for safe keeping vaults time permitted present receipts and ask the of the the check up matters has not completed this receiver has special to get the the ship in could let the the deposit their the other the are the point where with public can had. Proper will be this the doors the bank will be opened for the regubusiness of the in large trusts has that first days the deposit vaults are open to the patrons, general rush made for the the are Ayers National Bank. that public permitted deposit vault room, those who already been not get through the and the that only four be admitted at the the cared for they stairs an through the rear the ience, he that many people can be handled in that the mitted form all the way down the stairs. room just inside the front doors on the heated and will thirty people might care to stand there their All those desire access to their boxes, and who know themselves debted for must come pared pay the back in Those the to their desire the debt the bank Willing to Hold Boxes

Those not to to remove the this the deposit box the city the Ayers National Bank, willing at those to, hold for reasonable and keep and the usual connection that the require the holders examine receipt thereof the this time. requested that those who are granted courtesy entering their boxes, refrain from the the clerks bank not directly with the clerks department. and visiting answerthe and hoped the boxholders inthe the bank in which they than the name box boxes, must have from the party them present the key and be the The simple the has key and has always looked after not suffice access will be granted only written authority


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$504,000 LOST TO COLLEGE

School Funds Missing After Illinois Bank Closes.

CHICAGO. (/P). Dr. George E. Baxter, of Chicago, of the board of trustees of Illinois college, said that reports true that $504,000 in bonds belonging to the college fund missing after the Ayers National Ill., closed. He declined to indicate what may be taken but in Jacksonville, City Attorney Bellatti and State's Attorney Absher said the matter probably be taken before the next grand jury for investigation. Dr. Baxter said that three days before the bank closed recently, he telephoned Bellatti, also chairman of the college finance committee, asking that college funds be removed from the bank. Bellatti, in statement newspapermen which was corroborated by Dr. Baxter, said that when he went to the bank he found the bonds missing from safety deposit box and that M. F. Dunlap, president of the bank, said they had been removed and used as collateral for loans. Bellatti said Dunlap stated the bonds were removed by W. G. Gobel, cashier of the bank and treasurer of the college.


Article from The Producers News, December 9, 1932

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New Bank Suspensions Nebraska

George W. Woods, Bank Commissioner, has announced: Bank of Raymond, Raymond, closed. South Dakota: E. A. Ruden, Supt. of Banks, has announced: First State Bank, Bowdle, closed. National banks suspending Nov. 18, as re- ported to the Comptroller of the Currency and made public Nov. 18, were: National banks suspending Nov .14, as reported to the Comptroller of the Currency and made public Nov. 14 were: Shawnee National Bank, Shawnee, Okla.; resources, $2,359,264; First National Bank of Allen, Okla., resources $119,771; First National Bank of McLoud, Okla.; resources, $130,272; Park National Bank of Sulphur, Okla.; resources, $213,651. Diamond National Bank of Pittsburgh, Pa.,; resources, $15,849,950. United States National Bank and Trust Co4 of Kenosha, Wis.; resources, $1,812,553. National banks suspending Nov. 21 and 22, as reported to the Comptroller of the Currency and made public Nov. 23, were: Nov. 21: Ayers National Bank, Jacksonville, 111., resources, $8,285,998. Nov. 22: First National Bank of Faulkton, S. Dak., resources $257,141.


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New Bank Suspensions

Nebraska: George W. Woods, Bank Commissioner, has announced: Bank of Raymond, Raymond, closed.

South Dakota: E. A. Ruden, Supt. of Banks, has announced: First State Bank, Bowdle, closed.

National banks suspending Nov. 18, as reported to the Comptroller of the Currency and made public Nov. 18, were:

National banks suspending Nov. 14, as reported to the Comptroller of the Currency and made public Nov. 14 were:

Shawnee National Bank, Shawnee, Okla.; resources, $2,359,264; First National Bank of Allen, Okla., resources $119,771; First National Bank of McLoud, Okla.; resources, $130,272; Park National Bank of Sulphur, Okla.; resources, $213,651.

Diamond National Bank of Pittsburgh, Pa.; resources, $15,849,950.

United States National Bank and Trust Co. of Kenosha, Wis.; resources, $1,812,553.

National banks suspending Nov. 21 and 22, as reported to the Comptroller of the Currency and made public Nov. 23, were:

Nov. 21: Ayers National Bank, Jacksonville, Ill., resources, $8,285,998.

Nov. 22: First National Bank of Faulkton, S. Dak., resources $257,141.


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Diamond National Bank of Pittsburgh, Pa.; resources, $15,849,950.

United States National Bank and Trust Co. of Kenosha, Wis.; resources, $1,812,553.

National banks suspending Nov. 21 and 22, as reported to the Comptroller of the Currency and made public Nov. 23, were:

Nov. 21: Ayers National Bank, Jacksonville, Ill., resources, $8,285,998.

Nov. 22: First National Bank of Faulkton, S. Dak., resources $257,141.


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Gives About Receivership of Ayers National Bank

At the meeting of the depositors of the Ayers National Bank held in the Chamber of ComFriday the called upon Frank Roberts the who the to the had under time. One the expense of the There been general that the salary stated the salary than amount that salary that paid while operation There that for the explained that practically the quarters period of the that cash rate upon the from building bank He would building for could handle the bank quarters in stantial saving both making the company depositors bank quarters

Sale Bonds One receiver that ceiver. bonds held by the State collateral deposit the Treasurer stated large with matters which could not in he the amount count would follows remit covering the positary which reads the Treasurer thirty intention Such transfer sold the thereof The surplus, the due the State the the shall be paid to the deposiAction name the People the State Illinois to enforce the the State respect to securities an will that return official holds you finds that he lateral that the wish advise that the collateral to protect soon your affidavits you showing the amount As the affidavits been properly and of deposit and which let from whether for to dispose your

Notice Hattie There changes and the homa the hold count the Illinois in Arthur Friends Water funds the States bonds retire "That attempt State on acting under him the State Illinois balance listed bonds headed burial. by the dated treated an the of the officer such

Safeguarded Interests The respect terests in this Dr saction he over the the Bank The asked opinion as to the feasibility of the Ayers National Bank and he his opinattempt under the old charter: was to organithat meet the approval secure their the before the the


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Sues Receiver of Jacksonville Bank For State's Funds

Auditor Asks Accounting On $102,000 of Gasoline Tax Money

Charging that the Ayres National Bank of Jacksonville, which failed November 21, 1932. "wrongfully and unlawfully" obtained $102,055.22 of state gas tax money from Garrett D. Kinney, of Peoria, former state director of finance, the state today filed sult for an accounting against the bank receiver, in Federal court here. Filed in the name of the state auditor, Edward J. Barrett, the suit to force an accounting and restorstion of the state funds, charged that the Ayers Bank was "without any warrant or authority of law." in accepting the funds. It charges they were obtained from Kinney and held until after the crash, under the name of a pretended account marked "Department of F1nance Motor Fuel Tax Division, Garrett D. F. Kinney, Director.' After it was deposited, the money It was charged, was co-mingled with other monies 80 that it impossible to trace It is also asserted that neither the bank, nor Frank W. Roberts, the receiver, "took any right, title or interest in the tax money" and that the relation of debtor and creditor at no time existed between the department of finance and the bank. einer and Roy Voumard, sister of the bride and brother of the bridegroom. Mrs. Voumard is the daughter of Mr. and Mrs. Oscar Maxeiner, farmers, residing a few miles north of Alton on Seminary Road. Her husband is the son of Mr. and Mrs. Edward Voumard, farmers, also living in Foster township. Choir Meets at Tyner Home The weekly rehearsal of the choir of the Baptist Curch will be held this evening at the home of Miss Lillian Tyner instead of the home of Miss Susan Cox, as previously announced. The midweek service of the church will be held this evening at the home of Mrs. Estella Queen on Jackson street.

Country Church Aid Meets The monthly meeting of the Aid Society of Salem Presbyterian Church, nearly 5 miles north of Alton on Seminary road, was held at the church yesterday. Of the 30 women who are usually present


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Late Bulletins m., WASHINGTON, senate judiclary committee Thursday fused authorize criminal libel proceedings against Alfred E. Smith's "New Outlook," which printed David Barry's charge of congressional taking. The Before quashing the libel action the committee voted eliminate from proposed proceedings ther prosecution of Barry, forat arms dismissed because the article.

Darrow, save year old Russell from in the electric chair, called the youthful killer Thursday testo tify in his own defense. the Ayres National bank Jacksonville, which failed Nov. 21, 1932, and fully" obtained state gas tax from Garrett Kinney of Peoria, former state director finance, the state Thursday filed suit for an the receiver, in federal court here.

3:15 m., Japan's forces in Manchuria will against Chinese troops for the conquest of Jehol the office In Thursday. Although there definite of when the would get under way, the lieved it would be only few days.


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Charges Fraud.

Springfield, Ill.β€”(AP)β€”Charging that the Ayres National Bank of Jacksonville, which failed November 21, 1932, "wrongfully and unlawfully" obtained $102,055.22 of state gas tax money from Garrett D. Kinney, of Peoria, former state director of finance, the state today filed suit for an accounting against the bank receiver, in federal court here.


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OFFICIALS BANK

Four Men Charged With TakIllinois College Funds

JACKSONVILLE, Feb. The collapse of the Ayers National bank here brought indictments today for M. Dunlap, its aged president, and three of his subordinates.

Named in four indictments, Dunlap his home in custody of Sheriff Fletcher Blackburn. He sent word that he was and able appear Circuit Judge Walter Wright set his bonds at $135,000.

The others Goebel, Harry Clement and Edward arrested, furnished bonds and were released tonight. The charges involved the loss funds by Illinois college, the city Jacksonville and the local school district, of which Goebel, Clement and Edward Dunlap, respectively, formerly were treasurers. Goebel, cashier the bank which closed during December tion, named two counts charging larceny by bailee and bezzlement. Bond was count. The charge involved the theft from bank deposit box 121 utility bonds, valued $125,000, from Illinois college.


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CHARGES JACKSONVILLE BANK HELD TAX FUNDS ILLEGALLY

Charging that the Ayres National Bank of Jacksonville, which failed on Nov. 21, 1932, "wrongfully and unlawfully" obtained $102,055.22 of State gasoline tax money from Garrett D. Kinney of Peoria, former State Director of Finance, the State has filed suit for an accounting against the bank receiver, in Federal Court here. Filed in the name of the State Auditor, the suit to force an accounting and restoration of the State funds, charged that the Ayres bank was "without any warrant or authority of law," in accepting the funds. It charges they were obtained from Kinmey and held until after the crash, under the name of a pretended account marked "Department of Finance Fuel Tax Division, Garrett D. E. Kinney, Director." After it was deposited, the money, it was charged, was co-mingled with other moneys SO that it is impossible to trace it. It is also asserted that neither the bank, nor Frank W. McRoberts, the receiver, "took any right, title or interest in the tax money" and that the relation of debtor and creditor at no time existed between the department of finance and the bank.


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FORWARD DIVISION TO HEAR FLIERS

William Solberg and Ross MahaWaukegan's fliers who will leave the Century Progress grounds May to attempt beat the record of Post and Gatty, will speak tomorrow meeting Forward Division Chamber Commerce which have including the club. will luncheon meeting the Clayton hotel restaurant

Beatty. chairman of the For. Division. pointed out today that the flight important medium advertising for Waukegan and should supported by local He urged that who can possibly make attend the meeting

PROBE BANK FAILURE

March (AP) of former lieutenant governor was appointed chairman of the federal grand jury which today was reported against the of the Ayers National Bank of Jacksonville


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BANK RECEIVER ASKS COURT TO SET ASIDE DEED

A bill asking the Morgan county circuit court to set aside a deed of conveyance by which M. F. Dunlap deeded to the trustees of the Illinois College his residence property on West State street. has been filed by Frank W. McRoberts. receiver of the Ayers National Bank Mr Dunlap and the college trustees are named defendants in the bill which was brought "to remove fraudulent conveyance in aid of execution The bill recites that the Ayers Na. tional Bank suspended business on Nov. 21, 1932: that on the same day pointed receiver and on Feb. 21. 1933 recovered judgment in circuit court against Dunlap for the sum of $72.The bill alleges in part: "Your orator further respectfully represents unto the Court that on and prior to Nov. 20. 1932 the said de. fendant. the said Millard F Dunlap was owner of, was seized in fee simple of and was in possession of, the cupying the same as a residence and bomestead to-wit Lot 5 in Eno's Ad. dition of West Jacksonville except the west 25 feet thereof in the City of Jacksonville in the County of Mor. gan. in the State of Illinois: that on Sunday, Nov. 20, 1932. the said Millard F. Dunlap, made pretended conveyance in fee of the said de scribed real estate to the Trustees of Illinois College a Corporation the other defendant hereinafter named: that the consideration recited in said deed is 'Other good and valuable considerations and $10 in hand paid: that the deed making said conveyance was a warranty deed dated Nov 20. 1932. acknowledged Nov. 20. 1932. and filed for record Nov 21. 1932. at 8:02 o'clock a. m. in the Recorder's Office of the County of Morgan. The bill continues: "Your orator further respectfully represents unto the Court that said conveyance of said real estate was made with the intent. and the part of the said defendants, to hinder and delay your orator and other creditors of the said Millard F. Durlap. said defendant: that said conveyance was in fact made without any valuable consideration: that at the time of making the said conveyance said Millard F. Dunlap was insolvent all of which was then and there well known to the defendant. the Trustees of Illinois College, said Corporation: that when said conveyance was made by the said Millard F. Dunlap, said defendant. he the said Millard F. Dunlap, did not retain sufficient property, and thereafter did not have sufficient property out of which and from which the indebtedness aforesaid to the Ayers National Bank and to your orator could be satisfied all of which was at the time of making said conveyance well known to the said defendant. the Trustees of Illinois College The bank receiver states that the property involved is now held in possession by the college trustees He asks the Court to set aside the deed as means of recovering part of the judgment against Dunlap The bill was filed by Carl E Robinson. representing the bank receiver


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CLOSES CASE SOON

Of Dunlap And Goebel Is Making Good Progress.

June state rested today the trial Dunlap Goebel, officials defunct National Bank charged with embezzling Illinois ColFirst witnesses for the defense were called testify by counsel Dunlap indicated that require two days which present their part Principal witnesses the took the stand noon. expected to be by Goebel. June state's against Dunand Goebels, officials closed Ayers National Bank on trial on charges Illinois College funds, expected concluded county circuit court today State's Attorney Wilford Abscher and Robinson, who assisting nounced that they the state's when the trial today. The disclosure of alleged overdrafts the bank by Andrew on Ayers Russell, Jacksonville, former averaging about $100,000 period years, the highlights testiin the case yestermony Russell subjected to long of questions, most the ordeal time the former banker replied. do He asked many concernpolitical life.

Banker Stand Frank Elliott, president the Harris and Bank. Chicago, board Illinois testified that of the college trustees both Dunlap and admitted bonds the college had pledged Chicago bank made "protect the Elliott quoted Dunlap saying the indictmen. Goebel charged removing college curities without authority the and them Dunlap. in turn them collateral negotiating loan Chicafinancial institution. Following completion of the defense attorneys begin presentation Attorneys William Wines Edmund Burke, Springfield, former State's represents Goebel.

Dunn home seized the taxi driver for questioning. protested ignorant of the the sages, paid deliver them to the Dunn residence. The taxi driver was shown pho. tograph Sankey. He said he had "strong suspicion' that the man handed the sages near downtown Paul ho-

Detectives said they were further to believe that Sankey plicated Hamm's kidnaping the similarity between the instrucin this Bohn and Boettcher abductions. The method operations in each similar, they said. They believed Sankey. hunted by state federal authorities in dozen had become If he will face life imprisonment upon conviction under the new federal kidnaping

Wealthy Man. Hamm, controls business Interest built up his father. for many years promdirector the First National receiver of theatres, president Paul's largest department linked other enterprises. He active social the Twin ties business residential properties.


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Ex-Official

Commits Act Shortly After to Springfield Inquiry.

De former state treasurer and director of finance, shot himself through the temple early Friday a few hours after he had been served with a subpena in connection with shortage in his accounts The bullet entered his right temple, pierced the skull and passed through the forehead over his left

The wound was described at the Methodist hospital serious, and pictures were taken to determine the injury his skull. had been thought first that only superficial flesh wound inflicted. Kinney weakened by loss of blood and shock. Kinney had been living at an apartment hotel. He arose early Friday and went Culter stove which he formerly president.

Finds Kinney Shot. Asking the watchman to buy him Chicago newspaper, he tered the office. few moments later the watchman, returning, heard shots. Running to the president's office he found Kinney prostrate, forehead bleeding from wound inflicted with his caliber revolver. Kinney rushed to the Methodist hospital. The revolver had been borrowed recently, officials said, from Sheriff William Lichtweiss. The sheriff only Thursday was with contempt of court he obtain subissued Springfield for

Probe Under Way. investigation of the conduct state finances while Kinney of finance has been under way for several weeks, under the guidance of State Auditor Edward Barrett announced Thursday that had found shortage of $174,190 This addition shortages totaling $352.803 resulting from the deposit of state funds by Kinney in the banks closed.

Resigns Stove Post. Kinney director of finance the recent Gov. Louis In recent weeks he resigned his leaderthe stove and company directorates, and had been in seclusion the Marquette here. That he had contemplated an early rising made known Thursday night to his secretary Mace Tamplin, when he telephoned Tamplin and asked that he be callWhen Tamplin called, however Kinney had already checked out of the hotel secretary then telephoned the company offices and learned the shooting.

Practice Shot. The first shot heard by the shot, for only one bullet took effect. General Otto Ketner brought suit seeking recovery through state federal courts the state funds tied in the closed Ridgeley Farmers bank Springfield Ayers National Jacksonville Since June 10. Sheriff Lichtweiss had subpoena for Kinney's circuit court Springfield Friday testify concerning state funds the Ridgeley Farmers State bank. The threatened to cite the sheriff contempt service not obtained. for Kinney reported Peoria not Thursday night that deputy served Kinney. Kinney elected state treasurer 1926, and subsequently made director finance in the Emmerson cabinet. He years old. of Rensselaer county, New York. resident Peoria since five years For he has been the Republican state and for time its chair-


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SHORTAGES LEAD TO SUICIDE ATTEMPT

PEORIA, June Garrett DeForrest Kinney, former director of state finances, wrote his climax an investigation shortage in his accounts today by sending bullet through his skull.

The veteran Republican leader was critical condition tonight from of blood and shock

Kinney Until last year he member, part the time chairman of the state Republican committee He leading manufacturer and bank director, former state treasurer and from 1928 to 1932 director of the department of finance For several weeks the new state administration had been poring over his books, and suit had been started federal state courts cover $352,803 of state funds posited by Kinney the Ridgley Farmers State Bank of Springfield and the Ayers National Bank of Jacksonville, closed Kinney's affairs reached crisis yesterday. He had been living apart his wife. Yesterday he transfrom interest the Culferred stock ter and Proctor Stove Company unnamed persons and retired as its president. the state auditor Yesterday, Springfield disclosed that short$174,190 had been found age accounts director Kinney's finance. night the sheriff servhim subpoena requiring his circuit court presence Springfield today in connection with the suit recover state money from the closed Springfield bank Early today Kinney went to the works, told Clarence Stroud, buy him newswatchman, and went the presipaper dent's office. Firing first practice had borshot from revolver the second bullet sent his right temple. coursing through hearing at Springfield The court without Kinney.


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AYERS BANK RECEIVER SUES TO COLLECT $50,000

CHICAGO, Sept. 7.β€”(U. P.)β€”Suit was filed in federal court today by Receiver Frank W. McRoberts of the Ayers National Bank, Jacksonville, Ill., seeking to recover a total of $50,000 from Oscar Nelson. Further than the name, the defendant was not identified.

The suit was based on an indorsement of a note made by Nelson in 1924 and found among the bank's assets when the receiver took control last November.

The note had been made by D. M. Flynn, September 29, 1924. He borrowed $30,000 on security worth at that time $36,000.

The suit seeks to recover the $30,000 principal and accumulated interest amounting to $20,000.


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BANK RECEIVER SUES FORMER STATE AUDITOR

A suit for $50,000 against Oscar Nelson, former state auditor, was filed in the federal district court yesterday on behalf of Frank W. McRoberts, receiver of the Ayers National bank of Jacksonville, Ill. The bill says that in 1924, while Mr. Nelson was state auditor, he indorsed note for $30,000 given to the bank by one D. M. Flynn, now dead. Interest of per cent was paid on the note until Nov. 22, 1932. when the bank failed, according to the bill. Informed of the suit, Mr. Nelson said that no effort had been made to collect on the note. No one has approached me concerning the note, and from what gather the figures are all wrong." he said. The note originally was for $30,000. but $5,000 was paid on it. Since the bank closed have heard nothing about it."


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No Decision Reached By Jurors At Early Hour This Morning

(Continued from page seven) Have Lost Homes that Goebel is the They say that has actually surrendto his home. know that ought say suit now against Dunlap, pending take his home. any lost voluntarily them to the College. want to go back just moThe dated this 1927, Mr. Dunlap uary Mr. After day spent Mr. Russel, returned to Hotel wrote on Hotel paper Mr Dunlap this Mr Russel next When there Mr. had his and said, Mr. Mr. Dunlap with you on your terms. Your stuff isn't worth He said he but had to have That he had to have within 60 days, and wanted the other monthly installments. Dunlap refused that but said he would pay when he He didn't him his note, but gave word for Anyone knows they can take his word, that Millard Dunlap stands back of his word and Andrew Russel knew he Mr Dunlap thought load was taken off his mind, that checks would He Mr. Russel paid what had asked, and now he Did did not. Mr. Russel the in the next year. was out October of that Did stop then? He did He kept Mr. had fair MORE MORE MORE MORE Russel It appears from the evidence there were state deposits which Mr. Russel instances, while he in office for the Ayres believe ran two Now when money the bank we all know bankers right it and in ordinary times very siderable of the amount loaned by the bank at interest The bank always interest on time deposits. There are hundreds of thousands, in the bank by deposit and the bank has the right to loan them out to you or me that give the securNow ordinary the most of can be loaned but here's couple Andrew of gradually he could just withdraw Suppose he called on any bank in to pay the the deposit that had, isn't bank in the world that any them do If the million was loaned Russel said that and they went and for you'd isn't due pay now Russel said letter ten in made arwith the powparty) the bank being taken care This has not been done without cost humbling pride, but sure you that these easily be to some other agency at any fit. and will done the bank doesn't see fit to honor my checks Kept on Checking In January Mr. Dunlap settle on Mr. terms, and him of as you would think aft. he drew he would He was getting salary $15,000 for doing nothing except help those state deposits in Ayers National Bank He was to get $15,000 for two years and $20,000 simply for his name and what he may had these but when Mr. Russel he was procuring the for the Ayers National Bank he just put all the he Mr. in, he quit checking then up of for he would $500 and $1,000 Did he the to cash them? He did not. he had the handed them to the the teller would Mr Dunlap he handto Mr he would he had there isn't what he He cashed them the depositing them else the banks Chicago send here for and Mr. Dunlap was afraid throw them out have thrown out check on the Harris Trust and Savings or the Continental Bank of Chicago, Mr. Russel would have come out the state deposits wrecked the bank.

Russel Exhibit No. It is difficult for Mr. Dunlap say arrived when was not protected, and Russel Mr. Goebel, and as far know he just the think will just call him No. Russel worth the exhibits the state has yet you don't the law requires that the attorney the on of the the the number of he didn't call. When put on and didn't call them, John the First of Chicago, not Homer bank's called W. of the They call the examiner They didn't call Miss Hildegarde didn't call Louis L. know what the for, but he You heard something here about Andrew Russel campaign, but never has shown what am very much didn't Frank W. there lot of things Russel testified the Frank not bank books Mr take his Dr. Grace she is. so and They had some their own mind of as why Intent Defense Now the things they all back the and bonds to Mr Dunlap Mr Goebel of taken by these with intent steal. That's what are try not that Mr. Goebel procured those bonds the them Dunlap, Mr Dunlap sent them the National Bank then put lateral signed Dunlap That isn't Before be these ment, Millard Goebel. the and the lawfully In the his he in the That's had or Mr. Mr bonds they the in their pocket and away

Goebel reason to would did Mr. Mr He did. He for Not was worth Mr. Robinson the being curity wasn't stock was the that public par value worth the par value and the of Did G. tempt his and seem take He intend time he Mr Mr intend to He had put and if him bank different today. Duty going the serious formed in that doubt that Mr Mr and Dunlap in the time they be you do ought further that that in this when raises minds the jury, you have in consider and all to whether the part the these the to these the benefit find not Another thing, trying only case. you you would put there are brought later of your concern You called here simply state under whether that the court has proved these guilty the charged in indictment. Don't let narrow down said was the when you get jury room, on part of these possible good can men? Here Mr Dunlap, the sunset of life, and raised in this community he He will 76 old years the 9th day this behalf he wouldn't to Mr. Goebel found was guilty Mr is not quitter and not asking for that he is Mr Goebel do Mr. Goebel man 52 from his and be one thing you bring in verdict this case afterwhen go to you will say to two old man in the of now that think it don't those fellows to steal bonds at all. Now don't get yourself situation that you will regret as you you would say the take Mr Dunlap Mr. Goebel and lock them in all probability Dunlap for am asking you believe bereasonable that they should be convicted. don't this evidence you beyond to these bonds. but you doubt to render a verdict of guilty. think of things haven't You why Mr. call and so. things Mr said, that to you my them up to me and not Mr

Absher Closes. State's closed the with the came this court before the of this we were for the the Millard DunNow still Goebel and counsel for try minds That's be They want away the want to divert to Christ could slip the the principles candid We are They concitizen state *them citizens we get against against medicine not Going of the minds There are have arguplace not and bring insay the Honor on as with you make of this we expect Don't afraid

Must Face Facts. Mr that Mr those bonds Illinois he those would reason he didn't didn't am We am going you the in We peojust simply you He be William bonds to bring verdict failed at have any shadow witness Mentions Witnesses Mr say would call your failure to call certain names on the indictment Now attention to this Wines we failed Frank Mr. and wondered why failed do Dr. Dewey of Illinois College have the bonds her possession didn't bring in was Frank McRoberts, receiver of the Ayers the bank The thing we pected that Millard Dunlap to produce expected to show Andrew the was not necessary to call McRoberts,

Sibert is the bookkeeper are the College. After showing the evidence in case of the delivery of everyone of the bonds alleged in indictment wasn't to show by her because it was West testified About bank examiner. whose on the indictfor Dunlap himself, you gentlefor men remember stated the last bank 1931 gling bearing on matter all. This crime was was mitted and doubt June 20, Hagey, vicethe First National Bank Chicago, the whom Dunlap whom he his these this am sorry say ill and not be here. to him here Mr. Dunlap all that he could Every other witness has testified that we could and told the truth as far know All Screen It's all know and do Here's whole defense. Smoke screen Number sought to your minds. They try to your minds from the facts here away before Andrew Russel the Russel. Gentleall me say this, never said my because didn't know they were say about our hold brief for Andrew Russel. If he mitted crime withdrawal Ayers Bank my Mr. Robinson has crime the Federal lap crime be excused by Another thing not That's try make Russel the They the of trial and then and me and he there record that any William crimes say Russel to crime heaven knew it and anyone. gone officer of said An he Doubts Restitution Mr you be the trustees of Illinois getting deed Millard Goebe Russel for their home and for the they He tries to make of are worth Gentlemen aren't of or radius 90 worth that (objection by in this that the the bonds don't ready now and they of The the fair ket at that has petit that they stole $15.00 it Now they try to have think what grave we here before was trying avert Illinois the the after for and that time of College Mr bank would have Did them? No went and property There to co-operate. Big and Now you what the bank exYou Goebel the told and Goebel the will new be the the officer Run On Bank had the what next would part parade most that has in Mr. Wines man who has hard his himself luxuries didn't have think he still has There's evidence case as to what kind No evidence that walking either to meeting Walter home They say his Why? Illinois have right to ask where the proceeds had and didn't he open up tell them just he here on the he could get away with. Why, that and not Bill said, "he trying to shield and him and tell who was, the shows up to that time that Phil to him Andrew Russel and Phil Dunlap

"two wings on one That's there Speaks of College Now what happened? Illinois Col- did the oldest college am informed established started this city little small one college for making rofit but the purpose of the purpose of the youth the this community had strugMust have had. here country seven Illinois admitted to the Union You might pushed its way up its own he spirited to its fund goes here the W Goebel enrolls His developed the He the had He and citizens Goebel later and with every They 17 Fraud We the Goebel the bonds them which was them to we had Dr. Ames had turned fraud that was was bonds, closed the Bank you all The Did off His he You know the Now there considerable the trouble The not or not blame

Speaks of Settlement. We Januthe was on Russel children up you listen defense Now the defendant Goebel for Goebel that he took the bonds. He he has done what he them on the day of June of the and did knowing Illinois College and he to knowing pledge them for his don't know proved to you are the The in before him for was The the well, The offender said guilty The old will have have better evidence than that won't believe the men when say they what we have said they did, unyou've got to have better dence than don't see how could that these have not been convicted beyond doubt of in this indictment Dunlap Goebel Dunlap prevailed upon Goebel had done time and again. had it been the first upon by this older for first but he done they the to say they back They were Every time put them Now come theft six to to be the last up, and that bethe comnever got They do any that the acthere brought

Goebel Took Bonds Goebel profited one to chose to use bonds his superior Dunlap and when that his the fact Goebel taken them out match you them not for College the you to for decide them do them There in this inthem Dunlap. that the of the crime with which of loyalty of Goehis there William that he that the on what He Alma have ple you

Summarize Case

Let's by Did on intend He up the though the and Hagey the we or he He like he fair down He waits weeks during had told no one Phil back day after Walter same building charged the of finances of yet Dunlap didn't There Frank Chicago the Frank of The The be of not other Harry the finance he and Savings Bank not him. in two the his and never told member of the Trustees anyone he forced to when the cards were forced the table he yes, he did Can you the know had stolen, he had any you would think he property that he ought put back to try to pay the damage you get the complete his Honor you will find that the deare guilty of the crime which by this When you brought in from jury of want this jury, don't blame know of no admire you for the stand that you took, that you were willing to sit here and spend your week, more than week, order that may stand bar against which the assaults the criminal might drawn stand between the people of the of Illinois the criminal gentlemen. very commendable and just want to remind you, when you were asked in the for juror, that taken juror and the evidence your of the defendants guilty beyond reasonable doubt of the crime charged, and after the instructs you the case, you would before God mighty bring law and evidence in this and meant you Follow the After you amined all you are guilty either of them manner form as duty render verdict of Guilty thank

Judge Stone to These given you the this Jury the sole Judge of the facts in this case. and the weight given their and the Court may have said to you or in these instructons pass any judgethis On the hand the is the judge of the law in You have no right disregard any thereof but are bound to the whole of given by the Court and apply this Robinson's argument before the follows You here many days lislap tening to the and the quesasked by the lawyers in case The and comes time when the counsel on both argue their sides. the the be tiresome you We will have ask listen to your the beginning the want say to want you to had listen to the the to listen the state's attorney when makes his closing argument. give us the and all this am not qualified in way you are the qualified to in own am take the time to You heard as plainly and imhave, am in the don't believe any to Follow Law Jurors they that are imparto begin that they can the and try the fair and of There why because you us you follow the law the the Right want certainly the judge like the one who competent you take the law court he and apply the the And then the you not to say man the that but you are what punishbe this You and for or against say can say the owned had care the the owner whose Illinois College, which is then, and say bonds Mr only the Treasurer Illinois National that he took the bonds where belonged the National Illinois, where kept them in safety for the and gave to Millard pledged or put for in Millard Duniap, under am has all doubt, Mr Goebel didn't profit any unthe put up at the request Mr that Mr Goebel turned investigation of his They for of was to the Bank of and was left to his credit which Bonds Taken from Vault That and of dollars taken of the vault where they were for Dunlap knew the bonds of the the bonds of the College Goebel had no right to do this Dunlap no right But took anyway without anything the owner to the owner that they "borrowed" the Do not know the conception word bormoney from the bank would know what meant. doubt Mr Dunlap have loaned any bonds that someone had loaned bonds belonged him that what would he have thought of it? the of the Ayers National Bank taken worth of his pledged or them, he that had Wouldn't have they were If you from to and of dollars would you say anything to it, or you go take not the fact him by any means that you had the that the thing does not come to his until you are caught the ears goods on you? Would you call that borrowing? "Intent Was Fraudulent" Now gentlemen, intent this fraudulent from ginning, because these men intended that the Trustees of Illinois College not know anything about was all right, honest, why in the name God didn't they ask the owner say they would borrow the bonds to put up collateral, them, you them would like borrowing. it ridiculous for man banking as long Dunlap the word "borrow" in sense. He what word knows were not that were withthe consent the owner. That's what he knows and he admits here. why and he said he said he didn't think do any good. They had the right know. They were the owner the bonds Anyone had the to No one has the right, president of National one, up bonds lose them, and then hear the bonds. When the bonds," he said. "Why Mr didn't them: borrowed them-I borrowed them.

Does It Make Crime Less? want to you that nobody every of that way venture to say then, there motion brought in here that didn't intend anything wrong. Mr. Dundidn't intend to do he was he was perfectly open and frank about yes he did pleads that in does make crime any if you get caught? Dunlap "why, soon as asked me, and didn't any wrong." been done. the pledged. and the note secured them had fallen on the 20th wasn't couldn't be paid. and they didn't pay The College had borrow money get them Dunlap and Goebel couldn't didn't get them back. was when he went to renew note that told anybody had the right had taken the bonds. He pleads that in justification. There been many things said about Mr Goebel profiting the profited got much of an to him perhaps, but a lot some us Doesn't justification he didn't get any from That from farmer the money down pay my with stolen the farmer's horse steal and the money in am guilty or not? am property he had right The of what they intended the any difference. they say Andrew Russel don't hold any brief toward got my open. (Here made into the But we are not trying Andrew RusWe are trying the defendin this think will about Russel That doesn't matter but gentlemen guilty knew about this, ten times guilty because they did the very thing that Russel Illinois College isn't party to this college which Dunlap was college his college that This gentlewhere the People the Illinois and the Court tell you They inject into this case that you tlemen might think the college didn't ought to. case People the State Illinois are Plaintiffs Millard Dunlap the In the of the People of State of Dunlap William G. no else carry illustration little further.

Honoring the Checks Dunlap was and didn't the Dunlap that get but he withdraw the state from the if they did withdraw the You Gentlemen of the Jury, that Dunlap have lowed anyone out hundreds dollars from this bank there very good reafor for the purpose this doesn't but Dunlap wanted to keep the and that all wish he had kept He couldn't borrow money on the was saying to of Illinois College, said Goebel, the bonds and will secure you by putting up the bank Mr. Goebel was Cashier that bank. He knew what stock officers the bank knew. They knew they couldn't get any money on because the what was worth but Goebel, cashier of that let the good bonds of the College out without consent of the and takes for the stock of the Ayers National Bank knew could get loan on bonds it on the get the bank. He knew the bank in take wouldn't take other yet, in the face that he lets good, owned by old from fund, given the in this munity, lets them go and takes of National Bank, an return for to the bank? All right, but why on stand up before the public and say you can us. do it. Why Dunlap stood out in this comcouldn't (Continued on Page Ten)


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Former President of Ayers Bank Sentenced To 2 Years in Prison

By Staff Correspondent Springfield, Nov. Fillmore lap, 76 year old president of the closed Ayers National begin serving sentence of two years in federal penitentiary, Nov. 16, Judge Charles G. Briggle, of the United States district court ruled here today in denying Dunlap proafter his conviction on charge of making false entries in the books of the now closed bank. William G. Goebel, convicted along with Dunlap on a similar charge, will remain free on bond while Judge Briggle investigates further his petition for probation. Dunlap must also pay a fine of $5,000. and one time holding the office of treasurer of the party heard the Merision to deny probation and Judge Briggle's of sentence without show of other than tapping left cheek finger his right hand He immediately after sentencing for United office for bond. The was to cover day granted by the which Dunlap his attorney William St. John to arrange or his business affairs He Jacksonville last and began preparations for his Leavenworth in which he will be confined 16 the eral grand jury at to Dunlap and Russel former and and on leader, indict the of the Ayers bank with mis of funds thrown out court sentencing the the bank Marks Alexander. United States district would report the of ments his Frank Lemon, when Mr Lemon the and the Quincy grand be recalled jury The check alleged to have been given by Chicago cashed Louis bank Rules On Demurrer The charged that amount the check the funds of the bank although Russel not draw the bank ruling the on demurrer Judge Briggle that the fact that the paid amount the check was to prove that the gations of the He held that sufficient was not evidence show that the parties volved intended to pay bank the amount vency of the in no bearing on the declared Not every overdraft criminal offense judge the funds taken out of Reaching Tatal indictment Briggle that the indictment the either of acting as an voice Judge Goebel Mentioning there were the court could for probation and the saw of the that it was his the the floor time the that both he Dunlap the took Mr give Mr Goebel He also spoke Judge Briggle sentenced Dunlap stating he to fine and his mitted to of the district confinement in federal penitentiary The judge said that expected to probation of that many things to him on sides of the question that he was unable reach decision He said, however that because the ruling was not handed down today was of what the decision would

Wines Takes Floor Attorney again the floor and pleaded for lighter He Dunlap was poor health and that two year for considerable Wines that sentence be was duced year and day arguing that two sentence might result in the gentleman" dying prison two year sentence about the same as life Mr. Wines said. No one more appreciates the seriousness case than Judge Briggle said, adding he had considered all angles of the case It seemed to that sentence adequate from standpoints and he not inclined to reAttorney Wines then asked the stay of sentence for 30 arguing that he had assured his that would granted much time which to arrange his affairs the petition for probadenied Judge Briggle Dunlap had agreed to give him days to his business being granted permit an appeal, Judge Briggle at the close of the hearing $10,000 was set Dunlap left make for to appeal would Judge Briggle concluded

Can Appeal. The door open for an apthe be filed Dunlap's attorney did not indicate that he intended to pursue the case further the meantime, Dunlap be to federal penitentiary selected the United District Attoroffice There three places which the aged sent. representative the district attorney's office. speaking after the hearing said that Leavenworth probably lected because of facilities closeness, but possible Dun. lap may sent to McNeil's Island State's Attorney W H. Absher, who sat through the trial and tencing said yesterday that has determined upon course action regard to indictments held in MorCounty Circuit Court He he reserving decision on be taken until Judge Briggle Goebel's petition for explained that the indictments in county can either be tried while Dunlap prison, can held for trial when he released. Regarding the new indictment which sought charging Rusand Dunlap funds Mr Alexander said that would be possible two men It deemed Dunlap may brought from prison to answer by legal consisting Edgar Doyle Russel tended hearing and appeared somewhat elated when indictout Present with Dunlap in the court room were his son Ralph daughCarrie daughter reddened when the was nounced, while the son changed position slightly Although for the blow came the daughter, were hastily large number of people Indicted Last June

Dunlap Goebel indicted federal grand jury Springfield the June term. They deputy homes taken Springfield charging with tion banking came the September There little delay after trial was called Judge Briggle jury Central Illinois men and farmers was within less half The on the jury juror living closest being at Bluffs attorney to that was in informing the court that was disorder. court took into consid the of the defend him to the cour During the trial the banker milk in the court room on He has defended since the the criminal by Actor John former College Trial Lasted Days Hearing three Closing arguments of torneys brought contrasting pleas conviction acquittal District Prosecuting Frank K Lemor his Marks Alexander pointed Jacksonville bankers as having deliberately spired make false entries books bank The pleaded for leniency, declar ing that Dunlap and Goebel had of defrauding anyone After hours their the finding guilty of making false There new trial probation filed the lawyers Basil Ogg merly as state parole appointed by the court special officer number of days investigating cases the defendants He was several occasions ferring with various persons as defendants His report Judge Briggle fixed Monday the date


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STELLE NOTE SUIT IS DISMISSED BY COURT

Springfield, Oct. long pending against John H Stelle, McLeansboro, assistant state auditor, loan from the defunct Ayers National Bank, Jackconville, was dismissed Sangamon County circuit court here today The suit was dismissed by Circuit Judge Stone, on the motion of an attorney representing the bank receiver The has been pending for more years Steele candidate for state treasurer the Nov election


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AGAINST JOHN STELLE DISMISSED

Action Taken By Circuit Judge In Case In Springfield.

(United Press) Oct. A long pending suit against John H. Stelle, McLeansboro, assistant state auditor, involving $10,000 the defunct Ayers National bank, Jacksonville, was dismissed in Sangamon county cirhere today. The suit was dismissed by Circuit Judge E. Stone, on the motion of an attorney representing the bank receiver. The suit has been pending for more than two years. Stelle Democratic candidate for state treasurer at the November election. Dismissal of the suit followed visit here late yesterday of R. Northcutt, Beardstown, attorney for the receiver. He said the suit had been carried on the court docket after the payment the note, through an error. In changing receivers and attorneys, the matter of having the stricken overlooked, he said. Northcutt was not present in court today's proceedings, ing represented through another attorney. Stelle was absent, being in Mason City to attend rally.


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Suit Against Stelle Over Note Dismissed SPRINGFIELD, ILL. suit against John H. Stelle, MeLeansboro, assistant state auditor, involving $10,000 from the defunct Ayers National bank Jacksonville, dismissed in SangaCounty Circuit court here The suit was dismissed by Circuit Judge L. Stone the tion of an attorney the bank receiver. The suit has more than two Stelle is for state treasurer at the Nov. 6 elecDismissal of the suit followed on visit late Wednesday R. Northcutt, Beardstown, attorney for the He said the suit the docket after the of the note, through an error. In changing the of having the stricken According records Stelle obtained $10,000 from the Ayers bank 1932 and gave the 710 shares comstock in the Egyptian Dairy Products security. On Nov. 21, 1932, the bank failed. Court the summons served on Stelle. Oct. 1933. That record the last filed in the court in connection with the


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Condition of Dunlap Is Serious Officers Of Missouri Report

Springfield, Mo., Dec. 21.β€”(AP)β€”Millard F. Dunlap, 76 year old Jacksonville, Ill., banker who was removed to the government hospital here from the federal penitentiary at Leavenworth, Kansas, is suffering from a complication of diseases, it was revealed today.

The aged banker, convicted of violating the banking laws following the collapse of the Ayers National Bank of Jacksonville of which he was president, was said by officials to be in a serious condition.

Andrew Russel, former state auditor and state treasurer of Illinois, died recently at the federal reformatory at Milan, Mich., where he was serving a sentence on charges growing out of the collapse of the same bank.

Dunlap's condition was said to be serious. His heart, stomach and kidneys are reported as affected.

Mrs. Ruth Bryan Owen, U. S. minister to Denmark, whose father, William Jennings Bryan, was a life-long friend of Dunlap, has expressed an interest in the aged banker's condition, an interest which is said to have been reflected in Washington recently when federal officials asked that a record of Dunlap's case be sent to them.

Ambassador Owen's interest in the case grows out of the fact that Dunlap was the lifetime friend of her father, William Jennings Bryan. Their friendship dated back to the period when the Great Commoner was a law student and lawyer in Jacksonville. When Bryan left Jacksonville, the intimacy continued. Dunlap espoused Bryan's earliest ambition to be president and aided the Illinois delegation and the movement which gave Bryan the nomination in the spectacular "Cross of Gold" convention in 1896. Dunlap was made treasurer of the Democratic National committee in that campaign.