Dan Head & Company (Kenosha, WI)

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FARMERS LOSE HEAVILY

Suspension of the Private Banking Firm of Danhead & Co. KENOSHA, Wis., Aug. 24.-Financial circles here were astonished this morning when the following notice appeared in the window of the Danhead & Co bank: "This Danhead & bank closed until Monday." Co., bankers, were incorporated with a capItal stock of $750,000 and advertised that five of the stockholders were worth over $3,000,000. The bank was to have been reorganized July 1, with the late Senator W. S. Maxwell, of Somers, as president. Last week the cashier, Urban J: Lottis, resigned on account of ill health. This caused the depositors, who were mostly farmers, to make a run on the. bank. The bank expected assistance from the American Trust and Savings Bank, of Chicago, which they failed to get. The deposits in the bank are said to have amounted to something like $175,000.

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WISCONSIN BANK Astonishes Financial Circles by Failing. Kenosha, Wis., August 24.-The financial circles were astonished this morning to notice a card that appeared in the window of Dan Head & Company's bank saying: "This bank closed till Monday." Dan Head & Co., bankers, were incorporated with a capital stock of $750,000 and advertised that the stock holders were worth over $3,000,000. The bank was to have been reorganized July 1. Last week the cashier, Urban J. Lottis, resigned on account of ill health. This caused the depositors, who were mostly farmers, to make a run on the bank. The bank expected assistance, which they failed to get. The deposits are said to have amounted to $175,000.

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A BANK FAILURE KENOSHA, Wis., Aug. 24.-Financial circles were astonished this morning to notice a card that appeared in the window of the Dan Head & Co.'s bank. This bank closed till Monday." Dan Head & Co., bankers, were incorporated with a capital stock of $750,000 and advertised that the stockholders were worth over $3,000,000. The bank was to have been reorganized July 1, with the late Senator W. S. Maxwell, of Somers, as president. Last week the cashier Urban J. Lottis, resigned on account of Ill health. This caused the depositors, who were mostly farmers, to make a run on the bank. The bank expected assistance from the American Trust and Savings bank, of Chicago, which they failed to get. The deposits are said to have amounted to about $175,000.

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SATURDAY'S HAPPENINGS

Jacob Reich, of Willvale, Ind., and his two sons were gored to death by a bull. Julius C. Schuckers, of Wooster, O., was arrested at Denver for uttering a forged draft for $150. The Dan Head & Co. banking firm, of Kenosha, Wis., suspended. The deposits are about $150,000. O. W. Winthrop was acquitted at San Francisco of poisoning Mrs. Jennie Matthews to obtain $2,000 insurance on her life. Harry E. Roll, formerly a leading dry goods merchant of Kansas City, Mo., and very wealthy. committed suicide. Carrie A. Woodson has brought suit against Henry E. Eamos, a Chicago broker, for money she lost speculating upon his advice. Governor Richards, of Wyoming, has ordered the arrest of the party of Princeton students on a geological expedition for killing antelope. Two cars on a Brooklyn trolley line collided. There were about 100 passengers aboard, but Motorman Bolet was the only one hurt. Both cars were wrecked. Terms of peace between the state of Rio Grande do Sul and the government of Brazil have been signed. Preliminary peace terms were made two or three weeks ago. Colonel Z. S. Spaulding, who recently received a franchiso from the Hawaiian government to Inv a eable from Honolulu to San Francisco, says the project will require $4,000,000. Twenty-six damage suits for $1,000 each were begun against the Evansville & Terre Haute railroad by those merry pienickers left over night at a small station near Vincennes, Ind. The Spanish report that 1,400 insurgents besieged a fort containing 20 Spanish soldiers for three days, finally capturing it, with the loss of 7 dead and 15 wounded. Several small engagements are also reported. In a fight near Nombre Villas 15 insurgents were killed.

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Prosperity in Wisconsin

KENOSHA, WIS., Aug. 24-Financial circles were astonished this morning to notice a card that appeared in the window of Danhead & Co.'s bank: "This bank closed till Monday." Danhead & Co., barkers, were incorporated with a capital stock of $750,000, and advertised that the stockholders were worth over 3 million dollars. The bank was to have been reorganized July 1, with the late Senator W.S. Maxwell, of Somers, as president. Last week the cashier, Urban J. Lottis, resigned on account of ill-health. This caused the depositors, who were mostly farmers, to make a run on the bank. The bankexpected assistance from the American Trust and Savings bank of Chicago, which they failed to get. The deposits are said to have amounted to at out $175,000.

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THE DAN HEAD & CO

AFFAIR TURNED OVER TU GEO. HALE. HIS BOND FIXED AT $200,00 The Bank Failure the Sensation of tl Hour.-How it came About.-Depositors at the Doors.-What the Stockholders Have to say. (From Monday's Daily.) The Dan Head & Co. bank ha failed. Failed completely, and gon out of business, and this morning th excited depositors gathered about th place and looked anxiously at the bi brown stone building whose curtain were drawn and at the two small slip of paper which appeared on the bi plate glass window and the door whic in Remington capitals proclaime " Bank closed until further notice. This was a change from the first notic the public got of the closing of th doors. The first slips which appeare on the doors stated that the bank woul close until Monday morning. But th morning the doors did not open. o the contrary a long meeting of tl stockholders decided that nothin could be done and that the doors bette remain closed. There seems to be an inside histor to this failure which has not yet a come out. The connection the ban had with the Chicago Bedding com pany affair was not all by any mean It is charged by those who claim to b on the inside, that the management e the affairs of the institution has no been what it should have been. No that the intimation, which may easil be drawn, that the people themselve were dishonest IS intended, but th condition of Mr. Lewis, who as he say almost lives on morphine, was such a to make it well nigh impossible for hir to conduct the bank's affairs properly Mr. Head, the president of the institu tion, has left the active managemer exclusively in Mr. Lewis' hands, an when Mr. Lewis went onto the bond of those charged with conspiracy an arson Mr. Head made a very strenuou objection to it and declared ver strongly at the time that it was a ba move to make. Mr. Lewis, howeve at first refused to listen to any imputa tion against the members of the Bed ding company and believed that afte they had been given a fair hearing i the courts they would be vindicate and therefore his own position in th matter would come out alright. Bu the story was let out onto the street and when the wily tongue of the gossi got hold of it the good name of th bank was drawn down and used ver freely. Excitement Running High. Since the story has been circulate so very freely the excitement in th city and among the country depositor has been running high. As queer as may seem the country people hav been the ones most effected by the at

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ALL VERY QUIET

The Affairs of the Dan Head & Co. Assignment All Right. Everything has been very quiet about the bank of Dan Head & Co. today. Assignee Hale was on deck early with Attorney Fisher, Fred Engle, Dan Lewis and Charlie Garst, his assistants. In an interview this morning held by a representative of this paper with Mr. Hale, that gentleman said everything so far appeared all right and that the assets were showing up very much better than had been anticipated they would. He was still hard at work on the schedule of assets and liabilities for the inventory, and from present indications it is not at all impossible that the bank will be able to resume payment again before a great while. It seems to grow more certain each day that no depositor will lose anything. The movement for a receivership has not apparently gained much headway. Several of those interested have consuited their attorneys, but no decisive steps have yet been decided upon. Further developments are being awaited. Assignee Hale stated this afternoon that an account had been opened at the First National bank. He said State Bank Examiner Kidd had been here this morning and had looked over the records of daily balances and the teller's accounts for some time back and was satisfied with the showing. He told the assignee that it would not be advisable to open the bank for the collection of accounts due, until the inventory had been completed. He left town again and stated that he would return when the inventory had been completed. Is This True? There is quite a bitterness of feeling among some of the depositors in the defunct bank because of the alleged fact that they have nothing to show for money left there. A reporter for this paper heard of at least two instances where money had been left with U. J. Lewis as cashier, with the instruction that it be loaned for them. They were given no papers, they say, to show for the amounts thus left. If this be a fact they have no claims against the bank which the assignee can take any note of. One left $1,000 and the other between $5,000 and $6,000. Everything depends upon the honesty of Mr. Lewis for the return of any such money.

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An Attempt Made to Tide Over the Storm Proves Unsuccessful. WILL ASK FOR A RECEIVER. Action Decided Upon at a Meeting of the Stockholders-Run by Farmers. Kenosha, Wis. Aug. 26.-[Special.]The failure of the Dan Head & Co. bank, which was announced Saturday, DOW appears to be worse than at first supposed Saturday forenoon the notice was posted on the door: "Bank closed until Monday morning The president and directors felt quite certain they could tide matters over if they could have Sunday in which to look for anch immediate assistance as was needed. The American Trust and Savings company of Chicago was appealed to. but it failed to send any currency. Then a general scramble was made at home for the assistance of local capital but in this success did not crown their of forts. It is now apparent that it will be some time before the bank will resume. After the general serambie had been made for ready funds and an all-night session of the stockholders had been held the further notice was posted on both the door and huge plate glass window "Bank closed until further notice." This was put up yesterday afternoon. Up to the hour of closing the bank had been receiving deposits, one man having placed $400 there just a few moments before the doors were closed. There are several causes which have brought about this failure. The first and most important one is hadoubtedly attributable to U.J Lewis' contrection with the Chicago Bedding company Mr. Lewis was president of the bank and president of the company. The big conspiracy and arson case instituted against some of the members of the company had its effect on some of the former depositors of the bank. Mr. Lewis was not in the slight est degree implicated with the big arson case, but it leaked out one why and an other that he had gone onto the paper of the company rather heavily with Barney I. Block. who is now in jail charged direetly with the crime. Then started the run of the depositors. The run was a very quiet one. There was no helter skilter rush There seemed merely to be a general feeling of insentity and the deposits were withdrawn in the most quiet way for a couple of weeks. These deposits are said to have amounted to $150,000. There are undoubtedly other causes, but these were the main ones. Strong efforts were made about July 1 to reorganize the bank. A new set of papers was drawn up and the company was to be incorporated under the name of the Farmers State bank. The plan at the time was to make ex-Senator Walter S. Maxwell president. The matter was dropped for a time and another effort was to be made to complete the organization on September 1. This last plan was balked by the sudden death of Mr. Maxwell at Superior a week ago last Saturday. The bank of Dan Head & Co. has been one of the business landmarks of Ke nosha. It has been in business about twenty years. The stockholders in the institution all hold prominent positions in business and financial circles. The following is the list of stockholders: Dan Head. 1 J. Lewis. F. W. Engle. Miss Mattie French Cora Holt. William Engle, Alfred Miller estate, Dr. F. G. Hazelton, M. P. Lewis, J. R. Marsh and R. E. Sutherland. Mr. Head stated this morning that the bank would pay 100 cents on the dollar. but William Engle. one of the stockholders, said that 75 cents on the dollar will be about all that can be realized. The stockholders have decided to request the court to appoint George Hale as receiver and mind effeing of the

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The Head Bank

Kenosha, Wis., Aug. 28.-At a meeting of the directors of the Dan Head & Co. bank, which closed its doors Saturday, it was decided to go into liquidation. A petition was presented to the court recommending that Geo. Hale be appointed receiver. Daniel Head, who is eighty-five years old, says the bank will pay dollar for dollar. but other directors do not hope to pay more than 75 cents. On July 1 the deposits were $204,000. while on Saturday they had dropped to $153,000.

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Several bank failures are reported in the West, among them the First National, Franklin, Ohio, capital $100,000; Commerclal bank, Milwaukee, capital 834,600, voluntary Rquidation: Bowling Green bank, Bowling Green, Mo., capital $25,000; Bank of Dawn, Mo., Habilities $36,000; Dan. Head & Co., private bankers, Kenosha, Wis., capital $100,000. The Farmers and Mechanics' Insurance company, Alexandria. Va., has been placed in the hands of a receiver. Spelman Bros., fancy Goods, New York, have assigned. liabilities $250,000, and receiver applied for Hughes Steam Pump company, Cleveland, Ohio.

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A QUESTION RAISED WAS IT A CORPORATION OR MERELY A PARTNERSHIP? Another Development in the Kenosha Bank Failure-The Lawyer Quotes the Law. Kenosha, Wis., Sept. 8.-Interest has been revived in the affairs of the Dan Head & Co. bank. What brought it up again were the two facts that Assignee Hale promised that a complete inventory of the bank's affairs would be published yesterday afternoon by Attorney Norman Baker concerning the legal aspect of the bank's assignment. He believes the present assignment clearly illegal and void as against depositors. His statement of the case is as follows: "Dan Head & Co. assigned as a corporation under the general laws of Wisconsin. Their only claim to corporate existence is founded upon chapter 11 B of the laws of 1874, repealed by the revision of 1878. Under the law they attempted to incorporate to receive deposits, make discounts and do a general banking business. But the law did not purport to authorize incorporation for any such purposes. Even if it did the law would have been void for the constitution of Wisconsin provides that the legislature shall not have power to create, authorize or incorporate either by general or special law, any corporation with banking powers and privileges, without first submitting that law to the voters of Wilsconsin and receiving their approval of it. This law was not submitted to the people. Therefore their pretended incorporation under this law is void. and they cannot claim any of the privileges or exemptions of a corporation. Had their incorporation been authorized by that law there would be no personal liability on the part of the stockholders, but as it is they are all liable as partners to the full extent of their property. However, it is evident that they do not recognize this liability and will endeavor to preOn vent its enforcement. They have assigned their property as a corporation under the general laws of Wisconsin,' and when the creditors have filed their claims, accepted the assignment and participated in its beneo fits, they will be estopped to deny the I due incorporation of the company. Then they must be satisfied with what f dividends the property assigned will make." It is probable that the asp S signment will be held illegal and void, t as against those who will insist upon V the personal liability of the stockholders. g

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IS A PECULIAR CASE.

FIRM OF DAN HEAD & CO. NOT A CORPORATION.

WHAT LAWYERS SAY ABOUT IT

Attorneys Norman Baker and James Cavanagh Talk About the Legal Aspect of the Bank's Affairs.- How to File Claims.

Quite a sensation was sprung Friday afternoon by Attorney Norman Baker when he drew up a statement of the legal aspect of the affairs of the Dan Head & Co. bank. The case concerning this institution is a very peculiar one, and one upon which the supreme court of the state would be compelled to pass in case much litigation grew out of the condition of affairs. It will be greatly to the best interests of not only the stockholders, but the depositors as well, to avoid as far as may be, all litigation, for the reason that it could result in little more than the dissipation of the assets of the institution, while the carrying out of the present assignment will close the bank's affairs up at a nominal cost and save just that much to the creditors. Then again, claims may be filed against the bank in such a way as to waive no rights any depositor may have with reference to holding the stockholders individually liable for the full amount of their claims. In order to get this story all straight and in order, it will be necessary to begin here by quoting the statement made by Mr. Baker. The statement runs about as follows:

Mr. Baker's Statement.

"Dan Head & Co. assigned as a corporation under the general laws of Wisconsin. Their only claim to corporate existence is founded upon chapter 113 of the laws of 1874, repealed, by the revision of 1878. Under this law they attempted to incorporate, to receive deposits, make discounts and do a general banking business. But that law did not purport to authorize incorporation for any such purposes. Even if it did the law would have been void, for the constitution of Wisconsin provides that the legislature shall not have power to create, authorize or incorporate, either by general or special law, any corporation with banking powers and privileges, without first submitting that law to the voters of Wisconsin and receiving their approval of it. The law was not submitted to the people. Therefore, their pretended incorporation under the law is void; and they cannot claim any of the privileges or exemptions of a corporation. Had their incorporation been authorized by that law, there would be no personal liability on the part of the stockholders but as it is, they are all liable as partners, to the full extent of their property. However, it appears that they do not recognize this personal responsibility and will endeavor to prevent its enforcement. They have assigned their property as 'a corporation under the general laws of Wisconsin,' and when the creditors have filed their claims-accepted the assignment and participated in its benefits-they will be estopped to deny the due incorporation of the company. They must be satisfied with what dividends the property assigned will make."

What the Law Is.

The law quoted by Mr. Baker in the above statement and under which this bank organized, reads in the most interesting section as follows:

"SECTION 1. Five or more adult persons living in any county of this state may organize themselves into an association or corporation for one or more or all of the following purposes to carry on the following business: The mercantile, manufacturing, lumbering, transportation, shipping, commission, elevator or warehouse business, or the business of loaning money on securities or otherwise, dealing in all kinds of property by buying, selling or exchanging the same, the business of insurance of any kind among the members of such corporation, and to carry on any other lawful trade or business, provide for the mutual support of its members, in case of sickness or poverty, to establish and maintain hospitals or other institutions for the education or maintenance of orphan children, and for the care and relief of the sick, infirm or the homeless and for any other charitable purpose."

Another section pertinent to the case in hand is section 4 of this same law. This section provides that a verified copy under oath of the articles of incorporation by two of the persons signing such articles shall be recorded in the office of the register of deeds, etc. This last section quoted is broughtin for the purpose of alluding to the fact that instead of filing a veriñed copy nnder oath of the articles, the original articles themselves were filed. In criminal matters an original paper filed would have just so much greater weight than a copy would have, but in a civil matter like this there is a question as to what a court would say of it. But according to Mr. Baker's statement this law was repealed by the revision of 1878. This, it is thought, would operate to dissolve the corporations organized uuder that law, which

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-Ernst Davy, of Chicago, is here on a visit to his parents, Mr. and Mrs. Wm. Davy.

-Every man longs to be a woman just long enough to show what a good wife he would be.

-The Sterling Cyle works shipped a large consignment of wheels to California Friday night.

-It may be stated as a business fact that Cupid doesn't always pay the debts he contracts.

-If a man could run out of debt as easily as he can run into it, times would not be so hard.

-For the sake of depriving others of pleasure, some people are willing to endure hardships themselves.

-It was a very jolly crowd who took in the dance of the Brownie club at Simmons hall Friday evening.

-The question in some communities is not whether a young man can do anything, but whether he can do anybody.

-"I am cured since taking Hood's Sarsaparilla," is what many thousands are saying. It gives renewed vitality and vigor.

-Citizens of Kenosha have been so good the past day or two that the police might as well be given indefinite leave of absence from duty.

-By using Hall's Hair Renewer, gray, faded or discolored hair assumes the natural color of youth, and grows luxuriant and strong, pleasing everybody.

-The claim of Ex-Sherif Weyhe for overtime was again considered by the county board Friday. It was not deemed a proper bill and was disallowed.

-Property owners along Park avenue are discussing the advisability of requesting that the new electric road be laid down the whole length of the street and out of the city limits by that route.

-The follyof prejudice is frequently shown by people who prefer to suffer for years rather than try an advertised remedy. The millions who have no such notion, take Ayer's Sarsaparilla for blood diseases, and are cured. So much for common sense.

-A farmer has two rows of corn of one hundred hills in a row and hires A. and B. to do the job. A. is a faster man with the hoe than B. so he hoes six hills for B. as a starter, B. finishes out his row and hoes three hills for A How many more hills does A. hoe than B?

-The snow gives the country the aspect of winter but it cuts no figure on the "going." It has been beaten down so that the wheeling is even better than it was before the snow came. It begins to look as though this winter would pass into history as one of practically no sleighing.

-The committee consisting of Supervisors Haigh, Pacey aud Crow having investigated the Brighton road matter reported that the chairman of the board should go ahead and build the road, as provided by law. So Chairman Curtis finds himself in the apacity of a road builder.

-The are several parties who are looking over the Dàn Head & Co. building who have in view the starting of another bank here. One party has been here for a company and looked over the building and city and was very favorably impressed with both. So a deal may be looked for before long in this matter.

-The bondsmen who are liable for the county funds tied up by the Dan Head failure, were before the county board this afternoon to talk over the manner in which the bond should be made good. The final action of the board was that the treasurer be instructed to recover from the bondsmen the amount due the county, which is between $600 and $700.

-George A. Lomas got in a solution of the cattle puzzle run in this paper some time ago which is entirely wrong. The correct answer in by all the others has been that a farmer took 19 cattle, 1 sheep and 80 chickens to market for which he got the $500. Mr. Lomas evidently has forgotten that there were only 100 of the animals all told. His answer is 14 cattle, 20 sheep. and 200 chickens which makes 234 altogether.

-Suiphume baths are unexcelled by the most celebrated sulphur springs with the additional advantage of being taken at home. The medicinal effect of sulphur baths, by absorption of sulphur through the glands, acts directly upon the blood, purifying it, and removing all unhealthy secretions and odors from the body. Sulphume is the greatest blood purifier known. Try it. For sale by Woodward & Conles. dwtf

-The board of directors of the public library at the meeting Friday evening considered that the best way to get at all the people with the reference to the membership of the Kenosha Public Library would be to place a