First State & Savings Bank (Wood River, IL)

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WOOD RIVER BANK IS CLOSED BY AUDITOR ALTON III.-The first State and Savings bank of Wood River, near here, was closed today by State Auditor Rus. sell and will be restrained from doing business, "pending investigation and adjustment of its affairs. The bank's cap. ital is listed at $100.000 and its surplus at $75,000. It was organized in 1909 and is a state institution. The bank's latest reports show depos. its of $900,000 but the resignation of I. C. Hatridge, cashier, two weeks ago, is said to have started a run on it.

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BANK CLOSED AT WOOD RIVER, ILL. State Auritor Russel Shuts Doors Pending Examination and Adjustment". Alton, Ill., Nov. 17.-The First State and Savings bank of Wood River, near here, was closed today by State Auditor Russel, who stated the institution would refrain from doing business "pending examination and adjustment" of its affairs. The bank's capital is listed. at $100,000 and its surplus at $75,000. It was organized in 1959 and H. H. Clark is president. It is a state institution and is not connected with the federal reserve system. The bank's latest report showed deposits of $900,000 but #the resignation of f. H. Partridge, cashier, two weeks ago, is said to have started a run on it.

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INDICTMENTS EXPECTED IN BANK FAILURE CASE

Report of Grand Jury on Wood River Institution Likely This Afternoon.

The Madison County grand jury will report to Circuit Judge Bernreuter at Edwardsville this afternoon the results of its inquiry into the failure of the First State and Savings Bank of Wood River, Ill., which was closed by the State Auditor Nov. 17 last because of a shortage in cash reserve. It later developed that the bank was short $160,000, due to bad paper and "frozen" assets.

In court circles it was reported that indictments are expected, but they will not be made public until after warrants are served.

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INDICTED BANK CASHIER DENIES TAKING A NICKEL

Irvin C. Hatridge Says Every Large Loan Was Passed on by Loans and Discount Committee.

CHARGED WITH EMBEZZLING $10,000

He Says Run on Woodriver Bank Could Not Have Been Withstood by Any Institution.

Irvin C. Hatridge, 29 years old, of the Yorkleigh Apartments, 4954 West Pine boulevard, former cashier of the First State and Savings Bank of Wood River, Ill., was taken yesterday to Edwardsville under an indictment returned Friday for alleged embezzlemtn of $10,000 from the bank's funds.

He furnished $10,000 about 5 p. m. and returned to St. Louis. The bond was signed by T. P. Eggman, Wood River real estate man, and C. P. Hartnett, former partner of Eggman at Wood River, and now residing in St. Louis.

The charge against Hatridge followed investigation by the Madison County grand jury of the circumstances under which the bank was ordered closed by the State Auditor on Nov. 17 last. Later bank examiners reported $160,000 of bad paper.

Cashier Hatridge is the only one of the bank officials indicted. "I haven't taken a nickel of the bank's money," he said yesterday. "This is just an attempt to make me the goat. They accuse me of stealing $10,000 on the day before the bank closed. I resigend days before that.

Denies Responsibility for Loans.

"I have nothing to fear from this indictment and nothing to conceal. The charge that I was solely responsible for the loans made by the bank is false. Every large loan was first approved by the Loans and Discount Committee.

"Officers of the bank on several occasions would co-operate with me. I opposed their investing $116,000 in a new building. To me it looked like bad business. They overruled me on this and other occasions. When I still objected they asked me for my resignation.

"I was paid $190 a month by the bank and drew $50 more a month for acting as credit man for local merchants. I am the organizer of the Tokay Oil Co., which has wells in Monroe County, Ill., and Warren County, Ky.

"My income from this property was $500 a month. I also was interested in other ventures. Word got out in Wood River that there was trouble between me and the board of directors. I was accused of spending too much money, although we did not live extravagantly. When my resignation was asked for people became frightened and started a run on the bank.

"No Bank Could Have Stood Run."

"We paid out $100,000 and our reserve was exhausted. No other bank could have stood such a run either. I do not believe that any but a few thousand dollars of the paper they say is bad is uncollectable. I cannot see how the bank is in a failing condition.

"I have done everything in my power to help them straighten the tangle. I did not run away from whatever responsibility I am supposed to have had. Recently I made trips to Wood River to help the examiners."

Hatridge is married and has one child. His wife is seriously ill in a local hospital. When he went to Wood River more than two years ago he was without money. He promoted the Tokay Oil Co. and says he

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Card of Thanks.

Words cannot express our grateful appreciation of the many acts of kindness performed by loyal friends after the passing of our beloved father. Our experience of this last week has been a forceful illustration of the value of true friendship.

MRS. W. R. EDGAR AND FAMILY, EMIL ANTON ROEHRY.

Irvin C. Hatridge Indicted.

(From Sunday's St. Louis Post-Dispatch.)

Irvin C. Hatridge, 29 years old, of the Yorkleigh Apartments, 4954 West Pine boulevard, former cashier of the First State and Savings Bank of Wood River, Ill., was taken yesterday to Edwardsville under an indictment returned Friday for alleged embezzlement of $10,000 from the bank's funds.

He furnished $10,000 about 5 P. M. and returned to St. Louis. The bond was signed by T. P. Eggman, Wood River real estate man, and C. P. Hartnett, former partner of Eggman at Wood River, and now residing in St. Louis.

The charge against Hatridge followed investigation by the Madison county grand jury of the circumstances under which the bank was closed by the State Auditor on November 17 last. Later bank examiners reported $160,000 of bad paper.

Cashier Hatridge is the only one of the bank officials indicted. "I haven't taken a nickel of the bank's money," he said yesterday. "This is just an attempt to make me the goat. They accuse me of stealing $10,000 on the day before the bank closed. I resigned days before that.

"I have nothing to fear from this indictment and nothing to conceal. The charge that I was solely responsible for the loans made by the bank is false. Every large loan was first approved by the Loans and Discount Committee.

"Officers of the bank on several occasions would co-operate with me. I opposed their investing $116,000 in a"

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Important Criminal Cases On Court Docket

The criminal calendar on the Circuit court docket is being taken up today at Edwardsville before Judge Bernreuter. Today a jury was being impanelled to try the case of Sam Weiss of St. Louis indicted for alleged complicity in a pay roll robbery at Granite City of $17,423 taken from the express messenger to whom it was entrusted by a St. Louis bank. James Traynor is serving a penal term in connection with the same robbery and Clement Forestal is scheduled to go to trial immediately after Weiss.

Next week the trial of Irwin C. Hatridge, former cashier of the Wood River First State and Savings bank, is scheduled to come up on Monday. This trial is likely to have some sensational features. Hatridge has taken the position that he is the goat in the bank failure and it is supposed that his defense will be along the line indicated.

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BANK RECEIVER SEEN IMPENDING IN DISAGREEMENT

Failure of Wood River Bank to Get Going Again So Far Is Causing Much Discouragement.

Stuart Russell, representing his father, Auditor Andrew Russell, was here from Springfield last night in conference with the committee of the First State and Savings Bank at Wood River. He was met by C. B. Manbeck, James Duncan and James H. Chessen.

It is known that the situation of the bank has become such as to cause much anxiety to all concerned, and that there is much fear now that a receivership may be impending for the bank. It is understood that there are three applicants for the receivership and that there is likelihood that the state auditor may insist on having something to say about the appointment which might disqualify any or all of those who are aspirants, thus making it possible that any one of four would be named.

Failure to arrive at any conclusion as to the bank is what is forcing the suggestions for the naming of a receiver. It is realized that there is strong probability that the receivership will be costly. Conservative estimates of its costs put it about $25,000 to $30,000, which would reduce the assets of the bank that much and would not get the bank open for business.

A bank open in the building erected by the defunct bank would be a much better asset in the windup than just administering on the affairs of the defunct bank.

Some complications have developed which may precipitate some suits because of manipulation of some collateral in the bank. One man in Alton has hired a lawyer to help him straighten out a deal whereby he can get back some stock he put up there as collateral, and on which he says he made payment, but finds the collateral is not obtainable by him at this time.

Indications today that a complicated tangle may result in the bank's affairs.

There has been a feeling of optimism around in well informed circles about the bank until now, and some of those who have been regarding the situation with a hopeful eye are beginning to doubt their hopes were well founded that the bank would be able to resume as first anticipated. They are beginning to see a receivership as being absolutely necessary, or rather unavoidable and are looking for one to take effect before many days.

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BANK RECEIVER MAY CAUSE ROW IN HIS CHOOSING

Indications Are that Group Of Stockholders Will Oppose Selection of Alton Attorney.

TANGLES IN SIGHT TO BE UNRAVELLED

Lawyers Have Been Engaged to Recover Collateral Claimed to be Wrongly Held.

The publication in the Telegraph yesterday that Edward E. Miller, former state treasurer, biggest creditor of the Wood River First State and Savings bank, had cast his lot with the depositors, and would favor for receiver any person the majority of depositors, seems to have developed a strong confidence that E. J. Verlie would be named receiver for the defunct bank.

It is known that there is not unanimity on the part of a group of stockholders of the bank for Mr. Verlie. The favorite of some of the stockholders is D. G. Williamson of Edwardsville but it is assumed that the wishes of the depositors will be respected in the matter, though there is no authority for any statement that Judge Gillham would be guided absolutely by the depositors' petition.

There are many tangles involving conflicting interests in the settlement of the bank's affairs.

The depositors are arguing that they will be best served and the best results will be had if they are allowed to choose the receiver for the bank. They hope to be able to attack some property transfers made by H. H. Clark to James Duncan and Charles Boeschenstein and to get the title for the property restored to Clark where it would become an asset of the bank.

The opposition is arguing that the depositors are being guided in their course by subtle influences to take action that will be hopeless for the depositors.

It is understood there is a chance for a warm argument over the receivership appointment Tuesday when the case is heard in the circuit court unless differences are ironed out before that time.

The Telegraph is informed that E. J. Verlie did not apply for the position of receiver, but that he was selected after a conference of depositors as their choice for the place. A half dozen names had been suggested and discarded up to the time Verlie was settled upon.

Immediately after the appointment of a receiver it is said on good authority there will be a bunch of suits filed to recover possession of securities which are wrongly included in the bank's holdings and which were turned over to the National City bank as collateral on loans made to the First State and Savings bank. The Telegraph has been informed of instances of men paying notes or discharging obligations for which collateral was held, the collateral was not turned back to them at the time and they went away hoping to receive it in a few days. The crash found the collateral and notes still in possession of a bank in St. Louis which has served notice that payment must be made a second time. In some cases attorneys have been engaged to attempt to restore possession of the securities and notes to the persons who had given them to the First State and Savings bank, without the owners being compelled to make the payments demanded of them to get the securities back.

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RECEIVER FOR WOOD RIVER BANK

Alton Attorney Is Named to Succeed Temporary Agent.

E. J. Verley, an Alton attorney, today was appointed receiver for the First State and Savings Bank of Wood River, Ill., by Circuit Judge Gillham in the Edwardsville Circuit Court. The bank was closed Nov. 17 last by State Auditor Andrew Russel.

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HEADS OF CLOSED WOOD RIVER BANK JOINTLY INDICTED

Madison County Grand Jury Returns Charges Against President, Chairman and Former Cashier.

Three joint indictments against the president, the chairman of the Board of Directors and the former cashier of the First State and Savings Bank of Wood River, Ill., charging them with accepting deposits when they knew the bank was in a failing condition, were returned yesterday by the Madison County grand jury at Edwardsville.

An additional indictment was brought against I. C. Hatridge, now of the Yorkleigh Apartments, 4954 West Pine boulevard, alleging that while he was cashier of the institution he secreted assets totaling $8500. On Jan. 13 Hatridge was indicted for alleged embezzlement of $10,000.

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Those Indicted.

The indictments returned yesterday against H. H. Clark, president; S. A. Beach, vice president and chairman of the board of directors, and Hatridge, make the accusation that they accepted deposits in two instances on Oct. 21 and in one instance on Oct. 23 last, and that they were aware of the bank's insolvent condition at that time, although it was not closed by the State Auditor until Nov. 17.

Investigation subsequently disclosed a shortage of $160,000 represented by bad paper, the State Auditor reported. The bank carried $200,000 of State deposits, but these were secured. Owing to liability of officers and directors and the real estate held by the bank, it has not been considered that the general depositors will suffer when affairs are cleaned up.

The complaining witnesses whose testimony resulted in the three joint indictments are Emil Krause, George Smith and Walter McLean, all of Wood River or vicinity. Smith made deposition that he deposited $294 with the bank Oct. 21 and McLean claims he deposited $53 on the same day. Krause deposed he left $145 with the bank two days later.

Charge Against Hatridge.

In the separate indictment against Cashier Hatridge, six counts are made and the testimony of 12 witnesses was used. Although the charge was technically "secreting assets," it amounts to embezzlement if sustained.

The dates upon which it is alleged the three officers "had guilty knowledge of the bank's failing condition" fell about the time a rumor started in Wood River that Hatridge had resigned. His resignation actually took effect Nov. 1. About Oct. 21 a mild run on the bank began. It did nt reach alarming proportions until Nov. 10, when calls for aid were sent to surrounding banks. By Nov. 17 the institution's cash reserve had been so depleted that it could not longer meet withdrawals.

Hatridge said on the occasion of his first indictment and at other times that he did not take a cent from the bank and has accused other officers and depositors of seeking to make him "the goat." Clark and Beach have denied responsibility for the bank's failure.

Circuit Judge Gillham of Edwardsville appointed E. J. Verley of Alton as receiver for the First State and Savings Bank Tuesday. Verley was the choice of the directors and depositors. An attempt will be made to collect some of the bad paper and thaw the bank's "frozen assets." Dates of reopening and settlement have been announced several times, but the State Auditor's office has made no estimate on the time it will take to straighten out the tangle.

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HEADS OF CLOSED WOOD RIVER BANK ARE INDICTED

Three joint indictments against the president, vice president, and former cashier of the First State and Savings Bank of Wood River, Ill., charging them with accepting deposits when they knew the bank was in a failing condition, were returned yesterday by the Madison County grand jury of Edwardsville.

An additional indictment was brought against I. C. Hatridge, now of the Yorkleigh Apartments, 4954 West Pine boulevard, alleging that while he was cashier of the institution he secreted assets totaling $8500. On Jan. 13 Hatridge was indicted for alleged embezzlement of $10,000.

Those Indicted

The indictments returned yesterday against H. H. Clark, president; S. A. Beach, vice president and chairman of the board of directors, and Hatridge, make the accusation that they accepted deposits in two instances on Oct. 23 last, and that they were aware of the bank's insolvent condition at that time, although it was not closed by the State Auditor until Nov. 17.

Investigation subsequently disclosed a shortage of $160,000 represented by bad paper, the State Auditor reported. The bank carried $200,000 of State deposits, but these were secured. Owing to liability of officers and directors and the real estate held by the bank, it has not been considered that the general depositors will suffer when affairs are cleaned up.

The complaining witnesses whose testimony resulted in the three joint indictments are Emil Krause, George Smith and Walter McLean, all of Wood River or vicinity. Smith made deposition that he deposited $294 with the bank Oct. 21 and McLean claims he deposited $53 on the same day. Krause deposed he left $145 with the bank two days later.

Charge Against Hatridge

In the separate indictment against Cashier Hatridge, six counts are made and the testimony of 12 witnesses was used. Although the charge was technically "secreting assets," it amounts to embezzlement if sustained.

The dates upon which it is alleged the three officers "had guilty knowledge of the bank's failing condition" fell about the time a rumor started in Wood River that Hatridge had resigned. His resignation actually took effect Nov. 1. About Oct. 21 a mild run on the bank began. It did not reach alarming proportions until Nov. 10, when calls for aid were sent to surrounding banks. By Nov. 17 the institution's cash reserve had been so depleted that it could no longer meet withdrawals.

Hatridge said on the occasion of his first indictment and at other times that he did not take a cent from the bank and has accused other officers and depositors of seeking to make him "the goat." Clark and Beach have denied responsibility for the bank's failure.

Circuit Judge Gillham of Edwardsville appointed E. J. Verley of Alton as receiver for the First State and Savings Bank Tuesday. Verley was the choice of the directors and depositors. An attempt will be made to collect some of the bad paper and thaw the bank's "frozen assets." Dates of reopening and settlement have been announced several times, but the State Auditor's office has made no estimate on the time it will take to straighten out the tangle.

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FINAL DATE IS SUGGESTED FOR ALL BANK CLAIMS

Receiver Asks Circuit To Fix Closing Day for Filing and will Suggest Jan. 3 be Day.

BANK RECORDS IN GOOD CONDITION

Receiver Says Not a Pass Book Failed to Correspond With Records, In Making Comparison.

A petition was filed in the Circuit court yesterday, asking Judge J. F. Gillham to set a date for the final filing of claims against the defunct First State and Savings bank of Wood River. The date that will be suggested to Judge Gillham by the receiver, E. J. Verlie, as January 3, 1924. This will give a little more than a year from the time the bank closed its doors for all creditors to file claims, and from that time no claims will be received.

It was said today by the receiver that the records of the bank have been found to be very exact so far as the amounts deposited in the bank by its customers may be concerned. There was not a discrepancy found when all the pass books were presented for comparison with the bank records.

Of late research has been made for cases where proper credit may not have been given for payments to the bank by individuals who are being urged to pay up apparent liabilities they owe the bank, and who enter protests that they have paid.

Further investigation is being made of claims made by people who, renewing notes, left a new note with the bank with the understanding that the originals would be obtained from the St. Louis bank where they had been placed as collateral, but the originals were never returned.

There is one case of where money borrowed by one prominent Wood River bank amounting to $4,500 was paid back. It belongs in the state fund loaned to the bank by former state treasurer, E. E. Miller, and while the man was given credit at the bank for repaying the loan, the money was not paid to the state treasurer, who still holds a claim against the individual. It is said that this money will have to be paid to the former state treasurer, but that the Wood River man will undoubtedly have a first lien on the bank for the amount he paid.

Mr. Verlie says that up to date the collections on the accounts outstanding by the receiver have not been at all what had been hoped for.

While Mr. Verlie is non-committal still on the subject as to how much the bank will ultimately pay all the depositors, there is good reason for believing that it will not be much over two-thirds the face amount of the deposits, if it reaches that figure. The setting of the date for filing claims against the bank indicates that the early hopes that there could be a very hasty winding up of the banks affairs are not to be verified. The difficulties which stand in the way of making collections indicate there may be extensive litigation before there can be any settlement in full with depositors. Points are involved about the liability of certain persons who are looked to for some of the assets of the bank to be divided among the creditors, which may make a final settlement remote. Partial settlements may be made at earlier dates.

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Bank Receiver Files Suit Here

An assumpsit suit for $1,544.84 was filed in the Circuit Court Saturday by E. J. Verlie, receiver for the First State & Savings Bank of Wood River against Charles A. Harnett and F. P. Eggmann, doing business under the name of the Harnett-Eggmann Realty Company. The action is based on a note.

Radiotelephony has this excellence: You can tune out the voice you do not like.

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Jury Finds Three Bankers Guilty

The jury which tried the case of I. C. Hatridge, S. A. Beach and H. H. Clark, officers of the defunct First State and Savings Bank of Wood River, found them guilty of receiving deposits when they knew the bank to be in a failing condition. Hatridge, the cashier, was given one year in the penitentiary and a $200 fine. Beach and Clark were given a fine but no prison term.

The jury reported at 11:15 a. m. today, after being out all night. In the court room at the time the jury came in were the three accused men and their wives. Only one of the lawyers was there. Judge Gillham was hunted up and told the jury was ready to report. Judge Crow had left town, so Judge Gillham acted for him. While waiting for the arrival of Judge Gillham there was great suspense among those most interested. Mrs. Clark left the room, unable longer to endure it. Mrs. Beach manifested emotion. Mrs. Hatridge sat unmoved, apparently having steeled herself against showing her feeling. The three men showed no emotion whatever.

Judge Crow had left directions that in event of the jury convicting the accused men, they were not to be put in jail, as they were the last time, but that they were to be allowed to go at large with their old bonds continued in force. A motion for a new trial will be argued in a few weeks, when Judge Crow returns to Edwardsville.

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BIG CREDITOR OF BROKEN BANK IN BANKRUPTCY

Tidings Comes that Associated Oil Producers Has Become Insolvent in New York State.

OTHER SUITS TO BE FILED IN FEW DAYS

Stockholders Who Have Not Made Other Arrangements to be Pressed for Early Settlement

News of a great disappointment in hopes for recovery on some bad assets of the Wood River First State and Savings bank has been received by E. J. Verlie, the receiver, in tidings of bankruptcy proceedings against the biggest of the bank's creditors. Mr. Verlie said today that he had been informed that creditors had forced into bankruptcy the Associated Oil Producers of New York, whose paper the receiver holds aggregating over $50,000 of good hard money. The paper is really in excess of that amount but it represents about the figure mentioned in actual debt. In the first place the bank had bought $30,000 worth of the Associated Oil Producers bonds, had also a note for $16,850 and other notes aggregating about $25,000 net. The Associated Oil Producers had a regular crush on the Wood River bank and the bank seemed to reciprocate for a large sum of money was loaned to the Associated Oil Producers with very poor security. It turned out to be absolutely worthless. The receiver says it was the loans to this concern, which turned out to be uncollectible, that actually precipitated the failure of the bank.

Receiver Verlie is carrying on correspondence to learn the details of the bankruptcy proceedings. He knows nothing as to what assets may be involved, nor what the company's liabilities are.

Directions were given today to file suits against the remaining stockholders of the bank who had not made other arrangements. Notice was sent to C. H. Seger that unless he made arrangements within five days he would be sued for his legal obligation as a stockholder.

Explaining his settlement of the A. W. Whitelaw obligation as a stockholder, Mr. Verlie said today that it would have cost more than the amount he discounted the claim to sue Mr. Whitelaw in Kentucky. He anticipated the time the money could have been collected by making the compromise. He said that he could find no record in Kentucky of Mr. Whitelaw owning any property on the tax books, even if he did get a judgment in the courts there.

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Final Report of Wood River Bank Receiver

The final report of E. J. Verlie, re. celver for the defunct First State & Savings Bank of Wood River, was filed in the circuit court today and the court set down September 10 DR the date the court would take action on the report. The bank clored Its doors after a run Nov. 17, 1922 It has been long drawn out process of settling up the affairs of the bank and It has been expensive. There still remain some of the depositors of the bank who have failed to claim their dividends but this will not Interfere with the aproval of the final report, and the discharge of the receiver.

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LOST CHANCE

Nearly five years ago the Wood River First State and Savings bank closed its doors, run by depositors and futile efforts to save it. The filing of the final report of the receiver of the bank re. vives memories days that were filled with anxiety. is recalled that there was very hopeful chance to save the bank's creditors from loss through a proposition that had been made to save it, but the proposition was rejected. Then followed the Inevitable heavy expense of receivership proceedings and winding up the affairs of the bank. The receiver, E. Verlie, rendered good service, keep the expenses down as low as he could, but it was costly business. Receiverships at the best are expensive. Bankruptcy proceedings are ruinous for the creditors as rule. Somehow there should be and usually is a way to avoid either receivership or bankruptcy proceedings, and such a way would always be better for those who have something comIng out of the wreck.