People's & Drovers Bank (Washington Court House, OH)

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BANK RECORDS BEING CHECKED

STATE GOING OVER BOOKS OF BANK HEADED BY DAUGHERTY

WASHINGTON O., May bank texaminers today labored over the books of the Ohio State Bank here. which was closed yesterday following heavy run on its funds. Headed by brother of former Attorney Generof the United States Harry Daugherty, the bank was capital ized at and March had reported its resources at 890. This is the second bank to close here within the post three months. the Peoples and Drovers Bank hav ing closed its doors during that time. The Ohio State Bank was formed three years ago by the consolidation the Fayetfe county bank, the Midland National Bank and the Commercial Bank. The latter two concerns were headed Daugherty then. Gray, state banking direcordered the financial institution to close its doors when was notified of the heavy of funds. He heading of men here.

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PAGE 2-THE CINCINNATI POST, SEPT. 12, Arkway 1111, Want Ad Headquarters HOW WIFE FOLLOWS TRIUMPHS BANK DISASTERS INJURE TOWN

Daugherty Bankruptcy Climax to Two Failures

6500 PERSONS AFFECTED

Washington C. H. Suffers in

Financial Crashes

By Post State COLUMBUS, Sept. Mal Daugherty, C. H. banker and brother of Harry M Daugherty, attorney general under President Harding. has admitted in writing he unable to pay his debts. tacitly agreeing to bankruptcy petition The bankruptcy action. filed in U. S. District Court here, result of the failure of the Ohio State Bank, of which Daugherty was president And the Ohio attorney general's statement, which follows series of financial disasters the Fayette-co town where the Daugherty brothers have been leading citizens for nearly half a century. has reopened cussion concerning details 01 the failure of his bank last may 000 Debts The attorney general said the petition against Mal Daugherty lists claims to $77,237.51. including 100 in notes to the defunct bank and $25,000 in notes to the Peoples & Drovers Bank, which failed last March. The third against Daugherty is Glenn M. Pine, Washington C. H., who says the former bank president owes him $537.51 In addition according to the statement from the attorney general's office. Daugherty owns shares of stock in the bank. which would be subject to assessment to meet claims against the bank Some idea of the intense interest of Washington town about 8000, in the present Daugherty case, may be given by recital of the series disasters which have affected nearly every family in the town and in the surrounding country

Thousands Lose Three years ago three banks of the community the Midland National, the Commercial and the Fayette County, were merged into what was termed $3,000,000 institution, the Ohio State Bank Then. in March this vear the People's & Drovers' Bank went der with consequent losses to 2000 depositors. The Ohio State Bank was made depository for the People's Drovers' funds and before the first excitement of the crash had died away this second bank closed its Town Suffers Heavily The third bank affected by failing confidence in banks in general. was subjected to heavy run. but weakhered the storm Since them Columbus interests have opened bank in the community According report these same interests had declined proposal that they take over the Ohio State Bank In addition the community suffered its share of troubles in stock market crash and is the section seriously affected by crop Mal S. Daugherty was president of the and the Midland National before the merger and of the Ohio State. after the merger When the Ohio State closed was believed it was solvent, or nearly so, but this idea has been weakened by subsequent developments

LEGION DONORS TO BE PAID

Each donor as well as each guarantor of the American Legion convention held here recently will be reimbursed by the legionaries. The legionaries will pay the total expenses of the convention, amounting to about $5000. from fund raised thru sponsoring special events.

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MAL DAUGHERTY NAMED BY JURY

WASHINGTON COURT HOUSE, O., Oct. Fayette county grand jury investigating the failure of the Ohio State Bank and the Peoples' and Drovers Bank here today returned sixteen indictments, fiften of them against Mal S. Daugherty, former president of the Ohio State Bank and one against Virgil Vincent. local grain dealer and heavy borrower from the banks. Daugherty, brother of former Attorney General Harry M. Daugherty, came into prominence during the Teapot Dome oil reserve investigation when he refused to produce records of his bank for the senate committee which seeking funds alleged to have changed hands in the oil deal. Daugherty was indicted on fiftyeight counts, including charges of misapplication of funds, abstraction of funds, making false reports to agents appointed to examine the affairs of banks, and false reports on capital stock.