9513. First National Bank (Buffalo, MN)

View Charter #11023 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
11023
Charter Number
11023
Start Date
January 1, 1926*
Location
Buffalo, Minnesota (45.172, -93.875)

Metadata

Model
gpt-5-mini
Short Digest
5fa60f3d

Response Measures

None

Receivership Details

Depositor recovery rate
72.1%
Date receivership started
1925-10-17
Date receivership terminated
1932-10-15
OCC cause of failure
Governance
Share of assets assessed as good
26.3%
Share of assets assessed as doubtful
51.6%
Share of assets assessed as worthless
22.1%

Description

First National Bank of Buffalo, MN was closed and placed in receivership (R. E. Schumacher). Articles state the bank closed in January 1926 and grand jury investigations alleged diversions/embezzlement and worthless paper — i.e., bank-specific adverse information leading to closure. No specific depositor run is described in the articles.

Events (4)
1. June 30, 1917 Chartered
Source
historical_nic
2. October 17, 1925 Receivership
Source
historical_nic
3. January 1, 1926* Receivership
Newspaper Excerpt
R. E. SCHUMACHER, as Receiver of the First National Bank of Buffalo, Minnesota, a corporation; First National Bank of Buffalo, Minnesota, a corporation; (receiver named in court notices).
Source
newspapers
4. January 1, 1926* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed after examiners found poor paper and diversions/embezzlement; grand jury indictments alleging diversion of funds and worthless bonds among assets led to closure and legal action.
Newspaper Excerpt
the First National Bank of Buffalo, closed January; R. E. Schumacher, as Receiver of the First National Bank of Buffalo, Minnesota
Source
newspapers

Newspaper Articles (8)
1. April 16, 1926 The Producers News Plentywood, MT
Article from The Producers News, April 16, 1926

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JULIUS B. THORNBY, -versus-- Plaintiff, DES LACS VALLEY REALTY CO., formerly a corporation; FIRST NA- TIONAL BANK of BUFFALO, Min- nesota, a corporation; R. E. SCHU- MACHER, as Receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. HANSCH, G. J. HANSCH and all other persons, un- known, claiming or who might claim any right, title, estate, or interest in or lien or encumbrance upon, the real property described in the complaint, or any part thereof, adverse to plain- tiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued Defendants. THE STATE OF MONTANA, To Des Lacs Valley Realty Co., formerly a cor- poration; First National Bank of Buf- falo, Minnesota, a corporation; R. E. Schumacher, as receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. Hansch; G. J. Hansch; and all other persons, unknown, claim- ing or who might claim any right, title, estate, or interest in, or lien or encum- brance upon, the real property describ- ed in the complaint, or any part thereof adverse to plaintiff's ownership, or any cloud upon plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, in- choate or accrued. GREETING: You are hereby summoned to answer the complaint in this action which is filed in the office of the clerk of this court, a copy of which is herewith serv- ed upon you, and to file your answer and serve a copy thereof upon the plaintiff's attorney within twenty days after the service of this summons, ex- clusive of the day of service; and in case of your failure to appear or an- swer, judgment will be taken against you by default for the relief demanded in the complaint. This action involves the title to the following described lands towit:- Southeast quarter of the Northeast quarter (SE¼NE¼); East Half of the Southwest quarter (E½SW¼); North Half of the Southeast quart- er (N½SE¼); and the South-west quarter of the South-east quarter (SW¼SE¼) of Section Numbered Twenty-three (23); and the West Half of the South-west quarter (W½SW¼) of Section Numbered Twenty-four (24), all of Township Numbered Thirty-six North (36N) of Range Numbered Fifty-three East (53E) of the Montana Meridi- an, in Sheridan County, Montana. The nature of the relief sought by the plaintiff is as follows: (1) That the defendants and each of them may be required, to set forth the nature of their claim or claims, and that all adverse claims of the defendants or any of them may be determined by a decree of the court effecting the title to the premises above described. (2) That by said decree it be de- clared and adjudged that the defendants or any of them, have no estate, right, title, claim, or interest in the premises above described, or any lien or encum- brance thereon, adverse to the plain- tiff's title, and that the title thereto of the plaintiff is good and valid. (3). That the defendants and each of them be forever enjoined, restrained and debarred from asserting any claim whatever, or lien or encumbrance what- ever, in or to said lands and premises, adverse to the plaintiff herein, or any part thereof. (4). That by said decree it be also declared and adjudged that the plaint- iff is the owner of said premises, and is entitled to the possession of the same, and the whole thereof, free from any claim or claims whatsoever, and free from any lien or encumbrance whatever. (5). For the plaintiff's cost and dis- bursements incurred in said action and for such other and further relief as to the court may seem just and equitable. Witness my hand and the seal of said court this the 15th day of April, A. D. 1926. D. J. OLSON, Clerk of the above entitled court. J. J. Gunther,, Attorney for the Plaintiff, Plentywood, Montana. (2-4t)

2. April 23, 1926 The Producers News Plentywood, MT
Article from The Producers News, April 23, 1926

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DAN. JULIUS B. THORNBY, Plaintiff, versus DES LACS VALLEY REALTY CO., formerly a corporation; FIRST NATIONAL BANK of BUFFALO, Minnesota, a corporation; R. E. SCHUMACHER, as Receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. HANSCH, G. J. HANSCH and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in or lien or encumbrance upon, the real property described in the complaint, or any part thereof, adverse to plaintiff's ownership, or any cloud upon plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued Defendants. THE STATE OF MONTANA, To Des Lacs Valley Realty Co., formerly a corporation; First National Bank of Buffalo, Minnesota, a corporation; R. E. Schumacher, as receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. Hansch; G. J. Hansch; and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in, or lien or encumbrance upon, the real property described in the complaint, or any part thereof adverse to plaintiff's ownership, or any cloud upon plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued. GREETING: You are hereby summoned to answer the complaint in this action which is filed in the office of the clerk of this court, a copy of which is herewith served upon you, and to file your answer and serve a copy thereof upon the plaintiff's attorney within twenty days after the service of this summons, exclusive of the day of service; and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded y in the complaint. This action involves the title to the following described lands towit:Southeast quarter of the Northeast f quarter (SE%NE%); East Half of the Southwest quarter (EV,SW); North Half of the Southeast quarter and the South-west D quarter of the South-east quarter (SWSE%) of Section Numbered S. Twenty-three (23); and the West Half of the South-west quarter e (W½SW) of Section Numbered k Twenty-four (24), all of Township f Numbered Thirty-six North (36N) f of Range Numbered Fifty-three B,, East (53E) of the Montana Meridih an, in Sheridan County, Montana. al The nature of the relief sought by the plaintiff is as follows: (1) Tha the defendants and each of them ma) be required to set forth the natur of their claim or claims, and that al adverse claims of the defendants or an of them may be determined by a decre of the court effecting the title to th premises above described. (2) That by said decree it be de clared and adjudged that the defendant is or any of them, have no estate, right title, claim, or interest in the premise above described, or any lien or encum a. brance thereon, adverse to the plain tiff's title, and that the title theret ff. of the plaintiff is good and valid. (3). That the defendants and each o them be forever enjoined, restraine and debarred from asserting any clai whatever, or lien or encumbrance wha E ever, in or to said lands and premise CT adverse to the plaintiff herein, or an IN part thereof. H (4). That by said decree it be als declared and adjudged that the plain iff is the owner of said premises, an ff, is entitled to the possession of th same, and the whole thereof, free fro IE any claim or claims whatsoever, an Mfree from any lien or encumbran ke, whatever. M. (5). For the plaintiff's cost and di Dbursements incurred in said action an Ofor such other and further relief as he the court may seem just and equitable OL Witness my hand and the seal of sa vo court this the 15th day of April, A. er1926. D. J. OLSON, ts. Clerk of the above entitled cour J J. Gunther,, the Attorney for the Plaintiff, (2-4 our Plentywood, Montana. ay,

3. April 30, 1926 The Producers News Plentywood, MT
Article from The Producers News, April 30, 1926

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DAN. JULIUS B. THORNBY, Plaintiff, versus DES LACS VALLEY REALTY CO., formerly a corporation: FIRST NATIONAL BANK of BUFFALO, Minnesota, a corporation; R. E. SCHUMACHER, as Receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. HANSCH, G. J. HANSCH and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in or lien or encumbrance upon, the real property described in the complaint, or any part thereof, adverse to plaintiff's ownership, or any cloud upon plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or accrued possible claim of dower, inchoate or Defendants. THE STATE OF MONTANA, To Des Lacs Valley Realty Co., formerly a corporation; First National Bank of Buffalo, Minnesota, a corporation; R. E. Schumacher, as receiver of the First National Bank of Buffalo, Minnesota, a and corporation; H. Hansch; G. J. Hansch; all other persons, unknown, claiming or who might claim any right, title, estate, or interest in, or lien or encumbrance upon, the real property described in the complaint, or any part thereof adverse to plaintiff's ownership, or cloud upon plaintiff's title thereto, any be whether such claim or possible claim claim present or contingent, including any or possible claim of dower, inchoate or accrued. GREETING: You are hereby summoned to answer the complaint in this action which is filed in the office of the clerk of this court, a copy of which is herewith served upon you, and to file your answer and serve a copy thereof upon the after plaintiff's attorney within twenty days the service of this summons, clusive of the day of service; and ex- in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the complaint. This action involves the title to the following described lands towit:Southeast quarter of the Northeast quarter (SE%NE%); East Half of the Southwest quarter (E%SW%); North Half of the Southeast quarter (N½SE); and the South-west quarter of the South-east quarter (SWMSE%) of Section Numbered Twenty-three (23); and the West Half of the South-west quarter (W½SW) of Section Numbered Twenty-four (24), all of Township Numbered Thirty-six North (36N) of Range Numbered Fifty-three East (53E) of the Montana Meridian, in Sheridan County, Montana. The nature of the relief sought by the plaintiff is as follows: (1) That the defendants and each of them may be required to set forth the nature of their claim or claims, and that all adverse claims of the defendants or any of them may be determined by a decree of the court effecting the title to the premises above described. (2) That by said decree it be declared and adjudged that the defendants or any of them, have no estate, right, title, claim, or interest in the premises above described, or any lien or encumbrance thereon, adverse to the plaintiff's title, and that the title thereto of the plaintiff is good and valid. (3). That the defendants and each of them be forever enjoined, restrained and debarred from asserting any claim whatever, or lien or encumbrance what ever, in or to said lands and premises adverse to the plaintiff herein, or any part thereof. (4). That by said decree it be also declared and adjudged that the plaint iff is the owner of said premises, and is entitled to the possession of the S same, and the whole thereof, free from any claim or claims whatsoever, and free from any lien or encumbrance whatever. (5). For the plaintiff's cost and dis f. bursements incurred in said action and for such other and further relief as t the court may seem just and equitable Witness my hand and the seal of sai court this the 15th day of April, A. D 1926. T D. J. OLSON, Clerk of the above entitled court IJ. J. Gunther,, Attorney for the Plaintiff, At

4. May 7, 1926 The Producers News Plentywood, MT
Article from The Producers News, May 7, 1926

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JULIUS B. THORNBY, Plaintiff, -versusDES LACS VALLEY REALTY CO., formerly a corporation; FIRST NATIONAL BANK of BUFFALO, Minnesota, a corporation; R. E. SCHUMACHER, as Receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. HANSCH, G. J. HANSCH and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in or lien or encumbrance upon, the real property described in the complaint, or any part thereof, adverse to plaintiff's ownership, or any cloud upon plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or accrued possible claim of dower, inchoate or Defendants. THE STATE OF MONTANA, To Des Lacs Valley Realty Co., formerly a corporation; First National Bank of Buffalo, Minnesota, a corporation; R. E. Schumacher, as receiver of the First National Bank of Buffalo, Minnesota, a corporation; H. Hansch; G. J. Hansch; and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in, or lien or encumbrance upon, the real property described in the complaint, or any part thereof adverse to plaintiff's ownership, or any cloud upon plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued. GREETING: You are hereby summoned to answer the complaint in this action which is filed in the office of the clerk of this court, a copy of which is herewith served upon you, and to file your answer and serve a copy thereof upon the plaintiff's attorney within twenty days after the service of this summons, exclusive of the day of service; and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the complaint. This action involves the title to the following described lands towit:Southeast quarter of the Northeast quarter (SE%NE%); East Half of the Southwest quarter (E%SW%); North Half of the Southeast quarter (N½SE); and the South-west quarter of the South-east quarter (SW/SE%) of Section Numbered Twenty-three (23); and the West Half of the South-west quarter (W½SW) of Section Numbered Twenty-four (24), all of Township Numbered Thirty-six North (36N) of Range Numbered Fifty-three East (53E) of the Montana Meridian, in Sheridan County, Montana. The nature of the relief sought by the plaintiff is as follows: (1) That the defendants and each of them may be required to set forth the nature of their claim or claims, and that all adverse claims of the defendants or any of them may be determined by a decree of the court effecting the title to the premises above described. (2) That by said decree it be declared and adjudged that the defendants or any of them, have no estate, right, title, claim, or interest in the premises above described, or any lien or encumbrance thereon, adverse to the plaintiff's title, and that the title thereto of the plaintiff is good and valid. (3). That the defendants and each of them be forever enjoined, restrained and debarred from asserting any claim whatever, or lien or encumbrance whatever, in or to said lands and premises, adverse to the plaintiff herein, or any part thereof. (4). That by said decree it be also declared and adjudged that the plaintiff is the owner of said premises, and is entitled to the possession of the same, and the whole thereof, free from any claim or claims whatsoever, and S free from any lien or encumbrance whatever. (5). For the plaintiff's cost and disbursements incurred in said action and for such other and further relief as to the court may seem just and equitable. Witness my hand and the seal of said court this the 15th day of April, A. D. 1926. D. J. OLSON, Clerk of the above entitled court. J J. Gunther,, Attorney for the Plaintiff, (9 Plentywood Montana

5. June 12, 1926 The Austin Daily Herald Austin, MN
Article from The Austin Daily Herald, June 12, 1926

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MILL MEN ARRAIGNED Arrested On Charges Growing Out Of Maple Lake Loss BOTH ARE OUT ON BOND County Grand Jury Returns Wright Several Indictments With Closing of Other Insttiutions [By Associated Press] Buffalo, June Minneapolis men were arrested and arraigned here charge growing out closing of the Maple Lake of the State Bank. The men are Sam of the Big Lake Strand, president Farmers State Bank, which is also and Henry Unschuld, minclosed, promoter. Tom Welch, Wright county attorstated that his investigation made in special general assist the attorney completed. Strand not with aiding and abetting an officer the bank the embezof He pleaded not guilty and bonds were fixed at Unschuld charged and abetting officers of the closed Lake State Bank in placing Maple bonds among the assets He also pleaded not guilty and bonds fixed at $20,000. The amount involved in the Unschuld charge $15,000 Attorney Welch said. The Wright county grand jury turned several indictments here Friday in connection with the closing of Hanover State Bank, the Big the Lake State Bank, and the First tional Bank of Buffalo, all closed durthe The Buffalo bank past year. $1,000,000 institution. The Big Lake State Bank is correspondent bank of the Maple Lake Bank.

6. June 12, 1926 The Albert Lea Tribune Albert Lea, MN
Article from The Albert Lea Tribune, June 12, 1926

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BANK CLOSING BRINGS OF PRESIDENT Arrest of Bank President and Results From ing Promoter Closing of Maple Lake, Minn. State Bank. Buffalo, Minn., June were arrested and Minneapolis men here today on charges arraigned growing the closing of the MaLake State bank. ple The men are Sam president of the Big Lake Farmers' State bank, which is also-closed, and Henry Unschuld, mining promoter. Inquiries Continued Tom Welch, Wright county attorney, said investigations in conjunction with Blanchard, Anoka ney, recently appointed special depgeneral, to assist in the case, were not yet completed. Str ad is charged with aiding and abetting an officer of the bank em bozzlement $3,000. He pleaded not and bond was fixed at guilty charged and officers of the closed Maple abetting Lake State bank in placing worthless bonds among the assets. He also pleaded not guilty and bonds were fixed at $20,000. The amount involved in the Unschuld charge is $15,000, At torney Welch said. Several Indictments Returned The Wright county grand jury returned several indictments here Friday in connection with the closing of Hanover State bank, the Big Lake Farmers' State bank and Maple Lake State bank and the First Nation bank Buffalo, all of which were year. The closed during the past State bank institution. The Big Lake Farmers' State bank bank of Maple Lake tate bank.

7. June 13, 1926 Star Tribune Minneapolis, MN
Article from Star Tribune, June 13, 1926

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Five Indicted in Charges Follow Investigation of Affairs of Four Closed Institutions. Minneapolis Under in Hospital, Faces Arrest. Worthless Paper Substituted for Assets, Grand Jury Reports. Three men, two of them from Minneapolis, arrested Saturday on indictments returned the Wright coungrand jury after year's investigation of the affairs of four closed banks Wright and Sherburne counties. Two other also were named in indictments returned by the grand jury. The grand jury at Buffalo returned the after an investigation week which officials of the four banks, state banking examiners and customers were called upon testify. Indictments Made Public. Those indicted HENRY UNSCHULD, 3521 Pillsavenue, mining in the Wright county jail Buffalo lieu He charged with aiding and abetting officers the Maple Lake bank placing worthless bonds among its assets. SAM STRAND, 3351 Colfax avenue south; indicted two counts, charged aiding abetting an officer the Maple in the embezzlement $3,000. He at liberty on $5,000 bond. MILBERG, president of Maple Lake confined Ashury hospital by injuries ceived accident. The charge against him has not been public. SEIVERS, former president the First bank BufWright charged grand larceny sum of and abetting officer of the bank in WILLIAMS of Mankato. indictment against has not been revealed. The indictments came climax investigation conducted by Thom. Wright county into the affairs the four one of them na tional Three Other Banks. The banks, addition to the Maple Lake bank, First National bank of Buffalo, closed January; Seivers, former president. Big bank, closed fall: Strand, president. State bank, closed last Mr. Unschuld was arrested Saturday of aiding officer of the closed Maple He pleadguilty the charge before Dis. trict Judge Giddings of and the for June Satbonds urday night he trying to arrange Strand, who arraigned at same bond night his home "ridiculous" the charges He against will trial River. Closed Almost Year Ago. first of the four banks be closed the Lake Farmers' bank Big A1ago, July 25, Veigel, examiner, ordered the and an inof the for the affairs. the the of the bank were approximately later the bank "poor paper.' January the First National bank Buffalo was by was its failure. He will the fall. This spring fourth Maple Lake State bank, ordered to shut its Jury Conducts Inquiry. At the time the closing of the Big bank, Sherburne jury conducted investigation that bank, other banks the district. Several indictments resulted from the them against Mr. Strand, charging him grand degree. He pleaded not and he under bond. The trial the next of court, which has not yet Authorities Buffalo reluctant discuss Saturday night, satisfying themselve. with the ment arrests would Mr. said there direct defalcations in any the Much Evidence Collected. Mr. Welch being assisted in the inquiry Anoka county, was utized assistant the last There are special investigators of large amount documentary has collected. Veigel, the banking examiner, Saturday night the banks closed Bank county for than month checking the affairs the banks he

8. June 13, 1926 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, June 13, 1926

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THREE 2 ARRESTED, FROM MINNEAPOLIS; Grand Larceny Charged After Year's of Fund Diversions FOUR BANKS CLOSED MONTHS AGO INVOLVED Two Plead Not Guilty to Charges Released on Bail, Others Held Five men are under grand jury indictment, two from Minneapolis and other are under arrest and two others are sought on bench warrants as the result of investigation into an alleged "conspiracy to wreck group of country banks." all of which have been closed for several months. The banks, all closed state within last and federal year, officials said, have suffered diversions least $100,000. One man taken jail. other man under arrest also under indictment county, and two of the three sought face charges in other courts. The men named in charging Sheriff Carl grand derson of Wright county Henry Unschuld, 3531 Pillsbury aevnue, Minneapolis, taken the Wright county jail, arraigned and at $20,000. M. Strand, Colfax arraigned at Buffalo released under $5,000 bond. Strand trial Elk River June charge. Sivers, former president of the First Bank of Buffalo, also under an charge in federal court, arrested late Saturday M. Melberg, in Minneapolis hospital, indicted with Strand Elk River, with affairs of the Farmers State Bank of Big Lake. Willaims, believed to be at Mankato. Bench warrants have been issued for Melberg and Williams, the Wright county grand jury week taking evidence, the result a year's investiCharged With Aiding Embezzlement Strand Unschuld charged with aiding and abetting officer bank in embezzlement. One charge fixes an amount of $15,000. the other $3,000. Warrants in the hands of the sheriff list charges grand larceny. There are understood to be severa The Wright county grand jury will renew its County Thomas Welch Monticello said last night. "There are several men involved this, and intend get the bottom Mr. Welch He aided County Attorney Will Blanchard Anoka county, named special deputy attorney general to push the investiga- the State Bank of Maple Lake, little on the Buffalo and Annandale, the spotlight of Investigation the present instance. number more them each oth. banks, officials charge, which "loaded with bad paper, Veigel, state banking says. Hanover Bank Involved There the little interior town of with its small bank. barely from Hamel, location the banks the William H. Schafer, Minneapolis promoter went to prison in 1919 sensational trial. The banks at Maple Lake and Hanover closed this spring. Then there is the First National Bank Buffalo, closed October, shortly its Sivers, was arrest. The fourth was Farmers State Bank Big in counclosed last month had absorbed the national of the About time number of banks closed and investigations by the state banking department, Veigel, state banking issued warning against "wildeat" banking. "Certain persons for some time have mortgages for much the covered worth,' he "and offering them to banks discount. In some they purchased the controlling interest tain banks and then loaded the banks such Charges Conspiracy to Wreck Banks He an into the there spiracy wreck that hoped get evidence to warrant charges. Examiners spent month then in amination records. There had purchased, officials said, $35,000 in bonds doubtful value. The was put banks, exchanged for ter securities. The banks were ordered closed. by examiners unhealthy conditions because "poor Early last week a grand jury met at examiners, bankers, employees, our Mr. Welch speaking for himself Mr. Blanchard. diversions from various banks, Wright county, one in Sherburne.' Grand Jury Issues Warrants The grand jury completed its session, went the sheriff. SherAnderson went Saturday to the home refused me, and threatened him handcuffs him His deputy. Elsenpeter. at same time went Strand's The raigned Judge Giddings, and trial set June Unschuld Continued on