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Receiver for Grinnell Bank. Washington, July 27.-The comptroller of the currency has appointed E. B. Shaw, a national bank examiner, as receiver of the First National bank of Grinnell, Ia., capitalized at $100,000. A statement of the condition of the bank, as given in its last report dated June 9, shows surplus and undivided profits $26,562; deposits $321,992.
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Spencers having suicided are not born out as matters were left in no state of preparation such as a man would naturally leave them in if he had planned his end. Washington, D. C., July 27.-The Comptroller of the currency today appointed E. B. Shaw national bank examiner as receiver of the First National Bank, Grinnell. Iowa, whose doors were closed by directors yesterday. The following statement of the condition of the bank was made June 9:Resources, loans and discounts, $389,700. Overdrafts, $2,500. United States bonds, $25,000. Banking house, $1.600. Due from bank, $32,100. Cash. $41,400. Redemption fund, $1,300. Total, $473.600. Liabilities: Capital, $100,000. and Surplus undivided profits, $26,600. Circulation. $25,000. Deposits, $322.000. Total, $473,600.
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COMPLICATIONS FOLLOW DOUBLE DROWNING Banker and Son Succumbed Though They Were Good Swimmers GRINNELL, Iowa, July 26.-The First National bank of Grinnell, whose leading director, H. C. Spencer, and Cashier W. C. Spencer, father and son, were mysteriously drowned here last week, has closed its doors pending an investigation by national bank examiners. The bank has been closed since the drowning, but no reason was assigned until today, when notice was posted stating that an examiner had been called for by the directors. It is known that there is a shortage due to the Spencers, but its amount will not be known until the examiner reports. The stockholders of the bank, however. will be abundantly able to take care of all deposits. The drowning of the Spencers. who were good swimmers, is a mystery which is still unexplained.
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GRINNELL'S FAILED BANK E. B. Shaw, a National Bank Examiner, Appointed Receiver. Washington, July 27.-The controller of the currency has appointed E. B. Shaw, a national bank examiner, as receiver of the First National bank of Grinnell, Iowa, whose doors were closed by the directors yesterday.
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APPOINTS RECEIVER. Comptroller Names Bank Examiner to Handle Grinnell Bank's Affairs. Washington, July 27.-The comptroller of the currency has appointed E. B. Shaw. national bank examiner, as receiver for the First National bank of Grinnell, Iowa, whose doors were closed by the directors yesterday.
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PROSPERITY IN IOWA. Washington, July 27.-The controller of the currency kas appointed E. B. Shaw, a national bank examiner. as receiver of the First National bank of Grinnel. Iowa, capitalized at $100,000 whose doors were closed by the directors yesterday. A statement of the condition of the bank as given in its last report, dated June 3. shows surplus and undivided profits $26,922, deposits $325,611.
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WEDNESDAY. Fire at Two Harbors, Minn., de strcyed the car shops and their contents of the Duluth & Iron Range Railroad Co. Loss, $75,000. Henry Holmes, a colored man, shot his mother, Mrs. Ellen Holmes, and af terward blew off the top of his own head at South River, 'N. J. His mother cannot live. Rear Admiral H. C. Taylor ,U. S. N.. who commanded the Indiana at the battle of Santiago, died at Copper Cliff General hospital, Sudbury, Ont., of peritonitis. W. E. Livingston, the American who was injured at San Sebastian, Spain, Sunday in the panic following a fight between a tiger and a bull, is pushing his claim for indemnity and has engaged counsel. The Steel Company of America, with an authorized capital of $3,000,000, was incorporated at Trenton, N. J., to manufacture and deal in steel and other metals. The incorporators are A. H. Henderson, A. T. Smith and E. C. Sicardi of Jersey City. The First National bank of Grinneli, Ia., whose leading director, H. C. Spencer. and cashier, W. C. Spencer, father and son, were mysteriously drowned here last week, has closed its doors pending an investigation by the national bank examiner.
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APPOINTS RECEIVER FOR IOWA BANK WASHINGTON, July 27.-The comptroller of the currency has appointed E. B. Shaw, a national bank examiner, as receiver of the First National bank of Grinnell, Iowa, whose doors were closed by the directors yesterday.
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Secret Drove Them all to Suicide. Mystery surrounds the violent deaths of three mer father, son and gran dsonall of them intimately concerned with the management of the First National Bank of Grinnell, Ia., which was closed on the day after the two last named died whether by accident or suicide may never be known. Twelve years ago C. H. Spencer, founder and president of the bank, died by his own hand. Until nów there has been no sus picion in his management. His son, Henry C. Spencer, who was the cashier, succeeded to the management, and his son in turn was made bookkeeper and confidential man. Ten days ago this father and son went in their launch to the middle of the little lake on the edge of town and jumped into the water. Both drowned, The next day the bank closed. With a government examiner in charge, absolutely nothing official as to conditions can be learned. But one story is that the original Spencer gave up the struggle 12 years ago, left the bank insolvent, and that his son and grandson covering up the fact, havestruggled to restore solvency and save the family honor, finally giving up and committing suicide together. This is the belief of most people in Grinnell. The bank is credited by its last statement with about $250,000 in deposits. The best information is that if it really had such an amount there will be immense losses. Sensationa! developments are certain when the receiver makes his report.
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BANK MYSTERY WHY DID THESE MEN END THEIR LIVES? Institution That Seems to Have Caused Three Deaths Now in Government's Hands. Grinnell, Ia., Aug. 1.-Three men, father, son and grandson, are victims of the First National bank of this city. There is a mystery in the violent deaths of these three men, all intimately concerned with the management of the bank which was closed on the day after the two last named died, whether by accident or suicide may never be known. Twelve years ago C. H. Spencer, founder and president of the bank, died by his own hand. Till now there has been no suspicion of irregularity in his management. His son, Henry C. Spencer, cashier, succeeded to the management and his son, in turn, was bookkeeper and confidential man. Ten days ago this father and son went in their launch to the middle of the little lake on the edge of town and jumped into the water. Both were drowned. Next day the bank closed. With a government examiner in charge absolutely nothing official as to conditions can be learned. But one story is that the original Spencer when he gave up the struggle twelve years ago, left the bank insolvent and that his son and grandson, covering up the fact, have struggled twelve years to restore solvency and finally, giving up, committed suicide together. This is the belief of most people in Grinnell. The bank is credited in its last statement with about a half million balance. Sensational developments are expected when the receiver makes his report.
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Examiner's Report Reaches Washington But ( ontents Are Kept Secret RIDGELY CALLS IT TOTAL WRECK Comptroller of Currency Says Spencers Would Have Been In Penitentiary Had They Lived - Grinnell Still Insists That Depositors Will be Paid, Few Stockholders Are Ruined. Washington, Aug. 10.-Examiner Shaw's report on the bank failure at Grinnell was received by the comptroller of the currency yesterday but there is a continued air of mystery about the affair yet and the officials refuse to make the report public. Comptroller Ridgeley says the bank is completely wrecked and that is all there is to it. "The report received today from Mr. Shaw," said Comptroller Ridgeley, "indicates that the affairs of the Grinnell bank are in an almost interminable tangle, and their unraveling may take many weeks. According to the report gross frauds have been committed, criminal in character. The report also shows that the Spencers, father and son, were the parties to the commission of the crimes, and they are dead. So far as I can ascertain there does not seem to be anyone left connected with the Grinnell bank who can in any way be held responsible for the fraudulent actions of the Spencers. It is a most remarkable case, and bids fair to be one of the most interesting that has been brought to the attention of the department for years." In this connection Comptroller Ridgeley said when he was appaised of the death of the Spencers, he went over to see Secretary Shaw, and in his office found Representative Hepburn. He explained that the Spencers had been drowned, but there was a suspicion of sucide due to certain elements of the affairs of the First National bank at Grinnell. Col. Hepburn. it is said, spoke up and assured Mr. Ridgeley that there could not be the slightest doubt as to the probity of the Spencers, as they were held in the highest esteem in the community in which they lived. "Subsequent events would seem to disprove Col. Hepburn's judgment," said Mr. Ridgeley, "as it appears quite evident that the Spencers' were entirely and alone responsible for the disasterous wrecking of the First National bank at Grinnell, and that thru methods, which, had they lived, would probably have landed them behind the bars. "This only proves," continued Mr. Ridgeley, "that a man having made a reputation for honesty and fair dealing in a community may do almost any fraudulent thing for years until some such catastrophe as overtook the Spencers bring home the fact that they have played upon the credulity of the public for dishonest purposes." Comptroller Ridgeley said that in all probability Bank Examiner Shaw would be held at Grinnell for some time to continue further his examination into the bank's affairs. As to the appointment of a receiver for the bank, Mr. Ridgeley said he could not under present conditions say whether such'an official would be appointed or not; he would await further advices from Mr. Shaw. The fact of the matter is the bank is completely wrecked and the wreckers are dead.
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SHORTAGE INCREASES FORGED PAPERS AMOUNTING TO $204,000 FOUND IN GRINNELL BANK. Grinnell, Aug. 9.-Forged paper to the amount of $204,000 has been found in the private accounts of J. C. Spen. cer, cashier of the First National bank of this city, which institution was closed shortly after he and his father were drowned in an artificial lake near this city a few weeks ago. The defalcations are so large that the bank will never be able to re-open. It will also undoubtedly financially ruin a large number of people in this vicinity. The theory that the Spencers committed suicide and were not accidentally drowned, is generally believed. The exact amount of the defalontions will not be known until Receiver Snaw has finished his examination of the bank's effairs.
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The first report of the receiver of the First National Bank of Grinnell, Iowa, was filed with the comptroller of the currency at Washington, Thursday. The comptroller authorizes the statement that owing to the large amount of forged paper among the assets, an assessment against the shareholders for their full 100 per cent. liability has been levied.
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Bank's Assets Mostly Forgeries. Washington, Aug. 26.-The first report of the receiver of the First National bank of Grinnell, Ia., has been filed with the comptroller of the currency. The comptroller authorizes the statement that owing to the large amount of forged paper among the assets an assessment against the shareholders for their full 100 per cent liability is necessary and has been levied.
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Stockholders Assessed. Washington: The first report of the receiver of the First National Bank of Grinnell, Iowa, was filed with the Comptroller of the Currency Thursday. The Comptroller authorizes the statement, that, owing to thte large amount of forged paper among the assets, an assessment against the shareholders for their full 100 per cent liability is necessary and has been levied.
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Secretary of the Treasury Leslie M. Shaw, who spent Wednesday in Grin nell, to consider the petition of depositors of the First National bank, who are dissatisfied with the appointment of Receiver Swords, the present incumbent, arrived in the city at 4:53 Wednesday evening, and left at 5:29 for Denison, where he will remain for a short time before returning to Washington.
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'Phone Company Reorganized. Special to Times-Republican. Grinnell, Dec. 21.-At the reorganization of the Newburg and Grinnell Telephone Company, whose affairs have been in the hands of a receiver and the property sold at public aution, the following officers were elected: President, J. L. Burroughs; vice president, N. W. Cox; secretary, Thos. Mason; treasurer, A. H. Palmer. Trustees-J. M. Campbell, E. P. Bonsall and John Newcomer. Thirty-one members signed the constitution and by-laws and the company is ready for a prosperous business. The depositors of the First National bank have received about $40,000 since the first check was given out about 3 o'clock Saturday afternoon. T. R. Cessna drew the first check given out, and, so far as known, J. F. Wilson drew the smallest, one, calling for 22 cents.
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# Many Opposel to Prevailing Bank Examinations, But Cannot Devise Better Substitute # STATE BANK EXAMINER TALKS M. A. Buchan, of Grundy Center, Says Much of the Criticism of Present System Comes From Thoughtless People Who Do Not Know Duties Involved and Overestimate Them. Special to Times-Republican. Iowa City, Sept. 30.-"I have talked with a great many bankers and finan- clers during the past few years," de- clared M. A. Buchan, state bank exam- iner, whose home is in Grundy Center, to a T.-R. correspondent, "and though nearly every one of them was opposed to the present system of bank examin- ation at the start, they confessed that they could devise no better before we had finished the subject. Our present system of bank examination, both state and federal, is faulty like our jury sys- tem, but up to the present time there has been no substitute, equally good, suggested for either." "A great deal of criticism of our present system comes from thought- less people who really do not know what our duties are, and therefore largely overestimate them. You must understand that we are not supposed to pass on the validity of securities held by the bank. Thousands of dol- lars worth of forged notes can be placed in our hands by a dishonest bank president, and unless they look especially suspicious and we make a special investigation of them, we never would detect the fraud. That is what your bank directors are elected to of- fice for. It is their work and theirs alone to pass on the validity of the se- curities in the safe of the bank. Yet when a bank fails as that Grinnell Na- tional bank did, where the president used the devise just mentioned, to con- ceal his embezzlement, the bank exam- iner is blamed for not checking his work sooner. "We do protect our clients, however, from a great many of the frauds that could be engineered under their very noses, such as the alteration of books, and the manipulation of foreign cred- its. These acts are very readily de- tected and when the criminal is caught he is very promptly punished. Fully fifty per cent of the men who are de- tected, however, are never publicly ex- posed. There are several reasons for this action on the part of the board of directors. If the loss is small and there are believed to be extenuating cir- cumstances in the case, these men as a usual thing like to give the fellow an opportunity to straighten up again. Publicity might also cause a run on the bank, which is always feared. I hard- ly think a better system will be devised in several years."
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SHORTAGE OF $245.000 Spencer Estate Paid Only $23000 of the $268,000 Claims Against Failed Bank CREDITORS GET 75 PER CENT Final Report of H. W. Spaulding. the Administrator of the Estate of the Late Henry C. Spencer Is Filed at Montezuma Today-Other News of the State. Special to Times-Republican. Grinnell, April 3.-H. W. Spaulding, administrator of the estate of Henry C. Spencer, who wrecked the First National bank of Grinnell, filed his final report at Montezuma today. The tragic death of Spencer and his son Clarke H. Spencer, who were drowned in Arbor Lake in the summer of 1904. followed by the discovery that Mr. Spencer, who had been for years the trusted cashier of the First National Bank of Grinnell, was deeply indebted to the bank and the immediate closing of the bank and appointment of a receiver will be well remembered thruout the state. The claim of the receiver of the bank against the H. C. Spencer estate was approximately $268,000 and the final report of the administrator shows that the estate paid $23,000 of this claim, leaving an unsatisfied shortage of about $245,000. The dividend of 8.63 percent reported by the administrator as paid all of Spencer's creditors, exhausted the funds available. Geo. W. Swords. receiver of the bank, has already paid 65 per cent of the claims against the bank and probably when the affairs of the bank are wound up 75 per cent of its creditors' claims will be satisfied.
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BANK'S AFFAIRS CLOSED Final Accounting of Grinnell, Iowa, Institution Is Filed. GRINNELL, IOWA.-The final accounting of H. W. Spaulding, administrator of the estate of the late Henry C. Spencer, has just been filed at Montezuma. The tragic death of Spencer and his son, who were drowned in Arbor lake in June, 1904, was followed by the discovery that the elder Spencer, who had been cashier for many years of the First National Bank of Grinnell, was deeply indebted to that institution. The bank immediately closed its doors and a receiver was appointed to wind up its affairs. The claim of the receiver of the bank against H. C. Spencer was approximately $268,000, and the report of the administrator shows that the estate paid $23,000 of the claim, leaving a shortage of about $245,000. The dividend of 8.6 per cent reported by the administrator as having been paid to all of Spencer's creditors exhausted the estate. The defunct bank has, however, already paid dividends amounting to 65 per cent of the claims against it.
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GRINNELL BANK LOSS A QUARTER MILLION Grinnell, April 5.-H. W. Spaulding, administrator of the estate of Henry C. Spencer, who wrecked the First National Bank of Grinnell, filed his final report at Montezuma yesterday. The tragic death of Spencer and his son Clarke H. Spencer, who were drowned in Arbor Lake in the summer of 1904, followed by the discovery that Mr. Spencer, who had been for years the trusted cashier of the First National bank of Grinnell, was deeply indebted to the bank and the immediate closing of the bank and appointment of a receiver will be well remembered throughout the state. The claim of the receiver of the bank against the Spencer estate was approximately $268,000 and the final report of the administrator shows that the estate paid $23,000 of this claim, leaving an unsatisfied shortage of about $245,000. The dividend of 8.63 per cent reported by the administrator as paid all of Spencer's creditors, exhausted the funds available. Geo. Swords, receiver of the bank, has already paid 65 per cent of the claims against the bank and probably when the affairs of the bank are wound up 75 per cent of its creditors' claims will be satisfied.
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GRINNELL BANK LOSS A QUARTER MILLION Grinnell, April 5.-H. W. Spaulding, administrator of the estate of Henry C. Spencer, who wrecked the First National Bank of Grinnell, filed his final report at Montezuma yesterday. The tragic death of Spencer and his son Clarke H. Spencer, who were drowned in Arbor Lake in the summer of 1904, followed by the discovery that Mr. Spencer, who had been for years the trusted cashier of the First National bank of Grinnell, was deeply indebted to the bank and the immediate closing of the bank and appointment of a receiver will be well remembered throughout the state. The claim of the receiver of the bank against the Spencer estate was approximately $268,000 and the final report of the administrator shows that the estate paid $23,000 of this claim, leaving an unsatisfied shortage of about $245,000. The dividend of 8.63 per cent reported by the administrator as paid all of Spencer's creditors, exhausted the funds available. Geo. Swords, receiver of the bank, has already paid 65 per cent of the claims against the bank and probably when the affairs of the bank are wound up 75 per cent of its creditors' claims will be satisfied.
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DIVIDEND FOR DEPOSITORS. Creditors of Defunct Grinnell Institution Get Total of $225,000. Grinnell, Jan. 29.-Receiver E. W. Butler, of the defunct First National bank of Grinnell, has just distributed an additional $10,000 in dividends to depositors, bringing the total payments to date to $225,000. This is equivalent to 80 per cent of the total indebtedness at the time of the failure.