189101146 18910
national
4cfa8bd73f476240Full suspension, Books examined
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A Bank Closed. WASHINGTON, June 3.-Comptroller Eckels today received a telegram stating that the First National Bank of Pello, Ia., had closed its doors. Bank Examiner Howard was placed in charge. The bank has a capital of $50,000. The cause of the suspension is not known.
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National Bank Suspends. WASHINGTON, June 3.-Comptroller Eckels is informed that the First National Bank of Pella, Iowa, capital $50,000, closed its doors to-day. Bank-Examiner Howard has been placed in charge.
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A Small Bank In Trouble. WASHINGTON, June 3.-Comptroller Eckels today received a telegram stating that the First National bank of Pella, Ia, had closed its doors. Bank Examiner Howard was placed in charge. The bank has a capital of $50,000. The cause of the suspension is not known.
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SELECTED HAWKEYE MENTION THE PELLA BANK INSOLVENT. Later Developments Bring to Light a Bad State of Affairs. PELLA, June 6.-The First National bank is hopelessly insolvent. Excitement runs high, while hundreds of creditors swarm in the streets. The concern known as E. R. Cassatt & Co., or the time note swindle, is alleged to have been instituted to deceive and rob the people by issuing paper which they supposed was issued by the bank, which read, "The Office of E. R. Cassatt & Co.," and in this way he deprived the stockholders of a share by offering a better rate of interest. Thousands of dollars of this worthless paper has been placed in the hands of collectors. The resignation of Cashier J. H. Stubenrauch was not accepted, as his friends feel that while he was aware of the existing state of affairs, and had been used as a tool, but for fear of his own life he refused to speak. The whole affair is without question one of the rottenest in central Iowa. The latest report places the loss considerably above $100,000. The bank will go into the hands of a receiver. Those in a position to know say it could not be worse. Senator Cassatt's condition is very favorable for recovery.
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THE CLOSED PELLA BANK. First National May Be Placed in as Receiver's Hends. Washington. June 4.-Comptroller Eckels said today he would probably have to place the First National Bank of Pella, Ia., in the hands of a receiver. Bank Examiner Howard, who is now in charge of the bank, will probably be made temporary receiver pending an exhaustive examination of the bank's condition. The fact that President Cassett committed suicide as the result of losses sustained in speculations causes suspicion that the bank funds may not be intact.
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A FEW "SOUND MONEY" MEN. The First National Bank at Pella, Iowa, is closed. E. R. Cassell, its president, lost $14,000 gambling, and the bank couldn't stand the pressure. Cassell has since cut his throat, but is not dead. One of Cleveland's "sound money" postmasters, at Breckinridge, Texas, is short $2,000. The money that he stole is not good in "Yurrup," either. C. L. Woodbridge & Co, importers of dress goods, trimmings, etc., New York, have failed, owing $200,000. They probably understand by this time that money that is good in "Yurrup" don't make business hum-unless there is plenty of it. The Stevens cotton Mills, Lancaster, Pa., have failed owing about $100,000. Single standard dollars don't go very far in the struggle for business existence. Chas. W. Gryne, "sound money" dude and all round sport, left Richmond, Va, a few days ago by thelight of the moon, after overdrawing his bank account to the tune of $600. The Milford, N. H., Savings bank has suspended payments. It claimsto have about $900,000 in deposits, but cannot realize on securities to pay pressing demands. There it is. Se. curities are so low. Well, didn't you goldbugs make 'em low! Now sweat. Hard times and "sound money" has made Birmingham. Ala., too poor to pay the interest on her city bonds. J. M. Heffner, agent for .Adams Express Company and C. B. & Q R.R, at Rock Island, Ill., has gone with $2,500 dollars good in Yurrup. W. W. Taylor, the "sound money" Treasurer of South Dakota, who ran away with $367,000 State money on the 7th of last January, has voluntarily returned and will be tried. He has turned over all his property to his bondsmen. The State offered a reward of $20,000 for his arrest, but detectives failed to locate him.
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LOST BANK FUNDS IN SPECULATION. Chicago, April 24.-Serious charges are made in a declaration filed to-day in the Federal Court in the suit of Robert R. Beard, receiver of the First National Bank of Pella, Iowa, against the commission firm of Milmine, Bodman & Co., of Chicago and New-York, members of the Board - Trade and Stock Exchange of those cities. George Milmine, Charles E. Milmine and Edward C. Bodman, of the firm, are residents of New-York City. The suit is brought against the firm as brokers for E. R. Cassatt, who was president of the failed bank, claiming $50,000, which, It is alleged, Cassatt took without authority from the funds of the bank on deposit at the National Bank of Illinois, in this city, and lost it in speculation on the Board of Trade, the defendants making the deals for him.
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# AGAINST THE BROKERS. Decision by Judge Grosscup in the Pella (Ia) Bank Case. CHICAGO, April 19.-Judge Grosscup, in the United States circuit court, handed down a decision in favor of D. R. Beard, receiver for the First National bank of Pella, Ia., against Milmine, Rodman & Co., and C. E. Congdon & Co., stock brokers in Chicago. The suit was brought by the receiver to recover funds which E. R. Cassat, president of the bank, had paid to the brokers before the failure of the bank in order to speculate on the board of trade. The decision of Judge Grosscup, unless it is reversed by the higher courts, establishes precedent in recovering bank funds spent in such a manner. The grounds for bringing the suit were that the defendants knew the money was being lost and should have ascertained whether it belonged to Cassat or to some institution with which he was connected. About $23,000 is involved.
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# Pella Bank Decision. CHICAGO, April 19.-Judge Grosscup in the United States circuit court, handed down a decision in favor of R. R. Beard, receiver for the First National bank of Pella, Ia., against Milmine, Bodman & Co., and C. B. Congdon & Co., stock brokers, in Chicago. The suit was brought by the receiver to recover funds which F. R. Cassatt, president of the bank, had paid to the brokers before the failure of the bank in order to speculate on the board of trade. The decision of Judge Grosscup, unless it is reversed by the higher courts, establishes a precedent in recovering bank funds spent in such a manner. The grounds for bringing the suit were that the defendants knew the money was being lost and should have ascertained whether it belonged to Cassatt or to some institution with which he was connected. About $23,000 is involved.
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# AGAINST THE BROKERS. Decision by Judge Grosscup in the Pella (Ia.) Bank Case. CHICAGO, April 20.-Judge Grosscup, in the United States circuit court, handed down a decision in favor of D. R. Beard, receiver for the First National bank of Pella, Ia., against Milmine, Rodman & Co., and C. E. Congdon & Co., stock brokers in Chicago. The suit was brought by the receiver to recover funds which E. R. Cassat, president of the bank, had paid to the brokers before the failure of the bank in order to speculate on the board of trade. The decision of Judge Grosscup, unless it is reversed by the higher courts, establishes a precedent in recovering bank funds spent in such a manner. The grounds for bringing the suit were that the defendants knew the money was being lost and should have ascertained whether it belonged to Cassat or to some institution with which he was connected. About $23,- mnis inΟΞΏΞ»Ο ΞΏΞ»
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AGAINST THE BROKERS. Decision by Judge Grosscup in the Pella (Ia.) Bank Case. CHICAGO, April 20.-Judge Grosscup, in the United States circuit court, handed down a decision in favor of D. R. Beard, receiver for the First Na. tional bank of Pella, Ia., against Milmine, Rodman & Co., and C. E. Congdon & Oo., stock brokers in Chicago. The suit was brought by the receiver to recover funds which E. R. Cassat, president of the bank, had paid to the brokers before the failure of the bank in order to speculate on the board of trade. The decision of Judge Grosscup, unless it is reversed by the higher courts, establishes a precedent in recovering bank funds spent in such a manner. The grounds for bringing the suit were that the defendants knew the money was being lost and should have ascertained whether it belonged to Cassat or to some institution with which he was connected. About $23,000 is involved.
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WARNING TO BROKERS. Chicago Judge Gives Judgment a for Funds Lost from Bank in Speculation. A decision in suspended bank litigation was given by Judge Grosscup in the United States circuit court in Chicago in favor of R. R. Beard, receiver of the First national bank of Pella, against Milmine, Bodman & Co. and C. B. Congdon & Co., Chicago brokers. The suit was brought by the receiver to recover funds which E. R. Cassat, president of the bank, had paid to the brokers before the failure of the bank in order to speculate on the board of trade. Judgments were ordered against the first named for $20,000 and against the latter for $3,000. The case will be appealed to the highest court. The First national bank of Pella failed in the summer of 1894. Cassat was president of the bank and owned a controlling interest in it. He was found to be short in his accounts $65,000. He was indicted in Iowa for embezzlement and was sent to the penitentiary for nine years. The grounds of the attorneys for bringing the suit were that the defendants knew the money was being lost and should have ascertained whether it belonged to Cassat or to some institution with which he was connected.
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BANK PRESIDENTS' SPECULATIONS Important Decision Regarding Directors' Liability forthe Same, Chicago, May 19.-A decision Involving an important point in transactions on the board of trade was handed down in the United States circuit court of appeals today by Judges Woods, Jenkins and Dunn. In sustaining judgments formerly given against the plaintiffs in error in the lower court. the judges held that the directors of a bank are not liable for the mismanagement of funds by the president who takes advantage of his position to speculate. The court denied the appeals of three Chicago brokers, against whom judgments had been given in favor of Robert R. Beard, receiver of the First National bank of Pella, Iowa, for money lost in their firms by the president of the bank. The brokers appealed on the ground that the bank's directors and not they should make good the losses. The president of the bank at Pella was E. R. Cassatt, who is now serving a sentence for defaulting in the sum of $65,000.
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BROKERS MUST PAY. Important Ruling Affecting Board of Trade Transactions. CHICAGO, May 19.-A decision involving an important point in transactions on the board of trade was handed down in the United States circuit court of appeals today, by Judges Woods, Jenkins and Dunn. In sustaining judgement formerly given against the plainfills in error in the lower courts, the judges held that the directors of a bank are not liable for the mismanagement of funds by the president, who takes advantage of his position to speculate. The court denied the appeals of three Chicago brokers against whom judgment had been given in favor of Robert R. Beard, receiver Cf the First National bank, of Pella, Io., for money lost in their firms by the president of the bank. The brokers appealed on the ground that the bank's directors and not they should make good the losses. The president of the bank at Pella was E. R. Cassatt, who is now serving a sentence for defaulting in the sum of $65,000.
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BROKERS MUST SETTLE. Bank Directors Not Liable for President's Loss on Board of Trade. A decision involving an important point in transactions on the Board of Trade was handed down in the United States Court of Appeals in Chicago May 20. In sustaining judgments formerly given against the plaintiffs in error in the lower court, the judges held that the directors of a bank are not liable for the mismanagement of funds by the president who had taken advantage of his position to speculate on the Board of Trade. The Court denied the appeals of three Chicago brokers against whom judgments had been given in favor of Robert R. Beard, receiver of the First National Bank of Pella, Iowa, for money lost. in their firms by the president of the bank.