Sheldon State Bank (Sheldon, IA)

Episode Information

Episode UID
2234025491247
Episode Type
Suspension β†’ Closure
Bank Type
state
Bank ID
223402549 hash
Start Date
November 5, 1903
Location
Sheldon, Iowa (43.181, -95.856)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
91c2523b77269bc8

Response Measures

None

Description

Failure attributed to large acceptance of farm paper and poor local crops; receiver appointed immediately.

Events (2)

1. November 5, 1903 Receivership
Newspaper Excerpt
R. W. Aday, of Sheldon, was named as receiver.
Source
newspapers
2. November 5, 1903 Suspension
Cause
Local Shock
Cause Details
Accepted too large an amount of paper from farmers and poor local crops left assets illiquid, causing inability to open and suspending payments.
Newspaper Excerpt
A sensation was caused yesterday by the failure of the Sheldon State Bank...to open its doors.
Source
newspapers

Newspaper Articles (21)

Article from The Washington Times, November 5, 1903

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SHELDON STATE BANK OF IOWA TO CLOSE DOORS SHELDON, Iowa, Nov. 5.-A sensation was caused yesterday by the failure of the Sheldon State Bank, of which Ed C. Brown, State railroad commissioner, is president. to open its doors. The bank. capitalized at $50,000 and carrying $190,000 in deposits, was supposed to be flourishing. R. W. Aday, of Sheldon, was named as receiver. W. D. Boles said the failure was due to acceptance of too large an amount of paper from farmers. Crops locally were poor, and while the securities are good, cash cannot be realized immediately.


Article from Bismarck Daily Tribune, November 5, 1903

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BRIEF BITS OF NEWS. W. H. Watkins, for several years part owner of the Indianapolis base ball club, has secured a controlling interest in the Minneapolis team. In a head-on collision between freight trains on the Cleveland and Pittsburg road at Reeds Run, O., two men were killed and a third badly inJured. A Big Four yard engine and a cut of freight cars were wrecked east of Caledonia, O., and Engineer Lee Smith and Henry Meischler, brakeman, were killed. The Sheldon State bank of Sheldon, Ia., has closed its doors. Ed C. Brown, Iowa railroad commissioner, Is president. The officers say deposItors will be paid in full. The Servian government is understood to be negotiating with a firm in America for the purchase of several thousand of the Mauser rifles captured by the United States in Cuba. The decision of the commission in the San Francisco street railway wage arbitration awards an increase of 10 per cent in wages to employes employed for two years prior to April 1, 1903, and of 5 per cent to those of less service.


Article from Rock Island Argus, November 5, 1903

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Depositors to Lose Nothing. Sioux City, Ia., Nov. 5.-The Sheldon State bank, of Sheldon, Ia., has been closed. Edward C. Brown, Iowa railroad commissioner, is president. The officers say depositors will be paid in full. W. R. Ady has appointed receiver. Assets, $225,000; liabilities, $175,000.


Article from Iron County Register, November 12, 1903

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Tron County Register. By ELI D. AKE. IRONTON. : : 1 MISSOURI On the 6th, the United States recog nized the new republic of Panama a a de facto government. The Sheldon State bank, of Sheldor Ia., closed on the 4th. The officers sai depositors would be paid in full. Without the firing of a shot and ami scenes of great enthusiasm, the inde pendence of the isthmus and the de partment of Panama was declared, O the 4th. President Roosevelt, on the 6th, re ceived the members of the executiv board of the Women's Foreign Societ of the Methodist Episcopal church which had just concluded its annus convention in Baltimore, Md. Minister Powell cabled the state de partment at Washington, D. C., on th 6th, that the insurgent army wa marching on the city of San Doming He asked that an American man-o war be sent there. The Baltimore wa sent. King Edward, in the presence of sev eral thousand people, on the 3d, lai the foundation stone of the King E ward VII. consumption sanitarium, a Midhurst, Sussex, for the erection ( which Sir Ernest Cassel gave the kin $1,000,000. The cadets of the Western militar academy, at Alton, III., constituted part of the reception committee which met Gov. Richard Yates, on the 3 The governor addressed a mass mee ing of the citizens in the Spauldir auditorium. The first trainload of returnir Dowie "restorationists" arrived at Zie City, Chicago, on the 3d. Later, intervals of an hour or two, train aft train deposited its travel-stained cr saders. The day was devoted to pray and thanksgiving. The First national bank of Victo Col., was closed, on the 4th, by dire tion of the acting comptroller of t currency, the examiner having repor ed the bank to be insolvent. James Lazear, national bank examiner, w appointed receiver. As showing the depth of the reser ment over the success of the Unit States in the Alaskan boundary ma ter, during the performance of a mi strel troupe at Vancouver, B. C., on t 6th, the music of the American anthe was vigorously hissed. Final burial services were held 01 the remains of Emma-Booth Tuck on the 4th, in New York city, and 1 body was placed in a vault at Wo lawn cemetery. Later it will be i terred in the army plot, where two the commander's children are burie Congressman Slemp, in Bristol, V on the 5th, confirmed the rumor the Edward L. Wentz, the young Philad phia millionaire who disappeared, V in the hands of abductors in the moi tains of southwest Virginia, and t.] a ransom of $100,000 was demanded his release. President Roosevelt was asked, the 5th, to forbid the United Sta Marine band to accent encagome


Article from Northern Wisconsin Advertiser, November 12, 1903

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FISCAL AFFAIRS. The Victor (Colo.) First National bank, with $300,000 deposits, closed. The Sheldon (la.) State bank, with $175,000 liabilities and $225,000 assets. is insolvent. In Chicago A. J. Stone, real estate dealer, petitioned the United States court to relieve him from indebtedness of $61,231. The Bimetallic bank of Cripple Creek, Colo., with $50,000 deposits, closed its doors. The Pueblo (Colo.) Title and Trust company, with $250,000 deposits, assigned. Paul Jones was appointed receiver of the Young Repeating Arms company of Columbus, O., a company. organized under the laws of New Jersey. The company is capitalized at $60,000. Pressing claims amount to $25,000.


Article from The Cooperstown Courier, November 12, 1903

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Iowa Bank in Trouble. Sibley, Ia., Nov. 5.-Judge Gaynor, on application of the stockholders appointed W. R. Ady receiver of the Sheldon State bank of Sheldon. The assets are about $225,000, liabilities about $175,000.


Article from Courier Democrat, November 12, 1903

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Thursday, Nov. 5. About 150 houses were destroyed by fire at Jeremie, Hayti, Monday. The London Daily Mail's Tien Tsin correspondent cables that 10,000 Russian troops have occupied Mukden. In a head-on collision between freight trains on the Cleveland and Pittsburg road at Reeds Run. O., two men were killed and a third badly injured. A Big Four yard engine and a cut of freight cars were wrecked east of Caledonia, O., and Engineer Lee Smith and Henry Meischler. brakeman, were killed. Stephen D. Winner, said to have been the oldest locomotive engineer in active service in the United States, is dead at Newark, N. J., aged eightyone years. The Sheldon State bank of Sheldon, Ia., has closed its doors. Ed C. Brown, Iowa railroad commissioner, is president. The officers say depositors will be paid in full.


Article from The Aberdeen Democrat, November 13, 1903

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Iowa Bank in Trouble. Sibley, Ia., Nov. 5.-Judge Gaynor, on application of the stockholders appointed W. R. Ady receiver of the Sheldon State bank of Sheldon. The assets are about $225,000, liabilities about $175,000.


Article from Little Falls Herald, November 13, 1903

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Thursday, Nov. 5. About 150 houses were destroyed by fire at Jeremie, Hayti, Monday. The London Daily Mail's Tien Tsin correspondent cables that 10,000 Rub sian troops have occupied Mukden. In a head-on collision between freight trains on the Cleveland and Pittsburg road at Reeds Run, O., two men were killed and a third badly injured. A Big Four yard engine and a cut of freight cars were wrecked east of Caledonia, O., and Engineer Lee Smith and Henry Meischler, brakeman, were killed. Stephen D. Winner, said to have been the oldest locomotive engineer in active service in the United States, is dead at Newark, N. J., aged eightyone years. The Sheldon State bank of Sheldon, la., has closed its doors. Ed C. Brown, Iowa railroad commissioner, is president. The, officers say depositors will be paid in full.


Article from The Minneapolis Journal, December 11, 1903

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SHELDON, IOWA-Th report of the receiver of the Sheldon State bank has been filed with the court. It is believed the bank will pay depositors about 70 cents on the dollar.


Article from Evening Times-Republican, December 14, 1903

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WILL PAY ALMOST NOTHING. Failed Sheldon Bank Will Realize But Little for Depositors. Special to Times-Republican. in Primghar, Dec. 14.-People O'Brien county are interested in the reports which are being printed in the newspapers about the condition of th failed Sheldon State bank. Men who have familiarized themselves with the report of the receiver and the character of the assets declare that statements which have recently been sent to the Tribune and other papers that the institution will pay about 60 cents on the dollar to depositors are entirely at fault. It Is stated on the other hand. on the testimony of men who are well acquainted with the people whose notes are listed, that it will not pay over 30 cents on the dollar. One of these IS authority for this statement: Says Assets Are Bad. "Of the $195,000 of assets scheduled. at least $75,000 is not worth the paper it is written on, and is in fact the rottenest of stuff ever set up by any concern as assets of a banking institution. All or nearly all of the really good notes given the bank are in soak in Chicago, Des Moines and Sioux City, and of course these creditors will be paid in full while the local creditors will suffer." It is further declared by representatives of depositors that the people of O'Brien county will never stop short of rigid and thorough probing of the affairs of the bank, and prosecutions are hinted at in strong terms. One of the charges is that the bank has been insolvent for a year and a half and that the fact should have been patent to bankers. On the other hand the friends of Ed C. Brown insist that he employed the best of judgment, and closed the bank at a time when It was yet possible that it might have been tided over, because he did not propose. to take chances of violating the banking laws.


Article from The Kimball Graphic, December 18, 1903

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TO PAY 70 PER CENT. Receiver's Report on the Sheldon Bank Is the Basis of This Estimate on Outcome. Sheldon, Ia., Dec. 10.-The report of the receiver of the Sheldon State bank has been filed with the court. It is a lengthy document, setting forth the list of deposits, securities, etc. A number of people interested in the concern have examined the assets and studied the report, and say they believe the bank will pay depositors about 70 cents on the dollar.


Article from The Mitchell Capital, December 18, 1903

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TO PAY 70 PER CENT. Receiver's Report on the Sheldon Bank Is the Basis of This Estimate on Outcome. Sheidon, Ia., Dec. 10.-The report of the receiver of the Sheldon State bank has been filed with the court. It is a lengthy document, setting forth the list of deposits, securities, etc. A number of people interested in the concern have examined the assets and studied the report, and say they believe the bank will pay depositors about 70 cents on the dollar.


Article from Custer Weekly Chronicle, December 19, 1903

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TO PAY 70 PER CENT. Receiver's Report on the Sheldon Bank Is the Basis of This Estimate on Outcome. Sheldon, Ia., Dec. 10.-The repor of the receiver of the Sheldor State bank has been filed with the court. It is a lengthy document, set ting forth the list of deposits, securities etc. A number of people interested in the concern have examined the assets and studied the report, and say they believe the bank will pay depositors about 7 cents on the dollar.


Article from Ottumwa Tri-Weekly Courier, March 10, 1904

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SUIT AGAINST SHELDON FIRM. Petition in Involuntary. Bankruptcy Promises Light on Bank Failure. Sioux City, March 9.-Startling light was thrown on the late failure of the Sheldon State bank yesterday when R. M. McKinney brought suit in the federal court asking that the firm of J. W. Fix & Co. be declared an involuntary bankrupt. The firm's liabilities are given as $72,000 and the assets as $500. Geo. O. Swazey has been appointed by Judge McPherson to be receiver. The firm is composed of J. W. Fix and Earl C. Brown, cashier of the bank and son of Edward C. Brown, president of the bank and railroad commissioner. It is alleged the firm borrowed about $30,000 from the defunct bank.


Article from The Mitchell Capital, May 6, 1904

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ED. C. BROWN AND SONS ARE INDICTED Sheldon Banker and Railroad Commissioner Charged on Four Counts. PULLS OUT OF THE RACE Mr. Brown Announced That He Would No Longer Attempt to Press His Candidacy for Renomination This Year. Sheldon, Ia., May 5.-The O'Erien county grand jury Tuesday afternoon voted five indictments against Ed C. Brown, chairman of the lowa board of ailroad commissioners and president of he failed Sheldon State bank of this place, for irregularities in connection with the bank's affairs, leading to its ailure. They are understood to inlude one and possibly two for emezzlement, one for declaring a divilend when the bank was insolvent, and least one for receiving deposits after he bank was known to be insolvent. Earl W. Brown, cashier of the bank, and Ed C. Brown, jr., a director, both of President Brown, are also inlicted on five counts each, the same acusations being made against all hree. The indictments were returned the jury sitting at Primghar, the county seat. The Indictments have not yet been reported to the court, but Mr. Brown vas waiting to be called before the jury it is understood was not called, he indictments being based on records. The largest embezzlement charged is based on a loan of $72,000 to J. W. Fix Co., a firm of which Earl Brown, ashier and son of President Brown, vas a member. Earl Brown signed the irm name of Fix & Co. to the notes, he loan being made without authorizaof the directors, which is contrary statute in case of an officer of the bank. Paid Dividend When Insolvent. It is charged in another indictment hat on April 13, 1903, the band declared dividend of nearly $4,000, being then nsolvent. In another, Brown is charged with having borrowed $6,000 from a Chicago ank on his personal note and later writing the bank to charge it against he bank, which is alleged to constitute mbezzlement. There are several specharges of receiving deposits after he bank was insolvent. The bank originally had $100,000 capbut in 1892 was reorganized, the apital being cut to $50,000. It is harged with carrying over $78,000 of ractically worthless paper to the new rganization, and therefore being inolvent from the beginning of the new rganization. Ed C. Brown left Sheldon after it was iven out that the indictments had been


Article from The Minneapolis Journal, May 25, 1905

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SHELDON. IOWA.-Receiver R. W. Ady today sold the Sheldon state bank building to W. H. and F. L. Myers for $5,500. Only one valuable building representing an asset of the failed bank is undisposed of, and that is used as an implement house. It is thought the bank will pay out about 35 or 40 cents 9n the dollar.


Article from The Minneapolis Journal, October 20, 1905

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IOWA MADE LOANS ON HEIRSHIP FUNDS IOWA BANKERS IN COURT TO COLLECT FROM INDIANS. Government Will Contest Claims and Seek to Establish Its Right as Guardian-Banks Rely on Supreme Court Decision Defining Citizen Rights of Indians. Special to The Journal. Sioux City, Iowa, Oct. 20.-That the gov. ernment intends to contest the claims of bankers and others who have been lending money to the Indians of South Dakota and Nebraska who have received their heirship funds is shown by the fact of J. D. Elliott of Tyndall, S. D., being appointed to assist the United States district attorney in the cases. The banks claim they can collect from the Indians of this class just as from whites, basing the claim on the decision of the federal supreme court that an Indian having heirship lands has the right of a citizen to buy all the whisky he wants. Heretofore the banks have had to send their claims thru government agents, but now they state they have the right to collect directly by any process of law. The government will seek to establish its right to retain charge of the Indians as wards. In his opening statement to the jury in the trial of Ed C. Brown, former railroad commissioner, and for years a state political figure. for violation of the banking laws of Iowa while president of the Sheldon State bank, C. A. Babcock, assisting in the prosecution, declared that he would prove beyond a shadow of a doubt that the Sheldon State bank had been insolvent for ten years before it failed. Babcock's statement was along the line of the charges in the indictment against Brown, that the latter knew the bank was insolvent Nov. 3, 1903, when deposits were taken from the Sheldon marble works. He stated the bank's liabilities at that time amounted to $194,000, with assets of the face value of $232,000, most of which were entirely worthless and in such condition that they could never be realized upon. As proof, he said that Receiver R. W. Ady had worked on the assets for two years and had collected from every possible source only $88,000. W. D. Boies, for the defense, denied the bank was insolvent, and said it was closed at the advice of Brown's attorney. He referred eloquently to Brown's life, saying he fought thru the civil war, came out to Iowa and lived in a sod shanty, was elected county treasurer, then went into the banking business and was serving as state railroad commissioner when his bank failed.


Article from Omaha Daily Bee, October 21, 1905

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Good News for Depositors. SIOUX CITY, Ia., Oct. 20.-An important development in the trial of Ed C. Brown of the defunct Sheldon State bank of Sheldon, Ia., was the statement of the receiver that 70 cents on the dollar will be paid depositors instead of 50 cents as was expected.


Article from The Minneapolis Journal, October 26, 1905

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BROWN EXPLAINS AFFAIRS OF BANK DEFENDANT TAKES THE STAND IN HIS OWN BEHALF. Alleged Mythical Firm He Declares Is a Legitimate Corporation in South Dakota-Denies Knowledge of Insolvency When He Accepted Deposit Causing His Indictment. Special to The Journal. Sloux City, Iowa, Oct. 26.-The climax of the trial at Primghar of Ed C. Brown of the Sheldon State bank for fraudulent banking was reached yèsterday when the gray-haired defendant, known personally by almost every man, woman and child in three counties, took the stand in his own behalf. He testified that J. W. Fix & Co., the firm of which his son was a member and which the state alleges was a straw company, formed to enable him to secure the use of the bank's money, was an entirely legitimate corporation and owned 720 acres of deeded land in South Dakota, well stocked and equipped and entirely free from encumbrance. He maintained this was sufficient security for the large sums borrowed by the firm from his bank. The defense claims that after the failure this ranch was disposed of for about 50 cents on the dollar. The defendant named several items of assets that he claimed the receiver had sold at much les sthan their value. He denied absolutely that he knew the bank was insolvent on the date when he received the deposit for which he was indicted and the date the bank failed. It developed from the testimony of Ed C. Brown, Jr., that the bank's doors were closed as a result of its inability to pay $10,000 demanded by a Chicago bank. Fearing the enraged Syrians would do him bodily harm because of the elopement of Mrs. Mary Eassa, aged 40, and Thomas Eassa, aged 17, Fred Nehassa, who accompanied them to Sioux Falls and saw they were well married, has fled to California.


Article from Evening Times-Republican, May 14, 1906

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BANK DEPOSITORS PAID. Receiver of Sheldon State Bank Completes Checks for First Payment. Special to Times-Republican. Sheldon, aMy 14.-R. W. Ady, receiver of the Sheldon State Bank, has completed making out the checks in payment of the first dividend, to the