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TWO BANKS CLOSE. National Institutions In Ohio and Oklahoma Forced to Suspend Operations. Canton, Ohio, May 24.-The Canton State Bank closed its doors today. The cause of the failure is unknown. The report of the financial condition of the bank on March 6th, last, showed its resources were $839,552. First National of Lexington Fails. Washington, D. C., May 24.-The comptroller of the currency has been advised that the First National Bank of Lexington, Oklahoma, failed today.
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TWO BANK FAILURES. Canton, 0., Institution Closes Its Doors -Will Not Resume. Canton, Ohio, May 24.-The Canton State bank, with individual deposits of more than $600,000, closed its doors today. The directors state that the bank will not be able to resume business. The failure was brought about by heavy loans to W. L. Davis, vice president of the bank, by the cashier, Corwin B. Bachtelle, without the consent of the other directors of the bank. According to a statement made by counsel for the directors more than $400,000 has been given to Davis for which no adequate security has been furnished to the bank. Davis has deeded to the bank property valued at $200,000. The city of Canton has $76,000 on deposit in the bank. The Canton Y. M. C. A. and many school teachers were also depositors in the bank. Washington, May 24.-The comptroller of the currency has been advised that the First National bank of Lexington, Okla., failed to-day. National Bank Examiner Myron R. Sturtevant has been appointed receiver. The last examination of this bank showed its capital to be impaired by losses, and the comptroller ordered an assessment on the stockholders to make up the impairment, or the placing of the bank in voluntary liquidation. Oklahoma City, Okla., May 24.-The First National bank of Lexington, Okla., having failed to open its doors to-day Vice President Lawrence Voltz explains that he found there was insufficient cash on hand for his needs, and he concluded to close the band temporarily. He is confident that the bank will be closed only a few days. The failure is due to inability to realize on collateral,
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Ohio Bank Closes By Associated Press. CANTON, Ohio, May 25.-The People's Deposit bank of Mineral City, Ohio, closed its doors today. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank yesterday. Directors of the Mineral City say it may resume business in a day or two.
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Ohio Firm Fails. Canton, Ohio, May 26.-The People's Deposit bank of Mineral City, Ohio, has closed its doors. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton state bank yesterday.
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ANOTHER OHIO BANK CLOSES Canton, Ohio, May 25.-The people's Deposit bank of Mineral City, Oh'o. closed today. The president of the institution says loans of $50,000 were made by the bank to W. L. Dav's of Canton. whose heavy loans are said to have caused a suspension of the Canton state bank yesterday,
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CANTON FAILURE CLOSES BANK. Another Institution Made Heavy Loans to Accused Official. Canton, Ohio, May 25.-The People's Deposit Bank of Mineral City closed its doors to-day. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis, of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank yesterday. Directors of the Mineral City Bank say it may resume business in a day or two.
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Ohio Bank Failed. The People's Deposit Bank of Mineral City, Ohio, closed its doors yesterday. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank yesterday. Directors of the Mineral City Bank say it may resume business in a day or two.
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Another Canton Bank Falls. Canton, O., May 26.-The People's Deposit Bank, of Mineral City, O., has closed its doors. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis, of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank. Directors of the Mineral City Bank say it may resume business in a day or two.
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Suspension of an Ohio Bank. CANTON, Ohio, May 25.-The People's Deposit Bank of Mineral City, Ohio, closed its doors to-day. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State Bank yesterday. Directors of the Mineral City say it may resume business in a day or two.
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Ohio Bank Closed. Canton, 0., May 25.-The People's Deposit bank of Mineral City, O., closed its doors today. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank yesterday. Directors of the Mineral City bank say it may resume business in a day or two.
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Another Ohio Bank Fails. Canton, O., May 26.-The People's Deposit bank of Mineral City, O., closed its doors during the day. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank Wednesday.
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of the doors of the Canton State bank has subsided, and the feeling of the depositors, stockholders and creditors is that the only thing now to do is to turn the affairs over to competent parties who can be trusted and liquidate ffairs as economicaly and quickly as possible. The plans of the stockholders and creditors for the continuing of the business of the bank had to be given up when it was discovered that W. L. Davis had large obligations outside of bis indebtedness to the bank, and that these outside creditors will, of course, share in the property that was turned over to the bank some days ago. It is thought that Davis' indebtedness aside from that of some of the companies In which he is interested will reach between $600,000 and $700,000. The great majority of the stockholders seem to be willing to do all that they can to protect the depositors, and it is expected that the greater number will promptly pay the 40 per cent on their shares of stock, thus bringing quite a sum to the relief of the bank. It is not expected, however, that anything can be realized upon the stock of Davis and Bachtel. The former is the heaviest stockholder, having 805 shares, while Bachtel has 490. MINERAL CITY FAILURE. The Mineral City bank, in which Davis was a heavy stockholder, closed its doors Thursday morning to prevent a run. Its condition IS being investigated and no definite news as to its solvency can be secured until the inspection is completed. The bank was started by Alfred Davis, now deceased, the father of W. L. Davis. The bank has a capital stock of $25,000 and it is said that Davis has borrowed sums aggregating $50,000, to secure which there are some collaterals, the real value of which cannot be ascertained. The depositors are quite numerous, and there is a great deal of excitement ( in the village. ( THE CITY IS SAFE. The city of Canton will not lose TO anything at the hands of the State F bank. Treasurer Bidwell, who is ill in a Cleveland hospital, will be at home E Sunday, it is thought. The city is proE tected by a bond of $200,000 given by M the Bankers' Surety Co. of Cleveland, C and the records show that the council L had not at any time created a deposA itory for the city funds, but on the N other hand the Surety company had M given its consent to Treasurer Bidwell I to deposit money with the State bank, G and also seven other banks of Canton. J The State bank held the largest G amount. L The directors of the State bank had M a meeting last evening and decided to M submit a proposition to the creditors. J J It is thought that the affairs of the institution can be better subserved by ΠΈ H the appointment of competent persons M to close up the affairs, rather than go M through the expense of bankruptcy. A W resolution was adopted which will be K submitted to all interested parties for M approval. E The stockholders of the Canton State A bank include many of the substantial G citizens of this city. From the recB ords at the auditor's office the News A has secured the complete list of stockM holders, with the amount of stock, Je which is published below. There are in all 6,000 shares, each share having a face value of $50, upon which $30 has been paid. The list follows: Shares 5 John L. Allman, Canton
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GIRL'S QUICK WIT How Mins Florence Bidwell. Saved $30,000 to Canton's Treasury. The failure of the Canton (O.) State bank developed a heroine in the trim little person of Miss Florence Bidwell, daughter of City Treasurer Bidwell, says a special dispatch from Canton, O., to the Washington Post. Miss Bldwell saved the city of Canton $30,000. The State bank was a city depository and had $106,000 on deposit there the day It suspended. The bank opened its doors as usual the other morning. But they were open only twenty minutes. This was enough for Miss Bidwell. When she reached the city treasurer's office, where she had been in charge in the absence of her father, who is ill in a hospital in Cleveland, Assistant City Treasurer Coyle, who was also employed at the bank, gave her a tip over the telephone on what was going to happen. Miss Bidwell is only eighteen, but she showed quickness of thought and mature judgment enough for a person twice her age. Quickly putting on her hat, she slipped over to the bank and asked Coyle how much cash the city could have. About all the cash in the bank was a bag containing $30,000 in gold. The proper check was made out, Coyle took the gold from the vault and at the girl's request helped her with It back to the city treasurer's office. By the time Coyle reached the bank again it had been decided to suspend, and the doors were closed.
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THE CANTON BANK, Receiver Appointed For the Property of Vice President W. L. Davis. Cleveland, O., June 2.-Judge Tayler, of the United States district court here, appointed Jacob P. Faweett receiver of the assets and property of William L. Davis, vice president of the closed Canton State bank. The receiver's bond was fixed at $50,000. The court also named C. C. Bow as receiver for the Davis Railroad Coal Co. and William L. Stolzenbach, of Canton, as receiver for the Mineral City Supply Co. Stolzenbach was also named as receiver for the Cleveland Brick Co., of Canton, with a bond of $50,000 in each case.
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RECEIVERS' REPORT, CANTON STATE BANK OVER $120,000 HAS ALREADY BEEN COLLECTED. Not Yet Possible to Estimate How Much Will Be Realized From the Assets. Henry A. Wise and James G. Barbour, receivers of the Canton State bank, in obedience to an order of the court, have filed the report of the bank's liabilities, together with a summary and expenditures to date. The report is filed in the case of H. E. Linton and Kate R. Linton vs. the Canton State bank. The receivers have not yet finished their work on the accounts and are yet unable to estimate the total to be realized from the assets. The disrupted bank claims in which the receivers question the liability of the bank, amount to $14,726.83. The total amount collected by them is $120,040.43, while the total disbursements to date, in the way of expenditures, are $1,505.96, making a balance of $118,534.46 cash on hand. In the recapitulation of assets, according to the schedule of property and assets filed by the receivers at the close of the month of July, the following items were included: Loans and discounts $448,468.11 40,000.00 First mortgage bonds Overdrafts 9,633.96 Cash items 20,304.66 Letters of credit 1,464.00 Transit items not remitted 18,053.75 24,927.59 Due from banks and bankers Cash collected and deposited in Canton banks 82,174.10 Unpaid stock subscriptions 118,990.00
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Bank Officials Indicted, Canton, O. (Special).-The grand jury returned indictments against W. L. Davis, vice president, and Irwin D. Bachtel, cashier, of the Canton State Bank, now in the hands of receivers. Davis is held for embezzlement of $15,300 and for grand larceny of the same amount. Bachtel is indicted for the same two offenses, and an additional indictment is placed against him charging false entries on the bank's books.
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Canton Bankers Indicted. The Grand Jury at Canton, O., returned indictments against W. L. Davis, vice president, and Corwin D. Bachtel, cashier of the Canton State bank, now in the hands of receivers. Davis is held for embezzlement of $15,300, and for grand larceny of the same amount. Bachte1 is indicted for the same two offenses and an additional indictment is placed against him charging false entries on the bank's books.
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BANK RECEIVERS ASK TO HAVE EX-CASHIER BACHTEL DECLARED A BANKRUPT. Allege That He Has Been Insolvent Six Months and Has Transferred Property to His Wife. Special to Morning News. Cleveland, O., Oct. 18.-In a report filed in the United States district court Tuesday, Henry A. Wise and James G. Barbour, receivers for Canton State bank, which failed several months ago, ask that Corwin D. Bachtel be adjudged bankrupt. Both Wise and Barbour are among the creditors of Bachtel, who is said to owe over $8,000 on promissory notes executed to the Canton State bank, of which he was cashier. The receivers also allege that Bachtel has been insolvent for six months, and that he has broken the laws, in bankruptcy by transferring all of his property to his wife since that time.
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# TWO BANKS ANSWER ASK DISMISSAL OF CROSS PETI- TIONS IN CANTON STATE BANK CASES Claim That Defunct Bank Collected $59,000 on Notes Involved in Liti- gation, After Receivers Were Named. The First National bank of Massillon and the Central Savings bank of Canton have filed answers in the court of common pleas in which they ask the dismissal of the cross petitions of the receivers of the Canton State bank, regarding outstanding claims and preferences thereto, which were previously filed in the case of Harry E. Linton et al. against the Canton State band. The First National bank denies that the notes involved were transferred by the cashier of the Canton State bank without authority, or for the purpose other than to pay the liabilities of the institution. Whether the notes were discounted by the local bank neither of the other banks are able to state. The First National bank alleges that after the appointment of the receivers for the Canton State band it collected $59,849.61 from the notes involved, which it retained and now claims as its own. The Central Savings bank charges that after May 24 when the Canton State bank was insolvent, it collected $15,803.46 on the notes held. It claims all the notes the local bank transferrred were as security for loans.
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MORE MONEY To be Paid Creditors of the Canton State Bank. 20 Per Cent Dividend. Judge Ambler, who has been holding court in Lisbon all week, returned Friday and took up the second 20 per cent dividend matter, which Receivers Wise and Barbour asked authority to pay the creditors of the Canton State bank. The court ordered dividends to be paid as shown by the list of creditors filed September 11th last, subject to the orders of the court heretofore made touching the validity of any and all claims. The receivers stated Friday morning that all persons holding drafts or certificates of deposit may call at their office on the second floor of the Eagle block and receive the money due them. Judge Ambler ordered the receivers to retain a sum equal to 40 per cent of all disputed claims to further orders of the courte A num-
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A Number of Rulings Made by Highest Tribunal in the Land Yesterday. MOODY'S FIRST DECISION NEY YORK'S STOCK TRANSFER CASE DECLARED VALID-OHIO BANK CASES WERE DISMISSED FROM DOCKET. [Publishers' Press.] Washington, Jan. 7.-In an opinion by Justice Brewer the supreme court dismissed the so-called Canton bank wrecking cases dealing with questions involved in the failure last spring of the Canton (Ohio) State bank. There were five of the Canton cases before the court, representing 25 indictments, and of the five two were against Corwin D. Bachtel, cashier of the bank, and one each against William L. Davis, a vice president and director; Charles H. Van Horn, teller, and Har- and H. Miller, a customer. These vey other indictments were returned 19 the grand jury of Stark county Ohio last May, by under what is known as the free banking law of the state, which provides for imprisonment from -one of to ten years.of any officer or agent to a bank who in any way attempts deceive or defraud. The indicted men made an immediate effort to secure release by means of writs of habeas corpus, and failing in the state courts, brought their suits to the supreme court. As that court refused to take cognizance of the case, they met with no better success. They relied entirely on establishing the unconsti- the tutionality of the law under which' proceeding against them was brought, contending that as the punishment provided for was made only to banks there incorporated under that statute, was discrimination such as to prevent in equal treatment before the law that provision was intended to apply some members of a class of persons, to and not to the class as a whole. order The effect of the supreme court will be to leave the cases in the state courts, at least for the present. The supreme court of the United g States announced its decision in the t stubbornly fought contest over street privileges in Cleveland, Ohio. The by opinion car of the court was presented deJustice Peckham and affirmed the 0 cision of the United States circuit i court for the northern district of II b Ohio. The suit involved the right to opera street car line on Central aveCleveland, for which both the and old t company, iue, the Cleveland Electric the new, the Forest City, contended, the former under a franchise, it urged, and S perpetual, or good until 1913, 5 was the latter under an ordinance passed of I 1904, granting to it a "renewal Central 00 the right to operate a line on for venue." The old company asked N njunction against the city, and the by company, which was granted the Judge new Taylor, who also held that ranchise of the old company expired h March 22, 1905. The city was prohibA ted from putting the Forest City V company in possession of the the ordinance other
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# Important Claims Settled. Two most important claims against the Cleveland Brick company were settled by Probate Judge Bow, who is acting in capacity as trustee for the company. A check amounting to $36,766.62 was given to receivers of the Canton State bank and one for $3342.42 to the Merchants' National bank of Massillon. The settlements represent the amount the banks were entitled to on preferred claims of mortgage bonds which were issued within one year of the time the company went into bankruptcy. "The brick company has not made any dividend to its general creditors, because we have been expecting daily the settlement of a few accounts coming from other companies in which William L. Davis was interested," said Receiver Bow. "When I receive dividends from these companies the brick company will have a dividend. This can be expected within the next 60 or 90 days."
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COURT HOUSE FRIDAY, SEPTEMBER 4, 1908. FOURTH DIVIDEND. The fourth dividend to the creditors of the Canton State bank, which closed its doors May, 1905, was granted yesterday morning by Common Pleas Judge Ambler. Attorneys Lynch & Day, representing Receivers Wise and Barbour, of the defunct bank, made the application for the dividend. The creditors will receive a payment of 10 per cent on their claims in compliance with the decree of the court, which makes it the fourth dividend, the three previous ones amounting to 20 per cent. The first dividend was made in December, 1905, while the third was paid about six months ago. Judge Henry A. Wise, one of the receivers, said yesterday: "We are ready to pay the latest dividend immediately and I think that at least 75 per cent of the creditors' claims on the bank will be paid. Affairs have been progressing smoothly and the total amount may reach 80 per cent." The receivers have been instructed by Judge Ambler to pay the dividends to the creditors out of the moneys they now have in their possession, subject to the orders and judgments which the court has heretofore made, touching on the amounts or validity of the claims; furthermore the dividend is subject, the entry declares, to the restrictions and conditions which governed other dividends.