5171. Peoria National Bank (Peoria, IL)

Bank Information

Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
national
Bank ID
2878
Charter Number
2878
Start Date
October 6, 1905
Location
Peoria, Illinois (40.694, -89.589)

Metadata

Model
gpt-5-mini
Short Digest
c0779987

Response Measures

Borrowed from banks or large institutions, Full suspension

Other: Receiver appointed; liquidation and later dividend payments to depositors.

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1905-10-07
Date receivership terminated
1907-11-13
OCC cause of failure
Run
Share of assets assessed as good
82.2%
Share of assets assessed as doubtful
13.9%
Share of assets assessed as worthless
3.9%

Description

Directors closed the Peoria National Bank after disclosures and indictment of president N. C. Dougherty; depositors had been withdrawing (a run), the comptroller/examiner was called and a receiver appointed. The bank was liquidated and dividends paid by the receiver later, so this is a suspension followed by permanent closure/receivership caused by bank-specific adverse information (forgery/embezzlement).

Events (5)

1. February 12, 1883 Chartered
Source
historical_nic
2. October 6, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Withdrawals precipitated by disclosures and indictment of president N. C. Dougherty for forgery and embezzlement
Measures
Directors closed the bank to stop further withdrawals; asked comptroller to take charge; clearing house offered loan (tendered loan tied up)
Newspaper Excerpt
Since the indictment of N. C. Dougherty ... hundreds of depositors have withdrawn their accounts
Source
newspapers
3. October 7, 1905 Receivership
Source
historical_nic
4. October 7, 1905 Receivership
Newspaper Excerpt
National Bank Examiner Bosworth has been appointed receiver for the Peoria Bank. Every depositor to be paid in full.
Source
newspapers
5. October 7, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors suspended operations and called in the Comptroller of the Currency as a result of the indictment and disclosures about the president's misconduct
Newspaper Excerpt
The Peoria National bank ... failed to open its doors this morning. The directors announced that they would not be open again until a receiver had been appointed
Source
newspapers

Newspaper Articles (22)

Article from Evening Star, October 7, 1905

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THE PEORIA SHORTAGE NATIONAL BANK WILL CLOSE UP ITS BUSINESS. PEORIA, III., October 7.-"We had several offers from banks who wished to take over our business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liguidate under the law. Every, depositor will be paid in full, and I am confident that the stockholders will receive a good return." This is the statement of S. O. Spring, cashier of the Peoria National Bank, which decided last night to close its doors as the result of the Dougherty investigation. Early today large numbers of depositors appeared at the bank, but the doors were closed, and it was announced that they would not be open again until a receiver had been appointed. The Dime Savings Bank, in which Dougherty is a large stockholder, experienced a small run today, but paid all depositors as they asked for their money. The officers announced that they have plenty of funds to meet all inquirers. The controller of the currency has received a telegram announcing that the Peoria National Bank of Peoria, Ill., has closed its doors upon the order of its directors.


Article from Santa Fe New Mexican, October 7, 1905

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PEORIA BANK CLOSES DOORS Directors Take Action On Ac. count of Indictment of Presi. dent Dougherty RECEIVER APPOINTED Officials State That Depositors Will Be Paid In Full. Over One Million Dol. lars In Accounts. Washington, D. C., Oct. 7.-The comptroller of the currency has received a telegram announcing that the Peoria National Bank, Peoria, Illinois, has closed its doors upon order of its directors. Receiver Appointed. Washington, Oct. 7.-National Bank Examiner Bosworth has been appointed receiver for the Peoria Bank. Every Depositor to Be Paid in Full. Peoria, Oct. 7.-Cashier Spring, of the Peoria National Bank, which closed its doors this morning, said that every depositor would be paid in full. The directors decided to close the bank as the result of disclosures concerning the operations of its president, School Superintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars.


Article from Albuquerque Morning Journal, October 7, 1905

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DOUGHERTY EXPOSURE PRECIPITATES PANIC BANK GOPEORIA NATIONAL ING TO WALL AS RESULT. Peoria, Ill., Oct. 6.-At a meeting of directors of the Peoria National bank late tonight it was unanimously voted to close the doors of the institution and ask the controller to take charge. Since the indictment of N. C. Dougherty, until yesterday president of the bank. on many counts for forgery, hundreds of depositors have withdrawn their accounts and this caused the hasty action tonight.


Article from Evening Times-Republican, October 7, 1905

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RUN ON PEORIA BANK. Depositors Find Doors of the National Closed-Savings Bank Safe. Peoria, Ill., Oct. 7.-Early today a large number of depositors appeared at the Peoria National Bank, but the doors were closed, and the Dime Savings Bank, in which Dougherty is a large stockholder ,experienced a small run today, but out paid all depositors. The directors announce that they have plenty of funds to meet all demands.


Article from Ottumwa Tri-Weekly Courier, October 7, 1905

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THAT MANY INDICTMENTS PROMISED AGAINST PEORIA SCHOOL OFFICIAL. THIRTEEN RETURNED That Number of True Bills Have Already Been Voted Against Dougherty-Clearing House Association Will Protect Bank Against a Run. Peoria, Ill., Oct. 6. - A total of thirteen indictments thus far have been returned against Newton C. Dougherty, city superintendent of schools and President of the Peoria National bank. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the state's attorney's office and it was announced from that office today that the total would reach more than 200. School Scrip Missing. According to a statement made by a member of the grand jury today hundreds of pieces of school scrip which it is alleged have been changed after being signed by the president of the school board are missing. Fear Run on Bank. At a meeting of the Peoria Clearing House association today it was voted to tender a loan of $100,000 to the Peoria National bank if in the judgment of the directors it became necessary owing to the unsettled condition of the financial affairs of the bank following the withdrawal of President Dougherty. Following his arrest yesterday Dougherty resigned as superintendent of schools and gave up his offices in financial institutions, principal among which was that of president of the Peoria National bank. Leonard is Indicted. New York, Oct. 6.-An indictment for forgery in the second degree against Henry A. Leonard, the youth who secured more than $359,000 worth of securties from the City National bank on forged checks last week, was returned by the grand jury today.


Article from The Evening Statesman, October 7, 1905

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DOUGHERTY'S BANK FAILS Peoria National Closed Its Doors This Morning A RUN MADE ON DIME SAVINGS BANK Peculations of Peoria's Superintendent of Schools Theraten Financial Ruin to Thousands. PEORIA, Ills., Oct. 7.-The Peoria National bank, of which Prof. Dougherty was president, failed to open its doors this morning. A run on the savings bank in interested is which Dougherty started today. The bank took advantage of the 30-day rule.


Article from The Spokane Press, October 7, 1905

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DOUGHERTY'S BANK CLOSES ITS DOORS (Scripps News Association.) PEORIA, III., Oct. 7.-The Peoria National bank, of which Dougherty was president, failed to open this morning. The run on the Dime Savings bank, in which Dougherty was interested, started again. It has taken advantage of the 30-day rule.


Article from The Cairo Bulletin, October 7, 1905

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PEORIA BANK CLOSES DOORS TO STOP RUN Directors Realized That Depositors Would all Withdraw OFFICIAL'S INDICTMENT ON MANY COUNTS FOR FORGERY LEAVES INSTITUTION IN A SHAKY CODITION-COMP. TROLLER PLACED IN CHARGE. Peoria, Ill., Oct. 6.-At a meeting of the directors of the Peoria National bank late tonight, it was unanimously voted to close the institution and ask the comptroller to take charge. Since the indictment of N. C. Dougherty, until yesterday the president of the bank, on many counts for fergery, hundreds of depositors have withdrawn their acounts and this caused the action of tonight. It was admitted at the directors meeting that a disastrous run was inevitable tomorrow, and as a proffered loan of $100,000 by the Pecria Clear-


Article from Omaha Daily Bee, October 7, 1905

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DOUGHERTY IN DEEP Thirteen Indietments Returned Against Peoria School Superintendent. FORTY MORE IN COURSE OF PREPARATION Indication that Total Number Will Reach Two Hundred. CHARGES FORGERY AND EMBEZZLEMENT Committee Appointed by School Board Will Continue Investigation ANK CLERK EXPLAINS THE OPERATIONS Queer Methods of Dougherty brought to Attention of Authorities and Clerk Discharged from Bank for Doing So. PEORIA, III., Oct. 6.-A total of thirteen inaictments have thus far been returned against Newton C. Dougherty, city superintendent of schools and president of the Peoria National bank. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the states attorney's office. It is announced from that office today, that the total would reach for more than 200. The bail required Dougherty thus far returned is $52,700 Mr. Dougherty is in receipt of messages of from all over the country, many them expressing sympathy and a belief in his innocence. According to a statement tomade by a member of the grand jury day the hundreds of pieces of school scrip which, it is alleged to have been changed the after being signed by the president of school board are missing. A committet appointed by the school board to continue the investigation after the grand jury gets through, announced through its chairman, John S. Stevens the today that they would go back over books of the board for twenty years. In some- cases both stubs and couchers are missing, representing according to the cash book, large amounts. How Dougherty Was Detected. Erwin J. Schnebly, discount and exchange clerk at the Peoria Nationel bank, the man who first discovered irregularities in Mr. Dougherty's method of handling school funds, made a statement today. He said: I took charge of the individual books there- at seven years ago and to notice the queer after the bank I began shortly the methods funds had of handling Peoria school board. He and of payable to various local firms checks Mr. the Dougherty would smaller make his person al check for the give I called the attention of the bank amount. officials to this state of affairs and business. was informed that it was none of our and was then transferred to the discount exchange Mr. Dougherty department. would bring in checks for amounts, payable in most instances to a furniture firm in Chicago or firm would in St. purchase New large a checks plumbing school he Louis. With York, these Chicago or St. Louis exchange, made payto his own order. Upon examination able drafts found of the endorsements on the I used instances they had been private business affairs. local he would endorse the names or on the draft without their cases firms in.his that in many knowledge, signature. In some his own Initials under the the matter before Mr. bank examiner. for this puting National laid Cook, district. before the advice I laid the matter general at me to talk to the state's of Upon advised the Peoria attorney his county. which I Springfield. did. I also attorney laid He the matter before S. O. Spring. cashier of bank. Transactions of that kind then the ceased. In explaining them to me Mr. said that he kept of in New York. Chicago and St. I was called before the exhibited many changed checks. funds, Dougherty When were three grand sets Louis. jury instance a check charged to the had been raised from to The stub showed $24. In $2,450. school there In one fund which another $24 had was drawn for $2.1 750. The stub orginally read $27 had been raised to were $2.750. The last two figures on the stub green ink. the first two in black. in was discharged from the bank only last Saturday. At the meeting of the Peoria Clearing House association at noon it was voted to tender a loan of $100,000 to the Peoria National bank. if in the judgement of the directors it became necessary. owing to the unsettled condition of financial affairs of of the bank, following the withdrawal President Dougherty, under indictment. Bank Closes Its Doors. As a direct result of the indictment of N. C Dougherty for forgery yesterday the directors of the Peoria National bank. of which he was president, announced shortly after midnight this morning that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable today, and the only course was to liquidate at once. The loan of $100,000 by the Peoria Clearing house was tied up in such wise was bank learned that it had could that been quiet not going withdrawals be on accepted. all day. from It the


Article from The Evening World, October 7, 1905

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BANK CLOSED BY FORGERY CHARGE Run Feared Through Indictment of President Dougherty, of Peoria National, So Directors Decided to Wind Up Affairs. PEORIA. III., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery yesterday, the directors of the Peoria National Bank, of which he was president, announced early today that they had decided to suspend business and would call in the Comptroller of the Currency to wind up the affairs of the institution. The meeting of directors lasted all evening and was behind closed doors. It was admitted that a run would be inevitable to-day, and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria Clearing-House was tied up in such wise that It could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day yesterday, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000. The bank will not be open for business to-day and a representative of the Comptroller is expected from Chicago before noon. WASHINGTON, Oct. 7.-The Comptroller of the Currency has received a telegram announcing that the Peoria National Bank of Peoria, III., has closed its doors on the order of its directors.


Article from Albuquerque Morning Journal, October 8, 1905

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Peoria Bank Closes. Washington, Oct. 7.-The comptroller of the currency received a telegram announcing that the Peoria National bank, Peoria. III., has closed its doors upon the order of its directors. National Bank Examiner Bosworth has been appointed receiver. Will Be Paid in Full. Peoria, Ill., Oct. 7.-Cashier Spring. of the National bank, which closed its doors this morning said every depositor would be paid in full. The directors decided to close the bank as a result of the disclosures concerning the operations of its president, School Sup nerintendent Dougherty, who has been indicted for alleged shortages. The bank's deposits amounted to over a million dollars.


Article from Twice-A-Week Plain Dealer, October 10, 1905

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PEORIA BANK IS FORCED TO CLOSE FEARING DISASTROUS RUN, DIRECTORS SUSPEND ALL BUSINESS. AFTER-EFFECT OF DOUGHERTY EXPOSE Comptroller of Currency at Washington Gets News and Receiver Is Appointed - Another Institution Suffers Small Run. Washington, Oct. 9.-The comptroller of the currency has received a telegram announcing that the Peoria national bank of Peoria, Ill., has closed its doors upon the order of its directors. National Bank Examiner C. H. Bosworth has been appointed receiver. The following is a statement of the resources and liabilities of the bank at the date of its last report of condition, August 25, 1905: Resources: Loans and discounts, $859,229; United States bonds, $516,711; bonds, securities, etc., $24,627; banking house and other real estate, $78,045; due from banks and bankers, $222,111; cash and cash items, $95,645; redemption fund, $10,000. Total, $1,806,370. Liabilities: Capital stock, $200,000; surplus and undivided profits, $51,529; circulation, $200,000; due to banks and bankers, $129,136; deposits, $1,159,404; notes and bills rediscounted, $66,300. Total, $1,806,370. Directors Take Action. : Peoria, Ill., Oct. 9.-As a direct result of the indictment of N. C. Dougherty for forgery, the directors of the Peoria national bank, of which he was president, announced shortly after midnight that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of the directors lasted all the evening behind closed doors. It was admitted that a disastrous run would be inevitable here and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria clearing house was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000. Other Banks Make Offers. "We had several offers from banks who wished to take over our business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liquidate under the law. Every depositor will be paid in full and I am confident that the stockholders will receive a good return." This is the statement of S. O. Spring, cashier of the Peoria national bank, which closed its doors as the result of the Dougherty investigation. Depositors Clamor in Vain. Early Saturday large numbers of depositors appeared at the bank, but the doors were closed and it was announced that they would not be opened again until a receiver had been appointed by the comptroller. The Dime savings bank, in which Dougherty is a large stockholder, experienced a small run Saturday, but paid all depositors as they asked for their money. The officers announced that they have plenty of funds to meet all inquirers. Dougherty's Statement. Mr. Dougherty said: "I don't know what more I can say than what has already appeared," he replied. "I see by the papers that I am crazy (smilingly) and am broken down. I did not know it myself." "The putting up of securities is construed as a confession by most people, Mr. Dougherty," was suggested. "All I have to say in that regard is simply this: in putting the securities I have in Mr. Bailey's hands, it was not for the purpose of extenuating anything, but simply that I believe things will be shown to be right, and that the amount thus deposited is much more than anyone claims the shortage to be, It has no reference whatever to guilt or innocence, and it was farthest from my idea in SQ doing that I was in any way putting myself OF anyone else in a com-


Article from The Morris County Chronicle, October 10, 1905

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ARRESTED FOR SCHOOL GRAFT. Professor Dougherty. Peoria's Superintendent. Accused of Forgery. Peoria, Ill-The arrest on a forgery charge of Professor Newton C. Dougherty, Peoria's foremost citizen, former President of the National Educational Association, banker, School Superintendent, and friend of Nicholas Murray Butler, of the Columbia University, of New York, has furnished this city with the most amazing sensation in its history. A second indictment, charging him with the embezzlement of $3000, was returned against Mr. Dougherty, and it is now said the stealings will reach the $250,000 mark, and perhaps more. The authorities declare they have evidence to show that Dougherty's life has been a living lie; that while posing as the apostle of civic righteousness, preaching education and good morals, he has appropriated money entrusted to him in a business capacity. Professor Dougherty has resigned as President of the Peoria National Bank, thereby staying a "run." He also sent in his resignation as superintendent of schools and as director in the various commercial institutions in which he is interested. Dougherty was one of the pillars of the First Congregational Church and a member of every club of importance in the city, as well as the Union Club, of Chicago.


Article from Iron County Register, October 12, 1905

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DECIDED NOT TO OPEN The Peoria National Bank, of Which N. C. Dougherty Was President, to Go Into Liquidation. Peoria, Ill., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery, the directors of the Peoria national bank, of which he was president, announced shortly after midnight that they decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable, and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria clearinghouse was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000.


Article from Oxford Eagle, October 12, 1905

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GENERAL NEWS ITEMS. Official returns of the casualties of the Japanese army throughout the war show 46,180 killed. 10,970 dfed of wounds and 15,300 died of disease. a total of 72,450 dead. Fire at Minneapolis, Minn. gutted the extensive store of the W. K. Morrison Hardware Co., causing a loss estimated at $75,000; insured. Near Bainbridge, Ga., a negro was lynched by a mob of his own race. He had assaulted a negro girl. The sixth annual convention of the National Society of the Army of the Philippines was held in Chicago. John S. Summergil, aged 21. dfed at Chester, Pa., from injuries received during a football zame. Walter Palmer was instantly killed; Chauffeur Blake farally injured, and Mrs. Waiter Palmer and her daughter badly bruised in an automobile accident near Athens, Mich A New York syndfeate has offered $180,000 for Dan Patch. the pacer, which went a mile at Lexington, Ky. in the record-breaking time of 1:5514 Traffe on the Suez canal, which was temporarily suspended by the sinking and subsequent blowing up of the Britfish steamer Chatham has been resamed. Lord Inverelyde, chairman of the Cunant Steamship Co., died at Castle Wemyss, Scorland, of pieuro pneumonia, aged # years Miss Altee Roosevelt, passing through Tokio, Japan. en route to Nikko, was met by an imperial carriage and the governor of the city and escorted to the railway station. Japanese fire insurance companies refused to pay claims for losses by fire caused by the anti-peace rioters in Tokio, but argeed to make partial payments as "money of sympathy. The funeral of Maj.-Gen. Krendratenke, in St. Petersburg, was one of the most imposing affairs since the early days of the war. Grand dukes, ministers of state and high officers of the army and navy followed the coffin on foot. with the widow and son. to the Alexander Nevsky monastery. The proposed Salvation Army colenizing sellence. as far as Australia is concerned. has fallen through because the Australian government objected to having needy colonists unloaded upon the commonwealth. Eleven of the bandits who held up and killed Manuel Parades, shipping foreman of the Buena Vista mines and one of his assistants near HostipaquilIn. Jalisee. Mexico, have been captured and shot by rurales. Mrs. Bertha Hamer is under arrest at Cineinnati, on suspicion at having caused the death, by peison, of her husband, Lorenzo Hamer. Gen. William T. Clark, the only surwiving adjutant general and chief of staff of Gen. Grant's army of the Tennessee, is dying from cancer in St. Lake's hospital. New York city. Thirty-five miners were entombed by fire in a egal mine near Florence, Coi. At last accounts ten had been rescued and the rest were in no imme diate danger. Capt. F.I. Drake has been detached from the command at the Mare Island navy yard and ordered to the command of the battleship Wisconsin. Dr. Joseph Huyett, the oldest physieian in Illinois, having practiced in Rock Island for 57 years, dief at his home in Milan, aged 85 years. Forty mayors from different cities of Illinois attended the state fair at Springfield as guests of the Illinois state board of agriculture. The great southeasterly gale which recently swept the coast of British Columbia is believed to have resulted in the drowning of at least 50 Japanese fishermen who were out on the Gulf of Georgia fishing for salmon. The whole gulf is lined with wreckage of fishing beats. Gov. Mickey of Nebraska has made requisition on the governor of Monunfor der tana arrest for the in person Butte. of He Pat is wanted Crowe, and an to ha the policeman, shooting not wounding mention of Oma- the Cudalty kidnaping and the collection of ransom money The Peoria (III) national bank has decided to go into liquidation as the result of the indietment of its former president, NC Dougherty for forgery. Hen. George Torrance, publisher of the Commonwealth at Pontiac. III. and prominent in legal and political eirBiem, died suddenly of apoplexy.


Article from Valentine Democrat, October 12, 1905

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BANK DECIDES TO CLOSE. Dougherty Scandal Causes Peoria National to Go Into Liquidation. As a direct result of the indictment of N. C. Dougherty at Peoria, III., for forgery Thursday, the directors of the Peoria National Bank, of which he was president, announced shortly after midnight Friday morning that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable Friday and the only course was to liquidate at once. The loan of $100,000 by the Peoria clearing house was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day, most of the calls coming from banks in the neighboring towns.


Article from The Ely Miner, October 13, 1905

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CHARGE BETRAYAL OF TRUST HEAD OF PEORIA CITY SCHOOLS TWICE INDICTED. Accused of Forgery and Embezzlement in Large Sums-Is Leading Banker and Capitalist. Peoria, Ill., Oct. 6.-Prof. Newton C. Dougherty, superintendent of city schools of Peoria for more than 20 years, president of the Peoria national bank and a capitalist, was arrested Thursday on two true bills returned by the grand jury, charged with forgery and embezzlement. The arrest followed an investigation by the grand jury of charges brought against Prof. Dougherty that the accounts of the school funds, which were deposited in the bank of which he was president, were being manipulated. The investigation resulted in the discovery that there was a shortage of at least $60,000. The investigation covered only the period from January, 1903. The grand jury will now, it is stated, investigate the entire record of Prof. Dougherty as superintendent of schools, and it is believed that a much greater shortage will be found. Prof. Dougherty was first arrested on a charge of forgery, the specific charge being that he had forged a voucher for $164.50 for coal. He promptly furnished $3,000 bail. The indictment and arrest on the charge of embezzlement followed in the afternoon, and on this charge Prof. Dougherty furnished $9,700 bail. Mr. Dougherty has been city superintendent of schools for 25 years. He is immensely wealthy and is president of the Peoria national bank, is a heavy stockholder in the Dime Savings and Trust company, the Title and Trust company, the Peoria Livery company and other concerns. He is a trustee of the tund of $175,000 held by the National Educational association and is a past president of the association. He is a close friend of Nicholas Murray Butler, president of Columbia university, of New York, and has been, for ye: rs, regarded as one of the foremost educational men in the country. Peoria, III., Oct. 7.-As a direct result of the indictment of N. C. Dougherty for forgery, the directors of the Peoria national bank, of which he was president, announced shortly after midnight that they had decided to discontinue business and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of the directors lasted all the evening behind closed doors. It was admitted that a disastrous run would be inevitable here and the only recourse was to liquidate at once. The loan of $100,000 by the Peoria clearing house was tied up in such wise that it could not be accepted. It was learned that quiet withdrawals from the bank had been going on all day. most of the calls coming from banks in neighboring towns. The bank was capitalized at $200,000. Peoria, III., Oct. 10.-Newton C. Dougherty, former superintendent of schools and bank president, Monday night occupied a prison cell. He- did not try to give bond on the 84 indictments which were returned by the grand jury against him in the afternoon, but as soon as he learned that the jury had made a report and that it had indicted him he entered a carriage and drove directly to the county jail. Shortly before three o'clock the grand jury reported 84 indictments against Dougherty, in addition to the 13 already found. Forty-five of these are for forgery, each containing eight counts; 39 are for embezzlement, each containing six counts. The amounts involved are from $14.40 to $600. Bonds for the indictments were fixed by Judge Worthington at anproximately $49 700


Article from Vilas County News, October 16, 1905

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The jury in the case of R. D. Fletch- er, a white man, charged with assault- ing Mary Gladder, a German girl, in Russellville, Ky., returned a verdict of guilty and fixed the punishment at death. In a collision between a Louis- ville and Nashville light engine and a Southern railway freight near Boyles, Ala., H. E. Abercombe of Villa Rica, Ga., extra fireman on the Southern, was killed. The launch Maj. Wilcox, owned by the A. Booth Fish company, with a half ten of black bass caught with nets in Lake Erie, was held and seized by Ohio game wardens and may be confiscated. A diver located near Michigan City, Ind., the wreck of a three- masted schooner believed to be the Thomas Hum, which sailed from Chi- cago fourteen years ago and was never heard of afterward. Daniel McIntyre of Gladbrook, Iowa, gave $10,000 to the $150,000 endow- ment fund being raised by Western college at Toledo, Iowa. Leander Clark of Toledo and Andrew Carnegie had each given $50,000. Missouri demands that McCall re- pay the campaign contribution of $148,000 and that new officers of the New York Life be elected, giving the alternative of exclusion of the company from the state. A mistrial has resulted in the case charging "criminal negligence" against W. B. Caldwell, who was con- ductor on one of the trains wrecked on the Southern railroad near New Market, Tenn., Sept. 24, 1904. Failure of the Peoria National Bank, of which N. C. Dougherty was president, caused a run on two other banks, the 60-day notice being invoked in one instance. Financiers fear a spread of the panic among deposi- tors. Germany and other European coun- tries may bar big New York life in- surance companies from doing busi- ness because of the revelation as to graft and corruption. This action would mean a heavy loss to the con- cerns. District Attorney Jerome of New York asked for a special grand jury to investigate the big life insurance companies. The son of the president of the Mutual Life was paid $1,705,- 681 in commissions besides a salary of $30,000. Newton C. Dougherty, superintend- ent of Peoria schools and president of Peoria National bank, was indicted for forgery and larceny of public funds. His peculations extended over a period of 27 years and aggre- gate $500,000. Chief of Police John J. Donohue of Omaha has sent a cashier's check for $200 to Butte, Mont., to cover the reward offered by the chief personal- ly for the capture of Pat Crowe, who will be brought back handcuffed by two detectives. At Hickman, Ky., after he had re- turned from church, Emmett W. Roach, a prominent citizen and teach- er, was shot from ambush. Roach lived thirty minutes and gave the name of his assassin, which has not yet been made public. At Minneapolis, Ira Riddle, an aged sailor, has been stabbed almost to death in his bed in a lodging house. A deposit certificate for $150 was stolen. The bank refuses to give him the money without a bond, fearing the old man may have indorsed the cer- tificate to some one. Alfred, the younger son of the late David Shepard, founder of the Nichols & Shepard Thrashing Machine com- pany at Battle Creek, was cut off in his father's will without a cent. The estate of $1,000,000 is left to the elder son Freedom. Alfred contested, but the probate judge decided against him. Charles King, whose sentence of death was executed Sept. 30, at Fort Saskatchewan, Canada for the mur- der of a young Englishman, Edward Hayward, is believed to have been Robert Martelli, sentenced to death in 1900, but through the intervention of the Italian government given a new trial and acquitted. At Sheboygan, the damage suit of Nic Faber, whose arms were broken, jaw fractured in three places, one eye gouged out, teeth knocked out, and shoulder dislocated, was non- suited, because the supreme court, in ordering a retrial by the circuit judge, decided Faber had no case. He had been awarded $8,000 against the Reiss Coal company. Miss Hattie Dew Hirst, one of the pretty girls of Huron, Ohio, whose room was entered by robbers a few nights ago, received a letter, mailed


Article from Rock Island Argus, October 18, 1905

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RECEIVERSHIP IS A POLITICAL PLUM Lieut. Gov. Sherman Allowed to Name Man to Take Charge of Peoria National. Peoria, III., Oct. 18.-The receivership of the Peoria National bank, which suspended business because of the speculations of its president, Newton C. Dougherty, has been handed out by Senator Cullom as a poltical plum. It was given to State Senator Orville F. Berry of Carthage, who is perhaps the closest confidential friend of Lieut. Gov. Lawrence Y. Sherman. He is president of the Carthage Dime Savings bank. The appointment is considered a partial compensation for the damage sustained by Sherman's prestige and sensibilities in the recent affair of the interstate commerce commission job which he didn't get.


Article from Rock Island Argus, November 29, 1905

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DIVIDEND FROM FAILED BANK Depositors of Peoria Institution Get 30 Per Cent Back. Peoria, Ill., Nov. 29.-The first dividend declared by the failed Peoria National bank was paid yesterday afternoon, and a further payment will be made on Wednesday. The dividend now being paid amounts to $150,000 and is a 30 per cent payment to 525 depositors who filed their claims before Nov. 16. There are 500 other depositors, 150 of whom have filed their claims, and Receiver Berry announced last night they would be paid 30 per cent about Dec. 10. The receiver also announced he expects to be able to declare a further dividend of 30 per cent before the Christmas holidays.


Article from Ottumwa Tri-Weekly Courier, January 2, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. 3-Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 24-Canton, O., state bank closes Lexington, Okla., First national bank fails. 26-Barberton O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, M h., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, Ill., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes. 20-City national bank. Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (III.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Chicago. Chicago National, Home Savings and Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis, Tenn., close doors; first named in liquidation.


Article from The Evening Statesman, January 12, 1906

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PEORIA SCHOOL MAN SHOWN BY INVESTIGATION TO BE A PRINCE OF SWINDLERS. Everett Auditing Committee Will Present Scathing Report Censuring the School Board. CHICAGO, Jan. 12.-Startling disclosures will be made in a report on the defalcation of former Superintendent of Schools Newton C. Dougherty, which will be presented to the Peoria school board tonight. The school man will be shown to have been one of the greatest swindlers the world has ever known. The report, which is being prepared by the Everett Audit company, embraces the records of the last seven years, and will show total shortage of more than $600,000 in that time. This is more than the wildest conjecture previously had made the steal for the whole twenty-five years of Dougherty's trusteeship. The auditors still are at work on the books and from a preliminary survey of the whole task, it is shown that the shortage for eighteen years will exceed $1,000,000. Bank Responsible. It has been disclosed by members of the investigating committee that not only will the report of the audit committee scathingly censure the members of the present and the past school boards for their neglect of duty, but will declare boldly that the liquidated Peoria National bank is responsible for the loss to the school fund. This charge against the bank is based upon the fact that the peculations were carried out by Dougherty by means of forged and fictitious school scrip, which was cashed by the bank of which Dougherty was president. The script was cashed without proper indorsement. The report will assert the criminal liability of the bank officials. News of this trend of the investigation has produced consternation in Peoria financial circles. Dividends Stopped. When the auditors first discovered conclusive proof of the bank's responsibility, court action was taken immediately to stop the payment of further dividends by the receiver. The order was not executed, however, until 30 per cent of the claims had been paid. If it is finally established that the bank owes the school board the amount of the defalcation these dividends will have to be withdrawn and the consequence will be that the bank's affairs will be tied up in the courts for several years. The report, which is being rapidly completed, will be read in the open meeting of the school board. One of the conclusions which will be drawn by the author is that, in all the twenty-five years of Dougherty's official connection with the public schools of Peoria, the accounts of the school board never received proper auditing In this respect the members of the board in past years and the members of the finance committee will be charged with neglect of their public trust.