Citizens Savings Bank (Riverside, IA)

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NEW BANK OF RIVERSIDE WILL OPEN DOORS NEXT WEEK, REPORT Riverside, Ia., Nov. 16.—The city of Riverside, which for the past two months has been held in suspense as to whether bank deposits would be lost to those who had entrusted their savings to the two banks here, literally heaved a concerted sigh of relief this week when it became known that, despite obstacles which have appeared in the past two weeks, a combined bank would be opened next week to take the place of the two institutions which recently failed. The First State bank of Riverside, evolved from the old Citizens' Savings bank and the Riverside Savings bank, will open its doors sometime within the next ten days, it is practically assured. Banks Defunct. The crisis was reached in local banking circles several weeks ago when it became known that the two local banks were on the verge of being placed in the hands of a receiver as the result of alleged mismanagement. State bank examiners Heng and Sargent, who conducted the investigation here, submitted a proposition to the depositors of the two banks to the effect that if certain conditions were met, including the waiving of the right to withdraw deposits only at certain times and in certain specified amounts, it might be possible to combine the institutions under new management and save the depositors any great loss. Strike Snag. Depositors, practically 100 per cent, acceded to the proposition with the result that the bank examiners started working on the plans for a consolidated bank. A new snag was struck last week, however, when it became known that the state department refused to accept as assets some of the paper of the consolidated bank on the grounds that it was not considered satisfactory. Another plan was hastily devised and approved by the depositors to the effect that every depositor with an account over $100 would waive 25 per cent of the deposit and accept in its stead a percentage of the paper which the state had refused as assets of the bank. Committees were appointed to interview the depositors and the plan was heartily approved as a safeguard against receivership, which would mean a greater loss. It is stated, however, that the paper which the state refused to accept is good paper but is notes for long terms which are sure to involve slow payment but which will eventually be made good. Will Get Charter. A charter for the new bank is the next move by the state examiners and the election of an entirely new management will follow. The bank will open its doors with a capital stock of $50,000, a group of experienced bankers at its head, borrowers whose security is accepted as first class by the state department and a run on the bank out of the question due to the fact that depositors have waived the right to their money except at stated intervals. Much to Be Done. There remains an enormous amount of work to be done before the First State bank of Riverside opens its doors, but the big obstacles are out of the way. All those holding time or demand deposits in either bank must come in and exchange these deposit certificates for new ones, with the twenty-five per cent deduction, trust certificates being issued for this amount. Those who have checking deposits must bring in their last statement sheet, pass book or any other evidence they may have of the amount, and trust certificates will be issued them for the twenty-five per cent deduction. New pass books will be issued by the First State bank as soon as possible after its opening. Committees Named The main committees named at this meeting to work with depositors were as follows Citizens Savings bank—R. S. Knittel, chairman; Claude Flynn, Joseph Stransky, William Griffin, and R. H. Heitzman. Riverside Savings bank—C. S. Cummings, chairman; C. D. Wood, J. M. Soukup, F. V. Skubal, and Albert Hahn. The committee members named the following people to assist in the work: Carl Peterson, Bert Cray, Mrs. Birdie Godlove, John Moss, A. D. Craig, William Sims, James Yansky, Frank Havel, M. J. Wilkinson, Mrs. Laura Godlove, Frank Knotek, George Kos, M. A. Stransky, Joseph Laney, John Liska, Roy Miller, Vic Rummelhart, D. S. Hardy, John Bulger, Edward Kos, Miss Alma Ott, W. F. Curtis, J. L. Stemen, D. C. Sterret, Joseph Kupka, J. P. Pailliotet, John Gerot, A. R. Cummings, L. A. Schmidt, Mrs. Fred Krebs, Dr. E. E. Blythe, C. W. Walsh, Mrs. Elizabeth Mellecker, Harry Hardy, Joseph Horak, Lawrence Yeggy, Mrs. J. L. Thoman, John Shradel Sr., C. Schneider, William Young, Dr. J. W. Wilson, Mrs. J. J. Reha, William Knebel, A. Lear, J. W. Shradel and C. V. Dautremont.