Bellevue State Bank (Bellevue, IA)

Episode Information

Episode UID
72183571474
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7218357 routing
Routing Number
72-1835
Start Date
October 1, 1922*
Location
Bellevue, Iowa (42.259, -90.423)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a0cd6881d0497cf6

Response Measures

None

Description

Failure tied to large unsecured loans to a lumber company and alleged mismanagement; receiver has been appointed.

Events (2)
1. October 1, 1922* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Ninety percent of assets tied up in promissory notes of the Dorchester and Hughey Lumber Co.; alleged mismanagement and unsecured lending
Newspaper Excerpt
It failed last October to be followed by the closing of the Bellevue State Bank
Source
newspapers
2. * Other
Newspaper Excerpt
A state bank examiner is to be sent to Bellevue at once ... to investigate the affairs of both banks
Source
newspapers

Newspaper Articles (3)
1. September 25, 1923 The Daily Times Davenport, IA
Article from The Daily Times, September 25, 1923

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Article Text

JOSEPH KELSO IS INDICTED ON SIX CHARGES BY JURY (Continued from Page One) closing of the Bellevue State bank and a few days later the Dorchester and Hughey Lumber Co. closed its doors. It was said at the time that the bank failures would cost the depositors close to a million and a half dollars. Since then the Kelso bank receiver has paid a 7 per cent dividend, and it is declared that they will get just about that much more. Depositors Demanded Investigation Several weeks ago depositors of both banks held a meeting and subscribed a fund of $700 to delve into their affairs. Outside attorneys were employed and went to Bellevue where they are declared to have gathered a mass of evidence which showed mismanagement of the bank's affairs. Some of the depositors insisted upon a grand jury investigation and some twelve or fifteen of them were summoned to appear here. The Kelso indictments followed. Those familiar with the affairs of both banks say money was lent without security. Ninety per cent of the assets of the Bank of Bellevue were found to be tied up in promissory notes of the lumber company, more than $500,000 having been lent the firm over a period of years without security, according to County Attorney Thomas. Depositors in the Kelso bank yesterday filed a petition for the removal of Dr. W. Guthrie of Dubuque, as receiver, alleging that he was a brother-in-law of Kelso and had employed him as his assistant. He is charged with having protected the Kelso family against loss. State to Aid Prosecution [Associated Press Leased Wire] DES MOINES, Ia., Sept. 25.—A representative of the state attorney general's office has been detailed to cooperate with county officials in prosecuting the case against Joseph Kelso, jr., the Bellevue banker against whom indictments alleging embezzlement were returned in Jackson county yesterday, Attorney General Gibson announced today. The attorney general's department has been working with depositors of the defunct Kelso bank, and their attorneys, for several weeks, and the indictments against the banker were the result in part of information obtained by the state officers. Mr. Gibson expects the next step in the case within a week, unless further grand jury action delays the proceedings.

2. September 25, 1923 The Muscatine Journal Muscatine, IA
Article from The Muscatine Journal, September 25, 1923

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Article Text

J. KELSO NAMED IN SIX COUNTS; FREED ON BOND Others are Indicted and Arrests are Expected Today LOSS HEAVY, CLAIM Failure of Two Banks and Lumber Company Leads to Investigation by Grand Jury at Maquoketa. Maquoketa, Ia., Sept. 25—Further arrests of persons concerned with the failure of the J. Kelso private bank, the Bank of Bellevue and the Dorchester and Hughey Lumber Company, in which losses have been estimated as high as $1,000,000 were said to be in prospect today. It was unofficially reported that additional warrants had been turned over to the sheriff, but no information as to indictments, other than that against Joseph Kelso, was forthcoming from F. E. Thomas, county attorney. Kelso Out on Bond. Joe Kelso, former president of the defunct Kelso bank, was indicted on six counts late yesterday, three charging embezzlement and three with accepting deposits when he knew his bank was insolvent. Mr. Kelso immediately gave bond in $9,900. The date of his trial has not been set. One count in the embezzlement indictment charges that he converted to his own use $4,500 worth of bonds deposited with him for safe keeping, and another charges that he converted to his own use certain sums of money given him by his depositors to pay their taxes. The third count charges that he embezzled a minor amount. Mr. Kelso denies all charges and indicated he would fight for vindication. The grand jury was adjourned subject to the call of the court. A state bank examiner is to be sent to Bellevue at once, according to County Attorney Thomas, to investigate the affairs of both banks and if his report warrants the grand jury will reconvened for further action. Was Once In Legislature Joe Kelso, the indicted banker, was formerly a member of the state legislature and also district president of the Iowa State Bankers' association. He has been a power in politics for many years. His bank was founded by his father about a quarter of a century ago. It failed last October to be followed by the closing of the Bellevue State bank and a few days later the Dorchester and Hughey Lumber company closed its doors. It was said at the time that the bank failures would cost the depositors close to a million and a half dollars. Since then the Kelso bank receiver has paid a 7 per cent dividend and it was declared that the depositors will get just about that much more. Vote Investigation Several weeks ago depositors of both banks held a meeting and subscribed a fund of $700 to delve into the affairs of the lumber company. Attorneys were appointed who went to Bellevue where they are declared to have gathered a mass of evidence which showed mismanagement of the banks affairs. Some of the depositors insisted on a grand jury investigation and some twelve or fifteen of them were summoned to appear here. The Kelso indictments followed. Those familiar with the affairs of both banks say money was lent without security. Ninety per cent of the assets of the Bank of Bellevue are said to be up in promissory notes of the lumber company, more than $500,000 having been lent the firm over a period of years without security, according to County Attorney Thomas. Depositors in the Kelso bank yesterday filed a petition for the removal of Dr. W. B. Guthrie of Dubuque as receiver, alleging that he was a brother-in-law of Kelso and had employed him as his assistant. He is charged with having protected the Kelso family against loss.

3. September 25, 1923 Quad-City Times Davenport, IA
Article from Quad-City Times, September 25, 1923

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Article Text

KELSO, IOWA BANKER, INDICTED AS EMBEZZLER [Continued from Page One.] state bank examiner is to be sent to, Bellevue at once, according to County Attorney Thomas, to investigate the affairs of both banks and if his report warrants the grand jury will be reconvened for further action. Joe Kelso, the indicted banker, was formerly a member of the state legislature and also district president of the Iowa State Bankers' association. He has been a power in politics for many years. His bank was founded by his father about a century ago. It failed last October to be followed by the closing of the Bellevue State Bank and a few days later the Dorchester and Hughey Lumber company closed its doors. It was said at the time that the bank failures would cost the depositors close to a million and a half dollars. Since then the Kelso bank receiver has paid a 7 per cent dividend and it is declared that they will get just about that much more. Several weeks ago depositors of both banks held a meeting and subscribed a fund of $700 to delve into the affairs. Outside attorneys were employed and went to Bellevue where they are declared to have gathered a mass of evidence which showed mismanagement of the banks affairs. Some of the depositors insisted upon a grand jury investigation and some twelve or fifteen of them were summoned to appear here. The Kelso indictments followed. Those familiar with the affairs of both banks say money was lent without security. Ninety per cent of the assets of the Bank of Bellevue were found to be tied up in promissory notes of the lumber company, more than $500,000 having been lent the firm over a period of years without security, according to County Attorney Thomas. Depositors in the Kelso bank yesterday filed a petition for the removal of Dr. W. Guthrie of Dubuque, as receiver, alleging that he was a brother-in-law of Kelso and had employed him as his assistant. He is charged with having protected the Kelso family against loss. Des Moines, Sept. 25.—A representative of the state attorney general's office has been detailed to co-operate with county officials in prosecuting the case against Joseph Kelso, Jr., the Bellevue banker, against whom indictments alleging embezzlement were returned in Jackson county yesterday. Attorney General Gibson announced today. The attorney general's department has been working with depositors of the defunct Kelso bank, and their attorneys for several weeks, and the indictments against the banker were the result, in part, of information obtained by the state officers. Mr. Gibson expects the next step in the case within a week, unless further grand jury action delays the proceedings.