New Liberty Savings Bank (New Liberty, IA)

Episode Information

Episode UID
8443860691251
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
844386069 hash
Start Date
March 29, 1904
Location
New Liberty, Iowa (41.718, -90.879)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7db2f938b15d9ae8

Response Measures

None

Description

Insolvency tied to cashier's embezzlement and bad loans to an amusement company; receiver appointed and bank wound up.

Events (3)
1. March 29, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Embezzlement by cashier Arnold (Arnold/Arnold Beuthien) and large bad loans (≈$50,000) to Cleveland Amusement Company plus unsecured loans to associates.
Newspaper Excerpt
the bank became insolvent on March 29, 1904
Source
newspapers
2. October 17, 1904 Receivership
Newspaper Excerpt
George Leuders, who was appointed receiver to take charge of the affairs of the bank, has taken over the affairs of the institution and is now in full charge at New Liberty
Source
newspapers
3. February 10, 1905 Other
Newspaper Excerpt
The bank building and property owned by the New Liberty Savings bank is to be sold to the German Savings bank of New Liberty.
Source
newspapers

Newspaper Articles (10)
1. October 12, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 12, 1904

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Article Text

New Liberty Bank Backed an Amusement Company and Dakota Banks AN INSURANCE ORDER SUFFERS Believed by Members of Bankers' Pioneer Association That the Assets of the Company Have Been Lost Beuthien's Father-in-Law Ran the Amusement Company. Special to Times-Republican. Davenport, Oct. 12.-A receiver will be appointed at once for the New Liberty Savings bank in this county which has been in the hands of the state bank examiner, and A. Beuthien the cashier under arrest for embezzlement is expected here from Chicago Thursday for his hearing. It now develops that one of the causes of the bank's embarrassment was the failure of the Cleveland Amusement Company of Chicago, operated by Beuthien's father-in-law. It has been disclosed that some $50,000 went into that company from New Liberty. This failure has also embarrassed the Bankers' Pioneer Association, a fraternal insurance order which has been in existence in eastern Iowa. Beuthien is grand treasurer for the association and all of the funds of the association were kept in the New Liberty bank. It is believed by the members that the assets of the company have been lost in the collapse. For some time the association has been trying to effect a consolidation with another fraternal insurance order, but the other order evidently could not see the advantage. It is now feared that the Bankers' Association will meet with some trouble as a result and at a meeting which was held at Hibernian hall, it is understood, that Mr. Benson, one of the high officers, of the order, was put on the witness stand and a number of pertinent questions as to the stability of the order was asked. Beuthien is under arrest for embezzlement in that he loaned money to himself, and others connected with the bank without authority. The examination may also disclose that there is an actual defalcation. Information from New Liberty is to the effect that Cashier Beuthien loaned from $17,000 to $18,000 to his father, the president of the bank, and that money was loaned to persons connected with two banks in North Dakota in which they were both interested.

2. October 17, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 17, 1904

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Article Text

Bond is Forfeited. Arnold Beuthien, cashier of the New Liberty bank, failed to show up at his preliminary hearing at Davenport Saturday on the charge of embezzling $1,750 from the bank. In consequence Jacob Ohlsen, H. Brauch, and Mrs. Elise Beuthien, mother of the missing man, will have to pay the $5,000 bail which was declared forfeited by the justice. George Leuders, who was appointed receiver to take charge of the affairs of the bank, has taken over the affairs of the institution and is now in full charge at New Liberty, as State Bank Examiner M. T. Buchan has left the village. No meeting of the directors has been held as yet, but it is understood that the officials will meet soon to decide on the settlement of the affairs of the bank.

3. November 28, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, November 28, 1904

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Article Text

son, Arnold Beuthien, who was cashier of the New Liberty Savings bank. In the last transaction, however, in which the good paper was forwarded from the Dixon bank to the New Liberty bank, Mr. Stinger testified that said transfer was made by him under the instructions of the Beuthiens and also State Auditor Carroll and Bank Exam- iner Buchanan. In answer to a ques- tion from Attorney Block, Mr. Stinger admitted that he would not have made such a transfer or consented to such, except under the instructions of the Beuthiens and the state officials. At the conclusion of Mr. Stinger's rather sensational testimony, a motion was made and carried that State Audi- tor Carroll, Bank Examiner Buchanan and Receiver Leuders, of the New Lib- erty bank, be subpoenaed to appear at the next meeting and be subjected to an examination in regard to the af- fairs of the New Liberty Savings bank at the time that they investigated its affairs. An order was also issued by Referee Helmick, ordering the books of the New Liberty bank to be brought to Davenport and subjected to an ex- amination. # Creditors Will Sue. The meeting thereupon adjourned until 10 o'clock next Monday morning, at which time it is hoped to have the state officials present and the books of the New Liberty bank in court. From the statement of the attorneys interested in the case and who repre- sented the creditors of the Dixon bank, it is to be inferred that later an action will be brought by the credi- tors of the Dixon bank to recover the good securities which were transferred from that bank to the New Liberty bank. The bank of Dixon was a private bank and therefore was not under the supervision of the state bank examin- er, as was the case with the New Lib- erty bank. Almost the entire stock in both institutions was held by the Beu- thiens, so that they used one bank as the adjunct of the other whenever such an occasion presented itself,

4. December 6, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 6, 1904

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W. H. Chamberlin, arose and asked for a continuance, until Wednesday, Dec. 14, as he said he had had no time to have a conference with the prisoner. As the remaining attorneys were willing to grant this continuance Referee Helmick postponed the meeting until that date. Arnold Beuthien was then taken before Judge Bollinger to answer to the charges of forgery and embezzlement against him. He asked for time to plead and stated that Attorney Chamberlin would appear for him. He was then taken back to his cell in the jail, still as cool and quiet as if he was transacting a business deal instead of being on trial for a felony. But little was done at the creditors' meeting of the Dixon bank this morning beyond the examination of George Lueders, receiver of the New Liberty bank. He was found to know very little concerning the management of the Dixon bank or deals between it and the New Liberty institution. For some reason or other the attorneys in the case did not get out subpoenas for State Auditor Carroll and State Bank Examiner Buchanan, and they were not present as witnesses at the meeting this morning. No further action will be taken until the postponed meeting a week from Wednesday.

5. January 24, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 24, 1905

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Article Text

WILL SUE DIRECTOR George Leuders, Receiver for New Liberty Savings Bank, Charges That William Leusch Overdrew Account and Then Illegally Replenished It. Special to Times-Republican. New Liberty, Jan. 24.-William Leusch, one of the directors of the New Liberty Savings bank, will be sued by George Leuders, the receiver, the latter having begun an action to recover in the case of the state of Iowa upon the relation of B. F. Carroll, state auditor, vs. the New Liberty Savings bank, and for the cause of such action, alleged in his application for authority to sue, that one William Leusch, a director of the institution, had overdrawn his account with that institution to the amount of $838.25. The receiver alleges that when the said William Leusch well knew that the bank was insolvent he caused his son to make over to him a check in the sum of $838.25 to cover the overdraft, which he placed on deposit in the said bank. To the son, it is further alleged, there was at the time a deposit due, amounting to $5,700. It is further stated in the petition that later the said father and son had secured from the bank, then insolvent, and the fact known to both of them at the time, a mortgage secured by the note of one G. Spikermann, in the sum of $3,900. The applicant, Mr. Leuders, desires that the court grant him the authority to bring suit to recover the amount due upon the said note, as also the recovery of the amount of the overdraft, amounting in all to $4,738.25. Judge Bollinger signed an order allowing the receiver to institute suit, thru Lane & Waterman, his attorneys.

6. February 10, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, February 10, 1905

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BANK BUILDING ORDERED SOLD. Judge So Orders in the New Liberty Matter. Davenport, Feb. 10.-The bank building and property owned by the New Liberty Savings bank is to be sold to the German Savings bank of New Liberty. The order was made by the judge yesterday in response to a petition of George Leuders, the receiver for the old bank filed by his attorneys, Lane & Waterman. Mr. Leuders states that he has been offered $2,500 for the property and he recommends the sale which the judge ordered. Mr. Lueders is to have rooms in the buildIng until the receivership matter has been closed. An order was also made by the judge yesterday ordering that the receiver notify each of the stockholders that they should pay to the receiver of the bank $100 for each $100 share held in the bank which is insolvent. This action was taren as allowed by law which states 11: hen a bank becomes insolvent the stop holders are liable for as much as they hold in stock in the bank. The receiver is instructed to bring suit at once if the stockholders do not pay the amount. The court also orders that suit shall be instituted immediately on any claim that is past due and owing to the bank and that the receiver shall bring suit on any claim that is soon to become due should he think that he can collect the sum by so doing. Lane & Waterman are handling the legal end of the business for the receiver, Mr. Lueders.

7. February 24, 1905 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, February 24, 1905

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# Bank Sues Bank. H. J. McFarland, trustee of the bank of Dixon, has entered suit in the United States court for the southern district of Iowa, at Davenport, against the New Liberty Savings bank and George Leuders, its receiver. Mr. McFarland sues an accounting for and the recovery of 23 notes, amounting to a total of $31,702.27, which are alleged to be in the possession of the New Liberty bank and which it is claimed rightfully belong to the bank of Dixon. It is also claimed that there is a balance of $1,288.83 due the Dixon bank from the New Liberty bank, as well as 16 shares of stock of the Farmers' & Merchants' bank of Lansford, N. D., of the par value of $1,600, making a grand total of $34,551.10 that is alleged to be due the bank of Dixon from its sister bank of New Liberty.

8. May 12, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, May 12, 1905

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# NEXT MOVE IN DIXON CASE. Claims Aggregating $40,000 Filed Against the Beuthiens. Special to Times-Republican. Davenport, May 12.-A new move in the Dixon bankruptcy case was disclosed yesterday morning when Attorneys Lane and Waterman, representing George Lueders, the receiver of the New Liberty bank, filed claims aggregating $40,000 against Arnold Beuthien and M. Beuthien, who are now going thru the bankruptcy court, with the defunct Dixon institution. The claims are for notes given by the Beuthiens, and also for stock certificates held by Arnold Beuthien, which the receiver claims must be paid in under the banking laws. On the other hand, Sharon & Donegan, representing the receiver of the Dixon bank, Harry J. McFarland, have filed objections to each of these claims. They base their objections on the fact that these loans were made unlawfully and therefore are illegal debts. Referee Helmick will set a hearing in the matter in a few days.

9. May 16, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, May 16, 1905

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NEW LIBERTY DIVIDENDS. Creditors of Failed Bank Are to Receive 20 Per Cent. Special to Times-Republican. New Liberty, May 16.-A dividend has been ordered in the New Liberty Savings bank matter and the creditors of the bank are to receive 20 per cent on the dollar. The order for the dividend was drawn today by Lane and Waterman. attorneys for the receiver and the judge has consented to it. By the terms of the order the receiver is to figure interest on the deposits and on the certificates of deposit up and until the time the bank became insolvent on March 29, 1904. In declaring the dividend the interest added to the principal is to be the basis on which the dividend is declared. The total amount of indebtedeness of the the bank, according to the figures of the receiver, will be about $150,000. The last report of the receiver showed some $37,000 on, hand, but since that time $11,000 has been collected. There has been several claims against the New Liberty Savings bank, which are in dispute, however, as the notes claimed by the bank of Dixon. For this reason the dividend was made low enough so that there would be surplus enogh to make a dividend on these amounts should the courts decide that it was necessary. In the report the receiver is allowed $1,100 for his services and the attorneys $840.

10. August 25, 1905 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, August 25, 1905

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# SUIT AGAINST BANK DIRECTORS. Those of a New Liberty Institution Accused of Lack of Diligence. Claiming that the directors did not use due diligence and that the officials of the New Liberty Savings bank made bad loans, without property security, George Leuders, receiver of this bank, acting on the order from the court, has brought suit against the directors of the bank for $45,500. The petition states that M. Bethuen was president of the bank, and Arthur Bethuen, cashier, and that through the negligence of these parties and without due diligence on the part of the directors, loans were made which cannot be collected. The directors' names are William Lensch, William Dahms, Fred Thiering, Hans Meeves and J. H. Arp, The petition states that all of these loans were made without security and that they are non-collectible. The Iowa banking law provides for the appointment of an examining committee from the directorship of the bank, requires a quarterly examination of the bank, as well as quarterly reports of such examinations to be made to the entire board of directors.