The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1870-01-04
THE DAVENPORT BANK FIGHT.

A receiver has been appointed in the
Davenport Savings Bank at the instance of
an injunction served upon the management
yesterday by some of the heavy stockholders.
For several years there has been q fight in
the First National Bank, headed on one
side by the present Cashier and President,
Ira Clifford, and Geo. 81. French, the ousted
President, on the other side, and the way
the savings institutions comes to be mixed
in the fight Is the relationship of manage
ment of the two institutions. The Clifford
party, to get and keep control of the First
National, bought some leo or ITO shares of
stock, paying at the rate of $500 to $337.50
per share of 800 each, and it is alleged in
the petition for injunction that in order to
obtain money for this purpose, they made q
loan of $5l, 900 of the Savings Bank, they
themselves being the officers lending and
the parties borrowing as well. The loan Was
made at FIVE per cent. interest per annum,
when the money was worth ten per cent
and every dollar in the oank was called Tor
and could have been loaned at ten per cent
The rule ofthe bank for security was almost
invariably real estate or government bonds.
In this case the only security was the First
National Bank stock, put in at the prices at
which it was purchased, varying from $500
to 1887 so per share, being worth about
$2l0 per share. In other words, ST. 900
secured a loan of about $5l 200 in round
figures. The interest on this loan was not
paid when due last November. The notes
d;tion, that the collaterals 1.-THE stock
pledged should not be sold by the Savings
Bank except for an amount sufficient to pay
off the principal and interest of the notes,
which were made not payable until thirty
days after demand. The notes secured in
this manner were never put on file rs assets,
or placed on the books of the Savings
Institution till FRIDAY, December 3lst,
or more than year after they were ex-
ecuted.
There are other strong allegations in the
took possession and inststed Mr.. J. Munroe
Parker as receiver. The stockholders
assem- bled for the election of Directors. and
as the proceedings of the Sheriff did not
seem to prevent, they elected the following ::
f. Smith, James Thompson, L. L. Ochs,
Aug. Warnebold, John Schmidt, Louis
Halter, Aug Steffen, Thos. Scott, A. Brown
lie. And here the two rings rested action.
the election of officers being out of the
question until the injunction is disposed of.
Cook & Drury and Brown d Sully appeared
for the injunction party. while Patnsm &
Rogers, James T. Lane, Thompson &
Campbell, Grant Smith, and Dawson Il
True were on the other side.
The business of the bank continues under
the direction of the receiver.
HOVE INsTITUToNs.-Why cannot Rock
Island have home Insurance Company
like the National across the river. The
evidence that it viii pay may be found in
the following figures showing the gains Of
that institution:
Total receipts for 1889 1872, 2sl 90
Total expenditures, including all loss
es by dre.............-......... sS,obS 20
Total gains for 1892. ............. S93. 567 IS
Comment is unnecessary, they have no
stock to sell at any price, and thereis plenty
of capital here for similar institution.