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 a fight in
the First National Bank, headed on one
side by the present Cashier and Prssident,
Ira Clifford, and Geo. b. French, the ousted
President, on the other side, and the way
the savings institutions comes 70 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 l60 or ITO shares of
stock, paying at the rate of $500 to 1887
per share of 500 each, and it is alleged in
the petition for injunction that in order to
obtain money for this purpose. they made q
loan of ISL, 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 7nhun'
when the money was worth ten per cent,
and evarv dollar in the bank was called for
and could have neon io0heu a. ten Pef cehs'
The rule ofshe 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 $337.50 per share, being worth about
$2l0 per share. In other words, ST. 900
secured loan of about $5l 900 in round
figures. The interest on this loan was not
paid when due last November. The notes
given to secure the loan contained the con
dition, that the eollatersls 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 IS assets,
or placed on the books of the Savings
Institution till FRIDAY, December 3lst,
ecuted.
There are other strong allegations in the
petition, so at noon yesterday the Sheriff
took possession and instated 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. Waruebold, 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 Il Sully appeared
for the injunction party. while Putnam &
Rogers, James T. Lane, Thompson &
Campbell, Grant 4 Smith, and Dawson i
| True were on the other side.
| The business of the bank continues under
the direction of the receiver.
| HONE INsTIrUroSs.-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 o!
that institution;
Total receipts for 1859 1892 2Sl o0
Total expenditures, including all loss
by fre.-.-.........,-........- 9S,663 IS
Total gains for 1882. ............- S93,567 rs
Comment is unnecessary, they have no
stock to sell at any price, and thereis plenty
of capital here for similar institution.