The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1872-08-17
First National Bank OF Seneca.

First National Bank OF Seneca
We chronicled lately the fact of the removal
OF the Seneca National Bank to Morris The last
sunday Times gives amusing history Of the
establishment of this Bank at Seneca, and OF the
nottus oferandi Of its removal.
Seneca, says the Times writer was an ambi.
tious town, and having heard of national banks
springing up to dffuse blessings upon every
community, determined to have one of her own.
While in this humor Chicago banker of vast
experience came r. their assistance, and promis.
ing them if they would take stock they should
nave bank forthwith. Money was freely sub.
scribed, and in January 1871 the bank com.
menced business. At the end of Elk months q
dividend OF per cent. was declared, and the
stockholders were happy. Another six months
passed, but the hearts of the stockholders were
not gladdened with another dividend. A year
passed. Still no more dividends. A year and a
half-same result. The Times account continues
ATTEMPTS WERE MADE TO QUESTION
the cashier on the subject He was brother of
the Chicago banker and surely he could tell
them. but instead Of replying civilly to their
humble and earnest inquiries he merely invited
them to go to Tephet, only he didn't use as re.
fined word as that But the yeomanry of Sen.
eca were not to be blufed. They were deter.
mined to know something of the style of the
game being played. They soon discovered that
the sworn statements of tho condition of the
bank were
PUBLISHED IN AN ADJOINING COUNTY,
while the law OF congress required that thew
should be published in the county in which the
bank was doing business. As there were five
newspapers in La Sale county at the time this
foreign publication did not tend to allay the
suspicious aroused.
AN EXAMINATION OF THE STATEMENT
dated April 10, 1872. showed the current e3per
ses Of the bank TO be SO 1907, whereas the ex.
penses OF the Grundy county bank, which did
four times the business. were only 1858. The
statement of October 1871 showed tina. the Uni.
ted States bonds purchased by the bank were
bought at premium of 81 per cent, while the
Bankers Almanac showed that, at that time.
the bonds OF that issue We're quoted at only ~
per cent prem. Then The Office furniture. which
had cost about $500. was entered at 81 200.
THE DOOR OF SMALL. RODENT
quadruped OF the genus mus, began to attack
the olfactories OF the Senecans. 1t was further
discovered that one Of the board of directors oi
the bank was
NOT sTocKHoLDER AT ALL
and did not have any pecuniary interest il the
bank, which was ia plain violation of the statute.
Meantime rumors Of these inquiries h ID reach.
ed the ears of the Chicago banker of great expe-
rience He took philosophical view Of the mat.
ter, and concluded tina, the bank had better be
moved. Accordingly Congressman Suspp intro.
duced bill in congress 10 have the bank moved
to Morris. Ills. just contemplate the misery of
Seneca. Her foadest Institution, her pride, the
apple OF her eye, 20 be taken from her and 70 b.
seen by her no more forever
fortunately Tor them, the law provided that
the removal should take place only after a two.
thirds vote in favor of il. The desperate Sen.
ecans combined, and By voting solid agsias.
removal
THE SCHEME WAS CHECKED.
But the Chicago banker of grea. experience was
not dsunted change OF policy only wa. ne
cessary. He appeared gain before the Senecans
to show them how everything was lovely In
the private Office Of the pank re met the Seuecsn
who held the greatest amount Of stock, and
asked him TO fix price on his stock. It was
done and the price agreed to. The great banker
then went out and told another Seneca stock.
holder of the purchase he had made, and asked
this party III would sell his 5000. The Sen.
ecan, finding thst one member Of the combina.
ton had sold. agreed to sell his stock, and
THE TRANSFER WAS MADE AT ONCE.
The banker then went back to the first party and
told him that he did no: want his stock, the last
purchase OF $4,000 had given him control Of the
necessary two.thirds. and the removal could not
be hindered any longer. The banker returned
to Chicago feeling happy over his ruse. but not
80 happy by far were tie Senecans. The party
who claims to have been duped made report Of
the violations Of the statutes by the bank off.
Gals, and sent it to the government bank exam.
liner in Chicago, but
UP TO THIS DAY
he wonders why word nj rop1v hoa raanSn1
him, and why it has never been considered neces-
sary to make an official investigation in the af-
fairs Of the bank.
SIMILAR LETTER
some weeks afterward to the comptroller OF the
currency brought polite reply, but that was all.
The Senecans object TO charge made in the
bank ledger of $3.50. which the Chicago banker
OF great experience states was paid to an eX-
member of congress for services in lobbying the
removal bill through.
IT Is NOW STATED
that the first dividend of FIVE per cent was not
earned by the bank. but WAS made by impairing
II was arranged on the books by two false en-.
cent for the dividend, aud the other charging
The expense account with like sum.
And then it seems that the Chicavoan being
mnr vt greet experience. keeps two SETS Of
hooks in one uf which w,- record of the reyu.
lar lo.n. md discounts. and in the other was a
record OF the usurious interest, all the latter
cagoan.
PoIICE.-Last Saturday young man named
Il