Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1884-08-07
cAH1ox's TROUBLES.

Particulars Regarding Its Financial DIfH.
culties.
Correspondence Sioux City Journal.
Canton, u. T, Aug. 6. lSS4-Your cor.
respondent noticing reference in this
mornings Journal relative to local row
here in which the First National bank
and Madole g. Randall are the principal
parties, has taken the time to get both
sides of the trouble, and give the matter
as we have heard it, without expressing
an opinion. OF course there is some feel.
ing, but not so much as some would
make it appear. The Madole & Randall
side of the affair is as follows:
They became lnvoived some months
ago to the amount of about $3.50
Creditors becoming anxious, they guve
j. V Farwell d Co. mortgage for $1,000
aud the First National bank mortgage
tor 81 200, and gave notes for the balance
of their Indebtedness. To secure the
accounts and pay as soon as
possible they were to deposit daily
In the First National bank. This
they did until they had paid about
81, 800 OF their entire liabilities, but some
days ago their deposits becoming smaller
Mr.. Gale, of the First National bank, who
had guaranteed the Farwell mortgage to
protect his own, which came second, be-.
came suspicious and wanted larger de.
posits. Madole g. Randall attribute
their small deposits for few days to the
dullness of business, insurance, rent and
clerk hire.
The firm claims that in ninety days
they could have paid all their liabilities
| if left alone. They assert that the clos.
ing up of their store was uncalled
for, and has done them an unmerited
wrong.
10 get at both sides interviewed Mr.
Gale, of the First National bank, who
took exceptions to the Journals refer
ence to the affair, and gave his side OF
the matter in about the following words
"Your article does me wrong, and /
would like to know who wrote it. The
facts are these: assumed Farwell's
mortgage to protect my claim of $1,000
Nine was second. When l took steps te
protect myself there was due on my
claim between $500 and $500, and about
Sl,7OO due on Farewelrs claim, which
guaranteed. The goods were being solo
off quite fast, and by advice of my at
torneys, who looked the store and stool
over, was advised to take possession
for py own protection. The report il
the Journal article about depositort
withdrawing their money is an error
Yesterday there was $4,000 deposited ant
only $4,000 withdrawn in the usua
course OF business-a thing that occur
every day in the banking business. Th,
report that petition asking the schoo
treasurer to withdraw his funds, wa
presented to me, is false. 1 heard that
citizen tried to get up such peti
tion, but he failed; at any rate
: never saw the petition, and do no
J know of its existence. If it does es
, ist it will make no difference TO thi
bank. gee the Journal article says
make some enemies. OF course I do.
do not intend to let home firms swindl
foreign dealers and hurt our home credi
, Not one account in the bank was close
yesterday, which you will see does nc
look as if depositors we're leaving. a
long as live in Canton mean to do q
3 honest business. AS proof that We 81
, not busted will cite the fact that yes
terday we paid several certificates OF de
posits that were not due. 1 did this be
cause the parties needed their none,
, did what thought ought to do i
the Madole e. Randall matter, and
think good business men will bear m
out in it. I want simply to be place
right before the large section where th
!, Journal circulates, SO that there may b
, no Misrepresentation as to my bushes
relations here and in other Dakota town
where have financial interests"
give Mr.. Gales own version of th
3 matter. He has banks at Alexsndri
and Kimball and has been doing larg
business.
There is quite feeling that Madol
& Randall should not have been close
, but rather left to work themselves ou
r of their troubles. They are an old firm
good citizens, and have heretofore stoo
we'll financially, Canton is too solid
? town for this little financial trouble
: cause even ripple of stagnation j
t business or hurt the first-class rating {
the score or more of dealers. It is ur
fortunate IN social and local sens
that the matter should have created q
much factional feeling as it has, but
, doubt if it will affect the general ruin {
business in the least.
/ give the matter as have heard
from both sides, SO that neither of th
parties interested may be prejudiced b
anything that has appeared in the Joul
nal. The situation is peculiar. and til
) very best citizens Of Canton take sides q
they see the matter, and as they are hor
est in their views, have aimed to Civ
the arguments presented by both side