The Red Cloud chief., 1888-12-28

0eA0 Woelo0al Oaak Bxn0lose.
cACooos BD1BC16 RTC.
o. last Friday sftesseos .
funor gained ersdssee on The
street that the Red Closd Nssiosal
bssk Of this city had became iavolv-
Cd il lssseial trosblss ssd ~ liable
- close it. doors Following close
upoa the arst report cane ssothss
ru0or that II. B.. Edlsass, cashier
had re'igssd. ssd that L. Z. Albright
. ferDer cashier he'd been elected 70
the vacant position: This report vas
vsn6ed Saturday norsinG when The
bssk deess were epsssd. Upon H.
vsstigsties Tn CHIsv learned that
there had bses soos irregularities in
the nsaaseasst Of the institation.
but it va geasrally usdslstoed that
arrangements had been entered isto
that would bridge the di6sulty and
avert the th.esten ned disaster 70 the
bank. II did look that way - the
new cashier received deposits and
paid out money up 70 $50 P. n. or
theresbouts, At which time the
bank shut down and checks were dis
hoaorsd. Il only took . few minutes
for the news 70 spread over the city
aud soon anxious deposition and
stockholders were debating their
chances .ad the probabilities and
causes Of the failure. All kinds Of
runors were set aAoat in regard to
the causes, but the avenues Of infor-
nation were closed, farther than 1t
vas stated that tho institution lad
collapsed from TOO many o~verdrafts.
Tho excitement vas quite general
early Monday morning the
National bank examiner appeared on
The scene and took charge Of the A.
fairs Of that institution. At the time
The bank closed it, doors il IL said
hat $4,000 would cover al deposits
Nth assets 4crs thsa double, but in
he face Of the probable assets there
5ere numerous liabilities in transit
hat could not Be estimated. The
Vhole trouble seems 70 have been per-
'ipitatsd from . too liberal use Of
and numerous claims in
ui6ciestly secured.
1Hr cApsEs.
1t appears thsl ID Cloud Milliug
%. owed the btS( 10 one way or tho
ther something $4,000. but
rom some cause rs unable 70 meet
he claims - they Astured, and the
'ank having had its surplus exhaust
d at its various de~positories could do
else but let their paper 60 to
the amount being 30 LARGE
hat il literally swamped the institu-
ion in financial ruin. The real cause
lovever, dates further back than the
regime. Il is alleged that
he bank has been in . bad condition
Of several months, partly from the [
ame cause. II appears that after
]. W. Sherwood, L. p. AL
right and others, purchased the con-.
interest, they elected J. W..
president. and L. p. Al
cashier. The then new con-
ern went along to al intsnts and
srposes, smoothly, but finally began
hold Of some poor securities.
nong which they held over go. 000
D Red Cloud Milling Cos paper and
ono other securities that we're not
together prime. The National bank
ng Law provides that National banks
hall not loan to any one man or firm
,ore than ten per cent Of the capital
eock. This frn had then secured
YER 40 per cent Of the capital stock,
the Management began easting
rouad 20 unload, 80 It 10 stated. Fin
deal va made with certain
70 buy the controlling In
NEST, NJ. Albright tatisg ont u.s.
90, - alleged, in the best securities
{ the bank before retiring - cashier,
I'd turning the rest over 70 the new
toek holders, Messrs. Edlemas, Scan
'n and Others. This took place
bout four months ago. The nev
laaagenent found it absolutely nee-
Dsary under the circumstances 70
Any these parties that had procured
aehia 6rn hold on the bank..dsring the
reeesdisg administration, in order 70
ave themselves. The new manage
lent. however, had hardly settled