Omaha daily bee., 1893-01-23
SMASHED A BANK
Capital National at Lincoln Fails for More
Than Half a Million,
STATE FUNDS GO WITH THE WRECK
Almost Quarter of Million on Deposit in
the Broken Bank.
CAUSED A MOST PROFOUND SENSATION
Sunday Night at the Capital Turned from
Rest to Wonderment,
AFFAIRS OF THE INSOLVENT CONCERN
Little Hope That Anything Can Be Saved
from the Establishment
LONG KNOWN TO BE RATHER SHAKY
Other Financicrs Knew Mosher Was I'm IA
Tight Place, but Thought lie Would
Pull Through-Dctails as Far
ms known Now.
LONG KNOWN TO BE RATHER SHAKY

LINCOLN, Ncb., Jan. 29.-[Special Tele-
gram to The BEE. The startling announce
ment of the failure of the Capital National
bank was made shortly after II o'clock to-
night, and with it came the statement that
the state treasurer was caught in the. crash
in the sum of $500
This news spread like wildfre, and it was
the sole topic of conversation of the hun
dreds who were arrested by it as they were
on their way to their beds.
The appearance of National Bank EX-
amincr j. NJ. Grihith of Wahoo, who came in
on the evening train, was responsible for the
closing of the bank, which came in few
hours after that official began his iuyestiga-
tion of the books and papers of the institu
tion.
Caught the state.
1t is stated that the failure is a bad one,
but the exact situation cannot be ascertained
tonight. The deposit amounts to about
$6250 000 and of this amount between $4,000
and $3.50, 600 are state funds, for which the
bond of the treasurer will be liable.
The capital stock is $3.50, 900, all paid up
Cashier X. c. Outcalt stated that the assets
would protect the depositors, but there is
great doubt expressed as to the correctness
of this statement.
Bond of the Treasurer.
Captain j. T.. Hill, ex-state treasurer, in
discussing the situation could not refrain
from expressing feeling of relief that he
had be4l lucky enough to turn his Office over
to his successor before the crash came. In
this connection it may be stated that the
bond given by Treasurer BARLEY was
for S3,l0O0)0, which $500,
600 more than required by law
His bond includes nearly all the banks in
Lincoln, two at Fremont, Leander Girard of
Columbus and the Globe Loan and Trust
company of Omaha.
None of the big Omaha banks are in
cluded, although they were on the bond of
the ex-trcasurer. Messrs Drake, Barlow
and Hatch were here "A few days ago, at the
time the Office was turned over, and were
anxious ut that time to get from under.
Passc d its Last Dividend.
The bank skipped dividend the last time,
which was the first occurrence of the kind
in its history. The last statement showed
ga, 900 charged to the account of profit and
loss. Some time ago the bank examiner
required the bank to turn a large amount of
gas bonds into money, and also compelled
the assignment of the penitentiary contract
1t is stated that the contract losing
Investment but other information is to the
effect that IL had nj ola tD ~
good property.
Has n Worthless Bond.
State Treasurer BARLEY is not in the city
tonight, having left Saturday to spend Sun
day at his home at Atkinson, Neb 1t is
stated that the statement of the law calling
for special bond from every bank in which
state money is deposited had been complied
with in this case, and the bond is said to
have been filed ten days ago 1t is signed
by the Capital National bank, c. w Mcsher
and r. G. Outcalt The bond is therefore
! worthless, 50 far as the present case is con
! cerned as all the signcrs are of the collapsed
bank itself
Owners In bad shape.
The Capital National bank was constructed
from the ruins of the old Marsh Harvester
bank of this city, which died from pure eN
haustiou about eight years ago. Moshel
was the nephew Of c. w. Marsh, aud was
connected with the Marsh bank, and became
sponsor for the rejuvenatcd institution
which was given the name of the Capital
National Well known bankers of Lincoln
have known for some time that the Capita
National bank was in bad shape but none OF
them have been alarmed for the reason that
they have believed all along that Moshel
would be able to assist the bank from his
own funds if the worst came. They now be
lieye that Mosher and Outcalt are in sucl
close quarters that they could not save any,
thing even were they disposed to hav,
done SO.
Gme Thing Explained.
Tho failure of the Capital National ex
plains to certain extent the opposition
by Mosher to the project of making Lin
coin reserve city. 1t will be remembered
that some two months ago the comptroller
of the treasury designated Lincoln as n re
serve city, Two days later he reversed the
order and it was given out from
Washington that the reversal was bccaus,
the Lincoln bankers could not agree upol
the arrangements necessary before tn,
order could be carried into effect II trans
pires, however, that the disagreement wa
very one-sided, OF the six banks in tn
city, the Capital National was the only on