Evening journal., 1893-01-23
STATE FUNDS GOBBLED.
Nebraska Loses $3.50, 900 by a
Bank Crash.
LITTLE CHANCE OF RECOVERY

A Fat state Treasury Deposit vanishes
In the Failure of Lincoln Bank.
which Are Received with Much Doubt.
The Treasurer Accounta able.
LINCOLN, Neb., Jan. 23.-The Capital
National Bank of Lincoln has failed, and
the state treasury is caught for about
$3.50, 000 The announcement was made
shortly after II o'clock last night The
appearance Of National Bank Examiner
J. M. Griffith, Of Waho, who came in on
the evening train, was responsible for
the closing of the bank which came
few hours after that official began his
investigation of the books and papers of
the institution.
It is stated that the failure is bad
one, but the exact situation cannot be
ascertained up to this time The de
posits amount 20 about $625 600, 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 cap
tai stock of $3JOOOO is all paid up
Cashier b. c. Outcalt stated that the
assets would protect the depositors, but
there is great doubt expressed as TO the
correctness Of this statement.
Captain J. E. Hill, ex state treasurer.
in discussing the situation, could not
refrain from expressing a feeling Of
relief that he had been lucky enough to
turn his Office over TO his successor be-
fore the crash came. In this connection
IL was stated that the bond given by
, treasurer Bartley was for SO, 100, 600.
! which was $500, 600 more than required
by law. His bond includes nearly all the
; banks in Lincoln, two at Fremont and
the Globe Loan & Truss Company Of
, Omaha None Of the big Omaha banks
E are included although they were on the
bond of the ex treasurer. Messrs. Drake
and Batch were here few days ago, at
2 the time the Office was turned over, and
+ were anxious at the time 10 get from
a under. The bank skipped a dividend
the last time, which was the first occur.
A renee of the kind in its history.
Z The Capital National Bank was con,
structed from the ruins Of the old Marsl
. Harvester Bank Of this city, which dice
a from pure exhaustion about eight year
/. ago. Mosher was the nephew of G. w
/. Marsh and was connected with tn
. Marsh Bank and became a sponsor 70
!. the reiuvenated institution, which wa
a given the name Of the Capital Nationa
Bank. The directors of the broker
bank are. c. w Mosher, c. +. Yates, Il
J. Walsh, Henry Guerner and IL. {
IL Phillips The officers are; Q. W
Mosher, president; j. Walsh. vlce-presi
dent; and r. @. Outcalt, cashier.
i A meeting of the bankers of this cit
was held at the Lincoln last evening &
discuss the situation. Il Is feared tina
10. the trouble would precpitate a run O
some of the other banks this morning
'r and one of the first things done was {
% make arrangements TO prevent it. TIL
Omaha banks were called on and the
Immediately responded by sending rel
n rcsentative on a special engine to assuI
Is the bankers here that every courtes
1t would be extended and that all needle
D. assistance to meet any run that migl
take place would be forthcoming.
" Secretary Of State Allen stated las
Is night that the special bond given by th
r Capital National Bank was approved b
l. Ex-Governor Boyd, Attorney GenerI
Df Hastings and the secretary of state. A
x TO the amount Of money that was on d.
r posit with the Capital National Banl
% State Auditor Moore said that the trea
ne urer told him day OF two ago that
IS was about $3.50, 900 or $40, 900 more tina
there was November 30 when the repol
10 was made at the end of the fiscal yea
is The situation will undoubtedly result
le the appointment of special committ'
by the Legislature to investigate matter