Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-05-13
BANKING ON WIND.
Alleged Facts About the Column
bia Concern.
DIRECTORS TALK OF RESUMPTION,

But Matters Are In n Much Mixed Condi-
acknowledgements of Financier Dwig-
gins Operations of His County Bank
Standardization That Have Gone
Under-Correspondent in IIIinois-Imi-
tators at Indianapoiis-An Epidemic of
Failures.
CHICAGO, May 13.-Interestng disclosures
are promised in connection with the in
vestigation into the Columbia National
bank failure. The directors have held n
meeting to discuss the practiciability of
resuming, but the result of their
affairs of the bank are in such
deliberations was not given out. the
thorough mix that it is not
known just how matters stand. Zmri
Dwiggins president of the Columbia bank,
was banker at Attica, Ind, ten or twelve
years ago and at that ii ne established close
relations with q. w. Wigs and j. NJ.
Starbuck, who were running a system of
bucket shops under the name of Wiley,
Strawbridge & Co.
Sunk 100000 in n Silver Mine.
They determined TO start bank and or
ganized the United States National bank
with a capital of $4,000 The bucket shop
business was subsequently broken up IN
der the bucket shop law, the bank being lett
in Dwiggins' control while Wigs went to
New Mexico. The stock of the United
States hank was swelled to $500, 010 and
Wigs, who had discovered an alleged
Eilt-edged mine. drew $500, 900 to pay for it.
The mine was to be sold TO English invest
ors. The mine was dead horse" and
never PANIED out
Took Up p Country Bank scheme.
do fol h,-t ba Fail Of he
New Mexican scheme, DwigginS and Star
buck undertook the establishment of Il
chain of country banks 1t is not KIN OWN
how many were then organized, but after
the Columbia was established they went at
it with vim, and their connections are now
more extensive than before. The scheme
to visit some well known and well-to-
do farmer in a town and secure his services
as cashier of n branch, the farmer taking Il
large block of stock. The money was adj
vanced by the Columbia and some one put
in control whom they could manipulate
The country bank stock thus acquired WAS
either used as collateral for loans by the
Columbia National or bought outright
AS the money sent out into the country
soon came back to the reserve center the
bank was not out of cash long, and prac-
tically no capital was required in the pro
motion business.
Got on Too Heavy n load.
The Columbia, however, finally got load
ed up with country bank stock for which
* had no special use, and then it was de
termined to OrganiGe a company to take
this stock. issue debenture bondso on them
and sell the bonds The United States
Loan and Trust company was according
ly put in the field, with Zimri DwiGCins rs
president, and incorporated under the
laws of Indiana. The company represent
ed that upon the basis of country bank
liz. :
dends !. and per cent debsnture bonds
would be issued.
Who Is Good for the Loan Company?
To make the bond good the United
States Loan and Trust company guaranteed
the payment of principal and interest. The
scheme caught on in good style and it is
known that at one financial concerns office
$3.50. 00t of the United States Loan and Trust
company's debentures had been registered.
The approximate amount of bank stock
held for this Is $500 and President
Dwiggins has 100000 more on hand. The
United States Loan and Trust company has
no visible assets except about 81, 900 in
Office furniture.
Country Concerns That Failed.
The following banks, connected with the
Observation-Disclosures Columbia bank COM
bination, have closed: Commercial bank
of Brookston, Ind: bank of Dunkirk, Ind:
Commercial bank of Russiaville, Ind; Cit
liens bank of Edwardsburg, Mich; Union
bank of Richland. Mich, Others in Indi-
ana: Bank of Spiceland, at Spiceland,
capital $50, 600, Dwiggins subscribing 3d.,
900 thereof; Citizens Bank of Hebron; Cit
liens State Bank, of Knox Dwiggins):
Bank of Orleans at Orleans paris 81
Navel; banks at Walkerton, Arcadia, Ok
ford and Boswell.
Correspondents in Illinois.
There are good many correspondents !
ron's bank, of Byron (Dwiggins, Starbuck & |
Coz; Farmers and Merchants bank of |
Casey; Bank of Lynn, East Lynn %. A. |
Ross; Georgetown bank Dwiggins, Star |
buck & Coz; First National bank of |
Hoopestown, capital $50, 900; Peoples bank /
of Martinsville; Farmers and Merchants
of Mount Carmel; State Bank of Orian, |
capital S25, 600; Farmers Bank of Ridge |
farm; A w. Boyden & Sons bank, of |
Sheffield; Spring Valley National bank,
capital 5000.
Creditors Assured of Their Money.
Crowds of people congregated around the
Offices of the Columbia National bank. but |
were assured from notices posted by those
who had drawn on the bank that they /
themselves would see to the liquidation of |
all such drafts, and other assurances were |
given by officials that all would get their |
money.
DID A DWIGGINS BUSINESS.