The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1893-05-19

60 Down with the Columbia
CHICAGO. May l3.-Dntercsting .hs.
closures are promised in connection
with the investigation into the Column
hia national bank failure. The direc.
tors held "A meeting yesterday To dis.
cuss the practicability Of resuming. bu,
the result Of their deliberations Vas
not given out. The affairs of the bank
are in such thorough mix that il Il M,
known just how matters stand Iimri
Dwiggins. president of the Columbia
bank, was banker in A,tica
Ind, ten or twelve years ago. and AZ
that time established close relations
with c. w. Wigs and j. NJ Starbuck.
who were running "A system Of bucket
shops under the name Of Wiley. Straw
bridge 4 Co. They determined to start
bank, and organized the United
States national bank with capital
OF $4,000. The bucket-shop business
was subsequently broken up under the
bucket-shop law. the bank being left
in Dwiggins' control. while Wigs went
to New Mexico.
The stock Of the United States bank
was swelled To $500, 900. and Wigs who
had discovered an alleged gilt-edge
mine drew $500. goo TO pay for H. The
mine was to be sold TO English invcs-
tors. The mine was n dead horse
and never PANIED out. Nothing daun'ed
by the failure of the New Mexican
scheme. Dwiggins and Starbuck IN.
dertooS the establishment of =
chain of country banks. II Is
not known 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
was To visit some well-known and we'll
to-do farmer in town and secure his
services as cashier Of branch. the
| farmer taking large block Of stock.
| The money was advanced by the Golnm-
bia and some one put in control who
was in sympathy with their interests.
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 re-
serve center the bank was not ont 81
cash long and practically no capital
was required in the promotion business.
The Columbia however, finally got
loaded up with country bank stock for
which il had no special use, and then
it was determined. it is said. To organ
izc company To take this stock. issue
debenture bonds on them and sell the
bonds.
1
The United States Loan and Trust
Co was put in the field with Iimri
Dwiggins as president. and incorpo-
rated under the laws of Indiana. The
company is said to have represented
that upon the basis of country
bapx stocks yielding 3. 10 and
IL per cent. dividends. per cent.
debenture bonds would he ISSUED
To make the bond good the United
States Loan and Trust Co. guaranteed
the payment Of principal and interest
The plan succeeded and it is known
that at one financial concerns Office
$3.50. 900 of the United States Loan and
Trust Co. 5 debcntures had been regis
tered The approximate amount OF
bank stock held for this i said to be
$50. 900. and President Dwiggins Is I'M
ierstood To have s500.000 more on hand.
The assets OF the United States Loan
and Trust Co. are said to consist cf
about 81 900 in Office furniture The
list of branches Of the Columbia bank.
more than n score of which closed their
doors yesterday. is long one. extend
ing over the states Of Indiana, Michi-
gan. Illinois and Ohio.
j An Indianapoli. Concern that Did Busi-
ness ON the Columbia Plan
INDIANAPOLIS. Ind. May i3---John
w. Paris and j. shannon Nave. under
the partnership style Of Paris x Nave
bankers. have. from their quarters ia
the old Sentinel building in this city,
been controlling several small hanAs
in the state.
Upon the report Of the Columbia ma
tional bank failure. Paris 4 Nave or
dered the banks which they control e
suspend. II seems that Paris y Nave
organized banks somewhat on the pian
If Mr.. Dviggins. Of the Columbia ma
tional Of Chicago-in fact. Mr. fari'
was interested with MIR. Dwigglns ~
the Farmers bank of Greentown, wihcf
suspended yesterday Ex-t'ov- ohas'
was also one of the founders OF th'
Greentown bank.
The banks ordered to close by Farm
4 Nave. Of indianapolis. include IN
Bank of Orleans. Bank of Hossviiie
Bank of Freeport, o.. and the bank 2
Rockford. Mich. These banks were a.
private affairs and had no extensi''
, patronage.
The firm of Paris & Nave has on.
g been in existence a short time. Mr
E Nave joining with Mr.. Paris in,the bus'
ness in January. 1892.
|, Mr.. Nave described the firms hu>,
9 ness as a general brokerage one in az
!, dition To the banking end. tie say
|. the firm has been handling securitie
TO a certain extent. The Dwiggih
plan was followed in its general our
e line by Paris & Nave. in organiHlh'
: these small private banks. An ono
\ would be opened and local parties Y
e tcrcsted in the scheme. II was y
9 firms ultimate end, said Mr.. Nave.
convert these small institutions M