Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1893-05-18
4 COMPREHENSIVE FAILURE.

a COMPREHENSIVE FAILURE.
Interesting Disclosures Promised In Com
nectIon with tho Failure Of the C0lum-
bia National Bank Of Chicaso-The Ann
bilious Exploits OF HOosier Banker IN |
the Windy City-Scores Of Country Banks
Go Down with the Columbia.
CHICAGO, May Embarrassing DIR
closures are promised in connection
with the investigation into the Column
bia national bank failure. The direc-
tors held meeting yesterday to dis
cuss the practical ility of resuming, but
the result of their deliberations was
not given out The affairs Of the bank
are in such a thorough mix that it is not
known just how matters stand. Zimri
Dwiggins, president Of the Columbia
bank, was banker in Attica,
Ind, ten or twelve years ago, and at
that time established close relations
with c. w. Wiggs and J. M. Starbuck,
who We're running system of bucket
shops under the name of Wiley, Straw
bridge & Co. They determined to start
q bank, and organized the United
States national bank with a 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 Wiggs 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, 900 to pay for it. The
mine was to be sold to English inyes-
tors. The mine was a dead horse"
and never panned out. Nothing daunted
by the failure of the New Mexican
scheme, Dwiggins and Starbuck un-
dertook the establishment of
chain of country banks. 1t 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
was to visit some well-known and we'll
to-do farmer in a town and secure his
>services as cashier of a branch, the
farmer taking large block OF stock.
The money was advanced by the Column
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 out OF
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 it had no special use, and then
it was determined, it is said, to organ
ize a company to take this stock, issue
debenture bonds on them and sell the
bonds.
The United States Loan and Trust
Co. was put in the field with Zimri
Dwiggins as president, and incorpo-
rated under the laws of Indiana. The
company is said to have represented
that upon the basis of country
bank stocks yielding 8, 10 and
II per cent. dividends, 6 per cent.
debenture bonds would be 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
s25O, 900 of the United States Loan and
Trust Co.'S debentures had been regis
tered. The approximate amount OF
bank stock held for this is said to be
$3.50, ZOO, and President Dwiggins is un-
derstood to have $500, 900 more on hand.
The assets of the United States Loan
and Trust Co. are said to consist of
about 81 900 in Office furniture. The
list of branches of the Columbia bank,
more than score of which closed their
doors yesterday, is a long one, extend
ing over the states of Indiana, Michi-
gan, Illinois and Ohio.
An Indianapolis Concern that Did BUSH
ness on the Columbia Plan.
INDIANAPOLIS, Ind, May 13.-John
w. Paris and J. Shannon Nave, under
the partnership style of Paris 4 Nave.
bankers, have, from their quarters in
the old Sentinel building in this city,
been controlling several small banks
in the state.
Upon the report of the Columbia ma
tional bank failure. Paris & Nave or
dered the banks which they control to
suspend. It seems that Paris & Nave
organized banks somewhat on the plan
of Mr.. Dwiggins, of the Columbia ma
tionaI of Chicago-in fact, Mr.. Paris
was interested with Mr.. Dwiggins in
the Farmers bank of Greentown, which
suspended yesterday. Ex-Gov. Chase
was also one of the founders of the
Greentown bank.
The banks ordered to close by Paris
& Nave, of Indianapolis, include the
Bank of Orleans, Bank of RossyTlIe,
Bank of Freeport, O., and the bank OF
Rockford, Mich. These banks were all
private affairs and had no extensive
patronage.
The firm of Paris & Nave has ouly
been i'm existence short time, Mr.
Nave joining with Mr.. Paris in. the, lbszsi-
ness in January, 1892.
Mr.. Nave described the firms bust
ness as general brokerage one in adj
dition to the banking end. He says
the firm has been handling securities
to a certain extent. The Dwiggins
plan was followed in its general out-
line by Paris & Nave, in organizing
these small private banks. An office
would be opened. and local parties i'm
terested in the. scheme. It was the
firms ultimate end, said Mr.. Nave, TO
convert these small institutions into
national banks, after they had been
put ON sound footing. None OF tine
banks ordered closed by the firm name
q capital stock
u~~~ Agc..