St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-01-23
NEBRASKA BANK FAILS.
The Capital National, of Lincoln,
Closed by the National Bank
Examiner.
Depositors Caught for $685., 900
and the State for About
$25O,OOO.

LINCOLN, Neb., Jan. 22.-The start
ling announcement of the failure of the
Capital National bank was made shortly
after II o'clock tonight, and with it came
the statement that the state treasurer
was caught in the crash in the sum of
$4,000 This news spread like wild
fire, and it was the sole topic of con-
verSatiOn of the hundreds who were
arrested by it as they were on their
way to their beds. The appearance
of National Bank Examiner j. NJ. Grit
fifth. of WahOo. who came in on the
evening train, was responsible for the
closing of the bank, which came in a
few hours after that official began his
investigation of the books and papers
of the institution. 1t is stated that the
failure is bad one. but the exact stu
alton cannot be ascertained tonight.
The deposits amount to about S625,000,
and of this amount between $150.O00 and
S250,000 are state funds, for which
the bond Of the treasurer will be liable.
The capital stock is $3.50. 900. all paid up.
Cashier r. G. Outcalt stated that the as
sets would protect the depOSitors, but
there is great doubt expressed as to the
truthv of this statement. Capt. j. E.
Hill, eX-state treasurer, in discussing
the situation, could not refrain from
expressing a feeling of relief that
hn nnly tTrh 70
turn his office over to his successor be-
fore the crash came. In this connection
it may be stated that the bond given by
Treasurer BARLEY was for So, 100000,
which was 100000 more than required
by law. His bond includes nearly all
the banks in Lincoln, two at Fremont,
the Leaner and Girard, of Columbus,
and the Globe Loan and Trust company,
of Omaha.
State Treasurer BARLEY is out of the
city, and no expression as to the exact
amount Of state funds Oh deposit can be
obtained tonight. An additional bond
is required of all banks on all state
funds on deposit. This was furnished
by the Capital National about ten days
ago. 1t is signed by the Capital Nation
al bank, {. w. Mosher and R. &. Outcalt,
and is therefore worthless, all of these
parties are swallowed up in the wreck.
The bank was constructed on the ruins
of the Marsh Harvester bank, which
died about eight years ago G. W..
Mosher, president of the Capital Ma
tianal bank, is a nephew of Marsh. The
affairs of the bank have been in
bad shape for some time. 1t
passed its last dividend, and
the banks last statement showed
$50, 400 charged to profit and loss. Not
long ago it was compelled to turn into
cash several thousand dollars of gas
bonds held by Mosher. 1t was thought
by local bankers who knew of the shaky
condition of affairs, that Mosher would
pull through with his private funds. but
it is now known that he is swallowed up
completely. The wreck will be total, it
seems, and nothing will be left after
the deposItors are paid.
What has caused the wreck is not
known. A meeting of the other bank
ers was held this evening to provide
against possible run on the banks to-
morrow. A representative of the Omaha
banks came down OH special engine,
bringing offers of assistance, and the
bankers feel equal to any contingency.