The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1893-06-29

To this is to be added real estate and
personal accounts turned over by G. c.
Barnes to the amount of S17,952 which
makes the grand total S15S,394. Possib-
ly the real estate may be inventoried at
a higher figure than it will bring at a
quick sale. Reducing the above amount
by $1,000 there is left as good Sl5o, 1874,
which without the expense of administer
ing would enable the bank to pay
nice per cent. on the dollar. It is only
proper to say that conservative estimates
by business men are not SO favorable.
The paper held by the bank which is
considered almost worthless is as follows:
International Store Service. IS 1920
&. G. Barnes 1888
S. c. & G. W. Howell ....... 1882
Uni'n L IN & Tr'st Co. Sioux City. 10000
I'll. Grabo 1896
American National Bank Of Ar
kansas City. ............... 1873
Bond Hustled Investment Co.,. 200
Some of this will pay something
though only small per cent. on the
total. The international Store Service
Co. was the cash carrier of Charles Fish
er and Maths Janecek, which is wholly
worthless. The claim against @. G.
Barnes is the net loss in deal with the
Howell Lumber Co. This loss occurred
IN April 1892. The company settled for
30 cents on the dollar but paid only zoe.
giving its notes for the balance which
now must be settled at so per cent. G. G.
Barnes gave his notes for the deficit and
these of course, are worthless. The af-
fairs of the Union Loan & Trust CO. are
not yet settled but not much can be ex-
pected from this asset. The claim against
| this concern dates from October 1892
The Grabo claim is wholly worthless and
should have been charged to profit and
| loss long ago.
| There are other securities whose value
are doubtful such as:
HoXle q Miller. .............S QUO
| f. ii Williams Observation-Disclosures. PA
| Ed and Annie Conway ......... 5000
and a quantity of ether paper for small
sums.
The Howell Lumber Co through which
the bank sustained it's heaviest loss, did
| large business with the bank, commence
ing in 1885. During that time it handled
the company's paper TO the extent of two
million dollars. Their failure practical
ly bankrupted the bank for the reason
that it had no capital. The Grabo loss
dates from the year 1889.
The increase in the liabilities of the
bank from what appeared on It's books
was very disagreeable surprise. When
the amount of outstanding certificates
was footed up it was found that they
amounted to S195, 1856 instead of S139, $50.
What caused the discrepancy? 1t was
an increase Of the banks indebtedness
of sum exceeding $4,000, and made
plain the fact that the condition of the
bank was not as good as was expected.
The disclosure was startling. The losses
which the bank had met through Howell
4 Go. and the Sioux City concern were
IN the legitimate line of business, but
here was discovery which seemed to in
dictate that the bank had sustained losses
which did not appear on the books.
| The assignee and his assistant Mr..
| Burnett went to work to examine the
books in detail checking off the certlf-
Gates on the register. In tins way only
could be found the source of the discrep-
ancy. When the assignec's statement
was filed the books had been checked
back to 1885 and an error of only 20c was
found in MIR. Burr cts books. While this
systematic work was In progress, some
time was spent in less laborious but by
no means SO certain way to find the
cause of the discrepancy. 1t was found
in old certificates which had been issued
but never charged to the Certificate &C,
count.
The first certificate found was one OF
5000, issued in 1870, John Eggers hay
ing deposit the money, the certificate run.
ming to Henry Baetz. Two other certii
Gates of $1,000 each making in all $4,000
have been found There remains $4,000
to be accounted for. It will be no small
job to ferret out the avenues through
which this sum passed.
These certificates we're issued in ex.
: change for money received IN the regular
way and were paid on maturity But
they were never credited to certificates
, when issued. The liabilities of the bank
as the books showed, were just the
/, amount of these certificates less thar
+ they really were. So that the bank hat
t been carrying liabilities, for long time
of $4,000 which its books or its state
). ments did not show. One may well ash
what the object of doing this could be-
seeing that the money received for thes,
e certificates was not dishonesty appro
/ priated, and no personal dishonesty re
4 sultlng in benefit to any individual. re
suited from this peculiar proceeding
The explanation is that the bank starte,