New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-24
FAILURE OF A NEBRASKA A BANK
RESULT OF MIXING POLITICS AND BUSINESS.
TIE CAPITAL NATIONAL OF LINCOLN CLOSES
ITS DOoRs-STATE FUNDS CAUGHT.

ITS DOoRS-STATE FUNDS CAUGHT.
Lincoln, Neb.. Jan. 23.-rhe Capital Nalon1l Bank
Of Lincoln has ftd and the state IL caught for ab"nt
s25OOpO The announcement made shortly
before IL o'clock last night National hank Exam
incr Griiih. Of Wahoo. came on the evening train,
and the bank closed few hours after tiat "m'laI
bcgan his Investigation OF tie BOOKS and papers ol
the institution The deposits amount 10 about 500
OOO and Of this amount between 5l'1,OoO ana 9-1o'
COO are state funds Tho capital stock Of %3'o"oo
* all paid n Cashier ,mtcalt state, that IN" assets
would protect the drpo,iios. but there /, great donb
y pressed as 10 the correct ~ this statement
CAPTAIN !. f. Ill., state Treasurer. IN discussing
tLr situation could not refrain from expressing a
feeling Of relief that he had been lucky enough !"
turn his Once over to hi successor before the crash
came II is stated that tho bond given by !r'nS"r"F
BARLEY was for more than required ly m"' HIS
bond includes nearly all IN" banks In Lincoln wv"
at Fremont and tie Globe Loan and Trust Company
of Omaha. Nonc Of the big omaha hanhs Is included
although they were tn" bond Of tho ~ Nir"a'nr'r
The bank passed u5 lat dividend, which was the
first occurrence Of tie kind IN It's history ID" '''
statement showed S54O,Ooo charged to inc H''o"l'
Of profit and JOSS. some Time ago tie ban" EXAMINE
Ieuulrcd the hank 10 turn a large amount "i E'S
bonds into money. and also compelled the aSSShi'"
Of the pencniiary contract. 1t IS stated tat '''
-. ms . Losing inycstmcnt We'll known
no,kcrs Of Lincoln have known for some time that
the Caplial National Bank In bad Shape. but none
of them have been alarmed for the reason mat '"'S
have hclieyed all along tint No'her IN" p'sio'h' "'
hc able 20 assist the bank from LIS own Iunua /"
tho worst came. TL"y now bcn'N' 'hht '''''
and Dutcalt are I'm such close quarters thAt '"',
,olld not save anything even were they disposed
to have done 49,,
Tho ranfal National Bank was constructed H'H
tho ruin Of the old Marsh Harvester Bank Of this cy
which died from exhaustion about elSht years "so
,lo,hcr was the nephew Of {. W. Marsh and was con
uected with the Marsh Bank and became sponsor
for the rcJuvenated Institution. The directors o the
broken bank are e. T.. Yates. G. w Mosher IL d.
walsh. Henry Guerner and II. {. Pmlap' mo olcerS
arc C. W Noshcr president; J. Walsh, vcc'preSdeht
and Il. {. Outcnlt. cashier
A meeting OF the bankers OF this city was held iast
evening 10 discuss the situation. II was iearea '"I
tho troube would prccIpitate a run on some Of The
other banks this morning, and one OF thc hIS' u"t'
done was make arrangements TO prevent 1t. inc ,
Omaha banks were called on ana they lnhed"'S
responded by sending representative vi Or
engine 10 assure the bankers here that every courtesy
would be extended and that all Nccdcd hssh'dH'o y
+, meet any run that might take place would DE-
forthcoming -,
II,udrs,s NJ peopc surrounded the bank doors all
thc morning hoping against hope that they w"nld
swing ont again. The bank has thousands " w
po,tors many Of them OF small means VINO VIII ~
from 800 10 $1,000, the banks paying pr ''"
intcrc, being the attraction which drew thrir Sa'S''
Pre-
mi, afternoon that he believed the bank woud pay 'D
,cno~tors 10 full but he stockholders voud liz com
pllcd 10 put up large sums Of money 10 90 So lh'
Immediate cause Of the failure Tie hct tlat ihe
state Treasurer had notified Inc 'dP'di .>"''o''i
that he should require slOo,ooo "lthlh uHc "'A'
week Treasurer BARLEY arrived TN, morning an
taos that iua,mucn as the Governor. secretary Of
.t,t. and Attorney General had approved the bono
~ M,s,ncr and Outcalt Tor 100000. under the Jaw
which went into effect when he took charge OF the
STATE funds, he and lis bonGsncn were released from
all liability which will fall upon the state III
ouulifyrc on the bond Moshcr swore That hc "is
worth SJCOOOO AMI Outcalt SJOO.OOo.
pniv q. few weeks ago MOshrr sWOIr that ne was
,or,i .,o1 900 over and above all Liabilities, and
Outcult swor" that lie WAS worth T-op'o" oN.I anu
above hi, liabilities Their ", 10 thr rnfSu
taken when they went Oh state treasurer hir,,rH &
bonds. The oaths were taken ldat ~c'h "'En s
they presented their bond a. Ginh & "i neP I hn iJ
ness interests OF the city say thhl ouiu'
by PRESIDENT Ao,her ana nS c "ng po"
tractor and no doubt made big money. But he
was also lobbyist and cacn session ci 'nc ~.
Legislature cost Him a large sum OF hn'hleA. ~ !,
wa iIrrcd 10 engage In the iindn' al schemes OF
politicians in oder to hold their influence, and In thS
way put TOO many irons in the IRE rs l.'",i 81. "
property have been filed by Moshcr and oui'Ilt.
In every case the date Of thc>. chattcls Is prior
10 December Il. Leading lawyer claim that the
retiring treasurer IIil. had a2GS.CoO Of state iulds
IN the bank which h. turned oyer to n, n S eni
Withdrawals. The t,tal deposits OF the bank anolnt
10 $4,000. Mc,hcr and Outcalt are on the bonds
OF nearly all OF the State officers.
Gcorg, G.. Williams, president OF the Chemical Ma
tjonal Bank. which was the NewYorS correspondent
Of the Capital National Bank. Of Lincoln, Neb. was
soen by Il Tribune reporter yesterday afternoon at
,hc hanks Offices, No. go Broadway. lie Said
Z" | know practically nothing about the Capital BANK >
failure but what | have read in the newspapers