Omaha daily bee., 1894-02-13
TROUBLE BREWING IN IOWA
Farmers Who Lost Their Money Are Angry
at the Men Responsible.
BANKERS MAY FALL INTO ROUGH HANDS
President Yetzer of the Broken Atlantic
Institution Arrested and Taken Back
to Cass County and Threats of
Lynching Are Made.

afternoon from Council Bluffs, where he was
arrested Sunday, in custody of Constable Sea.
man. He was at once taken before Justice
Straight. He waived examination and was
bound over to await the action Of the grand
jury in the sum Of $4,000. District court
and the grand jury will be in session this
week. The receiver of the bank, Theodore
G. Steinke, is also expected to make his
report of the condition of the bank. Yetzer
said that the report that he was trying to
leave the country was false. He claimed
to have turned over for the benefit Of the
creditors of the bank $4,000 worth of real
estate and other property. He is inclined
to think he is being prosecuted and says he
has had no active part in the management
of the bank for seven years, leaving it all
to Cashier Dickerson.
Owing to an irregularity in drawing the
grand jury which is to investigate the
failure, the county attorney interposed
several challenges in behalf of the state and
a new jury had to be tmpanelled. President
Yetzer and Cashier Dickerson appeared in
court accompanied by their attorneys and
their presence created somewhat of a sensa-
ton. The foreman of the new jury is ID.
y. Miller and that body is mainly made up
VI iiilN 81 Z IN "iA 81 W viz
bottom of the failure.
FARMERS GATHERING.
Early this morning farmers began arriv-
Ing here from all parts of Cass county, att
tracted by the fact that the grand jury was
to convene this afternoon and Judge Decmer
to begin the regular term of the district
court.
Since the failure of the Cass County hank
the farmers and depositors have relied on
the receiver to protect their interests as far
as possible and save them what money be
could. The receiver and an expert have been
at work on the books since December 2S, and
this morning Mr.. Steinke said he would make
public his report this week, probably in a
day or two. AS the farmers began arriving
they were met by some of the city depositors
and they elected one Of their number
as chairman. A short meeting was held and
about twenty-five of the men went to the
bank and demanded an audience with Re-
ceiver Steinke. They said that they not
only urged but demanded, in behalf of law,
order and justice, that he make an imme-
date report of the condition of affairs. They
had heard that the receiver and others were
in a conspiracy to delay the administra-
ton of justice, and SO intimated. When
they impugned Mr.. Steinke's honesty of pur-
pose he was very. indignant and told the
Nhu' II IL viz ittAV hio way VI uOlhE
business it could go towel, a place where
snow storms never come. The
explained that 1t did not believe that the re-
ceiver would be a party to any dishonest
scheme and the matter was amicably settled.
A delegation also waited on Judge Deemer
and requested him TO carefully instruct the
grand jury as to its duties in investigating
the fraudulent methods of this banking in
stitution. That they mean to see that the
law is rigidly enforced there can be no
1nmhf and tho arm p Hp NOT raay, IT,
to make any concessions in favor Of the
accused.
The more the matter is developed the
worse 1t looks. The facts which are coming
to light indicate a most deplorable state of
affairs.
Along in July there was a run on the
bank, but the friends of the officers went
out among the farmers and restored conf
dence. But since that time the bank is
said to have been in a dangerous condition
and it is asserted that the officers knew
this three weeks before they were COM
PEELED to close the doors. A Bee reporter
was told by the county clerk today that he
had deposited 5000 in the bank on the day
that it failed. This money was received
along with several hundred dollars more,
and when the bank closed there was only
about $500 in the vaults. Payment on
drafts and checks were refused by Cashier
Albert Dickerson, on one preteXt or another,
but he kept receiving the money of the de-
''Na wv viz ttlio W .hhON
where these moneys went, and even the re-
ceiver can discover no trace of them.
On the night that the bank failed the
cashier requested the county clerk to remain
in his Office until after supper, until they
could place some important documents on
file. The deputy clerk, William McConville,
waited for them until II o'clock and the
officers got Judge Smith to appoint Mr..
Steinke as receiver. The deputy clerk lost
a few thousand dollars, part of which is his
fathers estate.
TEN CENTS ON H DOLLAR.
Receiver Steinke was seen this morning.
He said that aside from some pieces of real
estate, which he had been unable to locate,
he had his report ready for filing with the
court. He said that the liabilities ex-
ceeded $500 900 and that the assets were
very small; in fact it is thought
by many people that depositors will re-
ceive no more than 10 cents on the dollar.
Receiver Steinke said that the city would
lose $4,000 and the county IS, 900. The At.
lantic National bank assisted the Case
County bank to a considerable extent, but
il is amply secured in all but 1,SO0, and the
officers Of the Atlantic National say they
will lose nothing. The receiver says he
found tho affairs OF the bank in bad shape,
and could find no record of many deposits
which were received a short time before
the bank failed. In some instances the re,
ceiver had to go back for ten years, and he
discovered Irregularities dating back Ave
years. me heavier uepOSltOfS, VINO have re-
ceived some intimation as to the true condi,
ton of affairs, have filed attachments on all
the property they have been able to locate up
to date.
Some of the property of the directors is
liable to these executions, but this procedure
will result In endless litigation. Among the
heavy losers is p. T.. Stafford, who lost
500, 900. AS Mr.. Stafford is comparatively
wealthy, he takes the matter quite calmly
and says that he would rather lose twice
that amount than have the poor widows
and orphans lose all the money they had,
a. in this case. He said he would relinqulsh
all his claims against the bank II IL
would agree TO pay that amount to the
smaller and poorer depositors, and MIR.
Stafford does not pose as a phllanthropist,
either.
Another loser is p. f, o'Connell, a jaweler
here, who had deposited about "A 1000 in the
bank for the purpose Of building himself a
new store room this spring.
OVER THREE HUNDRED THOUSAND.
The failure Of the Cass County bank has
cast a gloom of depression over these once
prosperous people and IL Is said that nearly
$3.50, 900 Of their hard earned savings have
gone glimmering; in fact, that thoy have
been desrauded cut OF this sum through
criminal means Is openly asserted without
contradiction. Every day people. who were
formerly In comfortable circumstances, can
be seen walking the main street with their