The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1895-05-23
BANK CLOSED.
Citizens Bank of this City to Have
Its Financial Affairs
Mound Up.
Receiver In Doubt but Judge J.
Bowers Will Probably be the
Man,

The Citizens Bank of Redwood
Falls suspended at high noon last
Thursday. At that time a notice was
pasted on the door to the effect "Bank
Closed" and all the curtains we're
pulled down. An hour later nearly
everybody in Redwood Falls was
aware of the suspension.
The suspension was decided upon
at meeting of a majority of the di-
rectors held Thursday morning.
There was little or no currency in the
bank and not being able to obtain any
the directors decided that the bank
had better be closed and it's affairs
wound up for good.
Shortly after dinner Attorney j. H.
Bowers, on behalf of the directory,
promulgated the following for dis
semination through the local and
daily press:
"The Citizens Bank closed it's doors
at noon to-day.
"a few months ago a call was made
upon the stockholders to loan to the
Bank 30 per cent. of the amount of
their stock to assist it In running un-
til the crops were harvested aud col,
lections could be made; all of the
directors with one exception paid in
the amount Of their assessment but
the stockholders outside of the direc-
tors failed to pay In any money and
the bank was unable to continue busi-
ness any longer.
"An assignee or receiver will be ap-
pointed and the affairs wound up.
Depositors will be paid in full"
It will be remembered that about q
! year ago the bank temporarily sus-
pended payment. Il was tided over,
however, and last February reorgan-
ization was affected. W. r. Donald
son of St. Paul., who has been Presi-
dent of the concern, had decided to
retire from business altogether on &C.
count of his age, and as result F.
W. Philbrick of this city was made
President and Manager, having the
power to direct loans made through
the bank and give advice on other
business dealings. Mr.. Philbrick
said that he took the place with the
express condition that the full 80 per
cent. assessment would be paid in.
w. E. Baker was elected vice-presi-
dent and 0. B. Turrell returned as
cashier. R. A. Turrell was retired as
assistant. A new directory was placed
in and 80 per cent. assessment de-
clared. All of the directors paid
their assessment at that time, r. p.
Lewis of St. Paul, who was heavy
stockholder, deposited his personal
check for $1,000 as an assessment on
his stock. The cash has never been
paid on that piece of paper.
Two or three weeks ago, owing to
the assessments not having all been
paid Mr.. Philbrick and Mr.. Baker
rendered their designations as officers.
This was done secretly. The week
prior to last Mr.. Philbrick went to St.
Paul and urged on Mr.. Lewis to pay
in cash his assessment, predicting
that the bank would close if the same
was not done. Mr.. Lewis found it
impossible to raise the money, al
though he was the owner of large
tracts of St. Paul real estate, but he
found it impossible to realize upon
the same. A week ago yesterday Mr..
Philbrick returned and insisted that
his resignation be accepted. The di-
rectors met and the suspension fol-
lowed.
The assets are placed at $135, 600
and the liabilities are estimated at
100000. At the time of the suspen-
sion there we're on deposit between
$5,0 900 and 5000 in State funds and a
little over $1,000 of county funds
The State funds are guaranteed by
collateral securities for double the
amount and the county funds are
guaranteed by good bonds. That
these deposits, as we'll as all of the
deposits will be paid in full there does
not now seem to be shadow OF
doubt.
At the February reorganization
Cashier Turrell gave the directors q