The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1896-03-14
GETTING RICH VERY FAST
Interesting Story Of Zinri Dwig-
gins and His Methods
of Banking.
He. Flew Very High and Other
Peoples Money Flew High
With Him.

But Hadn't the Same Fi-
I nanciaI Bra ins.
4 Presently the details of the rise and
| fall Of. Dwiggins will be given to the
courts, says the Chicago Times-Herald.
| In a. general way the facts have been
given, but not in concise form. In the
Irregular course of business certain actions
against Dwiggins have come to the head
1 of the docket, and master in chancery
will take the evidence. The inquiry may
be entered upon this week. Daniel Fra
ser, of Fowler, Benton county, Ind, is at
torney fer the plaintiffs He is endeavor-
\ ing to obtain for confiding Indiana cap
italists moneys and securities which they
intrusted to Dwiggins, and of which he
| did not make judicious use-from the
standpoint of the original owners. In
the course of Dwiggins' operations in Chi
cago and the wealthy farming conmunl-
i ties he established the Columbia Bank
and rounded the United States Loan and
Trust Company in this city, besides Or
! ganizing fifty banks in interior towns
He also gained control of as many more
country banks already in existence, and
thus controlled more than 100 financial
institutions: After the deluge he entered
the loan and brokers' business at Storm
Lake. Iowa, where he is now to be found
Dwiggins' financial methods were prlm-
| tive, but interesting. They are worth
passing remark for their very simplicity,
even if his deals did not merit attention
on account of their magnitude. The man,
! too, had some of the qualifications OF
| great general. He did much with little.
\ With no banking experience and little
! capacity for detail, he blithely began op-
erations before which a seasoned plunger
would have hesitated and turned back.
| With a small working capital for one
bank. he organized fifty. There was one
fatal defect in his makeup. He could
not forecast the future. He was no
| prophet. If real estate values and market
| prices of securities had continued to dou-
| BILE there is small question but the name
| Of Dwiggins would have been preserved
| in letters of gold in the list OF mllllon-
aires. AS events shaped themselves thefe
| became much greater chance that MS ue-
scription would be entered on the Jog
|sbooks Of sadtne penal institution. Ihls
chance happily has been avoided Pfe
liminary acton was taken on charges ol
larceny and embezzlement, but the tinan-
/ Il
that he had in every respect conducted
| himself yirtuously toward other people S
| money. and the contrary has not beeh
| legally established. Dwiggins admits
| that possibly his views were too rosy ana
| his demonstrations had not sufficient
4 basis in probability, but his motives were
pure though his judgment was at 1ault:'
Zimri Dwiggins-there is name to ar
! rest attention at once--came to Chlcaso
FIVE wears ago. He had some little exper-
| ience in Benton county finance ais head
! of a. country bank. His business partner
was q, Mr.. Starbuck-Dwiggins & Star
I buck was the style OF the assccaa1loh:
They were together in Fowler, lnd., aho
| as their business grew started anctnef
banking institution at Union City. NOW
| be it known strange superstition owens
| in the mind of the ordinary person Few
men think they are capable OF taxing care
Of their surplus. Almost anyone can
start 2. hank. and all that seems necessary
to gain deposits is a system OF standing
desks. brass fences, and judicious ex-
nenditure in the way of gilt signs The
burning desire of the majority seems 10
lie in the direction of divesting them
selves of the responsibility for their own
money. Small inquiry is made into the
| business experience or antecedents OF the
| head of the concern. Dwiggins 4 star
| l11cz prospered; their deposits grew ana
they extended their circle Of influence.
Dwiggins ever had a soul above cross
roads Limitations. No pent-up Posey
co,1nty town-to paraphrase a familiar
nroposition-would satisfy him. He de-
sired wider flaunt for his financial tluke
and his ambitions turned toward Chi
| cayo. It was at the time of the prepara-
tion for the great worlds fair, and the
| days were days of excitement ana eXteha-
ed we'll along into the night. me GOV
ernment was about to coin $S?oV,oVV
worth of silver in the special COLUMBIAN 9ls
money, all to the glory OF Chicago. Inc
situation presented many OF the aspects
Of a good thing to Dwiggins, and ne came
tn assist in pushing. FIe organized the
| C,o,umhian National Bank, with capital
stock of 81, 100000 and himself as presl-
dent The Columbia was built up on an
already existing enterprise of modest
scone and was made great by the money
of the farmers and country merchants
of Indiana. In 1891 the new concern in
vi+ed 17enosits In 1893 it was closed by
the hank examiner. This formally took
! Mace May II. Within two weeks fully
| fiftv other banks in Illinois, Indiana,
michigan and Ohio also suspended. They
| were dependent upon the Columbia.
When Dwiggans had the Columbia well
Iunder way he began the practical de-
Iyelopment of plan he had invented in
| The hoosier solitudes. In some respects
| e would have done credit to a Colbert OF
a Necker, but there were weak spots. In
brief. his scheme was to establish sys-
! tenn of banks throughout the country,
gradually extending the field until all
1.-The United States would come to borrow
money from Dwiggins. In ten years he
might have Pierpont Morgan on his staff
If prices held Consider for minute
1.-THE money institutions Dwiggins organ
| ized. or Of which he gained control in
1.-Two years When the Columbia balloon
was inadvertently placed upon a tack
and. collapsed, banks in five states went
into Hauidation in consequence. Here is
/ 4 martial list of the towns wherein they
were situated Z .as
IN INDIANA Ambia, Argo, Boswell, Bre-
men. Brookston, Churubusco, Clay City,
|Dunkirk q Fowler, lisreentown- Green
!. wood. Geneva, Hebron, lowell, Macy,
Morocco. Morr'stown, New Palatine.
North hudson Rochester, Russia Vile, /
IspIceland SWalkerton, West Labanon
Eands1Yindfa II.
IL Illinoi Byron Casey, East Linn,