The Topeka state journal., 1897-04-29
Caused by the Rascality and
Disappearance Of
BANKER j. S. SHELDON.
Supposed to Have Carried Away
More Than 100000.
Victims of Dishonesty Estima-
ted at 400.
He Didn't Smoke, Drink or
Chew, But He Stole.

Chicago, April 29.-It is not certain
now that John S. Sheldon, the Loda
banker whose failure precipitated nu-
merous other failures in the town of
Loda, Ill, committed suicide. It ap-
pears that Immediately before his dis
appearance from this city, when he
wrote a letter stating that he had
drowned himself in the lake, Sheldon
drew a large sum from the First Ma
tional bank. He probably had $500 600
besides this, and he sent none of
1t to his family. It is considered more
probable that he is still living.
The disappearance and supposed sui
eide in Chicago of Sheldon brought dis
aster and financial ruin on his home
town.
Nearly one-half of Loda is in the
hands of receivers. What remains of
the town is temporarily paralyzed by
the shock consequent upon the still
mysterious disappearance of the
banker. Nine assignments were en-
tered in the IroquOis county court yes
terday as the result of Sheldon's disap-
pearance and the strange letter he sent
from Chicago. The assignments fol-
low:
SIocum & Bradley company, dealers
in hardware and lumber.
w. L. Kinsman, general merchandise
and grain.
NeIs Peterson. dealer in hardware.
furniture and farming implements.
Gray & Swanson, general merchan-
disc.
Peterson Bros, farmers
Edward SlOcum, capitalist.
Mrs Fannie Bradley individual as
signment.
John S. Sheldon, banker.
w H Bradley, individual assign
nent.
When it was known that Sheldon had
made assignment and disappeared
the merchants and others in LOda who
were involved in the affairs of the bank
felt that an end had come to the finau-
cial career of John S. Sheldon, and that
they had been carried down in the ruin
There was a quick scramble to get un-
der cover and at O'Clock yesterday
morning the county clerk at Watseka
was urged to his Office before the regu-
hour for business and nine assign
ments were placed on file. The num-
Der of farmers and others in this com
munity who will be seriously affected
by the sudden and unexpected collapse
of Sheldons s bank is estimated at 400.
The deposits in the bank at the time
it closed are roughly estimated at $75,
000 The amount of the banks assets
is only vaguely guessed at
No name in IrOQuOis county appears
so often as John S. Sheldon in the court
records as executor, cOnservatOr. guard
ian and trustee, and it is impossible at
this time to estimate how many estates
are involved in his fall.
On the door of Sheldons bank at
Loda was posted yesterday morning a
the bank were in the hands of his
cashier, Miss Ada c. Willis, as assignee
The deed of assignment was a simply
drawn instrument, neither witnessed
nor attested. 1t was written let
ter-head of the fremont house. This was
inclOsed in a letter to John H MOffet,
his attorney at Paxton In the letter
Sheldon said he had been confronted
by the alternatives of disgrace or sui
eide, and that he preferred the latter.
This deed of assignment is the instru-
ment on record with the clerk of the
county court and on which authority
Miss Willis has taken charge of the af-
fairs of the bank. AS a, consequence
of a transfer being made upon such a
deed, litigation is promised which viii
complicate affairs to the further embar-
rassment of the banks creditors. This
however was strenuOusly denied by At
torney Mohet, who was working on the
books last night for the purpose of fur
nishing the banks creditors a state
ment of it's affairs
When Sheldon left home, coming to
Chicago, it is said he took away in his
pockets a number of notes for large
amounts to negotiate to Chicago banks
His success on this mission may be
read between the lines of the letter, in
which he said disgrace confronted him,
which could only be averted by self
destruction. It has become known
that a great many obligations of Shell
don would be due May 1, and that is
what forced him to appeal to Chicago
banks as last resort.
Opinion in Loda is divided as to
whether Sheldon has ended his life. At
torney Moffet says Sheldon has drown
ed himself. Those who hold to the
opinion of suicide point out that Shell
don held insurance on his life to the
extent of $50 GOO, which is payable to
his wife. Those who believe he is liV-
ing say he has fled from the cOnse-
quences of doing a banking business in
an irregular manner. They claim he
has been practically insolvent almost
cir ha har r1lr fnT
ago.
John S. Sheldon was regarded as a
deVout member of the Congregational
church ever since he took up residence
in Loda twenty years ago. He was
also a trustee of the church and was a
man of exemplary habits, described as
one who neither drank, smoked, cheWed
nor swore. The only Incorporate habit
ascribed to him was that of eating no
less than four heavyweight meals
every day.