Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1899-06-15
FAILURE OF sToUGHToN BANK.
1t Is Caused by Speculation in Texas
and Mexico Land,


goo and the liabilities $4,000. The
amount due depositors is said To be
s157,172. Attorney G.. E. Roe of Mad
ison was appointed receiver, The sus-
pension is alleged to have been brought
about by speculation in Texas lands.
If anybody three years ago in
Stoughton or vicinity should have pre-
dicted that the Dane County State bank
would be wrecked and that |. 0. Brick
son would be the cause of it, everybody
would have considered ii a huge joke,
or, perhaps, the speaker fit for an asy-
lum. Then everybody knew that The
wealthy and cautious l. 0. Erickson
turned into gold everything he touched
and that he was honest and conserva-
tive. Yet, when the doors of the bank
sioSeA.. SSeatt.Nr5ay IN the middle OF bus
mess hours, all knew that Mr.. Erickson
was the principal if not the sole cause
of it. But they knew, too, that he did
not do 1t Intentionally and that with
the bank went his own fortune and
possibly those of several of his friends.
1t all depends upon how he can dispose
of more than 10000 acres of land in
Mexico and Texas. He may lose his all
and the bank will not be able To pay
much over 80 per cent. of the S155,000
due depositors, or he may be able 10
make the bank solvent and still have
81, 100000 left
who is mostly to blame? That is
not easily determined" said gentle
man who was said TO know the whole
inside history of the crash. 1T is
true" he continued, chat | a few
months ago was asked to assist In rails
ing the necessary funds to enable |. o.
Erickson and the Dane County bank 10
meet their obligations and that | then
confidently got the full inside history
of the affair. / believed then that Mr..
Erickson would be able to raise The
needed money until he could dispose OF
his gigantic holdings OF Mexican and
Texas land, some of which, at least
believed to be very valuable. | am
positive he thought so himself and he
had seen the lands both before and
after he bought them. He is as good
judge Of land as anybody in Dane coun-
ty, and that is the common opinion
among all who know him, as far as
have heard. But as for me, | do not
like any company with big schemes
like the Grand Falls Irrigation com
pany.
Il O. Erickson is the president of
this company. He was born and raised
here in Dane county and was two
years ago worth about 100000, He
has always enjoyed the best of reputa-
tons and been considered a keen and
cautious business man till he three
years ago ventured into specializing in
southern land deals. He first bought
some Texas land for about $4,000, that
promised we'll The agent that sold
this land to Mr.. Erickson, a Chicago
operator, Swede by the name OF Y.
w. Olson retained an interest and was
elected superintendent of the stock
company. Two friends of Mr.. Brick
son, Rasmus b. Anderson OF Madison
and j. II. Joice, cashier Of the now de-
funct Dane County State bank were
elected vice-president and secretary
respectively. The interest OF the for
mer is only nominal, while Mr.. Jolce
is more heavily interested, just how
much cannot at present be learned
MIR. Olson brought with him to
Stoughton an active and able sales
man, George NJ. Curtis, who soon sold
on the easy payment plan consider
able Of the Texas land at big profit
and It is claimed that Olson, taking adj
vantage Of this, soon had |. o. Brick
son interested in one Of the largest
land deals in Hacienda Jose
de las Russias. Why, here Was tract
OF land pictured to Mr.. Erickson con-
siderabiy larger than Dane county
| fully as rich and tillable, only lit
| tie distance south of Texas along the
| seacoast, a lovely climate and near to
4 market only across the Gulf from New
/ Orleans And all this richness could
/ be had for few hundred thousand
/ dollars, less than 80 cents an acre.
4 Erickson went down to Mexico, saw
I the idDu anu the teHpidAitH MAn bpJ
much he bought it and made the first
( payment Olson assured him OF his
| confidence of selling the land az a
/ great profit in a short time, but so far
/ he has brought the company nothing
/ better than enormous personal expen-
1 ses and several s25 900 payments In
the last twelve months How much J.
I H. Joice and the bank is Interested in
the Mexican lands remains 70 be seen,
but one thing is certain. they have had
too much faith in l. o. Erickson and
backed him so far that they had to rely
on him to save them all
The Dane County State bank was
organized In 1882 by I, NJ. Turner as
! president and O. NJ Falk as cashier.
| The latter has for many years been
\ one Of the most substantial business
men in Stoughton, having been estab-
/ lIshed here as druggist for thirty-three
years and is at present the
! oldest merchant ia the city.
/ His word has always been