Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-02-25
GETS A BANK ON NERVE
W. h. Orenshaw, Council Bluffs Grocer
Does a Trick in Finance.
Wc1lMIzts IsM STATE TREASURER
Takes Gilbertson's BANK, Induces
Cashier to Issue Deposit Certih-
Gates and Cashes Them in
Omaha and Elsewhere.

According to the statements made In a
petition of Intervention 1led yesterday in
Council Bluffs in the bankruptcy pro-
ceedings brought against him by his cred
itors, W. II. Crenshaw, the missing grocer
of Council Bluffs, obtained possession of
bank and practically the greater part Of
its assets by the use Of nothing but sheer
nerve as his capital. The disclosures made
public in the petition Of intervention throw
some light on the Isa3on for Crenshaw's
hurried departure from the city without
leaving his address behind him.
Gilbert S. Gilbertson and G.. J. Thomp-
son. both of Winnebago county, filed the
petition in Intervention. Gilbertson is
state treasurer and together with Thomp-
son owned a bank at Crystal Lake, Ia.
About February / Crenshaw entered into
negotiations with them to purchase the
bank. According to the allegations con-
tained In the petition filed yesterday,
Crenshaw represented that he was in the
grocery business in Council Bluffs, with a
stock valued at over $4,000. on which he
owed nothing and which he intended to dis
pose Of, as he was desirous of engaging In
the banking business.
CheerfuIIy Assumes Liabilities.
Gilbertson & Thompson entered into a
written contract with Crenshaw for the
sale of the bank, the assets of which at
the time Of the deal were 52,603.01. OF
| this amount $33,277.54 represented bills re-
ceivable, which Gilbertson & Thompson re-
tanned, Crenshaw obtaining the balance,
consisting of the bank premises, 1891. 65
cash on hand, $3,445.49 due from other
| banks and other credits, making a total
l.of Il rIauv
to assume the liabilities, amounting to
| $52, ,2SS11, as follows: Deposits subject to
check. s4556.O6; demand certificates, ST.,
| S0S.S7; time certificates, $45, 5,5s0.09; other
credits, $1.15S.59.
Cashier ObIIges New Employer.
The petitioners allege that Crenshaw en-
gagged the cashier who had been in charge
of the bank and that the first act Of Cren-
shaw's was to induce" the cashier to is
sue him seven certificates Of deposit, ag-
gregating $4,000 and ranging from $4,000
| to $1,000 Having obtained these certih-
| Gates, Crenshaw was seen no more around
the Crystal Lake bank. 1t was ascertained
that he endeavored to secure funds on the
certificates at two banks in Sioux City
but failed. In Omaha. however, he was
| more successful, as he succeeded In OBJ
tanning $1,000 from the Omaha National
\ bank.
As soon as Gilbertson & Thompson dis
covered the sort of deal they had gotten
into they elected to rescind the contract
with. CrsnshAws 40 thas state In their lpeti-
| tion. and with this end in view they ask
the federal court to order that the bank
be declared their property, or. If 1t cannot
do this, to decree that the contract with
Crenshaw be declared null and void or
the grounds that the transaction from start
to finish on his part was fraudulent and
that he had no real intention to engage In
the banking business.
They also set out that while Crenshav
had been placed in possession of the bank
the deal had not been entirely consum.
mated, as they had not decided the banl
building and other real property to him.