Omaha daily bee., 1902-08-31
CASH IN THE BANK IS SHORT
Cashier Chamberlain Of Teoumseh Takes
Away Collateral TO Sell.
NEITHER MONEY NOR CASHIER RETURNS
Assistant Unable 20 Transact Bust
ness with $40 and Motif -
the state Banking
Board.
CFrom a star correrpondsnt.l

NfTOm n stan correspondent
LINCOLN, Aug. SO.-(specisl.)-The dis
Appearance Of Cashier Charles M. Cham
beriain Of the Chamberlain Banking house
At T~ecumseh, led to the sudden and un-
expected closing Of that institution today.
Chief Clerk A. N. Dodson Of the State
Banking Board. has been placed tenn
porarily In charge, but will be relieved
soon by Examiner Hartwell. who was no
titled by telegraph this morning to hasten
70 Tecumseh and take possession on be-
half Of the board.
Cashier Chamberlain departed a week
ago, saying that he intended to dispose
OF q large block OF the banks collateral
In exchange for currency. He intimated
that he would make the transaction in
Chicago. On Tuesday a message was re-
ceived from him, dated at the Union depot
in Chicago. and saying that he would re-
turn the next day with the currency. Moth
ing further was heard Of him and as there
was only $50 Of cash in the banks vaults
this morning, the assistant cashier declined
TO open the doors. President w. r. Bar
ton had notified Attorney General Prout in
the peantime Of the affairs OF the institu-
ton and recommended that an m
be sent on to take oficial charge.
In the absence Of Secretary Royce and
ell other members Of the Banking board
the attorney general instructed Chief Clerk
Dodson and Examiner Hartwell to 90 to
Tecumseh. Mr.. Dodson arrived there at
noon, but up to the time the Office OF the
Banking board closed this afternoon had
submitted no report.
Comparatively nothing is known here OF
the actual condition Of the bank. The last
statement, made on June 8. showed that
the bank had deposits amounting to S102.-
OgI E1. 49, oNan gO1 60. -.-HN.N eEn mn.
cash. S24,953. and due from other banks,
$40. 01s.s6, Charles NJ. Chamberlain, the
cashier, has had practically exclusive
charge OF the bank. The president of the
institution is w. R. Barton and the vice
president. F.. A. Taylor.
So far as known here, the only shortage
will be in the collateral. The books have
balanced up to the paper taken away by
Mr.. Chamberlain, but 1t Is not known here
how much this paper amounts to. Probably
all Of 1t has been sold to the Chicago cor
respondents of the bank.
Two other banks in Johnson county were
heavy depositors in the Chamberlain Bank
ing house, but IL is not believed the failure
OF the latter will seriously affect them, I'M
less the assets are much poorer than ex-
pected.
Several months ago Mr.. Chamberlain
caused the State Banking board sSns
trouble by the organization Of two branch
banks, one in Vesta and one in Graft. The
board investigated and determined that
both organizations were clearly unauthor-
ICED and illegal. They we're since incor-
porated, however, with Mr.. Chamberlain
as their principal stockholder.
Many stories About Failure.
TECUMsEH, Neb., Aug. 3O.-(special Tel
egram. )-State Bank Examiner w. d. Hart
well OF awnee City is in charge Of the
Chamberlain banking house OF Tecumseh,
the institution having been turned over tc
the State Banking board this morning. The
bank became so embarrassed that 1t could
not open today, but at present 1t cannot be
definitely said In what condition 1t is. Many
stories are rife on the streets and some lit
tie excitement prevails, but Just what shape
matters will take since the examiner hat
taken charge cannot be forecasted. The banl
is a state institution, capitalized at $50, 900
". r. Barton is president, F. A. Taylor, vic'
president, and Charles M. Chamberlain
cashier, but Mr.. Chamberlain has acted II
the capacity Of general manager.
II Is said that Mr.. Chamberlain is In New
York state settling up his fathers estate
and that he will return to Tecumseh q
once. The teller says the bank will pay on
in full. That It has $40. 900 deposits, $40. 90
good paper and no bills payable. beside
real estate, etc. Some outsiders are Of tn
opinion that 1t will not pay out, while 9th
ers agree with the teller.
Many reasons are advanced for the clos
ing Of the institution, the most feasible on
being that some Of the heavy deposition
have commenced to lose faith In the stabil
ity Of the institution within the last slxt
days and have drawn heavily on the de
pcsits, scarcely giving the bank an oppor
tunity to prepare for the withdrawal G
their money. Branch banks are operate
at Graf and Vesta, this county. with niue
outside capital interested. and they expert
enced runs today. but weathered the storI
and are still doing business.
The other two banks in Teeumseh wer
prepared for runs today. but experience
none. The closing of the Chamberlain ban
will sorely cripple business here for 9 tim
and II It fails It will be a severe blow I
many deposilors who can lily afford the losi
L