The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1903-04-09

At half past one O'Clock Satur-
day State Bank Examiner M. c.
Berg, Of Milwaukee, closed the doors
of the Kenosha State Bank pending an
examination of the funds and backing
of the bank. The small amounts of
funds and collateral in the keeping of
the bank was removed from the safe
by the Examiner this afternoon and
placed in the vaults of the First Ma
tiona1 Bank for safe keeping. The
bank is claimed to be insolvent and
from rough estimate the bank will
pay some seventy-fve cents on the
dollar. This is the estimate made by
the examiner after taking charge of
the affairs of the bank. The Bank of
Salem, which was organized a few
weeks ago, will not be affected by the
failure, and this afternoon Cashier
Foster, of the Salem Bank, volunteered
to pay all depositors every dollar in
the bank. The bank at Wauconda,
ILL.,, which IS another branch of the
Kenosha institution, is affected by the
failure, but it is not known whether or
not this bank will be forced to close its
doors. The Wauconda bank had funds
to the extent of $4,000 in the Kenosha
institution and it is possible that this
amount will force it to suspend bust
ness. The bank examiner had no
power to take charge of the affairs of
the Kenosha Trust Company and he
declined to give any statement in re-
crn ri IN no 90
more than to state that the Trust COM
pany had no deposit with the State
Treasurer as was required by law.
The deposits of the company up to
and including today amount to about
SIS, 900 belonging to people in Kenosha
and the amount from outside banks
| 1.-THE bank of Wauconda) is $4,000.
When the bank examiners took charge
this afternoon they found currency in
the bank to the extent of $4,000. The
other assets of the bank consist of
few notes.
The closing of the bank came with
out word of warning to the deposit
ors and even this morning Cashier
Maloney and Teller Melville were at
the bank receiving deposits. Shortly
after noon the examiner accompanied
by Assistant Bank Examiner A. E.
Kuolt, walked into the bank and took
possession. There was no run, no
gathering of depositors, but the exam
liners took the business in hand and
Cashier Ma1oney and Teller Melville
went out to lunch.
A minute later sign was placed on
the door, reading:
This Bank Is Closed by the State Bank
Examiner.
NJ. c. Berg, Examiner.
April 4. 1908.
F. S. 'Konp, president of the bank,
was not in the city when the bank ex
aminers took possession, he being in
Wauconda looking into the affairs of
the bank in that city.
The bank examiner and his assistant
could give little information in regard
| to the condition of the bank before a
more complete examination is made,
and he figured roughly that the bank
would be able to pay from so to rs
cents on the dollar. From statements
made it is certain that the amount will
not be over rs cents, and there is good
reason to believe that it will be less.
Nothing With State Treasurer.
On the 20,n of this month, in keep
ing with the demands of the state.
banking law, the company would have
been forced to have deposited with the
state So, 500, representing one-half of
their capital, but this has not been de-
posted, and it is claimed that the
bank had practically no assets in the
hands of the state treasurer. The
trust company is in practically the
same boat and the two companies had
been doing business using the capital
and stock as sureties.
Foreigners Large Depositors.
The larger number of the depositors
in the bank were foreigners. When
the bank opened quite number of
savings banks were sent out among
the people of the city and they were
distributed among the Polish popu1a-
ton. A large ma jority of these banks
had been returned to the bank week
after week, we'll filled with savings.
It is feared that there will be trouble
when these people find that their saw
ings have been imperi1ed.
History of the Bank,
The bank was opened on Novem Der
20. It was established by Frank S.
Komp, of Chicago, and Frank Maloney
was cashier. It is claimed that the
company had little capital when il
went into business and some charges
of irregularities in the management of
the concern ale floating about the
city. The bank had been doing quite
a business but they had made no move
to make proper deposits with the
State.
i 1t will be several days before a re-
lceiver can be appointed, but as soon as