The Leon reporter. (Leon, Iowa) 1887-1930, 1904-03-17
BANK FAILS At GARDEN GROVE
The Farmers Bank Closed its Doors Last Thursday with
Assets $lo 900 Less Than the Deposits.

The Farmers Bank, Of Garden Grove,
a private bank owned by ]. r. White,
did not open it's doors for business last
Thursday morning, notice being
posted that the bank had made an
assignment for the benefit of it's credi-
tors to 8. H. Amos as assignee, the
assignment being filed with the clerk
Of the district court the same afternoon.
The schedule of assets filed shows a
total of $37,566.01, while the deposits
amount to $47,7O6.6s.
The bank did not do very extensive
business, as they carried less than
$50, 900 deposits. When the old Farmers
& Traders bank composed Of d. and A. B.
Stearns and i. P. Sigler failed in 1898,
the Garden Grove bank was one of the
branch banks which they owned. A
few months later the Farmers Bank Of
Garden Grove was reorganized as a
private bank, the stockholders being
Samuel Meter, John P. Jordan, j. w.
Russell and W. M. Wood, the latter be-
ing the cashier. About five years ago
]. R. WhiteEbought the interest. of Rus
sell and Wood in the bank and became
cashier. A couple of years later Meter
sold his stock, and year after this
Jordanfalso disposed of his holdings, the
bank thus becoming the property of j.
r. White, who has since continued the
business. The closing Of the bank came
unexpected, and was not the result of a
run, or OF bad loans made by the bank,
but it seems that Mr.. White has been
considerable Of a speculator, and has
been unfortunate in his deals. Just
what this speculation was is not known
at this time, as Mr.. White is in con-
dition ofsnervous prostration, scarcely
able toimake an intelligent statement.
He had invested quite heavily in
Missonrisand Kansas land, owning one
farm of 735 acres in Linn county,. No.,
the equity inlswhich he puts in his
assets as $4,000, but it is said that
when he purchased this land he secured
a loan on it which represented all the
money heshad in it, and just what the
equity is worth cannot be told. The
assets, asideIfrom the bills receivable
which amount to $4,000, consists Of
equities in several farms in Missouri
and Kansas, some property in Des
Moines, the bank building at Garden
Grove, stock!in the elevator at Garden
Grove, half interest in hardware
store at Garden Grove and his resi-
dence property, the amount of cash on
hand at thestime the bank closed being
only $99O.11.
Persons competent to Judge, after ex-
aminingsthe assets and the amount due
depositors, the latter exceeding by
more than $4,000 the assets at the
value which Mr.. White puts on them,
say that the bank will not pay SO cents
ou the dollar to the depositors. There
is, however, one ray of hope for the de-
positors and that is that Mr.. Whites
father is quiteswealthy and it is rumor-
ed that he will come and assist him, but
this is mostly speculation at this time.
The failure did not in any way affect
the Stearns bank at Garden Grove,
everybody being satisfied that it was in
splendidishape, and the failure created
but little excitement at the Grove.
Much sympathy is expressed for many
Of the depositors who had all their saw
ings in the bank. The heaviest deposi-
tor was Samuel Meter, who has
$5,191.S4 on deposit, Stephen Scott has
$3,188.O9, S. W. Stone, brother-in-law
Of Mr.. White, had $3,3O4.33 on deposit,
Will Wood had $4,000, and the others
range from a few cents to Thousand
dollars, as will be seen by the complete
list of the depositors.
The assets consisting as they do to a
great extent in equities in encumbered
property can only be realized on at a
sacrifice and the expense Of the receiv=
ership will also make quite hole in the
assets so that the prospect Of the de.
positors getting any great share ol
their money is not a promising one.
The following is complete list Of the
assets and liabilities as listed in the
assignment made by Mr.. White:
s3a ASSETS.
Equity in 735 acres In Livingston county,
Missouri s1oooaol
Equity in 24o acres in Linn county, Missouri 10000
Bills receivable 122140
Overdrafts 1851 81
Hall interest In 100 acre farm in Nebraska 4o0.0
2 Half interest in equity in Des Moines prop
erty 10000
Bank building and fixtures 250O0
Elevator stock 10000
Curry 25oo.o
Residence and lots In Garden Grove - $500 OF
Cash ................ 1901
Total. ss75sso