Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-05-03
Grand Jury of O'Brien Find,
True Bills Against Promi-
nent State Official
FRAUDULENT BANKING CHARGED
EmbezzIement, Declaring Dividend
When Bank Was ln.oIvent and RsS
eeivins Deposits After insolvency
May Withdraw From Race For Re-
nomination.
Special to Times Republican.

Special to Times Republican.
Sheldon, May 3.-The O'Brien coun-.
ty grand jury at Primghar has voted
four indictments against Ed C. Brown.
chairman of the Iowa railroad com-
mission and president of the failed 1
in connection with the
banks affairs. They are understood
to include one and possibly two for
embezzlement, one for declaring a
dividend when the bank was insolvenr.
and at least one for receiving deposits
after insolvency. The indictments have
not yet been reported, but Mr.. Brown
was waiting to be called, but was not
called, the indictments being based on
the records. The largest embezzlement
charged is based on a loan Of $72, ,O00 TO i
J. w. Fix & Co, firm OF which Earl
Brown, cashier. and son Of President
Brown. was a member. Earl Brown
signed the firms name Of Fix & CO.,
to the notes, the loan being made With
out authorization OF the directors.
which IS contrary to the statute n thu
case OF an officer OF the bank.
1t is charged in another indictment
that on April 1s. 1908, the bank de-
elared a dividend OF nearly $1,000. be
ing then insolvent.
In another Brown IS charged with
having borrowed $4,000 from Chicago
bank on his personal note. and wit
ing the bank to charge Il against
bank. which is alleged % consttsute.
embezzlement.
There are several specific ehar9sa
OF receiving deposits after the 6lnG
was insolvent. The bank originally
had 100000 capital but IN 1899 was
,eorganized, the capital being cut t.
s50, ,0o0 It Is charged with carrying
over $4,000 OF practically worthless
paper to the new organization and
therefore being insolvent from the
beginning Of the new organization.
Ed c. Brown left Sheldon AFTER H.
was given out that the indictments had
been voted to attend the congressional
convention at Cherokee. On the train
he told friends that In View OF IN
Indictment he should not further 4sss
tempt to stand as candidate for rsrcs
ination as railroad commissioners .Ss
term expiring this year. ;sx
The bank is expected to pay ~ n
cents on the dollar. An effort N5s (sS
made to hold the original slaes9 a
stock for hundred per cent 5@
II ent on the ground that the n;
insolvent when they reeryanHkg u;
retired. and. rheref2 - l.g.l u
escape liability merely by scorganszs
ing. The stock. at that time. was held
largely in Dubuque. Under rae rsees
ganization the $5o,o00 OF stock vsaA
chiefly held IN Dubuque. but was latef
bought by the Browns. Order this
terms Of purchase it conticuel to bs
held by the Dubuque people as col
lateral security, the Browns t. paJ
for 1t m installments The Dubucus
men retained the right to vote It.
Creditors insist that this was equiv
alent to continued ownership by the
Dubuque interests. Therefore. an ass
sessment against them will holt good
II these two assessment contests are
made good at law. a large share OF the
liabilities win be paid as the eastern
Iowa people are wealthy.
Ed P. Brown Jr., director, and Earl
Brown, cashier Of the bank, were also
indicted on FIVE counts each. the same
specific allegation applying to all three
MISSOURI INQUIRY AT AN END.