Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-11-25
Capture Of Beuthien May Help
In Clearing Up Tangled At
fairs of Institution
TWO FAILURES CONFIDENT
Beuthien's Populations from the New
Liberty Bank Said to Have Been
Partially Covered Up by the Trans
fer Of Good Securities from Dixon
Bank for Worthless Paper.
Special to Tilnes-Republican.

Special to Times Republican.
Davenport, Nov. 25.-That the cap
ture of Arnold Reuthien, the default
ing cashier of the New Liberty bank
may shed new light on many phases
of the Dixon bankruptcy case is the
opinion OF a number of Davenport at
torneys, particularly those interested in
the case.
Another certainty is, that If it can
be possibly arranged, Arnold Beuthien
will be brought before Referee Hell
mick, to give testimony at the first
meeting OF the creditors of the bank.
This meeting takes place next Satur-
day morning at 10 o'clock in Referee
Helmicll's office.
Up to the present time the 215 cred
itors of the insolvent financial institu-
ton have been largely at sea as to the
size of their individual losses. The
schedules prepared by Attorneys Ruy-
mann g. Ruymann show liabilities of
ss5,GG0. and assets considerably over
this amount, consistingly largely, how
ever. of doubtful securities.
In case Arnold Beuthien is brought
before the referee he will doubtless
be able to unravel a considerable por-
ton of this tangled skein of facts and
reveal the true situation at the bank.
Whether or not he could be compelled
to testify was another mooted ques-
ton today In legal circles.
It is well known that a man, ac-
custd of any state offense need not
give any evidence which can be used
against him, and under this rule Beu-
THEN could scarcely be compelled to
tell of his dealings in connection with
the New Liberty and Dixon banks.
Referee Helmick is Of the opinion,
however, that Beuthien can be brought
to the meeting and be made to testify.
He says that the federal bankruptcy
law expressly provides for an instance
Of this kind by saying that such
te,ti,aony as is needed, but that such
Evidence cannot be used against him
In the criminal proceedings.
The attorneys for the banks cred
ttors are very anxious to secure Beu-
theirs testimony in one particular in
stance They claim that the failure
of the Dixon bank was largely due to
drains rnade upon it by the New Lib
erty bark at the time Arnold Beuthien
absconded with considerable Of it's
funds and securities.
At this time the state bank examiner
came to New Liberty and it is said
that he and the older Beuthien trans
ferred q. quantity of gilt-edged paper
from the Dixon bank to the New Lib
erty institution, leaving in it's stead
valueless securities from the former
bank
If this fact can be proven by Beu-
thien's testimony the Dixon bank may
be able to pay Its creditors dollar for
dollar, as the bankruptcy law nullifies
any transaction of this sort which
may have happened within four
months of the time the bank went into
The New Liberty bank
could then be compelled to return all
securities which came from the Dixon
oank. On this account determined
affort will be made to secure Beu-
-hien's testimony at the creditors
meeting, and interesting developments
he expected.