Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-10-08
BROWNS SHORTAGE.
Charged That He Specialized Shame
fuIly With Banks Funds.

Il
fully With Banks Funds.
Sioux City, Oct. Sin the new in
dictment brought against w. E. Brown
of the defunct First National Bank of
Storm Lake, by the federal grand jury
the first and original count in the in
dictment charging embezzlement of
SIG, 900 of the funds Of the First Ma
tional bank of Storm Lake. was allow
ed to stand as before. The second
count in the old bill alleged falsified en-
tries and wrongful reports to the con-
troller Of the currency, was replaced by
new counts, specifying alleged false en-
tries and bogus statements to the con-
troller.
The reason that this was done in
the first true bill. was because of the
short time between the time the gov
eminent was given the case, ana the
meeting of the grand jury. Subsequent
to that time the department. Of justice
had appointed speciar assistant to
District Attorney Mcmillan in the per-
son of Thomas d. Healy of TT Dodge
to investigate the affairs of Browns
bank.
Together with Receiver A. ]. Wilson,
Mr.. Healy went over the banks books
page by page and found what the gov
eminent alleges were fraudulent en-
tries and numerous statements made
as required by law which misrepresent-
ed the actual condition of the bank
1t is understood the governments
attorneys are convinced that the ir-
Irregularities were inexcusable and re-
suited from deliberate and skillful
manipulation Of the banks funds On
this theory, therefore. it is the purpose
to make the prosecution vigorous, and
to overlook nothing which will aid in
the conviction Of the accused banker
Recently a meeting of stockholders
Of the bank and depositors was held
1T Fonda attended by Mr.. Healy. More
evidence was found at this time which
will be used in the trial.
There is likelihood that the case
will come on trial before the next
term Of court, which will likely be in
May, 1905. Meanwhile Brown will
doubtless be released on another bond.
1t is charged against Mr.. Brown that
he used the funds Of the First National
bank of Storm Lake to speculate
with in the most unrestrained manner.
While he is charged in the Indictment
with embezzling $4,000 from the bank,
it is alleged that his liabilities direct
and indirect will approximate $500, 900
1t is said he organized coal company
in Omaha, bought land in the Dako-
tas and Iowa in immense tracts and
speculated here and there in various
ways. His bank had associated with it
very closely a private bank at Sioux
RAPIDS. one at Linn Grove and ono at
Royal, all Iowa towns.
The first crash, which resulted in the
failure of four banks, and the open
charges of fraud against Brown came
when Harry Mayne. cashier of the
Linn Grove bank, shot himself, and
the funds of the bank were found to
have been dissipated. The failure of
the Bank of Royal, and Of the Sioux
City institution followed closely, and
then came the collapse of the First Ma
tional at Storm Lake.
The fact that this bank had more
than double the number of depositors
that any other bank in Storm Lake had
indicated that many of its depositors
were among the poor people. The
whole community was enraged over the
failure. Brown had been highly es-
teemed. His prosperity was evident
md the utmost confidence was repos-
ed in him. The disclosures which fol-
lowed the failure still more angered the
depositors and stockholders, and gen.
eral cry for punishment of the banker
was raised. He was indicted and let out
on bonds. He then moved his family to
st. Louis.