Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1904-08-11
PAPER
IS IN EVIDENCE
GrinnelI Banker Had Forged
81 $2O4,000 in
Notes.
HAD RUINED POOR WIDOW
Known That the Bank Will Not Be
Reopened-Report Will Show Many
Ruined and That Defalcations Are
More Extensive Than Presumed.

Grinnel, August S.-Developments
in the mystery surrounding the per-
emptory closing of the First National
bank of Grinnell have taken turn
which shows almost conclusively that
Cashier H. C. Spencer was a defaulter
in sum a great deal larger than will
permit the reopening of the institu-
ton and which will result in com.
plete loss 20 possibly half or the stock
holders of their entire fortunes. An
examination of the private accounts
of Cashier Spencer has resulted IN
bnding forged paper to the amount OF
S204, 900.
Although not known definitely, it is
believed that the depositors must lose
something, as the property OF num-
Der of the stockholders will not
amount to double their holdings OF
stock. The stockholders have been
notified that they will be assessed for
the full amount of their stock, which
makes it imperative that the less
wealthy among them will lose their
all.
Forgeries have been uncovered al
most without cessation since the re-
ownership of Mr.. Shaw began. The
exact shortage will not be known until
Comptroller of the Treasury Ridgely
has published his report, after three
months. Notice has been published
stating that this much time will be
given for presentation of accounts.
Henry Spencer and his wife were
joint owners Of over one-third of the
bank stock Inasmuch as this will all
be taken before the assessment is
used ruin will be the only outlet for
One-fourth OF the stockholders.
Peculiar as it may seem, the senti.
mant of the city which has since the
death of the cashier and his son been
greatly offended at the suggestion OF
suicide, has now seen a reversal, and
the theory is practically adopted. That
the Spencers have practiced system
of forgery and defalcation which will
result in ruin to many, is not doubted.
The stories eff suicide and criminal
practices, which were rOundly de-
nounced by the Grinnell citizens and
the local press when first published,
are now accepted as the true state of
affairs, with full realization of the
indignity of the situation into which
they have been pressed through the
Vaccinations of the bank cashier.
Among the many evidences of guilt
on the part Of the dead cashier is one
of such ingenuity as to call forth cen
sure from all the citizens. c. l.. Glad
dis, farmer residing near Grinnell,
in preparing for his death. placed in
his safety deposit box in the bank the
sum of $500, giving the key to Mr..
Spencer, with instructions to render
an account of the same to his widow
In the event of his death. This Spen-
Ger promised to do. Soon after the
death of Mr.. Gladdis, the widow
brought the proceeds of the sale of
her farm to the bank and depositng it.
asked for the certificates of deposit of
both the sum left by her and the one
left by her husband. Spencer denied
absolutely that he had seen either of
the sums, and the poor old lady, her
home gone and alone, was forced out
into the world without friend. The
present state Of the bank shows that
she will be forced to lose her deposits
along with the remainder of the de-
| rositors.
The theory Of suicide, at one time
never given the smallest credence, is
now thoroughly accepted. It is
thought that the awful load carried by
the dead men was such as to render
| their positions further untenable. 1t
Is known that Spencer himself Kept
the books of the bank, and in this way
manipulated them to his own salts
! faction.