The Leon reporter. (Leon, Iowa) 1887-1930, 1904-10-20
PLfASANTON BANK FAILS
The Bank of PIeasanton Assigns--C.
E. Gardner Named as Assignee
Shortage About $40, 900.

OuUl SOyO HUUul YIUsVOVs
Late Tuesday evening the Bank of
Pleasanton filed an assignment with
the county recorder, naming G. e. Gard
ner, of Leon, as assignee, and Mr.. Card
ner took charge Of the bank Wednesday
morning. The bank is private one,
the partners being Royal Richardson,
president, John Fl. Smith,vice president,
and Suel r. Shaw, cashier. An assign
ment as individuals is made by Mr..
Richardson and Mr.. Shaw, but not by
Mr.. Smith, who had an agreement with
his partners that he was only a limited
partner, SO, that the loss will fall on
them, although this agreement does not
release Smith from liability in case the
property Of the two other partners does
not pay the indebtedness. The amount
of time deposits in the bank is $i2,503,
sight deposits S10,69S, collections 81, ,1S5,
and there is due to other banks $4,000,
making the total liabilities about
$4,000. The assets consists of about
$4,000 in notes, overdrafts of $500,
bank building and fixtures S1,500 and
the real estate and personal property
owned by Richardson and Shaw which
is estimated at $12,500 leaving short
age togbe made good of $4,000, but it is
!. said the property of the partners will
cover this SO that the depositors will
eventually get their deposits in full, the
loss falling principally on Royal Rich
ardson, who has turned over all his
property except his homestead of 56
acres which has always been owned by
Mrs. Richardson. The cause Of the
failure can be charged directly to Suel
+. Shaw, the cashier, whose notes are
in the bank for SS,400 with no security
except about $4,000 which consists of
an equity in small farm, his residence
in Pleasanton and few head of cattle,
all Of which was decided to Royal Rich
ardson on Monday, and is included in
the assignment. 1t is said that Shaw
claims he does not know what he did
with all the money, claiming to have
lost 5000 in drug store at Saline, Mo-,
spent 81 900 improving small farm,
the equity in which is now figured at
5000, paid $500 on life insurance, but
admits having lost considerable money
on the board of trade, which is probably
where the bulk of the money went to.
In justice to Royal Richardson, the
president, it should be stated that he
did not know of Shaw's notes being in
the bank, the business of the bank be-
ing practically in the hands Of the
cashier. Mr.. Richardson is depositor
himself in the sum of $4,621.76, which Of
course will not be paid until all of the
other depositors are paid, and he will
lose this together with all his other
property, for he is the soul of honor
and has turned in all his property. He
assigns some lots in Pleasanton and 312
acres of land across the line in Missouri
which is estimated to be worth $4,000,
and is mortgaged for $4,000. shaw's
property which was decided to Richard
son and is included in the assignment
consists Of 5000 equity in farm Of
115 acres, some lots in Pleasanton and
few head Of COWS and hogs.
The creditors aside from the deposit
tors are the Des Moines National Bank
$4,000, the Farmers & Traders State
Bank of Leon 5000, and the Iowa Nation
al Bank $4,000, but these banks are
amply secured by the collateral deposit
ed with them in the shape of the bills
receivable owned by the Pleasanton
bank. The Farmers g. Traders State
Bank holds over $1,000 of gilt edged
notes to secure their loan of 5000, so
they are fully protected.
The Bank of Pleasanton was establish
ed in 1899 by Royal Richardson, Mark
M. Shaw and Bowsher & Biddison, the
latter firm taking a small amount of
stock in order to assist in starting the
bank, but disposed of their stock with
in few months after the bank was
started. Later Mark NJ. Shaw sold his
holdings and Suel r. Shaw and John II.
Smith were taken in as partners, the
later having an agreement with Rich
ardson and Shaw that he was only a
special partner and was not to have any
of the profits or share the losses, simply
allowing his name to be used, but this
will not release him in case the proper
ty of Richardson and Shaw does not
pay the Indebtedness. Smith is said to
be we'll fixed, owning 375 acres of good
land in Harrison county, Missouri. AT
the time the bank closed Tuesday eve.
ming they had only a small amount Of
cash on bands.
Tho feallnxuinn is list of Tho donaci