Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-11-29
State Officials Will Be Called on
to Straighten Tangle In Dix
on Bank Affairs
ALLEGED TRANSFER OF PAPER
One Witness Alleged to Have SAID
State Auditor and Bank Examiner
Authorized Switching of Worthless
Paper For Good coIIateraI-This Is
Denied.
Special to Tlmes-Republican.


Davenport, Nov. 29.-The wrecking
Of the New Liberty and Dixon Savings
banks by defalcation alleged to have
amounted to 100000 for which Arnold
Beuthien has been arrested In Chicago
promises to result in State Auditor
Carroll and Bank Examiner Buchan
being summoned to Davenport by Ref-
cree Helmick of the federal bankrupt
cy court, to explain away a statement
authorized an exchange of worthless
for good collateral, which wrecked the
Dixon bank in the hope of saving the
New Liberty bank.
The startling assertion was made In
the bankruptcy hearing here, OF
the Dixon bank, that secured notes
and mortgages held by the Dixon bank
were on September % transferred to
the New Liberty Savings bank to re-
place a large quantity of alleged
worthless paper, held by that bank,
and that the bad paper was switched
over to the Dixon bank. Cashier Stin-
ger stated that but for these illegal
transfers the bank Of Dixon would to-
day be solvent instead Of a bank
rupt financial concern.
The worthless paper which figures
in the transaction is a note for $4,000
signed by Arthur Beuthien, another
one for. $4,000 from the Cleveland
Amusehent Company of Chicago, and
still another one in the sum of $4,000,
signed by Mr.. Beuthien.
Des Moines, Nov. ga dispatch
from Davenport last night stated that
Cashier Singer of the recently failed
Dixon private bank had testified be-
fore the referee in bankruptcy In Dav-
export yesterday that the Dixon bank
failed because Of the transfer Of good
collateral in exchange for poor collat-
eral to the New Liberty Savings bank
which was under state supervision:
and that this transfer was under the
direction of Auditor Of State Carroll
and Bank Examiner Buchan, for the
purpose Of trying to save the New
Liberty bank from failure.
Auditor Carroll was shown the dis
patch last night He said he was GER
tain Cashier SINGERS testimony had
been misunderstood.
The dispatch referred to stated that
the worthless paper which had been
affected by the transfer included "a
note for $4,000 signed by Arnold Beu-
THEN, another one for $4,000 from
the Cleveland Amusement Company OF
Chicago, and still another one in the
sum of $4,000, signed by Mr.. Beu-
Then"
Auditor Carroll said last night in
substance when Examiner Buchan dis
covered the condition Of the bank at
New Liberty he found that a note for
about $4,000 appearing to have been
made and signed by the elder Beu-
thien and given to the New Liberty
Savings bank already had been sent
over to the Dixon bank. Young Beu-
thien claimed to have in Chicago, IN
a safety deposit vault a large amount
Of good paper belonging to the New
Liberty bank on which he had attemp-
ted to negotiate loans or rediscount In
Chicago. He proposed to go after 1T
and director was delegated to &C
company him. He did secure there and
return to the New Liberty bank a
large amount of paper, some worthless
and some representing Dakota loans
which appeared to be good. Among
the paper, however, was note for
s17,5OO or such a matter, made by the
Cleveland Amusement Company of