Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-08-06
STOCKHOLDERS
ARE ASSESSED
Grinnell Bank Failure Grows
Much Worse as Facts
Develop
SUICIDE IS NOW BELIEVED
Forseries Tremendous and Even
Heartless Thievery Of Petty Amounts
Appear-stockhoIders Assessed 100
Per cent-Depositors May Suffer
Have Three Months to File Claims.
Special to Times Republics.

Special to Times Republics.
| Grinnell. Aug. 6.-As time passes.
and the facts come to light the failure
of the First National Bank grows worse
instead of better. Stockholders today
received notices from the receiver to
the effect that they would be assessed
to the full amount of their stock. This
means that the depositors must lose
something for it is estimated that only
| one half the stockholders are able to
pay. Just what the shortage will be will
not be known for three months as mo-
tice has been published by Comptroller
of the currency Ridgely that claims
can be filed within that time.
Henry Spencer and hts wife owned
one-third of the bank stock. His stock
cannot be depended upon for an assess
ment for the reason that his estate will
all De taken before the assessment is
used. About one-fourth Of the other
stockholders had their all invested in
the bank stock and when this is gone
they will not be able to pay an assess
meIt besides.
AS incidents come to light the di-
abolical work Of the cashier becomes
more and more APPALLING. 1t was earn
ed today that when C. L. Gaddis OF
Hickory township, a very poor and
aged farmer. died some two months
ago, he prepared for his end by locking
up in his safety deposit box at the
Spencer bank Il certificate Of deposit
for $500, and entrusted the key to Mr..
Spencer with instructions to deliver
the contents to the widow. When the
old lady called after the death she de-
posted $500, the proceeds Of their farm
sale and asked for the certificate OF
deposit. Spencer denied all knowledge
of the same and investigation shows
that the certificates are marked paid.
The old lady never got cent OF 1t and
her $500 is tied up In the deposits.
So hot had become the volcano over
which the Spencers were sitting that
there is no longer any doubt In the
minds of Grinnell people that both
father and son committed suicide. 1t
now transpires that in Spen-
GERS private desk was found a
list of the forged paper amounting to.
$204. 900. Henry Spencer had been IN
the habit of personally keeping the note
register. the certificate register and the
discount register. which constitute
about all the books Of the bank. BY
keeping all hands off from these rec
ords he was compelled to work till mid
night often and did about all OF the
bank work himself. but was able to
perform almost any kind Of trick with
the records
The Grinnell Herald yesterday pub
lished a story to the effect that
The bank would not be re-opened.
That there will be material loss
to depositors.
That the report of the receiver is
likely to show that the deposits were
even greater than reported and that
the false entries were made to cause
them to show less rather than greater
as at first supposed.
That new evidences OF forgery con-
stantly appear.
The Times Republican correspondent
reported more than a week ago that
there were evidences OF forgery, and
that the bank would never reopen;
but for this the newspaper was CEN
sured for disturbing the Bradstreets
rating of all Grinnell citizens in gener-
al. However, II is not yet certain that
there will be loss 10 depositors al
tho this is possible. and the facts will |
not be known for three months or un-
til all claims are filed in the legal way |
1t is not true that the receivers report |
will show any new developments in re-
gard to the deposits for the men In |
charge of the investigation have not
taken up the deposit accounts except
to verify the official statement OF $321.-
600 deposits with the books which was
found to be correct. What false en-
tries will develop will not be known
until all depositors file their claims.
The Herald's mistake Is excusable as
all such newspaper errors should be
hut more care should be exercised or
ratings in Grinnell Will be
demorallzed by so-called yellow jour
nalisn."