Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1904-07-29
DEATH MYSTERY
CLOSES BANK
GrlnneIl People Stirred BY
Drowning Of the
Spencers.
ACCIDENT OR INTENTIONAL
Death Of Prominent Banker Followed
By Closing Bank Examiner Takes
Steps for Investigation Of the Affairs
Of the First National Bank.

Grinncu, July 27.-Was the mys-
terious double drowning OF Banker
H. c. Spencer and his son, W.
lC. Spencer, a mere accident or
did it have some connection win
the notice that was yesterday posted
4 on the doors of the First National
bank Of Grinnell. announcing that II
would not be open for business until
its affairs had been Strengthened out
by national bank examiner!
Business men and depositors OF the
bank have been asking themselves
that question long and there are
plenty of well founded rumors anoat
that there was a serious shortage In
the banks accounts and that the two
unfortunate victims OF last week S
l shocking accident were responsible
for it. Just how much this shortage
is cannot be learned now. Ihis
much is certain, however. whatever
its sum may be the bank and its
stockholders are abundantly able 10
meet it and depositors will not lose
a single cent of their deposits when
the Institutions affairs are finally
Strengthened out.
The failure of the bank to open Its
| doors for business Immediately after
the funeral Of the two deceased Of
| ficers caused much comment. Yes
| terday the doors were still kept
closed and they bore the following
briet notice: -
"By an order of the board of direct
ors this bank will be closed until the
national bank examiner has made an
investigation of the banks affairs
The national bank examiner arrived
today and began his work of investi-
cation Immediately
Grinnell. July 2S-Absolute ruin
that is the specter that confronts more
than one stakeholder Of the First Ma
t;onal Bank Of GrinEeil, whose affairs
were brought to a woefn' pass through
the manipulations OF Cashier n. {.
Spencer, who met such tragic death
by drowning last week with his son.
c. H. Spencer, a bookkeeper in the
bark So serious is the situation
that a receiver has been appointed.
While at first it was not believed
that the shortage in the accounts OF
Cashier Spencer would be very large,
perhaps not more than $4,000, it is
now believed that that it will wipe out
absolutely the 100000 capital stock Of
| the bank. and perhaps more. The
stockho lders will be required under
the national banking act to make good
any loss to the extent of twice their
stock holdings, and this will deprive
q number of them of all tLey have in
! tbs world.
1. is absolutely impossible to get
| definite information concerning the
banks condition from National Bank
Examiner Shaw. who arrived, here
Tuesday to take charge. or from the
officials and directors Of the bank.
They refuse to talk. However, some
OF the stockholders have stated that
the loss would be heavy and that they
feared financial ruin for themselves in
protecting the interests Of their de-
eos|toT:.
1t r. currently reported that evil
dencs of forged securities has been
found by ofYicials of the bank in their
Investigations. No statement to this
effect could be secured from the
omcials, but the report Is based upon
statements by responsible stockhold-
ers. This forged paper, it is alleged,
was used to cover up the shortage
and IN accounting for bank funds
wronEfuily distracted from it's vaults.
II the full story Of the wrongdoings
OF Cashier Spencer is ever made
known it is believed that it will tell
the eathetic tale Of devoted sons
SHINING to shield an erring father from
EXPOSURE
About ten years ago one Of the
off GERS Of the First National bank was
c. H. Spencer, father of the late Cash
Ter II. C. Spencer, who met death In
the little lake near here He also met
death suddenly in an accident. and
soon after there was some little rumor
of a shortage in his accounts, but as
nothing ever developed the rumors
were soon discredited. 1t appears now.
however. from the statements OF men
who were intimately associated with
the banks affairs ten years ago that
there WAS shortage amounting to a
considerable. sum. The son, H.. c..
Spencer, undertook to make restitu-
tlOu, duu ~ was lhouSAI tASA 'Ao - y
did So Now, however, it appears that
be committed a second wrong to right
his fathers wrong; he began a sys-
tenn of deception and false accounts
to protect his fathers name. hoping.
no doubt, in the course of time to
make it all good in an honest way.
The burden was too heavy, however.
and It became more burdensome. The
principal Of the original shortage did
not decrease. but it grew and grew I'M
til finally it dragged his name into dis
grace and the bank into ruin.
sieLEY MURDERER DIES. ~
Fred Hekuf. Who Killed Peter John
son, Dies in Great Agony.
Sjbley, July 26.-At an early hour
Sunday morning death ended the SUI
ferings and miseries Of Fred E. Hokuf,
the self-confessed murderer OF Peter
Johnson, who attempted suicide at
1880 Friday afternoon by shooting him
self through the stomach with 81
caliber revolver After the fatal shot
was fired Sibley physicians, Drs.
Housh, Hutland, Neill and Palmer
were summoned, who at once stated
that they had no hopes for his recov,
cry. The wound was found to be al,
most identical with the one inflicted
unon President Mckinley when he