Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1904-08-04
DEATH MYSTERY
CLOSES BANK
GrinneII 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.

Grinnell, July 2S.-Absolute ruin
that is the specter that confronts more
than one stakeholder of the First Ma
tional Bank Of Grinnell. whose affairs
were brought to a woeful pass through
the manipulations of Cashier II. c.
Spencer, who met such tragic death
by drowning last week with his son,
C. II. Spencer, a bookkeeper in the
bank. 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 $25,0O0, il is
now believed that that it will wipe out
absolutely the 100000 capital stock OF
the bank. and perhaps more. The
stockholders 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
a number of them of all they have in
tho world.
1t 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 tC 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-
pO|itOrr.
II is currently reported that evil
dencc of forged securities has been
found by officials Of the bank in their
Investigations. No statement to this
effect could be secured from the
officials. but the report is based upon
statements by responsible stOckhoid-
ers. This forged paper, it is alleged,
was used to cover up the shortage
and in accounting for bank funds
wrOngfully distracted from its vaults.
II the full story of the wrongdoings
Of Cashier Spencer is ever made
known it is believed that it will tell
the pathetic tale of a devoted sons
SHINING to shield an erring father from
exposure.
About ten years ago one Of the
officers of the First National bank was
G. H. Spencer, father Of the late Cash
Ter II. G. 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
considerable sum. The son, Fl. G.
Spencer, undertook to make restitu-
ton. and it was thought then that he
did So Now. however. it appears that
he committed a second wrong to right
his fathers wrong; lie began a sys-
TEN 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 II became more burdensome. The
principal Of the original shortage did
not decrease. but it grew and grew un-
til finally it dragged his name into dis
grace and the bank into ruin.
The tragic death and reported dis
crepancies in the First National
bank accounts recalls a similar stua-
ton when Charles H. Spencer was
killed about ten years ago. There
| was then talk of a deficit or unse
cured liabilities to the bank amount
| ing to about $4,000. What was then
thought to be full settlement was
made, but it is now claimed that Sc
! curities were substituted and carried
along as assets. and that II. c
Spencer regularly paid the interes
|