The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-12-28
TEN BANKERS IN
IOWA SELF-SLA|N
Record Year Of Disaster in
That State.
CATTLE BROUGHT DOWNFALL
Faced by Ruin, Half Score OF Hawk
eye Officials Committed
Suicide.
CATTLE BROUGHT DOWNFALL

Forty banks wrecked and their surplus
squandered
Twelve millions of dollars lost to de-
positors.
In two instances bank officers have abb
seconded with funds, thus accounting for
the failure. but the remarkable number
Of failures due to similar circumstances
has aroused the curiosity of the whole
State to ascertain the cause.
These are the suicides of the year due
to bank failures, so far as the State
officials know:
II. C. Spencer and his son, cashier and
assistant cashier Of the Grinnell Nation
al Bank.
George D. Wood, cashier of the Bank
of ColfaX, ColfaX, Iowa.
Charles Wood, cashier of the Citizens
Bank of St Charles
+. L. La Rue, cashier of the Corning
State Bank.
G. D. Utterback, cashier of the Sigour-
ney Savings Bank.
H. w. Main, cashier Of the Linn Grove
Bank.
Cashier of the Lone Tree Bank
Two other suicides early in the year,
whose names are not recalled by the at
taches of the State auditors Office
Tragedy Follows Tragedy.
1t is only within the past few days
that the State has become aware of the
magnitude of the disasters and the
tragedies attending them, many of the
failures having been kept quiet Not
until the two suicides in quick success
sion at Lone Tree and Linn Grove, and
the failure of the Sheldon State Bank,
with losses amounting to many thou
tQi Cfora do
was general attention attracted to the
serious condition of affairs The fail
ure of the bank at Collfax. the National
Bank at Storm Lake. and the bank at
Sigourney with the suicide of the
cashier, added to the sensation
The suicide of Cashier Utterback, of
the Sigourney Bank, was followed by
the discovery of extensive forgeries
which he had perpetrated to cover up
a shortage which had been running for
some time. His shortage, like those of
the eight other cashier suicides, was
apparently due to one Of two causes
speculation on the Chicago board of
trade and the juggling of prices by the
meat trust.
Meat Trust Blamed.
The meat trust is blamed by thou
sands throughout Iowa for the years
tragedies In almost every bank that
failed large quantities of paper based
on higher prices for live stock were
found, the makers being unable to meet
their loans owing to the cut in prices of
live stock. In almost every case the
cashier had trusted to the prices of cat
tie remaining high, and this, coupled
with speculative plunges on the board
of trade, accomplished their ruin!
Back of this recklessness. State Bank
Examiner Cox declares, is the lax bank
ing law of the State, and as a result OF
the years melancholy record efforts are
already making TO amend this law
The epidemic of banking suicides
started with that of Cashier George D.
Wood, of the Bank of Colfax. He was
regarded as one of the shrewdest and
most trustworthy bankers of the State,
and his suictTJ caused a great sensa-
ton. investigation Developed that he
personally had been large investor in
live stock and mad loaned extensively
for cattle purchases The drop in cat
tie prices brought him face 90 face with
ruin, if not dishonor, and he took his
life Wood had been accounted the
Weaithiest and most pubhc-spirfted man
In his county, and imputation of dis
honesty is holly resented by every man
in his home city The cause of his
downfall is illustrated by the sale, after
his suicide. OF paper representing par
value of S175,000 for 500 State Bank Elk
aniner Cox declares that such worthless
paper would never have been admitted
TO the bank If the institution had been
subject TO State inspection.
A Six-Figure Failure.
The death of E. H. McCutchon. one
OF the best-known politicians in the
State, precipitated the wreck of the
bank at Tiolstein. Directly after his
death it was discovered that the loss
at this bank would run into the six
figures The Modern Woodmen were
caught for 5000 coo.
The collapse of the savings bank at
New Liberty one OF the most recent to
fail was due TO the embezZlcment of
$4,000 by Cashier Arnold Beuthien, who
had become an investor in the Cleveland
Theater at Chicag go.
The bank failure at Imogene was
due to the embezzlement of $780, 900 by
the son of the president. but every cent
OF the loss was made good by the pres
ident The son later returned and was
not punished
Defalcations and forgeries, as well as
sulcloes. have attended the many fail
ureS- In the list OF failures made up by
the State auditor the defaication of
$4,000 at Iowa Falls, and the more re
cent defaIcation OF $4,000 from the
Wappelo Bank. are not included In
both OF these cases the guilty men are
doing time in the penitentiary
Curious features of the situation are
that the SEicldeS at Lone Tree and Ce-
dar Rapids were not followed by failure
Bank Examiner Cox insists that the
causes of the wrecks are normal, and
that robbery and crime by the bank Of
board OF trade, have marked the fail
ures. He says that the Iowa banking
system is at fault, because private
banks of the State are not subject TO
State supervision. At present private
banks are treated just as private bust
ness concerns are. State Auditor B. B.
Carroll shares the view of Examiner
Cox.
Senator Lewis, of Page county,
prominent banker and member of the
committee on banking. says that in
most cases the ruined banks have loaned
money, extensively on mortgages and
cattle In the case Of the bank at Mount
Ayr IL was found that Day Cummings
failure in live stock precipitated the col
lapse.
GAS MACHINE WRECKS HOTEL.