Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-12-29
Auditor of State Carroll Takes
Charge Of the Dedham Saw
ings Bank
PRESIDENT CATION SHORT $4,000
He Promised to Put Up Sufficient
Money to Place Affairs of the Insti-
tuition in Proper Shape, but Did Not
Do so-The Stockholders May Re-
open the Bank in Few Days

Des Moines Dec. 29.-Auditor OF
State Carroll has taken charge of the
Dedham Savings bank in Carroll
county. 1t is in the possession Of H.
M. Germany, bank examiner. There
is possibility that it may be able to
reopen,
John G. Cation, the president is
charged with being a defaulter to the
extent of from $4,000 to $4,000. The
capital stock of the bank is $4,000
and Cation owns $4,000 Of it. Its de-
posts amount to about $4,000. Bar
ring the defalcation, the bank has
been in prosperous condition,
Cation confronted by the auditor, de-
clared that the apparent shortage was
the result of error and that he was not
a defaulter. He offered to and did put
up his note, secured by $4,000 stock IN
the bank, to cover the shortage. lie
then went to Oregon to see his sons.
promising that he would return and
straighten everything out.
e.
one of his sons, who attempted to
straighten out the affairs of the bank,
but did not bring the funds with which
to do it. The sons, also, are bankers.
The auditor, who was in virtual pos
session Of the bank, directed the d.
rectors of the institution to attach all
the property Of the president In order
to protect the bank as far as possible,
and this they did. Among the pieces
of property which was attached was
section Of fine land in three separ-
ate farms, against which there is only
a small Indebtedness. Other property
also was attached. There is ample to
satisfy the impairment of the capital,
IL it Is possible to realize upon 1t.
The stockholders in the bank We're
perfectly willing and did offer to, put
up the 100 per cent lawful assessment
against their stock, but they did moi
want to put UP sufficient IN additlon
to remove the impairment Of the stock
But the auditor was not willing to al
low the bank to reopen without such
absolute guarantee, both to the bank
ers and to the depositors.
The shortage referred to In Cation
accounts was found by the state bank
ing department of the office of Auditor
Carroll. Willard Cox in charge. 1t was
discovered thru reconciling the &C
counts Of the Dedham bank with It's
correspondents. He claimed to nave
larger deposits in other banks than, IN
fact he had. The other banks whose
reports to the auditor showed that the
pedham accounts were wrong We're
the Valley National Of Des Moines. the
FIRST National Of Council Bluffs and
the Peoples Trust and Savings !. OF
clinton. In one case Cation reported
to the auditor that he had almost So
900 in the hands OF one OF these IN,
stttutions. AS matter OF TACT ne nao
less than $120 there.
This scheme was exactly the one
which was worked In the Wapello
bank. whose cashier recently was sent
to the penitentiary, the bank not pe1ng
injured in any particular, because OF
the prompt action Of the directors.
The method which the auditor OF
state is following in the matter OF
checking up the banks Of the state IS
yarv effective. Both the Wapello and
the Dedham banks were caught by II.
II means the utmost care among bank
erS