Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1905-07-14
SPENCER SECRET
IS MADE PUBLIC
Sad Fate of Former Grin
nell Banker at Last
Explained.
FAILURE OF BROTHER CAUSE
Louis M. Spencer Involved Father
in His Deals Effort to Conceal
Misuse of Funds Of Bank Leads
Henry Spencer Into the Tolls.

Chicago, July 13.-The mystery
surrounding the death of Henry Spen.
Ger, cashier of the wrecked First Ma
tional bank of Grinnell, who with
his son, Clark, was drowned almost
a year ago, is believed to have been
explained by discoveries made in con.
nection with the failure of Louis NJ.
Spencer, Henry Spencer's brother, a
life insurance and bond agent, with
Offices at 204 Dearborn street, this
city, this week.
The story recited in the bankruptcy
petition is believed to give the clue
to the puzzle which has baffied the
people of Iowa since the first news
or the death of a man hOnOred
throughout many years for his up
rightness and business probity, leav-
ing behind unexplained defalcations
amounting to many thousands of dol
lars. Henry Spencer became a de-
faulter because he sought to cover
up drafts made upon the banks fund
by his father in backing the ventures
of his brother Louis.
Through his attorney Louis NJ.
Spencer has just filed with the I'm
tied States district court a voluntary
petition in bankruptcy, in which he
states that his liabilities are $751;
245.02 and his assets but $3.50. His
liabilities are mostly in the form Of
a large number of small claims held
by long list of creditors. Of these
he claims that sS6,9SO.27 are secured
and s270,645,65 unsecured.
Among the heaviest losers is the
Northwestern Insurance company Of
Minneapolis. which was formerly in
'corporated under the Iowa laws with
headquarters at Des Moines. This
company has claims against Spencer
for s17,963. Louis Spencer was a
younger brother of Henry Spencer,
the cashier of the broken First Ma
tional in Grinnell, who was drown
ed with his son in that city almost
year ago. In the late eighties when
the state of Nebraska was having it's
great boom growth. Louis Suencer
conceived the idea of starting a great
town near Beatrice in that state.
Land was purchased and plotted, an
Beatrice with the new division, and
Spencer even erected fine house for
himself in what was to be the finest
city in Nebraska.
Then came the break; the railroad
bonds could not be sold, land prices
fell, creditors began to close in and
Spencer was ruined. Some of the obli-
cations which he now acknowledges
are those incurred in the promition
Of this town. But he was not the only
one caught in the broken BOOM His
father, Charles H. Spencer, who pre-
coded his son, H. c. Spencer, as cash
Ter of the defunct First National, had
placed complete faith in the future of
Beatrice and had invested heavily,
and led many Of his friends to invest
largely in the project. He and many
others were heavy losers in the ven
ture-much heavier, in fact, than
probably anyone but himself and his
sons dreamed of, and it was probably
at this time that the first shortage
in the bank funds occurred which was
later to mean the banks ruin and the
disgrace of the Spencers. 1t was par
TALLY his attempt to cover up the
large amount of the banks funds
which the father had lost in the Bea-
trice speculation that led Henry Spen-
Ger to his life of criminal conceal
ment. This is why the news of the
failure of Louis NJ. Spencer is re-
ceived with special interest in Grin.
nell, and why the name of Beatrice,
Neb., still awakens painful memories
among many Of the new prosperous
inha bitants of the college town.