Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-02-01
Defendant In the Trial at Mt.
Ayr Tells the Story of
Bank Failure
HE WAS NOT A SPECTATOR
Conducted the Bank For Many Years
and Assigns Various Reasons For
The Failure, Among Them That
Business Men Were Slow Pay
News of the State.

| Mt. Ayr, Feb. 1.-Day Dunning took
the stand in his own defense at 10:40
| yesterday and in an hour and half
almost completed the story of business
failure and the causes leading there
to. According to his testimony he is
So years old and the father Of thir-
teen children, the largest family in Mt.
Ayr. He has lived in Mt. Ayr forty
nine years, and has been in the bank
ing business twenty three years, talk
ing the bank, in which he had no pre-
vious interest, after the sudden death
of his brother. Previously he had far
med. After his assignment he had
nothing left but his legal exemptions.
OF late years his sons, Clyde and Clar-
ence, assisted him, he taking much
time to look after other interests. He
never spent a dollar on the board Of
trade or in riotous living. The books
will show where all was invested.
At the time of the failure he owed
about 100000 on time deposits, mostly
bearing 81 and s per cent, few Z,
and one or two s per cent. The 1850
acres in Poe township and the Dun
ming Hardware Company of Omaha
We're heavily mortgaged when he got
possession Of them. He was worth
$4,000 when he took charge Of the,
bank. Here the witness gave esti-
mates of the values of his various real
estate holdings. His attorneys also
read the list of many heavy debtors,
pronounced poor pay by states wit
nesses, and witness said from his bus
mess relations with them and their
general reputation he regarded them as
good. All bills receivable represented
actual money paid out-none were nc
titious.
Retarded Bank as Solvent.
When the bank failed his son Clyde,
as treasurer of the school district and
Of a mining company, had on deposit
$1,000, while other relatives had on
deposit small sums, some of them all
they had. On the evening OF January
IA business closed as usual, and the
following morning opened as usual.
He then regarded the bank was solvent.
On the evening of January 10 1t was
found that the currency was insunl-
Gent to meet the demands OF satur-
DAVIS business, so, after talking the
matter over with Clyde, an attorney
was called in, and upon his advlce at
o'clock next morning the assignment
was made. Business men OF the eo"i'
owed him $4,000 to $4,000.
when he said January 16 that the
estate would pay IS to Is cents on inc
dollar he meant it would pay that al"
ter the expenses were met, when ne
knew were always very heavy. In us"
ing the phrase Pumping along ne
did not refer to imminence OF bank'.
runtcy. but to local conditions OF
banking, which were unfavorable, ow-
ing to high rates Of interest on de-
posits and to slow pay among business
men. The statement this ought 70
have happened five years ago." MADE
to Mrs. Frank Lesan, referred to the
closing up of the Frank Lesan bust
ness. which was under discussion.
Other witnesses yesterday morning
were T. J. Bellamy, who testified that
the Cumming & Bellamy stock feeding
firm was able to pay out even after
bankruptcy, and four men who testi-
fed that Mr.. Cummings reputation for
integrity and honesty was good. The
four were Former Senator George S.
Allyn, Former Representative w. s..
Shriver, President George A. Slentz,
Of the Ringgold Mercantile Company,
and John d. Carter, Of Maloy. L. G.
Bevis testified that the Cunning lands
were worth moro than the states wit
nesses valued them at.
The afternoon session was almost
wholly taken up with the cross and
redirect examinations of Day Dunning.
He testified that since his son, Clyde,
had been active in the business marl-
agement, he had not known actively
how much the bank owed or owned.
On redirect examination his attorneys
called for long list of notes which
he considered good. He testified that
Mrs. Clyde Dunning had $500 on de-
post at the time of the failure. Clyde's
attempt to secure her by taking deed
to MacClemons' barn was unknown to
the defendant. McGinnis' cross exam
ination was rigorous and the witness
toward the last answered hesitatingly, |
making less favorable impression
than in direct examination
The defense still has O. A. Mast.
book expert and other witnesses. The
case will hardly go to the jury before
Thursday noon, perhaps later.