Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-10-23
Evidence In the Trial of Shell
don Banker shows Loans
We're Made to Many
SECURITY WAS INSUFFICIENT
Brown Seemed to Have Been Unable
to Deny Favors to His Friends and
Was More Of "Good Fellow" Than
a Rogue in His Dealings With the
Bank-News Of Interest.
Special to Times-l.epublican.

Special to Times f.epublican.
Primghar Oct 23.-In the mass of
evidence of the loose banking meth
ODDS of E.. G. Brown, on trial on Grim
inal charges for wrecking the Sheldon
State bank, there is more to prove him
a. good fellow" in the general ac-
ceptation of the phrase than q 'sbad
fellow" in the sense of using other per-
sons money to enhance his own for
tune. Receiver r. w. Ady, just before
court adjourned Saturday, stated that
notes in THE bills receivable, which are
absolutely worthless. will total over
500, The makers of these notes
form a list .d,f more than 200 persons.
benefic,aries OF the charitable spirit OF
Brown.
Farmers, school teachers, impecun-
ious artisans and business acquaint-
ances borrowed this nlorley and If they
had no cf1attels they gave no security.
The loand,ag Of $4,000 to the fcti-
tious firm of J. w. Fix & Co., appears
to have been Browns only overt act
in an effort to benefit himself. It was
this that broke the institution. Court
adjourned till today. The state will
probably rest dts case tonight and the
defense finish Wednesday.
Some Of tho Evidence.
The two principal witnesses for the
state SO far were Fred F.. Frisbee.
cashier OF the First National bank OF
Sheldon. and r. w. Ady, receiver Of
the Sheldon State bank It was sought
by the state to prove by Mr.. F'risbee
that g. large number OF notes carried
and listed as assets by the Sheldon
State. bank were worthless, and the
further fact that Mr.. Frisbee was one
OF committee agreed upon by the
Browns and the depositors to examine
into the affairs of the bank next day
after the failure; and that the real es-
tate assets of the bank were far below
In value from the estimates placed ups
on them by the Browns, and ELS carried
on the banks books as bills receivable.
The other two members of that COM
mittee were Hon. Tim DonOhue and
Joseph SGinsl1i, the latter capitalist
of Sheldon.
The board Of appraisers were also
placed on the stand who had appraised
the. banks assets, they being Frank
Frisbee. president Of the First Nation
al bank of Sheldon; H..W. Conant, a
justice Of the peace Of Sheldon, and w.
H. Sleeper, cashier of the Union bank
of Sheldon. Following these witness
es r. w. Ady, receiver, was placed on.
the stand for an entire day, going into
all the notes and other assets of the
bank. showing that many Of them were
worthless.
' carroII's Letter Damaging.
The most damaging evidence to the
defense SO far offered by the state was
a letter from State Auditor b. F. Car
roll, bearing date of some time in Au-
gust 1908. in which the auditor in
formed Mr.. Brown that according to
the state bank examiners report the
Sheldon State bank was carrying too
large an overdraft, and advises Mr..
Brown to reduce this overdraft at
once The auditor also informed him
that the law prohibited the bank from
loaning more than $4,000 to any one
person, while the report shows that
the bank has loaned one j. w. Fix, a
over $4,000. The defense
fought hard to keep this letter from
the jury, but the court overruled the
objection and the letter was admitted.