Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-09-26
First National at Sioux City
Holds Two Of the Murdered
Mans Checks
LITIGATION WILL FOLLOW
Cashier Of tho Sioux City Institution
Was First to Discover the Exiting"
Process in Which GriswoId Was In
voIved and Blocked tho Game
Other News Of Iowa.
Special to Times Republican.

Sioux City, sept. Zo.-CoInpilcdleu
litigation between the First National
bank OF Sioux City and the Bank of
Luton, Iowa, is almost sure to grow
out Of the transactions of George r.
Griswold, state agent OF the Massa-
chusetts Mutual Life Insurance COM
pany, whose body was found in the
river at Des Moines recently.
The First National bank of Sioux
City holds two Of Griswold's checks,
drawn on the bank at Luton, which
have been charged to the account OF
the Luton bank. When they were sent
to the Luton institution for collection,
they were returned, but 1t will be the
claim of the First National bank that
they were not protested In time and as
consequence the amount OF the two
checks, agg1egating $3.50, stands
charged to the Luton bank on the
books of the First National bank OF
Sioux City, while the bank at Sandy
Vile, Warren county, Iowa, has them
GIldI HSu W IL 1IC5 1lOLiiSss OaiiNt ss''NA VIZ
Des Moines bank to the First National
bank OF Sioux City
This was probably one Of Griswold's
last transactions, and the checks held
by the First National bank OF Sioux
City are two OF the three checks drawn
by Gr'iswold on the Bank OF Luton,
amounting to $1,000, a few days before
he was supposed to have been muir
dered or to have committed suicide in
Des Moines.
AS the correspondent OF the First
National bank, many transactions of
Mr. Griswold's with the bank at Lu-
ton, Iowa, passed through the Sioux
City bank
Cassie Chadwick outdone.
For over two years Griswold and
Steven Essex were dealing through the
banks at Des Moines Sioux City, Sam
dyville and Luton, and secured. money
with which to keep up some of their
schemes by system of "kiting"
checks. This system was at last
time president of the City National
bank.
The plan of Griswold and Essex to
secure the use of money without bor-
rowing, giving security or depositing
in the banks, was not altogether un-
lawful, but is practice which will not
be tolerated by bankers, and as soon
as Mr.. Bennett, who is one Of the most
careful financiers In Sioux City, found
out the system Of the check killing, he
informed the Bank of Luton and re-
fused to handle more of the Griswold
checks. The bank at Luton also took
additional precautions and refused to
handle "Griswold or Essex" checks un-
less the deposits were made by bank
draft or some legitimate form of ex-
change.
Bennett Blocked the Graft.
The plan OF Griswold and Essex,
blocked by Mr.. Bennett, was to draw
a check on the bank at Luton for
given amount, sometimes quite large.
This check was sent through the Des
Moines banks to Sioux City, for col
lection from the Bank Of Luton. BY,
the time the check would arrive, Mr..
Griswold would send check drawn on
the bank at Sandyville, an obscure vil-
lage and out-of- the-way place, south
Of Des Moines, to be deposited to his
credit at Luton. The first check would
be duly paid, and the second one start
ed to the bank in Sandyville for collec-
ton. BY the time 1t arrived in Sandy
vile, through a Des Moines bank, a
process which took several days, a
check on the Luton bank, or some
other bank, which had to be reached
through Sioux City bank, would be
sent to Sandyville to meet the check.
Litigation May Ensue.
This "kiting," as the bankers called
it, continued for some time. Mr.. Ben
nett concluded that there was no
money in the business and that sooner
or later some one would be caught by
the Griswold-E Essex combination, and
he proceeded to block things.
The checks held at present by the
First National bank will probably be
the basis of a legal action to collect
them from the Luton bank on the
ground that they were not protested in
time, and should be paid by the Luton
bank.
Bangor s, Union S.
so1 o.