The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-05-26
CANTON BANK
CLOSES ITS DOORS
CONTINUE | from Page one, F,

directors and they without hesitancy !
gave the true condition. The Citi. |
2ens' Loan has surplus OF S6S,oen
aid under the law is required to place |
II in banks designated as repositories |
1t has two repositories, the first Ma
tional bank and the State bank In |
each $4,000 was deposited, so that |
the State bank holds that amount of |
funds of the Loan company. AS |
against this there is contingent fund |
of $4,000 and cash in the shape of |
interest to the amount of $40,247, SO |
that If every dollar in the State bank |
were lost there would be a comfort |
able cash balance Even the most |
pessimistic agree that the State bank |
will pay large proportion of its in |
debtedness, so that the loss to the |
Loan company will be- insignificant |
when considered in the light of its |
stability and resources.
None of the nthe: city banks are
involved in any way aside from pos
sibly few matters of exchange. The |
following statement has been issued |
by Paul ID. Rider, president of the Can
ton Clearing house, which has to do
with the relations of the banks to each
other:
AT meeting this morning every
Canton bank was represented. The
closing of the Canton State bank was
considered Unfortunate as this affair
appears, it developed that not one
other bank in Canton is in any way
affected by it.
while our association knows moth
ing about the affairs of the Canton
State bank, We hope for an early re.
sumption of business at that institu-
ton" PAUL ID, RIDER"
The directors of the bank, DR.. A. c.
Brant, Hiram Doll, William Wagner,
Atlee Pomerene, w. r. Zollinger and
w. II. Hoover, gave out a statement |
through Attorney A. A. Thayer. in
which they say:
STATEMENT OF DIRECTORS.
The board of directors of the Can
ton State bank, except it's vice presi-
dent, Mr.. Davis, and Cashier Mr.. Bach
tel believed that it's business affairs
were in an excellent condition until the |
regular examination of its auditing
committee was made and its written
report filed with the president of the
bank about ten days since, wherein
on the part of the cashier which were
pointed out in it's report, and it was
that he be removed from
his position. These Irregularities con-
sisted in converting the securities of
the bank by the vice president and
cashier, in purpose deceiving the di-
TeCtors as to the re-discount of notes
held by the bank in large sums; ficti-
tious certificates of deposits and the
true condition of notes which had been
taken for the bank and of overdrafts in
large sums, which were entirely unau-
and unknown to the board of
directors, with the exceptions above
mentioned.
"One of the directors was Immediate
Iy placed in charge of the ordinary af-
fairs of the bank, and nothing was
permitted to be done save by his direc-
ton. A large amount of securities
were obtained from Mr.. Davis in the
fern of a conveyance of real estate,
situate in and about this city, which
was valued above membranes at
$4,000. The bank supposed it held
$50, 600 of first mortgage bonds of the
Cleveland Brick Co., and substantially
all of its capital stock, thus placing
these large interests in the hands of
the bank as a security, but $1,000 of
the bonds had been removed and con-
yerted without the knowledge of the
except the two above men
toned. The bank held as security a
large block of it's capital stock. but
this also was removed and converted
in the same way. The bank holds sub
ttantially all of the capital stock of
the Davis Railroad Coal Co., which
consists of very large holdings of real
estate, IS houses, 430 acres of coal
lands, railroad tracks more than five
miles long and mining machinery. The
true amount of the indebtedness ofMr.
Davis and his companies to the bank
was in great part concealed from the
directors by both himself and the cash
ier, which consisted very largely of
loans made to him by the cashier with
out the knowledge or authority of the
other directors, and this last is found
now to be about the sum of 100000. 1t
was supposed that the directors had
been given true information concerning
the present Indebtedness Of Mr.. Davis
and his companies to outside parties,
hut on last evening 1t was found that
indebtedness to about the extent of
100000 existed which had been con-
cealed from them.
1.-The directors and some of their
friends had arranged to severally de-
1osit large sums of money in the Cam