The Washington herald., 1906-12-27
AETNA SETTLING Up
Defunct Bank Declares Diyi-
dend of 20 Per Cent.
CREDITORS ON Equal FOOTING
Date of Payment of Checks Unset
tIed-Asscts of Institutions Here
and i'm Montana 10 lie Pooled.
Schedules Yet to he Made Out.
Held Worthless Securities.

The Comptroller Of the Currency has
declared a dividend Of 20 per cent in
favor of all the creditors Of the Aetna
Banking and Trust Company, of Butte.
Mont, and Washington, D. c.
1t was decided by the comptroller that
the creditors Of both institutions were on
an equal footing. and that the amount
received from the various assets Of the
banks here and in Montana should be
pooled and the dividend made equal 10
all
As yet no date has been set for the
payment, but 1t will be as soon as the
necessary schedules can be made ou;.
the accounts proved. and the checks pre-
pared for presentation to the creditors.
It was stated from the Office of the
comptroller yesterday that it would prob
ably be near the end of January, perhaps
a little longer. before the giving out of
the checks could be announced
Held worthless Securities.
The Aetna Banking and Trust Com
pany's branch in Washington was sub
jected to the examination required under
the laws of Congress. last October. a
bank examiner from the Treasury De
parment found the washington branch
carrying worthless securities upon its
books, and closed the doors of the bank
here on October o
The same day the bank in Butte closed
its doors. upon receipt Of the news from
Washington. The Washington branch
and the parent bank i'm Butte were i'm
mediateiy taken over by receivers. APP
pointed by the comptroller. VINO set q
work making q thorough examination OF
/ the accounts. They were found in bad
condition and the securities Of the bank
were shown % be almost without value
Cut of Sl23.942 In resources reported by
the Washington branch last September,
only a few thousand dollars in cash and
available assets were found in the vaults
The examination Of the accounts re-
/ vealed some irregularity with reference 20
! the organization Of the Illinois Securities
Company. involving John T. Hoag, assist
/ ami cashier, and others. and he, with his
associates in the transaction, were ar
rested, and Hoag has since been indicted
| on a charge of conspiracy against the
/ United States. The cases Of two others OF
I the alleged C0nspiTatOrs are also pending
| In the local courts
Gift from HeinEe.
Another interesting feature Of the fail
ure Of the two banks was the gift Of $780,
I eco by Augustus Heinze, former president
/ Of the bank in Butte. TO the depositors
on the ground that some Of them may
have been induced to entrust their money
/ 10 the institution, believing him to be still
/ connected with the bank.
/ The number of depositors in the Wash
lington branch of the bank has never been
made known. but the amount Of the de-
posts. according 10 the September state
ment was about $4,000. 1t Is supposed
that this amount consisted Of small sums
placed in the bank by poor people tempted
1 by the high rate Of interest paid by The
bank The largest depositor OF which any
/ knowledge has come to the public was a
/ government empIoye who had 81, 400 in &C
/ count with the bank.