The Leon reporter. (Leon, Iowa) 1887-1930, 1906-01-04
QUEER BANKING DEAL
Farmers Bank of EllstOn Starts on
$500 Less than N0thing--Cred-
itors Have Claims of $4,000

itors Have Claims of $4,000
Mystery and suspicion surround the
affairs of the Farmers bank of Ellston,
which was wrecked by an explosion
Nov. %, and which has not been opened
for business since. 1t is claimed that
the liabilities are almost $4,000, with
assets of SIT. The assets include the
furniture and fixtures of the bank, but
not one cent in cash.
Investigations have proceeded for the
past month, but very quietly. for all
persons concerned were hoping that
their financial interests would be bet
ter served by hushing up agitation.
When the investigation began it was
supposed that the shortage would reach
not to exceed $1,500, and that this
amount would be made up by the father
of Cashier Shaughnesy. The liabilities
have now grown to a sum that is i'm
possible for Mr.. Shaughnesy to raise.
The Farmers bank of Ellston was a
private institution, founded by Frank
Shaughnesy on Sept. 25. 1t was given
out at first that capitalists near Ellston
and at Grand River were back of the
business, but it now appears that the
bank had no backing except that of
young Mr.. Shaughnesy, who was 500
in debt when he began operations. He
was formerly bookkeeper of the bank at
Beaconsfeld.
The bank was brought into public
notice when it was reported on We'd
nesday morning, Nov. 20, that it had
been burglarized. The safe had been
trace was secured of the perpetrators.
Mr.. Shaughnesy stated that there was
about $3.50 in silver in the cash drawer
and that the rest of the funds were in
the vault of the safe, which was not
penetrated by the burglars. He now
admits that the safe vault, locked by
time lock and as yet unopened, is
empty. 1t is commonly believed around
Ellston that there was no money in the
cash drawer, while the whole affair of
the burglary is looked upon with sus-
picion.
Shortly following the destruction of
the safe, when MIR. Shaughnesy an
nounced that he was i'll and did not ex-
pect to reopen the bank for ten days
or more, the report was started that
he was insane, aad the insane commits
sion made trip to Ellstcn to examine
him. They decided that he was not
subject for the asylum.
The deposits in the institution are
estimated at $1,000. 1t is said, how
ever, togbe difficult to reach correct
knowledge of any Of the banks affairs
from the books. The balance Of the
liabilities consists largely Of drafts is-
sued by Cashier Shaughnesy to persons
who presented checks for payment, and
whom he told that he was out of funds
er that his safe was locked, and so
persuaded them to take drafts instead.
The difference between the assets and
liabilities after account is taken of the
500 used in paying off old debts
amounts to $4,000 or $4,000, but it is
thought that Mr.. Shaughnesy does not
have that amount concealed. opinion
rather inclining to the belief that he
has squandered it.
Charges Of forgery have been heard
in connection with the affair, but il
anything of the kind was done it is
likely that the amounts we're small.
Rumor says that this feature Of the case
will not be Investigated, as relatives
Of the cashier were the chief sufferers.
The whole affair is remarkable, and
much comment is caused by the fact
that bank could fail and cause loss to
many creditors and yet escape publicity
for weeks outside it's home town, and
even there no public excitement
should be manifested.-Mt Ayr News.