Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-02-26

| with President +. r. MCKINNEY of
| the Backhawk National bank, con-
corning the Green Mountain failure.
| The Courier says:
II. +. McElhinncy, president Of the
Blackhawk National bank. returned
| last evening from Green Mountain,
where he went to assist in the settle
ment of the troubles Of the savings
bank of that village. The bank failed
! to open it's doors yesterday morning.
The Green Mountain Savings bank
was the only financial institution of
its kind in the little city. and fac
/ tional fights had caused the business
| to get in such bad shape that the de-
posts had fallen below the amount
of capital stock-s1O,0O0. Efforts had
been made to get other parties to take
over the bank, but the discovery by
examiners that several deposit slips
We're missing from pads caused a fur
! Their and closer Investigation. About
the same time a certificate of deposit
| on the bank, signed by the president,
| $. b. Mac Diarmid. for the face value
! of $500. turned up at the City Ma
tional bank at MarshalltoWn. The GER
titicate was never entered on the books
of the bank and the cashier, d. A.
Johnson, declares that he had no
| knowledge of the piece of paper. The
certificate was negotiated in New York
by E, l.. Collins, who is director in
the concern and at the present time
in the east. Mac Diarmid was arrest
ed
"Mr McElhinney was called into
| = ,.+l,
Ter of the City National bank of
Marshalltown. and his visit to Green
Mountain yesterday was, If possible,
to make some satisfactory arrange
ment for the continuance Of the bus
mess of the closed bank The local
tinancier states that ne is not inter
ested in the bank and never was with
the exception of to the extent that
he was, at one time loaned several
shares of the stock that he might as
sist In perfecting the organization.
He was elected one of the directors
and for time the new bank COR
responded with the Blackhawk Ma
tional, but the relations were prac-
tically ceased at the instigation OF
the Waterloo institute, the methods
followed by the Green Mountain
bank being far from satisfactory.
1T had been the intention of Will
lam Shipton, G. r. Lynch and j. B.
Classen to take over the bank. hut
the discovery of the certificate Of de-
post which had been sold by Collins
caused halt in the proceedings.
There is evidence that several more
of the deposit slips We're stolen, but
whether they are on the market Is not
known.
'The examiners who have been go
ing thru the assets of the institution
are confident that every dollar of in
debtedness to depositors will be paid.
There is sufficient of negotiable secur-
tiles on hand to pay all depositors,
providing several more certificates Of
deposit do not turn up from some un-
expected quarter. Meanwhile, the pro-
posed sale of the bank Is delayed. the
prospective purchasers fearing to take
hold of the bank as long as there is
possible litigation in sight Inquiries
We're received in this city this morning
from New York inquiring as to the
solvency of the Green Mountain bank
and it is believed the inquiry was made
by the agent thru whom the certificate
or certificates of deposit as the case
may be were sold"