Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1908-03-25
FEDERAL GRAND JURY INoIc1S
OFFICIALS OF LADYsMlTH
CONCERN.
CHARGED WITH MAKING FALSE
REPORTS TO COMPTROLLER
OF CURRENCY.
DEFENDANTS APPEAR WITH AT
ToRNEYs TO ASK I'M
MEDIATE TRIAL.
Madison, March 10.


the affairs of the defunct Ladysmith
National bank three indictments were
found yesterday by the federal grand
jury. True bills were returned against
the following three former officials of
the bark:
President G. E. Newman.
Vice President T. E. McGill.
Cashier j. A. Corbett.
They are charged with violating the
federal law which forbids and places
a penalty upon making false reports
to the government. All other alleged
violations of law have been outlawed
and in fact this one surviving charge
would have been extinguished by the
statute of limitations on March 81,
next Saturday.
State Senator Walter c. Owen of
Maiden Rock was appointed by the
United States attorney general as
special attorney To investigate the
many reports and complaints of citi-
zens regarding the alleged conduct of
the officials of the failed bank, and he
presented the proof which he obtained
to the grand jury. The indictments
resulted. The special attorney when
seen yesterday afternoon refused to
discuss the matter.
The men under indictment are
among the most prominent members
Of the community in which the failure
OF the bank has caused no end of ex-
citement and a good deal of distress
It has been declared that United
States District Attorney W. G. Wheel
er of GAINESVILLE was responsible that
the alleged offenders were not pun.
ished. The grand Jury considered this
and prepared a conclusion that he had
followed his instructions from head
quarters and had used his own best
judgment. Mr.. Wheeler is given COM
plete exoneration by the jury.
John Barnes to Defend.
Messrs. Newman and McGill arrived
in the city last night, accompanied by
their attorneys, Thomas l. Conner of
Chippewa Falls and John Barnes,
lOi1iE& ~ N1A6lll man VI AAAN Gill CtAd
commission, and by ]. w. Fritz. a
leading business man of Ladysmith.
They came to submit to the process
of arrest and to give bonds for ap-
pearance for trial.
Will Ask Immediate Trial.
II is understood that they will de-
mand an immediate trial.
Mr.. Corbett, the indicted cashier, is
in the west holding an important posi-
ton of trust He is young man with
a wife and three small children and
efforts will be made 10 spare him the
humiliation Of arrest. at least until
something more definite has devel-
oped.
The Ladysmith bank failure is one
that has occupied public attention
more or less for three years.
State Money Recovered.
Not only has it been a matter of 10
cal interest in northern Wisconsin but
on account of a considerable state
deposit general interest has been
taken in the affair. The deposits
have been paid back in occasional
dividends, declared by the receivers,
except that % per cent has not been
paid. However, some money is still
in the hands of the receiver and some
assets are said to be available so that
the actual loss of deposits may be
as small as $4,000 in the aggregate
This does not affect the charge Of vi
olation of the law in respect to the
accuracy of the report, fled with
the comptroller of the currency. AT
one time there were $4,000 of state
money on deposit in the Ladysmith
bank. This was greatly reduced by
Treasurer Kempf, acting upon direc-
ton Of the state board Of deposits
After the failure, Treasurer Kempf
brought suit in his own name against
the banks bondsmen to recover the
remainder Of the state money. The
bondsmen resisted on the ground that
the alleged conduct Of Treasurer
Kcmpf in maintaining larger depos-
it than the limits said 10 have cen
set by the state board OF deposits, re-
lieved the bcndsmen Of liability. The
supreme co1rt held otherwise and the
state RECEIVERS from the bondsmen.