Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-12
|BANK 100000 SHORT BOOK IS A B0MBSHElL|
First National of Mineral London Gets Jolt in Lady
Point, Wis.,. Closes. Cardigans RecoIectons
|vCE PRESIDENT A F0RGER STlNGS IN MANY ST0R|ES|
Now Lies Lord Ktcheners Speech Stkingy
of Death. Like Curzon's
TURNS OVER BONDS INTEREST MATTERS
Continues
tuition Actually IS Lords-Treasure
Amour Search in the Thames
VICE PRESIDENT A FORGER
Admits Taking Notes and Now Lies
at Point of Death.
TURNS OVER STOCKS AND BONDS
Not Known Yet How Much Insti-
tuition Actually Is Out, But
Amount Will Be Large.
Special DIspa tch to The Star.

| Amount w I'LL DC LAX
| Special Dispatch to The Star.
| MINERAL POINT. Wis, October r.
shortage aggregating possibly $780, ZOO.
| according to President Calvert Spensely,
hes been disclosed in the First National
Bank of this city. Vice President Phil
Allen. jr., who has been in difficulties. is
reported to be near death at his home
here Arrests are expected at any time.
The bank has closed its doors on orders
OF the controller of the currency tele-
graphed from Washington. John w. Scho-
field has been appointed receiver.
At.midnight last night meeting of the
stockholders and directors Of the bank
was held in an unsuccessful effort to
avoid the closing of the institution, which
Is one nf the strongest in southwestern
Wisconsin.
Can't Guess Full Amount
Stocks and bonds in various corpora
tons in the district, with a face value
equal to the banks shortage, have been
turned into the bank by Mr.. Allen. 1t is
impossible at this time. according to
President Spensely, to give the value of
these securities, and although none of the
officials of the bank will make any estl-
mate. it is believed by some that the Sc
curities turned over will not meet the
shortage by large figure. estimated by
some at 100000.
The first word of irregularities in the
bank reached the Treasury Department
on October ). when National Bank EX-
aminer Richard w. Goodhart who has
been making his regular examinations of
the banks condition, telegraphed to the
controller of the currency that he found
some shortages and questionable paper.
The first indications were that the loss
would reach only $4,000. The figures Of
discrepancy then began to grow. Soon
the amount was increased by $4,000 and
the next and last amount reported to
Washington swelled the loss to $12S,0OO.
The losses on other paper In the bank
subsequently discovered, probably account
for the difference between this amount
and the $4,000 of alleged shortage an
nounced in the press reports
Couldn't Raise the Cash.
S. Calvert Spensley is president of the
bank. He expressed to the bank exam
liner confidence in his ability to carry the
bank through it's troubles. The bank off,
Gals sought cash to place to the credit Of
the bank, and succeeded in obtaining a
small amount. President Spensley de-
clared that he could raise 100000 in cash
within six days, but he was evidently I'M
able to negotiate that amount on the
banks credit, and this morning Examiner
Goodhart reported by telegraph that the
John w. Schofield. who was immediate
ly appointed by Acting Controller Of the
Currency Kane to take charge of the
banks affairs. left today for Mineral
Point He is employed in the control
ler's ONCE and is q veteran in receiver
ship matters. He has been more recently
the receiver Of the First National Bank of
Manasquan, n. j., the First National
Bank of Brooklyn, N. Y. the American
Y. the First National Bank of Doyles-
town. Pa. and the First National Bank
of Asbury Park. N. ].
Last Statement O. K.
F.. f. Hanscoms is the banks cashier.
The directorate comprises President
Spensley. Vice President Philip Allen, jr..
and James Brewer. w. P. Gundey, Fred
Vivian, r. J. Penhallegon and j. L. Gray
The last statement Of the resources
and liabilities of the bank, az shown
on September l. disclosed no unusual
conditions on its face. The capital
stock was 100000. it's surplus $4,000
and undivided profits $11,724. The bank
had out $4,000 of circulation, secured by
ISL 1893 in United States and other bonds.
lnefc was over nail a N1llIlOn uOlldrS-
exactly $5OS, 97s-in deposits. and there
were 5000 of outstanding bills payable.
This made total liabilities of $685., TOP.
OF the same total amount of resources,
all except the $51.3 of United States
and other bonds are available for the
debts of the institution. Besides the
bonds. the resources comprised loans and
discounts of S466. 49, banking house and
other real estate $37,45S amounts due
from other banks $4s,20 and cash and
cash items $44,47O.
The examiners attention." said Presi-
dent Spensely. first was called to the con-
dition of the bank when he was looking
over notes purporting to be signed by well
known business men OF the county, who
usually do business in Mineral Point
There was a similarity in many Of the
notes and finally he called upon Mr.. Allen
for an explanation.
Allen Admits Forgery.
According to the examiner, Mr. Allen
admitted that he had forged the names
Of these men to notes. hut there was no
way Of learning what the total amount
Of those notes was. That is where the
trouble is in tho present situation.
LAS nearly as can be estimated, the
shortage is about 500, 600. and as soon
as the existence of these notes became
known Mr.. Allen turned over securities
in an amount equal to the total Of forged
notes, as nearly as could be ascertajned