Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1909-1911, 1909-10-15
BANK DIRECTORS
FACING ARREST
OFFICIALS OF MINERAL POINT IN
STITUTION LIABLE FOR FAIL
ING TO DIRECT"
PRESIDENTS DAUGHTER WEEDS,
Children Bombard Marriage Party with
Catcalls and Must Be Chased from
Home of Bride
ALLEN FIGURES IN EARLY FAILURE

MINERAL POINT, Wis, Oct IA
Especial. l-Warrants for the arrest of
the directors and officers of the defunct
First National bank may be issued on
the charge of violating the banking laws
in that they accepted deposits when they
knew the bank was insolvent United
States District Attorney George Gordon
conferred with Bank Examiner Good
hart Wednesday night before going to
Madison, and it is believed that when he
returns he will be accompanied by Il
United States marshal
Receiver SChotield today took charge
of the bank. He declared it would be
some days before an accurate statement
of reserves could be made.
Vice President Phil Allen. to whose
torgerleS and dishonesty the banks down
fall Is due, refuses to be seen. 1t is said
he lies with his face constantly to the
wall and that he had said he is willing to
take his punishment. He had arrange
ments with other banks to let him know
at once when a bank examiner appeared
in the neighborhood.
Directors Are Criticised
Popular criticism of Allen is turning
more toward the directors, who appar-
emily are costly examples of directors
who did not direct. Business men who Il
year ago transferred their accounts to
the towns other bank are congratulating
themselves. AT that time they became
dissatisfied with Aliens mining ven
lures. One woman who had $4,000 in
the bank is likely to go crazy brooding
over the situation.
President Spensley, in discussing the
report of probable arrest, said: Il hon
estly believed thal everything would be
all right with the bank if the mine deal
was consummated and the proceeds
turned into the bank. | knew that the
deal would be consummated and expect
ed that the money would be turned in.
and on the strength of this | advised our
clients as | did when questioned as to
the banks condition. l felt that with
this money there would be sufficient to
tide over the banks affairs. There was
no intent to do anybody any wrong"
Situation Spells Wedding.
A violent charivari was given Wednes-
day night at the Spensley home, Mr..
Spensley's daughter Ruth, having mar
ried John l.. Lightbourn, an English
resident of the Bermuda islands. She
met him while spending winter there.
Nearly 100 boys and girls tramped onto
the lawn and at first were contented
with shouts and cries, some Of which re-
Elected on the mismanagement of the
bank
AS this demonstration elected no re-
spouse from the house, some of the older
boys began bombarding the residence
with sticks and stones. Mr.. Spensley
appeared on the porch and ordered them
away, but was ignored. He then Sc
cured assistance by telephone and the
crowd was elected from the yard. They
hung over the fence for hours afterward,
however, hoOting ard yelling, but doing
no other harm.
Not First Failure.
In 1888 another bank, known as the
Henry bank failed, causing q loss of
about 100000. The bank first suspend
ed and was reorganized. To do this the
original depositors were paid in full.
Then the reorganized bank failed, and
the depositors received but 10 cents on
the dollar. Allen was receiver of the re-
organized bank. 1t is stated now that
he never filed any final statement as
receiver or at least such a statement was
never made public.
mo one but Phil Allen would have
been allowed to do that" said an old
resident, in speaking of the incident.
Blames the Directors.
WASHINGTON, D. c., Oct. 14.-Re-
sponsibility for the failure of the First
National bank of Mineral Point. Wis. is
placed largely on the shoulders of the di-
rectors by Deputy Comptroller Kane,
who says the examiner could not have
learned of the conditions because the d-
rectors of the bank had been holding TO
meetings and the discount committee of
the directors had never examined the
discounted paper.
Contains State Deposit.
MADISON, Wis, Oct. 14.-The state
of Wisconsin has on deposit in the First
National bank of Mineral Point,
$976611, together with interest ON that
sum since October j. 1t has been a de-
pository since 1901. The sureties on the
states bond are r. j. Penhalegon, ST.,
r. J. Penhalegon, Jr., G. w. McIlhon,
L. Gray and William p. Gundry. The