New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-13
SHORTAGE CLOSES BANK
ARRESTS IRE EXPECTED.
Loss of S21O,OOO in Wisconsin In
StitutiOn Said To Be Due to Forgeru.

Washington. Oct. 12.-The discovery of alleged
forgeres and defalcations aggregatng according
to unofficial advices approximately $4,000 result
ed IN closing to-day the doors of the First Ma
tional Bank of Mineral Point Wis John W. Scho-
field OF the office Of the Controller Of the Cur
rency, appointed receiver Of the Wisconsin
institution Arrests expected TO follow the
closing of the bank. after a conference between
the federal authorities at Mineral Point.
Word of Irregularities in the bank reached the
Treasury Department October s. when Richard
W Goodhart. national bank examiner who had
been making his regular examination Of the banks
condition telegraphed to the Controller Of the Cur
rency that he had found shortages and some ques-
tionable paper.
The first indications were that the loss would
reach only $4,000. The figures of the discrepancy
then began to grow. Soon the amount in
creased by $4,000 and the next and latest amount
reported to Washington swelled the loss s12S.-
COO. The losses on other paper in the bank subse-
quentIy discovered probably account for the diff
ference between this amount and the $4,000 OF
alleged shortage announced in the press reports.
S Calvert Spensey. president Of the bank ex-
pressed to the examiner confidence in HIS ability 70
carry the bank through its troubles. The bank off,
Gals sought cash to place to the credit OF the bank
and succeeded in obtaining small amount Prest-
dent Spensey declared that he could raise S10O 900
in cash within six days but he evidently unable
to negotiate that amount the banks credit, and
this morning Mr.. Goodhart reported by telegraph
that the bank had been closed.
John ". Schofed. who Immediately appoint
ed by Mr.. Kane. Acting Controller of the Cur
rency,, TO take charge OF the banks affairs. left
to-day for Mineral Point. He has acted as receiver
for several banks
T. F. Hanscom is the banks cashier. The d.
rectorate comprises President Spensley. Vice-Presi
dent Philip Allen. jr., James Brewer, ". P. Gun
dey. Frederick Vivian. r. J. Penhalegon and J. L.
Gray.
The last statement Of the resources and liabilities
ba ba, bt-{ Fc DOrf of
rendered TO the Controller September l. dis
closed no unusual conditions on its face The cap
ital stock was $780, 900, it's surplus $4,000 and
divided profits S11,724 The bank had out $4,000
in circulation, secured by S51 1913 in United States
and other bonds. There $5O5.s7s in deposits
and $4,000 Of outstanding bills payable. This made
total liabilities of S667.702.
OF the same total amount of resources. all eX-
cept the So 1898 OF United States and other bonds
are available for the debts OF the institution Be
sides the bonds the resources comprised loans and
discounts of S4S6175; banking house and other
real estate, SS7.45S amounts due from other banks
S4S2O6, and cash items S44.47O-
aspect developed in the failure OF the First Ma
tional Bank here to-day. it being reported that the
shortage. instead of 100000 at first estimated
will run close to 100000. vice-President Phil
Allen jr is said TO have lost heavily in California
and Montana mining investments
Worthless notes poured into the bank to-day, and
widows and orphans hard hit. Mr.. Allen
acted as administrator of many estates. The value
of the securities which he has turned over 10 the
bank has not been ascertained. but much Western
mining stock in the collection is said be worth
less
The bank miner worked over the books until
late tonight practically completing his work, so
that everything will readiness for the receiver
He was assisted by Cashier Harrison. a brother
in-Iaw of Vice President Allen Mr. Allen
for years a victim of palsy. is seriously Ill at
his home unable to see visitors The city is no
ticeably quiet in the face of calamity which
affects a large proportion of the community Min
era Point is the third oldest city in the state and
practically all of it's three thousand inhabitants
are of American birth. The bank was regarded as .
being thoroughly sound