Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-02-21
INSTITUTION CLOSED AND PRESI.
DENT PENFELp SUPPOSED
TO HAVE LEFT STATE.
MUCH OF BANKS PAPER
HAS BEEN HYPoTHEcATEo
Only a Few Note. and :4oQ in Cash
Left to Pay Liabilities Of $4,000
Supposed That President Has Alb
seonded-1oone Bank Holds Bulk Of
Negotiable Paper.

Anes Feb. 21-The Bank of Kelley.
located at Kelley. small village south
OF -AInes, suspended business yesser-
made by depositors, said to have been
due TO disclosures made concerning the
financial condition. OF the institution,
coupled with the disappearance of E.
]. PeGtield, It's president.
/ President PeI..!eld is said TO have
! lets Kelley last Saturday morning. os-
tensibly for WATERFOWL, 5. D, where
he has land Interests. Following his
departure it is alleged that discovery
was made that almost al the notes
and negotiable paper in the bank had
been hypothetical or sold to the Boone
National Bank ard that the banks as
sets were represented ny q few notes
and about s49O in cash TO Offset liabil-
I tiles OF $4,000 due depositors.
Runors spread rapidly thru the
small village and surrounding COM
nunity. and when Cashier \. NJ. Egg
gIeston opened the bank for business
yesterday morning a large number OF
depositors were III lire waiting an OPP
portunity to secure their money. The
500 on hand was paid cut quickly and
announcement was made TO the disap-
| pointed patrons that the bank would
be compelled 10 suspend payment Al
examination made yesterday after
| moor. is said to have revealed so cents
as the amount on hand made UP
| largely OF pennies
Absocnded is Belief.
| Patrons of the bank believe that
! Penfeld has absconded WIKI al OF the
banks assets and request has been
made Of the iowa Ba,llIers' association
that an effort be made 10 apprehend
him before he makes his escape from
the country.
! Penfeld is known TO have been in
Des Motnes Saturday morning. and Is
said to have transacted considerable
business here. He is also said TO nave
been in Boone during that day where
! he repeated his announcement OF an
| intention to go 70 WATERFOWL No'h-
| ing is known Of his whereabouts since
| that time.
T1,a missing official was president
and sole owner OF the Kelley bank. he
was formerly in the insurance business
at Nevada, Iowa. and Went to heiieS
| about five years ago ard organized the
/ D1lIh. clioNi.-S "a -
embarked in the real estate business
and dealt extensively in Dakota lands.
He was credited with being shrewd
business man and altho he was rot ac-
lively engaged in handling the details
Of the hank work. giving most of MS
! time 20 his real estate business. the
people residing in the vicinity had con-
I fdence Il his ability and integrity and
the DEPOSITS OF the new institution grew
rapidly.
| Industrious Habits.
/ He is reported to have beer of In
6us.-ious habits and exhibited exe-n-
p,a~y traits in his private life. II i said
that there had never been the slightest
apparent foundation for runlor o. spec
. ula ton or ill-advisef investments ani
Z the patrons OF the bank are at loss
/ 10 account for what thav believe 70 be
! the enbezzlAr7ent OF the entire assets
OF the institution.
The community in which the hank g
I located is made Ut largely Of Sea ndi-
navians and the patrons were almost
entirely Of that tyne. In many in
/ stances the deposits represented -he
entire savings of the patron and # rhe
2 report of The iooting OF the institution
! proves true then Il means the w;pirg
out Of their entire fortuna ard IN some
cases the involving of others in their
failure.
At st ti7-aa DAs 1rofnes banks ware
Contracted with the deturct Institution
as CORES po1 dents a-7 nav su~er some
loss as a result % the condition re-
vealed YESTERDAY. TIE amounts :nvoiv-
ed are no- large. however or sufficient
70 cause the local 5eroei-ories worry or
financial e-nba rrassDent
to- -
Kellev this morning. according 10 an
nouncen ent made list night for the
purrose or Investigating conditions
thee ard the exact status Of the sus
pended bank
Officials Investigate.
OFFICIALS from The bank az Boone
(which purchase re notes and nago-
liable paper from penfald are said 20
have heen a. Kelley last right for the
purpose Of assuring themselves thai al
OF the paper secured vas good. In
dorse-s were assure. that no trouble
world re occasioned by the present
difficulty
A partial examination Of me cooks IF
. the p.nh j. reported - have heen made
yesterday afternoon nv experts from
outside banks. ard a,tho there was no
direct statement given out. it was ru-
mored in the village that the accounts
were found in bad shape.
A. NJ. Eggleston. the cashier, has only
been connected with TIE institution for
three weeks. going there from a Des
Q Moines insurance company AZ that time
at the solicitation of Penfeld to take
. over the management Of the bank.
Penfeld's wife and 3-year-oId child
are yet in Kelley and the former re-
fuses to believe the rurnors OF her nus
$ bands disappearance with the bank
I funds. She declared last night that he
t