Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-03-23
CHARGES or ACKNOWLEDGMENT
AND iNcoMpErENcv MADE
At CARROLL.
FEDERAL OFFICIALS ACCUSED
IN FAILED BANK CASE
charos Made That Evidence Of cr;mi.
nal Liability Hes Been Intentionally
Lost and That Rsesivsrship Has Not
Been Handled in Interests Of Cred.
ttors.
Special to Times-Republican.

Carroll, March 23.-Charges Of mis-
management, of wilful carelessness and
neglect In handling evidence OF Grim
ipulating affairs in the interest Of
few and in favor Of depositors, are
made this week by the Carroll Herald in
connection with the receivership Of
the First National Bank. which failed
when its president, w. L. Culbertson,
committed suicide. The Herald says:
Another chapter in the affairs Of the
defunc. First National Bank has been
closed and a new one commenced in the
appointment Of w. r. Lee. as receiver.
Precendents OF delay, ineffciency and
extravaganza have been established in
the conduct Of the affairs OF this insti-
tuition. that will be hard to overcome
by the new receiver. Over two years
have elapsed since this institution was
placed in charge OF the comptroller.
Mr.. Fowler, the first receiver by sacri-
ficing property made dividends
amounting to 80 per cent. There is no
question but that the property he sold
in order to do this would have brought
more money If properly handled and at
no greater expense to the creditors, who
are the parties that should receive the
greatest consideration. as the receiver
ship must necessarily be kept open UNI
til all the assets are disposed of. One
great trouble has been that the receiv-
ship has been run for the benefit of the
parties running it, the rights OF the
creditors receiving secondary consider
alton.
The real assets or in other words the
ones OF value to the creditors OF the
bank have been withheld from the
market. Other land propositions held
by other parties have been cleaned up
within the time that this institution
has been handled by the various re-
ceivers. all Of whom had as their legal
adviser, the present receiver. Mr.. Lee,
who is also the attorney for Mrs Gull
bertson the widow of the late w. L.
Culbertson Mrs. Culbertson has siren
uously insisted that the property more
especially the Hanover canal property,
would show a handsome profit If kept
long enough. This is the same idea
that actuated the officers Of the bank
when they took from the deposits OF
the bank the money that was first used
to float the enterprise. The creditors.
on the other hand. say that, as the
diversion Of the deposits to the indi-
vidual use OF the officers Of the bank
was wrong in the first instance. to con-
tinue the investment longer than is alb
solutely necessary, in order that Mrs.
Culbertson might make a profit is a
continuation OF that wrong which they
do not feel called upon to approve.
1.-THE conduct Of this matter by the
federal authorities has not been such
as to recommend federal procedure.
The criminal proceedings are the mer-
est farce. When the first Indictment
was returned against Mr.. Coburn, the
cashier. 1t is to be presumed there was
evidence enough to convict Imagine
the feelings of the district attorney.
when after the matter had been contin-
ued a term or 80. he had to announce to
the court, that the evidence upon
which he relied for a conviction had
been lost This evidence, by the way
was supposed to be in the hands Of
officers Of the court, in which the in
dictment was returned. the receiver
and his assistants and the district at
torney, himself The district attorney
did not seem to be very much worried
over the loss Of the pages from the
loose leaf ledger that was before the
grand jury. With the evidence dis
covered in the books OF the bank OF il
legal banking, by Mr. George, the ex-
pert accountant from the department
Of Justice, 1t was certainly to be ex-
pected that some one would have to
pay the penalty for the wrong done
the depositors. by an enforced retire
ment to the temporary seclusion, but
such was not the case.
'.The business OF collecting and dis
tributins the assets has been handled
with little If any, greater success than
has the criminal side OF tho matter
Whether the future holds promise OF
better things, than has been given US IN
the past 10 q matter OF speculation. inc
outcome Of which will DO watched