The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1913-06-10
BANK TROUBLES
A Failure In the Black Hills
hat Cost Two Lives

Deadwood, June loon the ground
that trial Of the officers and principal
stockholders in the defunct Meade
County bank, on criminal indictments,
set for this week at StuIgis, means
conviction on account of the extreme
bitter feeling in Meade county over the
bank failure, attorneys for Henry c.
Perkins of Sturgis. H. o. Anderson
of Sturgis, Frank Stewart of Buffalo
Gap, Harold Cooper of Sioux Falls,
Charles Francis of StuIg is and d. A.
Mcpherson of Deadwood are awaiting
the decision to Circuit Judge w. q.
Rice as to whether they will be per
mitted to have the cases tried in an
other county.
The defendants are all we'll known
men, Anderson, Stewart and McPher-
son being old-time Black Hills resi-
dents, but so keen was the suffering
| when the Meade County bank, after
two years of crop failures around
Sturgis and the removal of the troops
from Fort Meade to the Mexican
boarder, closed iGs doors Jan. 1, 1912,
with $6G8, 900 ~of'deposits tied up. that
resentment against anyone connected
with the institution has not softened
with time and the attorneys for the de-
PENDANTS declare that twelve impartial
men cannot be secured in Meade county.
The banks failure was followed by
the murder of W. L. Laid, the young
cashier, by Richard Stall, a crazed
depositor who when arrested slashed
his throat in Jail and expired shortly
after ward. Since this time most of the
defendants have received letters threat
ening their lives aud families and men
we're elected to office in Meade county
last November on the strength of
their protestations to prosecute. The
supreme court reversed the circuit
court 3 ruling quashing the indict-
nts and ordered the defendants to
trial.
The original indictments were two
against each man, charging them
with permitting shareholders to be.
come indebted to the bank in excess
of so per cent of the capital stock of
$50, 900 aud four against each charging
them with receiving and permitting to
he received deposits while the bank
was iusolvent. The defense contends
that the bank il not now insolvent and
never was but that its loan assets are
Isimply tied up with farmers who could
not pay on account Of the crop failures.
ISince the tank closed the bank examin.
or in charge has paid two dividends of
10 per cent each and the defense con.
tends that with good crops this year
and next year, the bank will pay de
pOsitcrs in full.
The prosecution AYERS that many OF
the loans made were worthless, that
, they will prove that the officers de.
, liberately took deposits long after the
t knew the cash was inevitable and in
2 some instances made loans to persona.
friends on securitv of less than Z
when the indictments were returned
the defendants demurred and Judg,
Rice sustained them. The state ther
took the case to the supreme court O.
south Dakota and secured a reversal il
which that tribunal held that the 10
dictments charged offensss and coulC
not De dismissed on technicalities
Now a special grand jury is in ses
sion at Sturgis and il is reported
that an effort is being made by the
prosecution to secure further iudict.
ments against the defendants.