Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-10-28
.BOGGS ACCUSES BANKS
CHARGES COLLECTION OF ILLE-
GAL RATES AND ENORMOUS
DISCOUNTS.
COLLATERAL NOTES SHAVED
IS TO rs PER CENT
eosss Goes on Witness Stand in Be-
half Of Plaintiff in Morrison Bank
Case in Which w. r. Jameson is Be-
ing Sued for $4,000 = Borrowed
Heavily.

ing Soso TOR $oo,ovV - borrowed
Heavily.
Waterloo, Oct. IS. THE large
amount OF money lost by banks in
Iowa by reason of the failure of the
Central Iowa Granite Company would
rot have occurred if the banks had not
knowingly and wilfully violated the
state and national bank laws in loan
ing money to the company"
The above statement vas made in
an interview by E. A. Boggs. who Sc
cured loans OF $4,000 from the Nor
rison, Iowa, bank alone and large
loans from numerous other banks in
Iowa and Minnesota TO put the granite
company, OF which he was president.
on its feet. Mr.. Boggs was a witness
yesterday for the Plaintiff il the case
wherein the Morrison bank sues W. r.
Jameson, former banker. for $4,000
damages for giving the Morrison
cashier a letter OF introduction.
Mr.. Boggs says ne has documentary
the law sufficiently 10 deprive them OF
their charters.
Enormous interest Rates.
In 1910. says Mr.. Boggs. il cost him
$4,000 to do business tina, brought
him in $4,000. When he took active
charge of the company in April OF
that year he says the indebtedness was
between $4,000 and $4,000
Il had 10 have money" he stated,
'or quit businesses. The profits were
cut into by the enormous discount
charges by banks taking on our loans.
Very little money was secured at the
legal rate. The greater bulk was at Is
or l6 per cent, while some OF the loans
reached so per cent. One bank took
s25 out OF a loan of 1885 on a short
time note
Nos. of the banks leaning him money
accepted monument contracts as COL
lateral.
Soess On Witness Stand.
For an hour and a half yesterday E.
a. Boggs, former president of the Cen
trail Iowa Granite Company. was quizzed
on the witness Stand by attorneys in
the case of Farmers Savings bank of
Morrison VS. ". r. Jameson, a former
banker in Waterloo, whom the bank is
suing for $4,000 damages growing out
Of a letter Of credit given to Boggs and.
in turn. given to E. H. Reimers. cashier
Of the plaintiff hank
The appearance Of Mr.. Boggs as
witness for the plaintiff created much
interest. as 1t had been noised about
that his testimony would probably be
sensational in its character. The most
in which ne testified that the Morrison
so per cent on the money loaned to
him. something like 1000. The av-
erage he said, was 1s and 20 per cent,
only one or two loans being for the
high rate of so per cent.
Al all times, with one or two excep-
tons. MI. Boggs answered quickly and
OF mental alertness. For the most
answers When asked 70 give the
amounts owing TO him and the Central
Iowa Granite Company in April 1910,
10 the various banks and granite deal
ers, he read from a memorandum
which he had in his pocket.
As to Solveney.
The Gloss examination also adduced
the fact that M. Boggs, in April, 1910.
thought the Central Iowa Granite
Company solvent. or that he had hopes
Of pulling thru under a load Of in
debledness Of something Ike s40.0 or
$50. 900. He admitted that he did not
know just what the liabilities of the
company were in the spring Of thar
year, and stated that it was quite
while later before he had actual fig
ures on the debts that the company
owed.
Scheduled His Assets.
| On the direct examination Mr.. Boggs
said that his assets, or the assets Of
! the company, which was copartner
! ship until Jan. l, 1911, L. D. McLoud
/ being the other partner, consisted or
/ granite worth $4,000 to 5000. tools
worth a few hundred dollars, plat
/ form worth $3.50, equities in lots in
Waterloo, his residence on Leland ave-
nue.. and about $1,000 in contracts for
monuments which had not yet been
| set. The lots were bought on contracts
and his equity in them was $500 or
s2,7o0.
The Indebtedness Of the company
! exceeded the assets Of the company
and of both the partners" he said.
Witness stated that the bulk Of the
contracts on hand in April 1910, were
carried out at a loss-thar they were
more Of liability than an asset.
Big Interest Rates.
In speaking Of the money that he
borrowed from the Morrison bank,
commencing June %, 1910. and end
ing in September, 1911. he said the
account stood $4,000 against the
company when Il failed. Probably
the notes aggregated ss7, 0G0.'' said
the witness, but that included the
discount, which ranged from Is to
Is per cent to 50 per cent"
Witness stated that the company
ceased business in January, 1912
when all the assets had been turned