Evening times-Republican., 1914-01-15
COURT PETITION ALLEGES WA.
1ERLoo FlNANclER Is IN.
SOLVENT.
r. F. M'ELHikNEY ENJolNED
FROM DlsPoslNG OF NOTES
Former Head Of Banks and othsr In
stitutions Rstirss From Connection
With Concerns Hs Controled-cams
to City Worth Quarter Of Million -
Improbable Investments.

which mas been LETT in Waterloo ap-
parently has hit one of the towns
boosters. In q petition filed in the dis
trict court here yesterday allegation
is made that F. F. MCKINNEY. banker
and capitalist and supposed to have
been one Of Waterloos wealthiest men,
is insolvent.
The court granted a temporary in
junction. restraining Mr.. McElhinney
from disposing of $500 in notes, given
him by F. A. Ferguson, president OF
the Iowa Life Insurance Company.
Mr.. Ferguson had flied the petition in
which he alleges Mr.. McElhinney is
substantially insolvent He further
claims there are large claims and obli-
cations outstanding against Mr.. Nc
Chimney and that he is pressed finan-
cially to meet his obligations
Continuing Mr.. Ferguson in his Pc
ton claims Mr.. McElhinney has either
sold or assigned as security for credi-
tors, practically all of his personal
property and assets and is substan-
TALLY insolvent. He asked the court TO
grant temporary injunction, restrain
ing Mr. McElhinney from disposing of
or hypothecating the notes, claiming
they were given McEhinney on a con-
tract to purchase stock in the insur-
ance company, and MCKINNEY has
failed to deliver the stock Mr.. Fer
guson claims he entered into an
agreement with Mr.. McElhnney On
April 26. 1918, by which the latter
eE1 Sha of Ssn in
the insurance company at a considera-
ton of $3.50 per share. Both were
stockholders in the insurance COM
pany at that time. and Mr.. McElhin-
ney was formerly president.
Grants Injunction.
Ferguson alleges he paid McElhinney
in cash and notes s4S.54O ard that Nc
chimney delivered only 294 shares OF
stock which, valued at the purchase
price of $3.50 per share, aggregates
in possession Of $500 In notes against
Ferguson for which he has failed to
deliver stock in the insurance COM
pany.
Rumors have been persistent during
the past few weeks that Mr.. McElhin-
ney was insolvent. Persons claiming
knowledge Of his financial condition
have said that some OF mis- heaviest In
vestments have resulted in immense
losses. He was succeeded as president
of the Blackhawk National Bank last
Aug. by DR.. F. w. Powers and altho
the report was given at the time that
Mr.. McElhlnney was retiring from ac-
tive business, while still young man.
that he might enjoy his wealth it wa.
claimed in certain circles that he was
forced to resign. He retained the pres
1dency Of the Security Savings Bank
until that institutions annual meeting
Tuesday evening. at which time he was
succeeded by j. w. Arbuckle.
Once Was Wealthy.
A few years ago Mr.. McElhinney was
rated as one of Waterloo's most
wealthy citizens. He was president of
several large institutions and was be-
lleVed to have the foundation for a
most prosperous career. He was the
principal factor in the erection of the
blackhawk building, one of the city's
most imposing structures He was
prominently connected with several
w Waterloo institutions for years, but
1t now becomes known. he has grad
ually dropped out Of them. thru some
cause or other.
r. r. McElhinney came to Waterloo
worth about s225,000. IIe first inter
ested himself in various banks and wa.
president at different tines of three
of them.
While retaining stock in some of the
concerns in which he was interested
1t Is understood that the stock has
oeen hypothecated with small chance
of redemption.