The weekly times-record. (Valley City, N.D.) 1912-1922, 1915-12-09
Casselton Bank Closed:
Former Officers Held

OF CaSSeltOn are closed and NatlO00
Bank Examiner c. H. Anheier is in
charge of the institution investigating
it's affairs in order that all may be pro-
tected. While the investigation has
not progressed to point where tho
real conditions are known, reports are
to the effect that the close is only tenn
porary and is made necessary by some
slow paper which it is believed is
good but will take time to realize on.
Charging false entries in the books
and embezzlement of funds, R. C. Kit
tel, former president of the First Ma
tional bank of Casselton and w. F.
Kittel, cashier, were arrested yester-
day in connection with the closing of
the doors of the institution.
Both men waived preliminary ex-
animation before United States Com
missioner A. w. Cupler late yesterday
afternoon and were released on bail
bonds aggregating $4,000. r. C.
Kittel, whose bond was fixed at $10.-
600, and w. F. Kittel, at $4,000, had
as their bondsmen Frank Lynch of
Casselton, and George Fowler of Far
CO. The Kittels returned to Cassel-
ton last night.
R. C. Kittel and w. F. Kittel before
eaving Fargo, made emphatic de-
aials of the charges preferred against
them, and said they were returning to
CaSseltOn to assist National Bank Ex-
aminer Anheier to adjust the books
and to assist in the reorganization OF
the bank" 1t was stated here that
the directors of the defunct bank are
wealthy and intend to go to the sup
port of the falling ship AID that the
closing might be only Temporary.
Sensational developments are prom
ised in connection with the closing, It
was stated last evening" A report
from Casselton at midnight stated that
"everybody was hit and everybody was
wild" Efforts to learn the amount
of the shortage brought no tangible
figures and the report that it would be
close to 100000 was declared to be
"all bosh" by R. G. Kittel.
1t was said that the bank had in
! terests in the Northern Trading COM
pany of Casselton and Fargo, and one
cause for closing was that large loans
had been made to this company in
which R. C. Kittel, former president
of the defunct bank, and Cashier w.
F. Kittel, each have big interests. The
company handles considerable land in
the vicinity of the north central part
of the state, especially in McHenry
county.
The First National bank of Cassel-
ton, was capitalized at $5O,OOO and
according to the recent bank state
ment issued the deposits amounted to
somewhere in the neighborhood OF
100000. It was said yesterday that
farmers having funds in the bank
walked the streets of Casselton in q
frenzy Of excitement, and that toward
night when the story of the closing
reached the rural communities, the
town was filled with farmers and that
the talk of the night was what the in
stitution would pay on the dollar.
Many of the laborers in this section
Of the state, had deposited their earn
ing during the fall in the bank, and
it was said, had cashier checks and
and drafts.
1t is reported here that borrowings
of R. c. Kittel, former officer of the
institution, for which the stock of the
bank was put up as collateral, is re-
sponsible for at least part of the
present condition of the institution.
However, the bank is backed by some
of the strongest financial men of the
county and it is reported that these
have come forward to the support of
the institution and that the closing
10 Ou1J IClupOl dly arrangement.
On Nov. 81 Mr.. Kittel sold his in
terests in the bank to the other stock
holders and an election was held at
which M. G. Straus was named presi-
dent and Oscar F. Gray was elected
to the vice presidency.
The First National bank of Cassel-
ton is one of the oldest banks of east
ern North Dakota, having been estab-
lished in 1882 and since that time has
held place in the front ranks of the
banks of the state.
A report from Casselton states that
the directors are working on a reor-
ganization with prominent farmers Of
that vicinity interested in the new
plan. It is said that if this is allow
ed to proceed the bank will reopen in
short time. a. l.s
n T. PooHo occicfon& state &c..