Omaha daily bee., 1916-05-14
: HIGH FINANCE"
BROUGHT WRECK
TO DECATUR BANK
Grand smashup Promises First Real
Draft on States Deposit Guar
anty Fund Since 1t Was
Inaugurated.
WALLPAPER HANGER CASHIER
Declares Fifty Per Cent Dividend
and Converts 4 Into More
Stock.
EXAMINERS STILL CHECKING UP
CBy a Staff CorrespondentJ

DECATUR, Neb,, May 13e-~(spe'
cial. Some interesting high IT.
nanciug" took place In the Farmers
State bank here during the last two
years, until the State Banking board
closed the doors week ago and took
It In charge as the first state bank
involved In trouble since the deposit
guaranty law went into effect, not
counting the little savings bank
dragged down by the failure OF a
national bank at Superior.
According to all outward signs,
Cashier John u. Elliott lis the wiz
ard" who manipulated the affairs
into their present mess. lie man
ipulated so hard and fast that Presi-
dent II. %. Byram became bewildered
could not keep pace with the move
ments, and thus resigned his posi-.
tlon some months ago, so that when
the state board locked the doors
former President Byram had long
since glvca place to Vice President
D. B. Watson, while Byram wag con.
tent to remain at home, a mere d.
rector, who did little directing al
that,
Cashier Game Like Rocket
Cashier John II. Elliott came into
the life Of this bank onIy two years
ago He came in suddenly like a
rocket and went up with the bank a
week ago like bomb. The bank
was not a paying institution even
when this painter and paperhanger
took the reins
IN Just ono year after he took
charge as cashier he declared a
dividend Of SO per cent.
Some Of The good people of Decatur
thought that was strange Others
though Elliott must be great banker.
a dividend Of 10 per cent in one year
was certainly not 10 be sneezed at Be-
sides. on the statute books rests securely
the state bank guaranty law. No de
positor could lose his money In a state
guaranteed bank. was what the people
Of Decatur said, and 80 they slept on.
BnnIsing Board somno -ent.
Yea. even the State Banking board
seemingly snoozed on, without looking
closely into the affairs Of bank that
in one year could rise from non-payng
institution to the position OF melon
cutter declaring dividend of 20 per cent.
But declaring dividend and paying a
dividend are two distinctly different mat
ters.
Here Is the way this worked: On top
Of the declaring OF the huge dividend
came the announcement thet the capital
stock was to be increased ' $1,000. The
capital stock had been 20. 1t was
now proposed to increase TO 5000
Not wishing 10 keep 30 good thing
as n 0-per-cent- dividend paying institu-
lion all to himself. Cashier Elliott offered
10 let all tha stockholders In on more
stock
Look. he even offered to let their 80
per cent dividend stand on the books
and apply on more shares. Thus, for
every $50 due a man m dividends no had
the privilege Of putting In $50 more and
taking another share for tho combined
sums.
Aud how thcy aid grab at this oppor-
umlyi
Right sud lcft the stockholders allowed
their dividends TO stand ana put in more
cash 10 make up the g5.ooo increase in
capital stock.
Two Who Had Enough.
NV ait Decatur lhtrc Nere two men who
didn't wapt mora stock Th6y we're
jerry @ Buufkc aud nr, h., A. soars
Icrfy owned oue share on which he
had ga comIps as dividend Jerry WAS
hncHe hia polaioea ar following some
equally profitable occupation. when lie
MAS offered lhe choice of taking the So
% cash or puuIns in 50 and taking ans
Qthor share Tor t.
"Heeauah. ill have no more stock, q.
Qaolh Jerry uh1 ms tha 80 IA ma
hnnt
ile E0l thH money
hf sears owned eHe share lls alsa
ftfusfH io take More stock, hpt Insisted