Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-05-15
INSIDE WORKINGS
OF DECATUR BANK
WIZARD DOF FINANCE
Cashier Bought for Himself Only
Six Automobiles in a Period Of
Two Years He Was in Con-
troll Of Things.
ALSO BUILDS A FINE HOME
Buys Deposits by Paying Higher
Rate of Interest Than
Others.
NOW TOO SICK TO SEE ANYONE

(From a Staff Correspondent
DECATUR, Neb., May l4-(Spe-
cial)--Not only was Cashier John F.
Elliott Of the deiunct Farmers State
Bank OF Decatur an adept at deelar-
ing large dividends, as shown in the
article in Sundays Bee, but he was
long on paying high rates Of interest
to the depositors
Some interesting facts have been
shown as to the method lie used in
declaring 50 per cent dividend after
he had been in the bank one year,
and the method he used to avoid
paying this dividend in cash by ''al-
lowing" the stockholders to let their
dividends stand on the books TO ap-
ply on further shares. But If the
stockholders thus thought they were
faring well, the depositors also felt
they had no reason 10 complain.
For Elliott paid them per cent in
terest on their deposits, whereas
most substantial banks in the state
pay from ) to 4 per cent.
When store pays Is cents
dozen for eggs, and aonther store in
1 the same town pays 20 cents, the lat
I ter store gets the eggs, don't itl
Well, naturally, the Farmers State
bank OF Decatur got the deposits the
same way.
SO steadily did the deposits flow
TO this marvellous" little bank where
per cent was offered, that other
4 banks in the community suffered
4 somewhat In fact, some of them
| felt il necessary 10 come up to the 5
! per cent rate in order to compete,
although they felt it was almost inn
possible TO do this and do we'll in the
banking business The result Is that
the rate OF interest in Decatur and
I thercabout still stands at about per
cent, since Cashier Elliott in his me
teoric banking career boosted II to
that figure.
Slips Extras" to Favored Ones.
While the good people OF Decatur
were getting per cent on their de
posits, there were some depositors
outside Decatur who were getting
! the Elliott bark. To some faSorite
:
and whose business he was particu-
larly eager 10 hold he paid per cent.
To whoms
Why, for example, to one Frank
Iams OF St. Paul, Neb
Iams is said 10 be well-to-do and
to have had a substantial bank ae-
count in the Farmers State bank OF
Decatur. 1t is disclosed that Elliott
paid him his S per cent regularly,
and then slipped him an extra ! per
cent as bonus.
The | per cent had 10 be handled
quietly so as to prevent its showing
on the books as part Of the 8 per
cent interest paid. To accomplish
this a check was made periodically
to zoe Peterson" which might as
we'll have been John Doe for the
said "Joe Peterson" did not exist.
The check was run through its reg
ular channels in the bank, and the
! per cent was thus obtained by the
cashier for his favorite depositor,
= Iams
. So when the Joe Peterson" OF
: "John Doe" checks were entered on
the books il would, Of course, be q
simple matter to enter them as items
+. OF expense.
. Who would ever knowr "Joc Pc,
! terson" might have been the janitor
j Yes, he might have been an itineran'
: who shoveled snow off the sidewalk
A during the winter II would be diff
i cult IL - back now and show thai
Zoe Peteracu" was never a tempo
! rary employc y the bank. There ars
!. lots OF "Ioe Petersons' in the world
/. Indians Prove Profitable.
"Sundry commission" was lis
i Of entries OF profits made by shrewt
n deals among the Indians of th'
q Omaha and Winnebago reservation 8
i Elliott enjoyed the reputation o
il being a shrewd dealer among the In
J. dians. Indeed, he held lots Of Indial
paper in the hank The Indians sigI
il notes very readily. Often when thcl
borrow $50 il Is no trouble go &c
/. them 10 sign a note for SIS. On thi
/ day nf maturity. II they cannot pay
4 as frequently happens Il Is no tFou
h Sic 10 get them 20 renew the note
q Nes, they sign notes readily, an
\ when they sign a renewal they n
\ not always care whether they ar
j. signing iof SIS nF for StTs
/, They grupt and sign, and sign am
gfuut
Yes and tbry give mortgages tsad
Fl, ily ON anything they aNW
The ssun0fY eammssions' aeeaun
n fhe FafmtF, Stale hauk ~ peCa