The Denison review. [volume] (Denison, Iowa) 1867-current, 1919-05-07
HIGH FINANCE
CAUSE OF ruin
Carroll Trust & Savings Banks Fall
ure Said to Be Due to Piece Of
Frenzied Finance
PROMOTED A FIRE COMPANY
Company Capitalized for $4,000 and
Sold for $27 o00-Bank Takes Pa
per-Gives Up Hard Money

CARROLL, Ia, May 3-High finance
in the Carroll Trust & Savings bank
helped it's downfall.
| Despite it's other troubles, it may
be assumed that the bank would have
run along, but for a piece of frenZied
finance that was pulled off within the
last few weeks.
| President John Roelfsema promoted
an incorporation, the Carroll Tire
company, capitalized for $4,000, OBJ
tanning a charter under the laws of
the state, with scant visible assets.
This company" was sold to local
business man for $4,000 which was
paid for mostly in paper. This paper
was turned into the bank and hard
money taken from the vault in its
stead.
When the state banking department
was apprised of this deal, it imme-
diately got busy and sent two of it's
Imost competent examiners to look In
to the transaction. An investigation
into the general condition Of the bank
and its assets followed. Roelfsema was
called in but neither admitted nor ex-
planned anything.
Nevertheless the facts were brought
out that the company" consisting
mostly of blue sky was sold as above
stated, at an estimated profit of $40
600 to the president of the bank.
Roelfsema has turned back to the
bank, his farm in Richland township,
the land on which he applied the mon
ey obtained by the Carroll Tire COM
pany deal. He has turned over all his
holdings of real estate in the county
and his Cadillac car is now in the
hands of the receiver. Stockholders
will be assessed 100 per cent on their
stock, and it is estimated that from
property turned over by Roelfsema
end others, together with the stock
cred for the benefit Of the depostors.
Thus will the bank be fortified against
claims of depositors by the $4,000
|stock and surplus and about $4,000
realized from sources named. In 9th
Ter words, loss of $130,O00 in bad
paper can be encountered before the
fdepositors lose anything.
J. A. Dougherty has taken charge
as receiver OF. the defunct bank and
has already begun work in getting the
accounts in shape j. B. Hungerford
of the Carroll Herald says:
"The receiver will have to exercise
great care, his very best judgment in
disposing OF poor paper.
1--WE, believe that had a local man
been made receiver Of the old First
National, the assets would have paid
every dollar of deposits and part of
the stock would have been saved. We
knew at the time that Mr.. Dougherty
frequently interfered and tried to pre-
vent the wholesale despoilage of bank
assets.
"But he was not regarded by the
broken down politicians sent here as
receivers. They evinced little inter-
est in the outcome, being chiefly in
terested in the princely salary allow
ed them by the governmental banking
department. Mr.. Dougherty's advice
at the time, had it been accepted,
would have prevented loss.
''The affairs of the defunet bank will
be settled at Mr.. Dougherty's Office on
Main street. Every possible econo-
my will be practiced and the expense
of settling the unfortunate muddle will
be observed" ."''r