The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-10-25
CLOSE BANKS
AT ANNAWAN
and GE:NESEO
State Examiner Closes
Institutions After Aud
iting Books.
(SpeciaI TO The Argus.l

Especial to The Argus.)
Geneseo, Ill, Oct. 25.-The Gene
sec Savings bank and the State
Bank of Annawan, two well estab-
lished Henry county financial in
stitutions, were closed at an early
hour this morning by order of state
bank examiners after they had
worked all night on the books of
the two banks.
The following notice, signed by
w. H. Whitlock, examiner, was
pasted on the front door of the Gen
eseo bank when residents of the
city awoke this morning:
CLOSED by order of Andrew Rus
sci, auditor of public accounts, for
investigation and adjustment, Oct.
25."
The two banks are closely affili-
ated, William H. Holzinger OF An
nawan being vice president and
majority stockholder of each in
stitution, and two brothers, B. ].
Holzinger of Annawan, and Harvey
Holzinger of Geneseo, are the
cashiers.
uS GSHSSSD savings DsAHh AdS
been under the surveillance Of
state officials for sometime and,
according to statement of the ex-
aminers today, there is a serious
question whether or not the bank
will again open its door. The An
nawan bank, it is explained, was
closed more as a protection to its
depositC<s than because of its con-
dition. 1t was feared that, because
of the close connection between the
two, a run might be started by de-
positors, upon hearing of the clos
ing of the Geneseo Savings bank.
w. H. Calhoun of Kewanee, bank
examiner, and associated with Mr..
WhitIock in examining the institu-
tions, stated this morning that il
was impossible at this time to
make any exact statement of the
condition of the bank. but de-
clared that the institution had
been under the supervision of the
state auditor for some time, and
had been warned to get its affairs
in better shape. Failing in this,
the department deemed it neces-
Sary to step in and close the bank.
DCbiSu ny IkuSSC1s
In a statement issued by Andrew
Russell at Springfield, however, he
denied that the Geneseo bank is
in bad condition. Nothing is
wrong with the bank" he said,
except temporary trouble from
frozen credits The bank has too
much paper, and finds trouble in
raising money to do business. The
investigation is only for the sake
of Strengthening matters out"
bad loans and careless banking
have led the bank into this condi-
ton" Mr.. Calhoun stated. Mr.
Holzinger, being majority stock
holder in both banks, has been a
heavy borrower, and it is under
stood that he las been investing on
a large scale in oil leases"
The Geneseo Savings bank was
examined last Wednesday and it
is understood that that examina-
ton precipitated the audit which
was started yesterday afternoon.
The examiners will conclude their
work on the books Thursday, they
declared, and in all probability
the Annawan bank will then be re-
opened. There is serious doubt,
however, what action will be taken
in regard to the local institution,
they stated.
Organized in 1906.
The Geneseo Savings bank was
organized in 1906 with the late John
H. O'BTyan as president. The pres
ent officers are: President, Charles
S. Young; vice president, William
II. Holzinger; cashier, Harvey Hol-
ginger. who with John Pitus, F. c..
Zimmerman, Theodore Beckstein
and Henry Wenke form the board
of directors. Officers of the bank
attribute their present condition to
inability to make collections to
meet the current demands.
Officers of the State Bank of An
nawan are: Samuel Pont, presi-
dent; William H. Holzinger, vice
president, and B. J. Holzinger,
cashier. The Annawan bank was
a private institution until the first
OF the year, when it was chartered
as state bank.
Bank Call Statement.
The exact condition of the Gen
eseo bank will not be available
until the examiners have complet-
ed their audit. The statement of
the bank, however, made to the
auditor at the last bank call, Sept.
6, shows that at that time its total
resources were 1881 1886, of which
$293, 1859 were loans and dis
counts, $2.223.10 overdrafts, Sl2'-
700.45 United States government II :
vestments. and $9.667-S2 due from
other banks.
Its liabilities were $5o.OoO IN
capital stock paid in, $4,000 sur
plus fund, $44 unpaid div,dends'
$64. 500 bills payable, $206,lsS:I2 N
deposits and $462.54 other lia0lii-