The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1925-01-14
Duea Bank
Case Goes TO
Grand Jury
SUPERINTENDENT OF BANKS
WOULD HAVE INVESTIGATION
OF ALLEGED WITHDRAWAL OF
FUNDS FROM BALATON BANK.

The Lyon county grand jury will be
asked to investigate conditions in the
closed First State Bank of Balaton,
especially relative to the charges that
S. B. Duea, president and former
state superintendent of banks, and
officers made Withdrawals of more
than $4,000 on the day previous to
the closing of the bank, A. j. Veigel,
state superintendent of banks, an
nounced Wednesday s.
The statement of Mr.. Veigel fol-
lows the receipt of summons from
Lyon county, in which he is called on
to appear in litigation instituted
against him at the instigation of Mr..
Duea.
Mr.. Veigel said that when the Bala-
ton bank was closed department ex-
aminers reported long list of trans
*ers and Withdrawals on the last day,
amounting to $42,685.95, in all Of
which some of the officers and en-
ployes were interested. 1t was plain
attempt to favor themselves to the
detriment of the other depositors, the
superintendent of banks said.
"We Immediately wrote letter de-
manding that the prepaid salaries,
money and other securities be put
back into the bank" Mr.. Veigel said.
This order has been only partly conf
piled with. Mr.. Duea tried to go over
the department, but did not succeed.
''The matter referred to and others
which the department has been in
vestigating for some time will be
v,rox,oI boforo tbo y,ovf rrroy,J i,,,.x, n,
Lyon county"
The two suits filed Tuesday, Mr..
Veigel continued, were the direct re-
suit of the determination of the de-
partment to see that depositors of
the bank get square deal" and
'also the apparent desire of Mr.. Duea
to shift the responsibility of the de-
plorable condition Of his bank"
Mr.. Veigel further explained that
the bank building and furniture and
fixtures was carried on the books OF
the bank at value of $4,000 for the
building and $4,725 for fixtures and
furniture. In the suit instigated, it
is charged that the bank building and
fixtures which was sold to the Farm
ers and Merchants State Bank of Bal
@cAOh, SASNCooOiS W CiiC SiOSCQ Odiih,
did not bring a large enough return.
In relation to this charge Mr. Veigei
said:
ut was the judgment of large
majority of a depositors committee
of eighteen, which committee was ap
pointed at a meeting of approximate
ly GOO depositors, that if the bank
building could be sold at or near $12,-
200 it would be for the best Interests;
of the depositors to do so and to sell
the furniture and fixtures at the bes.
price obtainable."
The bank building was sold to the
successors for $4,000 and the fur
7liture and fixtures brought $500,
Mr.. Veigel said. That the sale
brought the highest amount obsaiE.
able was evidenced by testimony of
tne contractors who built the building
IN 1917 and who stated that it's total
cost at that time was $4,000.
The complaint served on Mr.. VeigeI
stated that the bank building in qu
estion will readily bring $30,O00 In
a telephone conversation today with
b. j. Tillemans and Mr. Glemmestad,
officials of the Farmers and Mer-
chants State bank of Balaton, sue
cessors to the closed bank, they told
Continued on last page)