[Volume XXV
THE CHICAGO BANKER
12
through our St. Paul correspondent. Why the clearing house association decided to prohibit us from clearing on such short notice I do not know. If they had given us more time we would have been able to make arrangements that would have carried us over this difficulty without it being necessary to call in the bank examiner.”
The Citizen’s State Bank
The Citizen’s State Bank of Winnebago, with capital of $25,000 has been authorized. The incorporators are Herman H. Fruechte, Henry C. Fruechte, F. H. Deters, August Deters.
The Northwestern National
The Northwestern National has let the contract for the extension of its banking room out to the street front of the building. This will make extensive changes in the interior arrangement and is the result of the heavy increase in the use of the banking lobby by customers. George B. Lane, commercial paper, who occupied the room corresponding to the president's and directors' quarters, will remove to a fine room under lease of the Security National in the Security Bank building, on the ground floor.
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City of Chicago Bonds
City Comptroller Walter 11. Wilson opened bids Tuesday for the $1,000,000 City of Chicago General Corporate 4 per cent bonds. The Hibernian Banking Association bid par and accrued interest. A syndicate composed of Lee, Higginson & Co., the Northern Trust Company and E. H. Rollins & Sons bid par ancl accrued interest, less a commission of $i •537• N• W. Halsey & Co. bid par and accrued interest less $2,100. The Harris Trust and Savings Bank bid par and accrued interest less $1,900. The bids are practically the same as those made for the last preceding issue. The bonds were awarded to the syndicate headed by Lee, Higginson & Co.
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Iowa Bank Custodian a Burglar
Iowa City, la., September 1.—Henry C. Brock, a church worker and custodian of the Iowa City State Bank, is under arrest charged with burglary of business blocks. He confessed and several hundred dollars’ worth of jewelry and clothing was recovered. It is believed he is insane on the subject of religion and buried his treasure. Brock tried to break jail this afternoon and was put in a straitjacket.
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The Bank of Mechanicsville
The board of directors of the Bank of Mechanicsville, (Ind.) have appointed Ernest M. Anderson cashier of that institution.
vice-president, is son of the late H. Quimby, banker of Preston, Minn., A. W. Harper, cashier, is from Volin and other South Dakota banking towns.
Personal Mention
E. W. Decker, vice-president of the Northwestern National, has departed for the far West on his annual bear hunting trip. Mr. Decker has been a close second to President Roosevelt as a hunter, but has as yet laid no plans for going farther from home than Western Canada.
Alex. V. Ostrom, assistant cashier of the Swedish American National, has returned after a vacation of four months, thoroughly rejuvenated. The last two months were spent in a trip to Alaska, and in lolling on the sands at Long Beach, California, making drafts on Nature’s storehouse of health, which she honored.
Ernest C. Brown, assistant cashier of the First National, has returned to Minneapolis after a long stay in the East, with a brother who is a leading attorney.
Takes Charge of Two Banks
The state examiner, A. Schaefer, has taken charge of the State Bank of St. Paul, and the Citizen’s Savings, which is affiliated with it. The liabilities are $150,000 with secured resources sufficient to pay 100 cents, it is reported. The plan is to reopen the institutions. The deposits in the former bank are $97,000, and in the latter about $125,000. At the last statement the latter bank had 1,552 depositors and $339,400 in deposits. The banks had the same board of directors. The State Bank was organized in 1890 with $100,-000 capital. It was involved in the circumstances which led to the closing of the Drew banks several months ago. Thomas Bruse-gaard is the president. Fie says of the closing of the bank:
“The first intimation we had that rocks were ahead was yesterday afternoon when we received a letter from the clearing house association, informing us that we would have to make some other arrangements for clearing, as it could no longer handle our items.
“We did not have a member of our bank on the floor of the clearing house, but cleared
Unusual applications for bonds and tax certificates with the St. Paul city treasurer, Louis Betz, indicate improvement in financial circles as well as the popularity of the St. Paul securities. The treasurer says the city could easily dispose of $50,000 in bonds in this manner. Requests have been received in amounts as low as $400 for 4 per cent bonds, and as high as $10,000.
Wallace Campbell on Deposit Guaranty
Wallace Campbell, until recently president of the People’s Bank, has returned from looking over oil interests in Tulsa, Oklahoma. Fie has studied several questions in connection with the beginnings of the new state. Of the bank deposit guarantee feature he says: “The sentiment of many able bankers there is against the state guarantee of deposits. Among the reasons given are that it requires the able and honest bank to pay for the losses of the incompetent, or dishonest banker. Many able lawvers are of the opinion that the law is unconstitutional, and a test case is now on the way. If the state may compel successful and conservative bankers to pay for the dishonesty or incompetency of competitors, why may the state not compel successful grocery-men to reimburse the creditors of dishonest or unsuccessful grocerym.cn ? If the results of integrity and good judgment, as business factors, are to be eliminated by the state in one line of business, why not in all lines? And is not such a proceeding depriving honest and successful bankers and stockholders of their property without due process of law? These are some of the questions being asked, and public opinion is far from settled on the question.”
The Minneapolis State Bank
The Minneapolis State Bank has been organized with $25,000 capital. It is to open for business on September 15th, on Lake Street, a cross town avenue in the southern part of the city, which is without banking facilities. Two or three projects had been formed for placing a bank on Lake Street, and it is expected that other ones will now be set aside. Prominent business men of the neighborhood have taken stock in the new bank. F. M. Powers, president, is a former alderman, and is in business on Lake Street. Roy Quimby,