Jasper County Democrat, Volume 7, Number 3, Rensselaer, Jasper County, 23 April 1904 — Page 1

Jasper County Democrat.

si.oo Per Year.

ITIS AMATTER OF HEALTH tm POWDER Absolntely Pare THERE IS NO SUBSTITUTE

Corn 38c; oats, 36c. N. L-jLitt'eSf Id was a Fair Oaks visitor Sunday. L. C. Ham of Morocco, was in the city Wednesday. k/A. S. and Mel Laßue were Koselawn visitors Sunday. U. M. Baughman was in Valparaiso on business Tuesday. J. Bartoo of the Morocco Courier? visited here Sunday. Watch The Democrat’s editorial ' page for township convention dates. . W. L. Myers, dentist, will open an office in the K. of P. building May 1. <j E. P. Honan was in Lafayette and Chicago several days this week on business. ’ Carmichael of Missouri, visited his uncle, J. C. Carmichael, here this week.

Jordan township democrats will hold their convention to-day to nominate a township ticket. XJohn H. Jessen and son Lloyd, A. F. Shesler and F. E. Babcock «were Chicago goers Snnday. v/Miss Mary Eger, who has been in Colorado for the past year or two, returned home Monday. The Occidental hotel, one of the old landmarks of Indianapolis, was destroyed by fire Sunday night. New subscribers to The Democrat this week by postoffices: Wheatfield, 6; Tulsa, I. T., 1; Lee, 1; Demotte, 1. D. L. Hogan has bought an interest in a house furnishing business in Kankakee, 111., and moved with his family to that place this week. Dozens of people are taking advantage of our big subscription offer of the Democrat and the St. Louis Twice-a-Week Republic, both papers for only $1.50. James Murray writes us to change the address of his Democrat from Stoutsburg, this county, to Baldwin, Mich., where he will make his home in the future. V Miss Bessie King, who intended going away to school, has gone back to work in the Jasper County Telephone Co’s, exchange. Her money was in the McCoy bank, E. T. Jones of Covington, Ky., is now employed on The Democrat, as foreman of the mechanical department, and expects to move his family here in a few .weeks. The stores of Lee & Poole and McDonald at McCoysburg were broken into by burglars last Sunday night and cutlery and other goods to the value of f 150 to S2OO was taken. The Logansport Presbytery which met here last week elected Rev. A. G. Work of this city delegate to the general assembly which meets in Buffalo, N. Y., next month. Simpson is making some improvements to his residence property in the west part of town, raising the old house, putting under a new foundation and building an addition thereto. Theodore Lang came here from Indianapolis last week to visit a few days before going West. He left his money in the McCoy bank for safe keeping while here, and- 1 -well, he is still "visiting” at this writing.

THE HIGH RATE OF INTEREST CAUGHT THEM.

As the days pass, more and more victims of the McCoy bank failure are heard from, and the prospective liabilities are increased. For the past few years this bank has been paying from one to two per cent, more interest than the other banks here, it is reported. People having a little money saved up wanted to get as much for it as possible, and took it there, attracted by the high rate of interest. It is now believed by many bank has been practically insolvent for several years, and has been kept going on the deposits attracted by the six per cent, interest, • Following is a list of those we have learned of who are alleged to have had money in the *McCoy bank, which closed its doors Monday. We do not vouch for the correctness of amounts. Many of those whose names appear gave us the amounts themselves, and those are no doubt correct. There are, of course, hundreds of others of whom we have not heard, and a great many drafts and checks that had been sent away are coming back protested: Jerry Healy.: $ 600 00 J. F. .Major 3,000 00 John Eger 1,500 00 John Sullivan 500 00 Sarah McEwan....... 500 00 J. R. Phillips.... 1,500 00 John Hordeman 100 00 Harry Zimmerman 700 00 W. M. Hoover 200 00 J. C. Porter 150 00 Rebecca J. Porter 500 00 W. H. Eger 6,000 00 J. J. Eiglesbach....... 300 00 Joe Larsh and wife.... 200 00 Mrs. C. P. Wright..... 100 00 Peter Hordeman, Sr... 1,100 00 Mrs. Bingham 1,700 00 George Andrus. 600 00 John Andrus 100 00 Charles Stackhouse.... 470 00 John Healy 800 00 John Bill, tp. trustee.. 1,500 00 John Bill, personal.... 1,000 00 Jasper Co. Tel. C 0.... 300 00 J. H. Chapman, city trs 610 00 Miss Maud Irwin 600 00 Jas. F. Irwin 3,000 00 Geo. E. Marshall 400 00 Leslie Clark 200 00 George Strickfaden. t .. 1,000 00 Presbyterian ladies’ so. 150 00 Judge Thompson 6,000 00 W. H. Beam, Monon agt 600 00 C. F. Pence, foreman Morris Ranch 10,000 00 Joseph Stewart, tp. trus 1,000 00 S. L". Luce, tp. trustee. 2,000 00 C. M. Blue, tp. trustee. 4,000 00 Scott Bros. 500 00 John Makeever 1,000 00 F. M. Hershman 2,000 00 A, D. Washburn. 1,600 00 Thos. Grant 3,200 00 Catholic College 2,800 00 G. Wilcox, tp. trustee 3,000 00 The Tuteur family.... 28,000 00 Joe Jackson. 1,800 00 Comrad Fox • 300 00 Chas. Chamberlain.... 1,600 00 Wm. Bennett 3,000 00 John English 800 00 Geo. Meyers 140 00 Benj. Barger 1,000 00 Catholic Foresters 500 00 Joseph Luers 300 00 Two Lafayette banks.. 20,000 00 Mrs. Jesse Nichols.... 940 00 Fred Stocksick 900 00 Mary Eger 1,000 00 Dr. Horton.. 700 00 J. H. Cox 500 00 Rev. W. H. Fisher.... 52 00 David Worland 180 00 Bowens, Delphi bankers 3,500 00 L. H. Hamilton 250 00 Mrs. A. Pruett.. _ 200 00 Warren Robinson 2,000 00 Stephen Comer 700 00 J. J. Hunt, $2,000 t 0... 3,000 00 Halstead Bros 200.00 Lan McDonald... 5,000 00 Co. Treasurer SIO,OOO to 30,000 00 James Lewis 100 00 Mrs. Michaels, Barkley 2,700 00 Mrs. John Nichols 100 00 Warren Poole 800 00 W.R. Willet 100 00 Reed McCoy 110 00 Geo. McCoy • 200 00 Eliza Galbraith 190 00 Ed Sutherland 600 00 Alva McCashin 1,300 00 James Shindelar 400 00 Joe Branson 150 00 Henry Gr0w.......... 800 00

CARD OF THANKS. We wish to return our sincere thanks to all who assisted us during the sickness and death of the dear wife and mother. These acts of kindness will be gratefully remembered by the bereaved family. W. E. Moore and Family. r 5 Per Cent Farm Loans made by Austin Hopkins.

Rensselaer, Jasper County, Indiana, Saturday, April 23, 1904.

COURT HOUSE NEWS.

Items of Interest (lathered In the Offices of the County Capitol. Marriage licenses issued: April 20, Nelson Randle to Harriet P. Phegley. —o — County Clerk Major expects to turn over the business of his office to his successor next Saturday, April 30. Miss Alice Bates, who has been Mr. Major’s deputy for the past year, will remain with Mr. Warner for the present. Robt. Parker vs. Frank Thurston et al; judgment for $856.60, and for cross-defendant Chappell for costs against the Thurstons. Josiah H. Allman was appointed guardian of Philip Hawn, insane. Della D. McLaughlin was granted a divorce from John McLaughlin and the right to resume her maiden name of Russell. Gus Rogers, aged 16 years, a DeMotte incorrigible, was sentenced to the reform school. —o—- . New suits filed: No. 6659. Linne A. Gant vs. .Mary R. Gant, Orphie H. Gant, William J. B, Gant and Okel W. Gant; action in partition. No. 6661. Colburn, Burke & Company vs. Samuel M. Laßue; action on account. No. 6662. The Scott Hay Press Company vs. Merritt Straifi; action on note and mortgage. No, 6663. J. J. Fry vs. American Trust and Savings Bank et al; action for damages. The above case grows out of the failure or assignment of the Roselawn bank last September. The complaint alleges that plaintiff had a credit of SIO,OOO with the above Trust and Savings Bank of Chicago and upon which he had a right to issue checks and orders; that among said credits was a credit of $5,500 in drafts on A. McCoy & Co’s bank of Rensselaer, Ind., which said Trust and Savings Bank accepted as a credit in favor of plaintiff; that said drafts were accepted as their own property, and not for collection for plaintiff; that said draft was duly transmitted by the American Trust and Savings Bank to its correspondent bank and agent at Rensselaer for collection that said draft was presented at said A. McCoy & Co’s, bank for payment and was immediately paid; that plaintiff also had a credit of SIO,OOO at A. McCoy & Co’s, bank against which he had a right to issue checks and orders; that said correspondent bank reported to said Trust and Savings Bank that said draft had not been paid, which action ruined plaintiff’s credit, caused him to close his bank and make an assignment; that he has been damaged in the sum of SIOO,OOO, wherefore he demands judgment for said sum of SIOO,OOO. No. 6664. Ray D. Thompson vs. George W. Tanner and Wm. W. Burns; action on note, demand S2OO.

RANDLE—PHEGLEY.

Mr. Nelson Randle and Miss Harriet P. Phegley were united in marriage at the bride’s residence, southwest of town, Wednesday evening at 8 o’clock, Rev. W. H. Fisher, of the M. P. church, officiating. Quite a large number of guests were in attendance, most of whom were relatives of the contracting parties. And elegant lap supper was served after the ceremony and congratulations. Mr. and Mrs. Randle are visiting relatives in Carroll county, leaving on the 11:10 train Wednesday night. They will return to-day or to-mor-row and take up their residence in the groom’s handsome home on North Main street. The Democrat unites with the many friends of the contracting parties in extending congratulations.

CHOICE SEEDS. It’s time to get your Garden and Flower Seeds. Don’t try to save on the seeds this year, but get thse that grow and grow true to name. Rice’s are the kind. Plenty for your money and your money back if they don’t grow. They are for sale in the stores in your town. Be sure that you select them from boxes marked “RICE’S SEEDS.” Try them this year and be convinced, as others have, that Rice’s Beeds are the best. Read The Democrat for news.

McCOY BANK CLOSED

Oldest Financial Institution In Jasper County Goes to the Wall.

SEVERE BLOW TO THE DEPOSITORS Who Number Hundreds In Various Walks of Life. ASSIONHENT MADE TO WM. A. RINEHART, A SON-IN-LAW. Assets About $250,000; Statement of Liabilities Not Yet Made; Will Likely Exceed Liabilities. last Monday morning, the following type-written notice was posted on the glass of the front door of A. McCoy & Co., private bank: i Rensselaer, Ind., April 18, 1904. “Owing to sickness and other matters this bank will be closed and will go into liquidation. A. McCoy & Co.” As soon as the full purport of of this notice became apparent groups of men gathered on street corners and discussed the matter. Some could hardly realize that the bank which had done business here for half a century, and was regarded by most people as one of the strongest institutions in Northwestern Indiana, had failed, and this, too, when it was supposed that it was reveling in the prosperity of which its proprietors had had so much to say. As the day progressed the groups became more numerous and the discussion became more animated. Some of the bank’s strongest friends thought in the morning that the suspension would not mean a loss to the depositors, but that the large landed assets were sufficient to cover twice the liabilities, but when people began to unbosom themselves who had funds deposited there, and it was found that hundreds, if not thousands, had been caught, it was seen that the liabilities would reach a much larger sum than first supposed, and grave fears were felt of its being able to pay outX To add to the uneasiness of its creditors, W. A. Rinehart, A. McCoy’s son-in-law was appointed by the McCoys as receiver. The creditors thought—many believe rightly—that the receiver should be some one outside the family; that in the appointment of a member of the family there were matters concerning the bank’s business which it was desired to keep secret, that an assignee should be appointed who would not be hampered by relationship in making a diligent search for all the assets. It was thought at first that every dollar’s worth of property would be turned over to pay the creditors, but Monday evening a deed of assignment was filed with the recorder, naming Rinehart as assignee, covering the bank building, a few vacant lots in Rensselaer, 2,233 acres of land in Jordan tp.; one-half interest in 519 acres in Union tp.; 40 acres in Lake county (Tom’s Island in the Kankakee); and one-half interest in 320 acres in Section 27, Gillam tp., but the wives did not join in the deeds nor was the fine residences of the McCoys on McCoy avenue turned over. The latter belong to their wives, and their not turning them over to the creditors and thus be thrown out of a home, is not generally criticised. It i§ said they will join in the deeds of assignment if Mr. Rinehart is allowed to act as assignee. The schedule of personal property was as follows:

SCHEDULE A. Aggregate value of secured notes.sls,ooo Aggregate value of unsecured notes SIOO,000. Some of which are up for and as collateral. Aggregate value of all other credits, choses in action, unsecured.. .$25,000 330 head of cattle, 8 head of horses, 15 head of mules, 60 head of hogs, 200 head of sheep and goats, 10,000 bushels of corn, 3,000 bushels of oats. Household goods and furniture, carriages, wagons, buggies, etc. A more detailed schedule of personal property will be filed later, the assignment states, and that they have not transferred or reserved any sum of money or article of for their own use or to any other person nor acknowledged a debt or confessed a judgment to any person or perons with the intention of delaying or defrauding their creditors It is thought that practically every resource was exhausted by the bank, except mortgaging the Jordan township land, before closing its dqors, and that most of the gilt-edge paper was up for collateral with other banks and persons in an endeavor to tide matters along, and that the paper left is'mostly unsecured. The land is worth probably S6O per acre, on an average, the Jordan land possibly being worth $65. The total assets will probably foot up to $250,000, but no complete statement of liabilities has been made as yet. It is thought by many that they will reach near $500,000. If such is the case it is not likely creditors will realize more than 50 to 75 cents on the dollar. Many hope it will prove better than this, however, and some still think that it will pay out in full. A. McCoy says that if given time, and the assets are not sold at a sacrifice, he thinks it will pay dollar for dollar, He says, so we are informed, that the bank has been paying out nearly $2,000 per day more than it took in for the past two months. On April 7th the elder McCoy transferred his half interest in 1900 acres of land in Hanging Grove township to his daughter, Mrs. Mattie Rinehart, who owned the other half, and she immediately mortgaged it for $37,000, of which $17,000 went to one of the banks here to discharge McCoy bank obligations, and the remainder is alleged to have been paid out over the counter of the latter bank on depositors’ checks. It is also alleged that when the bank closed Saturday night there was less than SSOO in cash in the safe.

The bank of A. McCoy & Co., was started here in 1854 by Alfred McCoy and Alfred Thompson, and was the oldest bank in Jasper county. It had been largely patronized by the farmers and stockmen of the county and was regarded by most people as solid as a rock. Quite a number of former patrons, however, had felt for the past few years that it was doing tod reckless a business, and quietly withdrew most of their money and placed it in the other banks. Ten years ago Thomas J. McCoy was taken in as a partner and given practically sole control of the institution. Tom was a whole-souled, genial fellow, fond of expensive society, and was known as a high-roller of the first water. Many people felt that his pace was too fast to last. The elder McCoy is reported to have said Monday that when Tom came into the bank he (A. McCoy) had j all his land clear, hundreds of S

Vol. VI. No. 3

head of cattle and $30,000 surplus. On the other hand, A. McCoy often went to extremes knd made investments that proved disastrous. He also had a penchant for betting on elections, and lost considerable money in that way. Tom had to hold him down in some of these matters, and the blame for the present condition of affairs should be shared by both parties, is the opinion of many. Of the depositors, many were widows and laboring men, school teachers, etc., besides nearly every township trustee in the county is caught for Various sums, most of them for SI,OOO to $4,000, and the county treasurer had funds there, which amount he has variously stated, we are told, all the way from $3,000 to SIO,OOO. As this was near the end of the spring tax-paying time, many people think he had $20,000 to $30,000 there. One feature that is causing considerable adverse criticism is the alleged taking of deposits Saturday afternoon and alleged refusing to pay some larger checks. One check for $112.18 was protested Saturday night after it is alleged it had been presented twice during the day for payment.

It is rumored that the creditors will not allow Rinehart to act as receiver, but that they want Granville Moody, John F. Major, or some equally capable and disinterested man to act. There promises to be a lively tilt over this part of the matter before it is over with. Mr. Rinehart informs The Domocrat that if he acts as assignee he will do the best he possibly can with the business. He thinks, from what T. J. McCoy tells him, that the liabilities will not run over $325,000 to $350,000. While he hopes that the bank will pay out in full, yet he does not hold out much promise of its being able to do so. He thinks, however, from what little he knows now, and what Tom has told him, that it will nearly pay out. . The only thing the creditors can do is to keep cool and wait the filing of the schedule of assets and liabilities. This will probably not be done for several days. T. J. McCoy is still confined to his home with what is said to be a severe case of appendicitis, and few outside his family is allowed to see him. The assignee has just begun work with the clerks compiling a schedule of assets and liabilities. He has not been confirmed as yet as assignee, and we understand that this cannot be done until the schedules are filed, when he must put up a bond of double the amount of the liabilities. He has fifteen days in which to complete the schedule. Depositors are daily growing more pessimistic over the matter, perhaps unreasonably so. Whatever the final outcome, the final outcome, the failure is a deplorable one, and ties up a large amount of money, and will hurt business in Rensselaer and Jasper county for the next year. While The Democrat would like to offer some encouragement to the creditors, yet it should be borne in mind that the failure is not the result of a sudden run, but is evidently caused from many years of bad management. An unexpected run leaves the bank its secured paper, only exhausting its ready cash, while in the latter case every resource is usually exhausted before its doors are closed. We do not think, however, that it would be wise for creditors to sell their claims, but to await developments. The prospects now are that the wives of the McCoys will not join in conveying the real estate, but will claim their one-fifth interest in the same. This is admitted to be the most valuable asset the bank has, aad if the wives claim their fifths n will materially reduce the available assets.