Jasper County Democrat, Volume 8, Number 13, Rensselaer, Jasper County, 1 July 1905 — BREAK IS A BAD ONE [ARTICLE]

BREAK IS A BAD ONE

Shortage in the Vigo County Bank May Reach aa High as 3100,000. GOOD SHOW FOB DEPOSITORS In Spite of * Big Wad of Poor Securities - Governor Studies the Pool Law—ltems. Terre Haute, Ind., June 30.—W. D. Frazier, the national bank examiner who was designated by the comptroller of the currency as temporary receiver of the Vigo County National bank, says that it will be some days before the bank’s books are balanced and the invoice completed. The 2,000 depositors have been asked to send in their passbooks, and these will be checked up. After the invoice Is completed the assets will be appraised, and not until then will there be definite information as to the amount which creditors can expect to receive. Ha* Much Worthless Paper. Though the first official announcement placed Cashier Conzman’s shortage at $16,000, It is now reported all the way from $50,000 to SIOO,OOO. Later reports Increase the amount of worthless paper held by the bank. A banker who examined the securities said that although, like, other Terre Haute bankers, he had known of the easy manner in which loans were negotiated at the Vigo County National bank, he was surprised by what was shown to him. Of the SBO,OOO in loans and discounts there may be as much as $300,000 on which nothing can be realized, or at least SIOO,OOO of it may take a long time to convert into cash. On the other hand, it is said, that the $150,000 capital stock and the $50,000 surplus will cover the losses by the cashier’s shortage and the bad paper, so that eventually the depositors will get dollar for dollar. Identified with Local Politic*. The Vigo iiank has been known as a “political bank,” because some of Its managers have been identified with one of the factions In local politics. These factional fights in Terre Haute usually have had the control of county, city and school board treasurers as the end in view. For a time the Vigo bank had the school board money for a deposit. Again it had the county treasurer’s funds. That count?' treasurer went out of office, unable to make prompt payment to his successor, and the bank took ids property. A city' treasurer who formerly was an em-” ploye of the bank, went out of office broke. Cashier Conzinan. himself, bad been county treasurer.