Jasper County Democrat, Volume 8, Number 16, Rensselaer, Jasper County, 15 July 1905 — BANK IN HANDS OF A RECEIVER [ARTICLE]

BANK IN HANDS OF A RECEIVER

Fraud Order Issued Against a Financial Concern in St. Louis. . EX-JUDGE SPENCER IN CHARGE Sums on Deposit Amount to Sl,» 500,000 and There Is Other Security. Original and Daring Plan of Obtaining Control of Money Formulated by Edward G. Lewis. St. Louis, July 11. —Former Judge Seldten P. Spencer has been appointed receiver for the People’s United States bank, against which a fraud order has. been issued by the federal postal authorities. Judge McEllbinney, of the St. Louis circuit court, made the appointment at the request of Secretary of State Swanger of Missouri. Judge Spencer qualified with a bond of $250,000 and took charge of the bank. Secretary of State Swanger made the following report in regard to the bank’s assets: “The People’s United States bank has various sums on deposit with banks in different cities of the United States, the total amount of cash being about $1,500,000. It has also $75,000 In government bonds. There are also securities of the University Heights property and of the Lewis Publishing company amounting to $900,000.” Capital Stock. 52.500 000.

The People’s United States bank wae organized by Edward G. Lewis, of St Louis, last year, and has a capital stock of $2,500,000. The banking bueldom was conducted along new linen, most of the subscriptions for stock and deposits being solicited and received by mall. On the authority of Postmaster General Cortelyou the fraud order was issued, it being directed against E. G. Lewis and the People’s United States bands. They are barred from the us® of the mails pending a full investigation by the government and the banking authorities of Missouri. Original and Daring Plan. Probably in the history of all banking no more original or during plan for obtaining control of money was formulated than that of Lewis, now condemned by the iwstal authorities. In six years Lewis, who began with nothing, has built up a magazine with a circulation of I.tktO.OOO and another with 700.000 subscribers. With the subscription list of the Woman's Magazine and the Woman's Home Journal as a basis he planned to organize a great mail order l>ank which should dominate the financial world and bring into circulation the hoarded gold of the fanners. He got $2,500,000 in cash from 65,000 stockholders and the deposits of 500,000 persons for the bank. Will Pay Depositors on Demand. St. Louis, July 12. —Receiver S. P. Spencer of the People’s United States bank, lias been directed by Judge McIlhenney, of the St. Ix>uis county circuit court, to pay depositors on demand. The order was Issued at the request of Receiver Spencer. On Spencer’s suggestion, also, the bond of the receiver was increased from $250,000 to $1,000,000.