Jasper County Democrat, Volume 10, Number 43, Rensselaer, Jasper County, 25 January 1908 — CHEADLE ELECTED [ARTICLE]

CHEADLE ELECTED

Trustee of Defunct Bank of Remington. A BIG MEETING OF THE CREDITORS And Over Six Hundred of the Eleven Hundred Individual Claims Were On File. ■pThe meeting of the Parker bank creditors at Remington Saturday resulted in W. H. Cheadle of Gilboa tp., Benton county, being chosen for trustee. His only opponent for the place was attorney Jasper Guy of Remington, who received some 23 votes to Cheadle’s 195. Quite a number of the votes for Mr. Cheadle were by power-of-attorney, and when it developed to Mr. Guy’s friends what was being done in securing the power-of-at-torney votes, a number of his chief supporters, on his advise, it is said, did not vote in the meeting at all. Among these were his brother-in-law, Robert W. May, the second heaviest depositor in the bank, and a number of other prominent people. Y There were some 60U claims filed before the meeting was held, and of these only about one-third voted. Mr. Cheadle, the successful candidate, is a good man, a farmer and a former township trustee of his township. No one can say aught against him in any way, and he will no doubt give good satisfaction as trustee. With the class of substantial citizens who were for Mr. Guy, such O. P. Taber, James Clowry, Hugh Treanor, Chas. Bonner, Sr., James Green, E. A. Hunt, John Kettering, Messrs. May, Elmore, Hand, Washburn, French, Broadie, Hartman, et al, be has reason to feel proud of the support given him, his friends contend, even though his opponent was elected. The meeting was called for 10 a. m., and of the about 1100 depositors of the defunct bank, probably 400 or 500 were in town to attend the meeting. Referee Bowers came in on the train from the east at about 9:30 and it was soon announced that the election of a trustee had better be postponed until afternoon, in order to give several a chance to file their claims who had not already done so. Accordingly it was postponed to 1 p. m., and the place set for holding it in the Townsend hall, in the old Durand’ block. This hall probably held 400 to 500 people when the afternoon meeting hour drew nigh, and a number of those present were women who had lost their savings in the bank. At 1 o’clock it was announced that the election would not be held until 2 o’clock, and when finally the meeting was called to order by Referee Bowers of Hammond it was about 2:80. - Mr. Bowers talked for perhaps twenty minutes, explaining some points of the bankruptcy law, and among other things stated that the election of a trustee was by and for the benefit of the unsecured creditors, and that it had been reported that a number of the creditors had been preferred by the banker and been given notes and other securities about the time the bank closed; that some of these' preferred creditors were known, and,that as it was desired to have the election fair and honest, any creditor who had received a preference should refrain from voting for a trustee, that if they were preferred the* fact would later become known, and it was not the intention of the law for such to vote. The law regarding these preferences went back to four months prior to the.bank’s closing, be stated, and the parlies receiving them could not legally vote until the securities were returned. If they were not given at the the debt of the bank was created they were not legal, he intimated The successful candidate must have both a majority of the depositors’ votes and a majority of the) money represented. Minors—of whom there were nearly 300 is the savings department—were not allowed to yote, and if the name of a party appeared mon than once in the list—which frequently occurred—they were entitled to vote but once. >

The referee also stated that there seemed to be a number of claimants who had what purported to be building and loan certificates, and while it might develop later that these certificates were liabilities of the bank, they would be excluded from having any voice in the election of a trustee. The mode of voting seemed to have been misunderstood, or was changed by the referee after his arrival, as it was generally supposed they would Vote by card with name and the amount of their Claim thereon and the name of the party for whom they wished to vote, etc. Many of those wno had signed these cards became muddled and didn’t know hardly where they were at when it was ordered that the voting be as here-to-fore stated. The power-of-at-torney move seems to have been sprung by Wm. Darroch of Kentland, who was employed by a of the creditors to look after their interests and who was in attendance. Some 600 claims had been filed and allowed, and the names of these parties were then read in alphabetical order, with the amount of their deposits with interest computed to the date of the bank’s closing, and when a name was called the party if present and entitled to vote was requested to state whom he or she wanted for trustee. These were taken down by four “tellers.” The heaviest depositor, John Burger of Huntington, a brother-in-law of Mr. Parker, had, with interest addled, $28.318 85, and when his name was called he voted for Mr. Guy. Asked if he had any security for this claim, he answered in the affirmative. Asked the nature and amount he stated that it was automobile engine stock —The Western Motor 00., of Logansport—that the face value was $21,000 but that he did not know its actual value. The referee decided that for the time being he would be allowed to vote on only the unsecured $7,318,85. Other questions of minor importance arose from time to time during the tedious reading of the long list, and it was after five o’clock when the reading was completed.

Some creditors have offered to take as little as ten cents on the dollar, but there seems to be no takers. Ellis Jones was much in evidence at the meeting and did some strenuous work for the successful candidate for trustee. Notwithstanding the heavy* losses to many people, there was not the bitter talk against Mr. Parker that one would have expected to heaf. Mr. Parker, the “busted” banker, was not in evidence, and is said to stick very close to the house. His attorney Frank Foltz was over from Rensselaer in consultation with him Friday night and Saturday morning, It seems to be the general opinion that the Parker family will not remain in Remington long, but will go to St. Louis, where their eldest daughter, Mrs. Mabie Templeton and husbaud are living, and where their son Lowell is also located. Quite a number of creditors were given securities, it is reported, after Mr; Parker had closed the bank doors and bad notified the state officers to come and take charge. These will likely be returned if the trustee pursues the matter as he should. “Billy” Holland has been nightwatch in Remington for fourteen years. All this time, he states, he has been watching the Parker bank every night to see that no robbers got in and made off with the cash. Now it develops that the robbers were right inside all the time.

Charlie Beal, who was employed for several years in the Parker bank, giving up his position a few years ago to become a granger, is at present employed in the First National Bank of Remington, but will move in the spring upon the farm which he now owns near Remington. O. P. Taber grows better looking every day, and it is generally conceded that he and Tim Harrington are the two handsomest men in Remington. Postmaster Peck used to be in the list but a fat government salary and high living have broadened Ed’s form out too much, and he is now in ths “has been” class. The First National Bank is located in the room in the Durand block where the old bank of Durand & Co., used to be. This is a good roomy place but the location is not as good as the Parker bank building, and the stockholders may decide to purchase the latter when it is offered for sale by the

trustee. However, if there is but one bank in the town the location will not make so much difference, and as its present quarters are the most jroomy it may be thought best to remain where it now is. The old veterans of many a bard fought seven-up game who gathered around the table in a room across from the “convention ball” gave no heed to the business that was occupying the people across the way. John Tharp and John Porter pounded the table so hard when planking down their extra heavy trumps that the noise occasionally almost drowned the voice of Referee Bowers wfio was reading the list of the victims of misplaced confidence. Remington and the surrounding country is peopled with the best folks on earth, and it always gives us pleasure to visit there on a big day and meet the hundreds of old friends whom we used to do jusiness with several years ago when conducting the Remington Press. We also feel highly honored by the splendid support of ;hese people which has followed us to Rensselaer and gives The Democrat a circulation of several mndred copies through the Remngton post-office, a circulation hat has been growing, too, year by year. There are no friends like the old friends, and we assure these old friends in particular that their patronage is deeply appreciated.

Regarding this Western Motor Co., stock, of which there seems to have been considerable given out as collateral security, we understand there was originally issued $200,000, one-half of which is “preferred” stock and one-half “common” stock. Of course the preferred stock has the first claim and therefore the common stock is of rather questionable value. It is reported that some $25,000 of the preferred stock has been retired, so that only about $75,000 of such preferred stock is now outstanding. As to what is the value of the plant at Logansport we are unadvised, but it is rather doubtful if this stock that is out as collateral has very much value at present. A well known citizen who had some $14,000 in the bank on time certificates two or three years ago, bought a farm in Kosciusco county, of Strauss Bros., the Ligonier bankers and real estate firm. The deal was made in the fall and the certificates were not due until March. He told them that he would pay for the farm at once if they would take these certificates and allow him interest on them to date they were due. After some thinking over the matter they decided to take them, but they got their money or its equivalent before leaving town and they told the party they got them of that the Parker bank was rotten as h —. A few days ago the gentleman saw the Strauss whom he dealt with, and the latter said: “Remember what I told you two years ago about the Parker bank?”