Rensselaer Semi-Weekly Republican, Volume 41, Number 99, Rensselaer, Jasper County, 31 August 1909 — ANOTHER CHAPTER IN TIPTON BANK FAILURE. [ARTICLE]

ANOTHER CHAPTER IN TIPTON BANK FAILURE.

President Elbert W. Shirk Arrested In Chicago Charged With Mis. applying $24,252 Funds. The First National Bank of "ip'.OD is still in the lime light; not han/ig overcome all of Its troubles wi.h the reorganization following the absconding and subsequent arrest of Noah R. Marker, the assistant cashier. Friday the president, Elbert W. Shirk, was placed under arrest by a deputy United States marshal at the Calumet Club In Chicago, charged with having misappropriated $24,252.50 of the bank’s funds. Shirk gave bond in the sum of $20,000 to secure his release and talked freely of the matter, professing his entire innocence. There is a degree of plausibility in his explanation that may prove out and he may have been unconscious of the shortage, and the amount charged against him may finally be added to the defalcation of Marker. However, his talk indicates that the bank had really been in rather bad circumstances for several years. Mr. Shirk’s explanation Is that he held the bank’s note for $24,252.50, which was a part of a loan of $45,000 Shirk claims to have made to the bank in 1904, when Marker informed him that the bank’s reserve was running low. He states that the bank did not pay him back any part of this sum until last January when he made a demand for it. In June, he states, the bank gave him a note for the balance due, amounting to $24,252.50, and the cashier failed to show that the bank was thus indebted to Shirk. Shirk later drew a check for the amount, surrendering the note, but as he was not credited with the amount, he claimed, the bank owed him, the, check appeared as an overdraft, and was discovered by the bank examiner, who at. once had the warrant issued. Whether or not Shirk’s Story is true will be developed later, but the books of the bank are said to show no record of the alleged loan and subsequent payment. The reorganized bank is evidently a sound institution, and depositors will not be affected by this later development.