Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1879-01-25

to save himself from loss. Il
THE EXCHANGE BANK OF JEFFERSON |
CITY
Became state depository. as already
mentioned.
We come now to consider the tangled |
ways and tortueus course of an institu-
ton which seems to have been the prime
and sole cause of all Treasurer Gates
financial troubles
THE MAsTIN BANK OF KANSAS CITY. !
There was in this depository, accord
ing to the above table. S506, 1877 of state
money when it closed its deors.' On Oc-
tober 26 Mr.. Gates made sale of certain
Kansas City water works bonds, placed |
in his hands as collaterals to secure the |
deposits in the Mastin bank, land realized
theretrom $220.O0O. This amount he
credited to the bank, leaving still a de-
f1clt OF S286.187. This is what Mr..
Gates books show. The committee.
however, addressed the following letter
to the assignee: sr.r- -t-- -.air. /
.,., JEFFERSON CRY, Dec. II, 1873.
Kersey Coates, Esq. Assignee Mastin
Bank, Kansas City-Dear Sir-The COM
mittee appointed by the governor to set
tie with the state auditor and treasurer
request you to inform them what amount
Of money belonging to the state was
on deposit in the Mastin bank on the
day of its suspension.
Pin whose name or under what
form was the account kept at the date
of suspension? - ..,.... .'.
3EWas the claim proved up, and in
whose name?
4-Are there any funds on hand where
with to declare dividend? If so. how
much, and when may the dividend be
expected?
5-Has any approximate valuation OF
the bank assets beer made?
An early reply is respectfully reques
ted. Your obd't svr't.,
| M. H. PHELAN, Chairman.
Which ELECTED the following reply:
" - KANSAS CRY. Dec 18, 1873.
NJ. H. Phelan. Esq, Chairman. &C.,
Jefferson City, Mo.-Dear Sir-Yours ol
the 18th inst is received. and contents
noted, and in reply to your several inter
rogatories have to state rs follows VIZ
First-The books OF the Mastin bank
show that the sum of $279,732 20 stooC
to the credit OF "Elijah Gates, Tr.." a
the date of suspension. This amour
has since been reduced 1920. 900. leaving
balance due him of $59.732 20. Be-.
| Secend-rhe claim cannot be proven
up or allowed by the assignee until Jan
%. 1879, the time fixed for proving
claims in pursuance OF the statutes.
: Third--A dividend amounting to abou
5000, 900 or possibly $780, will b.
I paid pro rata in February.
Fourth-'rhe assets of the bank hav
been appraised as provided by law. an
their value assessed at about forty pc
cent. OF their face value, but it would b
impossible for me to say how much ma
be ultimately realized for the creditors
/ Resp'ly, X. COATES, Assignee.
There is an important discrepanc
between the statement of the assignee
and the treasurer's books. MIR. Gate
subsequently exhibited to the committe
what purported to be a signed ticket 10
a deposit of $187 500 in the Masti
bank, which was omitted by the assigne
in making up the balance, and tw
: ''statements OF account" on each {
which was credit of the same a:noun
The committee thereupon addressed
second and more specific letter to th
= assignee.
JEFFERSON CITY, Jan. 6. 1879.
|. K. Coates. Esq, Assignee Masti
Bank, Kansas City: Dear Sir-Ths con
mittee appointed by the governor t
settle with the auditor, and for othe
purposes, beg you to inform them whett
er the following credit appears on th
s books OF the Mastin bank: t
: deposited by Elijah Gates with tn
]. Mastin bank. January 80. 1873.
9 "Bills, $lS7 500, (check on Bank c
St. Joseph.) one hundred and eighty
seven thousand and five hundred do
+ lars.
!. (Signed] Tuos. H. MAsTIN.
= Assistant Cashier.
And if so, whether any check c
: checks were drawn against, and wher
t or what became of the money? The
j. also request you to furnish them an
K other information you may have I,
8 specting the above mentioned deposi
Respectfully, M. II. PHELAN,
q Chairman.
8 To which the following reply W:
received:
n KANSAS CITY, Mo-. Jan. 8. 1879.
Hon. NJ. II. Phelan, chairman, &c
n Dear Sir-Yours Of the 9th inst.
d hand, and contents noted.
In reply have to say that the book
It of the Mastln bank show as follows:
n Jan. 80, 1873, Elijah Gates. treasure
o received credit OF Sl87 500.
n On July 25, 1873, Elijah Gates, trea
urer. is debited S1S7 800.
AS Il matter of fact ! am informe
= that no money nor check was receive
from the Mastin bank or paid out
said bank on account OF this item.
: Very respectfully.
d X. COATES, Assignee.
q In order. if possible. to unravel thes
st apparent contradictions, the commltte
o required to be produced before them tt
l. original check itself for $lS7 500. sal
e to have been deposited in the Masti
Is bank, and paid to it by the bank of
Joseph. The cashier OF the latter inst
n tuition in obedience to the summons sci
D. down the cancelled check and it w:
e submitted to the scrutiny of the co mmi
d tee. 1t not only appeared to confirm II
It statement OF MIR. Gates and the coIrec
= ness of his books, but n comparison
= the Endorsement on the check with tt
s. signature on the deposit ticket alread
70 mentioned satisfied the committee, al
g. an expert also whose opinion was take
lr that both were signed by one and IL
W same person. The following is cor
g of the check:
T. OFFICE OF STATE TREASURER,
IS JEFFERSON CITY. Mo Jan. 20, 1878.
oi To the Bank OF St. Joseph, St. Josep
Mo-:
Pay the Mastin Bank, or order, OF
hundred and eighty-seven thousand fl,
l. hundred dollars value received, ar
e charge ELIJAH GATES,
S197 800. State Treasurer.
The treasurer also exhibited to Il
's commissioner q memorandum of to
a. notes tor $4,000 each. drawn by t
~ Kansas City White Lead and Linse
O. Oil Co, which he processes to hold
collaterals to secure Mastin bank deor
lie its. All four notes are protested, t
payment of which. it is said, is resist
on the ground of want of considerati
in suit. A certified copy of these not,
n together with nm affidavit that they g
lat now In suit In the Jackson circuit co,