The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-10-17
SIMPLY TOOK ALL.
Cashier Colean Stole Everything
He Could Find.
His Shortage Will Now Foot up
Fifty Thousand Dollars.
WHOLLY DECEIVED.
officers of the Bank Trusted
Colean Implicitly.
Nothing Will be Saved to the
Stockholders.
WHOLLY DECEIVED

KANSAS CITY, oct. ia SpeclaI 10
the Star from Ft. Scott, says: Develop
ments this morning in the case OF the de-
faulting cashier J. r Colean, of the
State bank, show his shortage to be $50,-
600 instead of $4,000. as at first sup
posed. Vice President Stewart stated to-
day that Coleau literally gutted the re-
serve fund, realizing on $4,000 of the
hest securities held by ST. Louis, New
York and Kansas City banks.
State Bank Commissioner Breidenthal
returned today from Fort Scott where he
took charge of the State bank of Fort
Scott, which was wrecked by IFS cashier
James r. Colean.
Commissioner Breidenthal says the
bank is d complete wreck as far as the
stock holders are concerned as nothing
will be saved for them.
Colean's shortage now figures up to
$50, $50 with S31 900 in notes missing 1t
is expected that possibly one-half of the
notes are up as security for part OF the
borrowed money figured in the shortage.
The book keeper i'll the bank took all
his memoranda from the cashier and it
was in this way that CoIean was enabled
to cover up his stealings
Commissioner Breidenthai SAYS the
published statement that Mrs. Colean
has turned over her life insurance and
diamonds is a mistake. In the first place
her diamonds have been for some time
stored in the bank vault and are still
there She did offer to turn over her
life insurance policies but the only paid
up policy they have is for $1,000 and
she will hardly be asked to turn that
over.
The directors and officers of the bank
are in d measure responsible for this
wreck as they have trusted implicitly in
Colean and instead of examining the
vaults and packages of funds for them
selves took Colean's word for it.
In this connection Commissioner Breid-
enthal calls attention to letter he sent
to all the banks in the state on April 23
in which he says:
81 find that in some instances the di-
rectOrs of banks fail to hold regular
meetings. and, in fact, are mere figure
heads-failing to perform any of the
duties required by law. | am satisfied
that it is the intent of our law that the
board of directors of a bank should
manage and direct its affairs, and it is
my desire that regular meetings be held
at least twice in each year, and that at
such meetings a thorough examine
tion of the affairs of their
bank be made. including a critical
inquiry into the value of all notes, secur-
tiles or other property owned by same,
and, where any losses have been sus-
tanned by depreciation in value or other
wise, record of same be made. and the
cashier be directed to charge off such
losses to undivided profit or surplus
account.
Il would respectfully call your atten-
ton to the fact that the courts are hold
irg that bank directors are personally
responsible for the proper management
thereof, and will be he'd liable for anv
losses that may occur, where it can be
shown that they have been derelict in
THAR dutv3