Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-10-25
AFFAIRS OF A GARNETT RECEIVER
SHIP BADLY TANGLED.
NEW RECEIVER TO BE NAMED.
JUDGE RIGGS SAYS SEVERAL PAR
TIES MAY GO TO JAIL.
Declares That Under Proper Manage
ment DepOsitors Would Have
Been Paid In Full, Instead
of Only n PaItry 5
Per Cent.

Topeka. Kas.. Oct. 24.-(SpeciaI) What
has become of the books of the defunct
Garnett State bank? This question is both
ering the mind of District Judge Riggs, in
whose court the affairs of the bank are
being wound up. and it will be the subject
of judicial investigation this week. Judge
Riggs will go to Garnett Tuesday. and
says he will stay there until the books are
produced or he sends several people to
Jail.
The judge was in the city to-day con-
sulting State Bank Commissioner Breid-
enthal about the affairs of the defunct
bank.
II never saw such a botched up matter.
said he to the bank commissioner in the
presence of The Journal correspondent. Il
have removed ]. G.. johnson, the old re-
ceiver, and on Tuesday will appoint George
W. Her. of Garnett. to-till the vacancy. The
astounding thing about the whole affair
is that all of the bank books are missing.
Not single one can be found. At least, it
has been so reported to me. Tuesday.
when name Mr.. Her as receiver. L shall
open up Il judicial investigation for the
purpose Of finding out where those books
went to- And some one or several parties
are liable to go to Jail if the books are not
produced. 1 believe they will turn up be-
fore l am there long.
court orders in the case aside. Johnson,
the receiver. was treasurer Of a school
district, and had about 81. 500 on deposit in
the bank when it collapsed. AS receiver,
he has turned over to himself. as treasurer
of the school district. the $500. claiming it
was a preferred claim. 1 may order him
to turn the money back, to be divided
among all of the creditors pro rata.
Another astonishing feature concern
S,,rr Pofy fIef foo St,x
have only received one small dividend-5
Ier cent-although the bank failed over
two years ago. Had the affairs been prop
erly managed. the bank would have paid
out in full. Now it is doubtful if the de-
positors get much of anything. / shall
follow the advice of Deputy State Bank
Commissioner Waterman. who examined
the receivers books recently. and will take
steps to wind up the affairs of the inSti-
In his report, Deputy Waterman had the
following @ to say, under the head OF gen
II recommend the immediate removal of
the receiver. for the following reasons: He
books and records are not kept. He is not
a good collector: he Is not giving the busi-
ness anything like his entire time and at
receiver are grossly neglected. / would
suggest that all notes of questionable
character be sold to the highest bidder at
notes be collected, or. If they cannot be.
placed in judgment. All paper not col
lected or put in Judgment by June l.. 1Sss.
should be sold at public auction and the
real estate and judgments be handled on a
per cent by the receiver. 1t is important
that this business be wound up as eco
nomically and speedily as possible, for
under existing conditions expenses are eat
ing up the assets"
According to the best information the
OBSERVATION-DISCLOSURES could get, the banks
resources. including questionable paper.
amounted to about $63,O00 while the liza
bilitieS aggregated about $35,5W.