Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1897-11-10
KIDD SHOULD EXPLAIN.
Edgerton People Awaiting a State
ment from the Bank
Examiner.

Madison, Wis, Nov. 6.-[Special. i
There are a good many people in the
state, and especially some of the unfor-
tunate individuals who have been doing
business with the now defunct Bank of
Edgerton, who are just now wondering
for what purpose the Office of state bank
examiner was created. Their wonder is
increased by the confession of the cash
Ter that he has been stealing the banks
money for many years past and has sue
ceeded in getting away with an amount
larger than the capital stock of the in
stitution, without his populations being
discovered. Most people have had the
idea that the purpose of the creation Of
the office of state bank examiner was to
prevent the possibility of just such oc-
currences as this.
The public is still waiting for Bank
Examiner Kidds explanati ton as to now
1T was that he did not discover and re-
port the condition of affairs at the Edger-
ton bank long ago; they want to know
If the law under which he conducts his
examinations does not give him sufficient
authority to find out what the banks ac-
tual condition is, and if not they wonder
what is the use of having any eXamina-
tons at all. A gentleman who has been
IN Edgerton, and who has taken an in
tereSt IN inQuiring into the matter says
that Mr.. Kidd did discover that things
were not as they should be when he made
his first examination of the bank, about
three years ago. He found among other
things that the accounts of certificates
OF deposits were considerably mixed. He
told. the bank officials that they should
strengthen this matter up. He also found
a remarkably large number Of credit
slips-slips of paper on which amounts Of
money taken out temporarily are record
ed-at least one of these slips being for
an amount as large as $1,000. No ac-
count of these credit slips, it is said, are
to be found in the books Of the bank
Mr.. Kidd, as stated. discovered these
things about three years ago and told the
bank officials they should be Strengthened
out, but nothing appears to have been
done in the matter, and at the next eX-
animation, a year later, they remained
unchanged or worse and have continued
to grow worse ever since, though the
bank has been examined at the regular
intervals required by law ever since until
its failure. which it may be noted was
not brought about through any action on
the part of the state bank examiner.
The state bank examiner is not given
authority to close a bank which he finds
in a lettering condition, but he is given
sufficient power to virtually force the
bank to make good any shortage which
exists or else make an assignment. His
authority on this point is found in sec
ton IL, chapter POI, laws of 1895, which
liner shall have reason to believe that the
capital of any bank is impaired or re-
duced so as to endanger the interests of
the depositors therein, it shall be his duty
and he shall have power at any time to
examine said bank and ascertain its con-
dition; and in case he deems it proper to
do so shall, by notice in writing, require
such bank to make good any deficiency
SO appearing. If any bank shall refuse
or neglect for thirty days after receipt of
such notice to make good such deficiency
the examiner shall cause to be published
in newspaper of general circulation in
the county in which such bank is situ-
ated a notice of such refusal or neglect,
together with statement of the cOndl-
ton of said bank"
There are people who express the be-
lief that the depositors in the defunct
Bank of Edgerton can, should they see
fit, bring suit against the state bank e1-
aminer upon his bond, to recover the
amount of their loss. The law creating
the office of state bank examiner pro-
yides that he "shall execute to the state
a bond in the penal sum of $25.O 900, with
two or more sureties, to be approved by
the governor, conditioned upon the faith
full discharge by him Of the duties of his
said Office" Faithful discharge of duty,
it is argued, might very properly be con-
Strued to mean that when he discovered
such a condition of affairs as existed in
the Bank of Edgerton three years ago, he
should at least take some action which
would inform the people who had their
money in the bank what the situation