Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1897-06-03
sreldenthaI,s statement.

stock:
Estate Bank Commissioner Breiden-
80, 'ys the Bank of Hutchinson was
w.. 80. with an authorized capital Of
$500 49, g.. thousand dollars, fifty per
o o.SA' "a WIN wSsca was put up, as was re-
O O hv nNy Misrepresentation
1 LUZ rosa ~ !" wA lie the bank was
alive, but when ahe b nix started It
had forty two Thousand anN "'o ~
dred dollars in cav, on !HaA'u' 'g1
thousand OF which was put no DS :
L. Guthrie, sOq of W. W. Guthrie "
Atchisou, twelve uNOuSsnd and I'VE
hundred dollars By suuAry persons
and twenty Thousand dOllaas DT 3" f.
Canterbury and others Before no
gave his consent for the concern to
Open, be made u personal Fn~estIga-
ton. lie found twenty-five tAOuONnS
and Eve hundred dollars ut Hutcil1n-
son, ard a telegram FROM Cashier
Stream, assured him that the new bank
had twenty thousand dollars TO- its
credit in the Metropolitan National
Bank of Kansas City. The latter sam
was put up by the Metropolitan ma
EtiOnal, upon the note of 81 F. Canter-
bury and others. Afterward this note
was charged by the Metropolitan ma
tional. to the Bank Of Hutchinson, and
twenty thousand dollars of the latter's
capital taken away. But he was not
ma aware of this transaction until
he was called upon to take charge Of
the bank. lie holds the Metropolitan
responsible TO this wenty thousand
dollars for the reason that the note,
which IL represented, was not given ny
the Bank of Hutchinson, but by indi-
viduals, and never should have been
charged to the bank. The bank was
authorized by the secretary of State.
April ~. 1886, with the following
named stockholders: Metropolitan
national bank of Kansas City, two
hundred shares; S. F. Canterbury,
three hundred and seventeen shares;
E. A. Smith, Jwenty-three shares;
William Kinney, five shares; Farmers
national bank Of Athens, Pa, sixty
shares; Benjamin Briggs, ten shares;
First national bank of Chicago, nifty
shares; F. L. Guthrie. one hundred
shares; John W. Roberts, five shares;
John W. Scott, Bolton, Mo-, thirty
shares; John j. Welch, ten shares; Q.
B. Merriam. ten shares; Geo. IL. Burr
ten shares The Metropolitan ma
tiOnal paid for only one hundred and
fifty of its shares, and it can be held
responsible for the five thousand dol
lars due on the remaining fifty shares.
Canterbury subscribed tor one hun
dred and fifty shares, but really be did
not put up a cent, AS the Metropolitan
national withdrew it by charging back
che twenty thousand dollar note given
by Canterbury and others. The fifty
shares of the FIRST national of Chicago
were subscribed WiGh the understand =
ing that they should be- taken up at par
within year. They were taken up,
and are now part of the assets Of tbt
bank. The bank also took up ten
shares held by a Hutchinson man
How much more stock was taken w
this way, he has been unable to find
out.
Asis generally known, the bank
took the assets of the old Valley bank
which failed early in 1895. Creditors
of the old bank tool stock in the new
for the amounts of their claims. The
new bank succeeded TO assets nomin
ally worth one hundred and fourteen
thousand and i've hundred dollars, and
of this amount, by private agree
ment of the promoters of the enter
prise, about fifteen Thousand dollars
was to have been divided, but Canter'
bury took it all AT the outset of the
banks career, Canterbury, to make
his first statement to the state banking
department, padded his deposits with
twenty thousand dollars that was tenn
pOrarily advanced to him, and Imme
diately afterwsrd Withdrawn. He has
in his possession letters showing thai
the person who advanced this money
knew for what purpose it was to be
used Canterbury got through with
Guthrie last August, and Guthrie was
glad to get out with four thousand
and five hundred dollars of the ten
Thousand dollars he had put in
Guthrie's salary as cashier, was tive
hundred and fifty dollars month, anG
Canterbury drew 4 like amount as
president. The hanks books are full
of evidences of fraud. Canterbury
used the banks money in private cat
tie speculatiOns. He would buy cattle
in large herds, ard sell them at an adj
vance of dollar or two a head, tax.
ing the notes of the buyers These
notes be would negotiate, at a commits
,;o,, Of kupo or tuvo and a half nor cant