The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-11-21

IG. NOVEMBER Fl. 49,
that the Cross shortage was discovered.
The government, I understand, acted
upon his report and sent Mr.. Jobes out
there to close the bank"
The public seems to be accepting the
theory that Cross inherited his bad
debts from his father, who was a plum
ger among plungers, and, that to cover
these old debts Cross tempered with the
books, and, having learned the trick,
the expert on the book says, Cross tried
1t on the sagging accounts of all his
enterprises
There is absolutely no doubt that
Cross made confession. It was writ
ten last May and it makes clean
breast of the whole matter. Cross
confesses to the alteration of the books
of the bank and to many criminal acts
and says for his own life he cares Moth
ing. To get that confession from Mr..
Martindale now is an impossible task.
1t has been read to Mr.. Martindale's
nearest friends, who are familiar with
its contents and these friends have been
urging him to make it public to shield
himself. However, Mr. Martindale,
again and again admitting the existence
of the letter, said that he was with
holding it's contents until his lawyer,
Judge Kellogg, releases it.
Mr.. Martindale's best friends say he
is Withholding the letter until he gets
the consent of Mr.. Cross mother and
wife to make it public. The letter has
been read to them, but so far they seem
to be holding out against publishing it.
The best authority permits the state
ment that the confession was found
among Mr.. Cross effects and was sent
unopened to Martindale. 1t will doubt
less come out in a few days and will
probably be read at the meeting of the
stockholders next week. Mr.. Martin
dale'S friends are urging him to shift
the Odium that rests upon him and he
weakened perceptibly in his attitude to-
day.
To a reporter for the Star Mrs. Cross
refused to affirm or to deny that the
letter had been written. Her best
friends and the friends of the Martin
dales have disclaimed to Mr.. Jobes all
sympathy with the editorial in the EN-
poria Republican inferring that Jobes
murdered Cross by prematurely closing
the bank. There is no doubt now that
Mrs. Cross and Mr. Martindale know
how rotten the bank was and the dis
chalmers of sympathy with Eskridge's
attack on Jobes indicate their realiZa-
ton of the truth.
Cross tampering with the books has
mer friends are now claiming that he
said in his letter of confession that he
inherited the debt.
There is one feature of the failure
which has not yet been discussed and
that is the likelihood of criminal proce-
dure. There may be Irregularities in
the books so gross that the directors
will be held liable, and there is certainly
one act which, under a strict construc-
ton of the law will make it dangerous
ly uncomfortable for Mr.. Davis and Mr..
Martindale should the depositors care to
push it. Last January, to satisfy the
uncertainties of smaller stockholders,
the directors declared a dividend. It
was the first dividend declared in long
term of years, and at the time of the
dividend it is now certain that there
were fraudulent assets, accommodation
paper and the like, paper that has been
thrown aside by the receiver as worth
less. Enough of this paper was car
ried on the books and in the statement
as good assets to wipe out entirely the
banks surplus and the capitalization.
This procedure on the part of the direc-
tors amounted to an explicit violation
of the national banking laws, and num-
bers of bankers have suffered for it all
over the United States
Those who have talked with Receiver
Jobes of the First National bank say
that he gives the impression of plying
rather than cenSur1nS William Martini
dale, the vice president of the bank.
Martindale is a man of limited educa-
ton and the forms of juggling with fig
ures and securities that many dishonest
bankers use would be beyond Martin
dale's comprehension. Those who have
reason to know say that JObeS believes
that Nartindale could not penetrate the
significance of Cross irregular transac-
lions in the eyes of the law, and as for
tracing these transactions in the books
of the bank, it was impossible for Mar
tindale to do it. Thus he became IN a
way a partner, as he was sometimes
beneficiary in Cross unusual deals
Martindale was a close liver, dressed
plainly and the members of his family
are models of frugality. He was
worsted in many foolish schemes in
boom townsite companies and boom
hotels and boom municipal improve
naents. 1t is suspected that whatever
unpleasant features of the bank failure
he may have to face at the uncover1ng
of his acts by the experts VIII be re-
minders of the old boom days, when
Martindale was one of the eastern cap
italists who rode about the prairie cities
laying out additions and throwing
money at the birds. It is possible in
terest and taxes have been Martindale's
besetting sin. This would explain why
for five years the First National has
not been collecting interest on its half
million loans and discounts. Ihey are
not bona fde.
The talk on the streets is of the pos
sible receiver. No one expects the bank
to resume and yet the depOS1tors hope
to realize at least 65 cents on the dollar,
and they are agitating the matter of a
receiver very warmly. COnceding all the
evil stories of the bank to be true, only
about u million of the loans and dis
counts are gone. That leaves an equal
amount to distribute among the de-
positors. That would pay SO cents on
the dollar and the Cross assets will
amount to at least $150,000 even at
forced sale and the insurance will
amount to $50 600. Mrs. Cross says that
she will not keep a dollar so long as
there is a deposition unpaid. The other
stockholders, except Martindale, are
worth at least their legal liability which
is about $4,000 more. Martindale can
clean UP at least $50, 900, though it will
leave him just as he began the world
on the Greenwood county ranch before
the war.
This prospect of getting their money
back makes the depositors anxious to
have careful receiver appointed. The
sentiment of the depositors is for a
home man although in this situation a
I11 to