The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-11-17
THE BANKS CAPITAL
Was Largely Tied Up in Out
side Enterprise.
Many EmpOria People Will Suf-
fer Loss.
Stated That Cross Carried From
$4,000 to OS75, 900 Insurance

EmpOrlas NOV. line DsALh AeIAA1AAO .
and the tragedy following on its heels,
have naturally created great excitement
in this community. The topics are the
only ones discussed on the street cor
ners. in the stores and everywhere
where two or more are together
The general feeling has quieted down
today following the startling news of
yesterday. There is, of course, great
anxiety, but nothing whatever Of
violent nature is in evidence.
The depositors hope to get everything
in full. although they realize it may
take some time. Receiver Jobes and
Vice President Nartindale are emphatic
in their statements that the depOsitors,
and probably the stockholders will re
cover their money, although there will
be delay before the assets of the bank
may be realized upon.
On May 9, c. s. Jobes, the National
bank examiner. first examined the First
National bank and reported the bank
to the government at Washington as
insolvent.
In July another examination was
made by A. H. Foreman. a special ex-
aminer from St Louis The banks af-
fairs were still complicated and Mr.
Foreman gave them. through authority
>
until November 1st to restore the i'm
pairment of the capital stock. The sur
plus and undivided profits Of the bank
have amounted to about $4,000
The capital stock of the institution is
not impaired until the surplus and un-
divided profits are consumed. The cap
ftal stock was thus impaired seriously.
The bank failed to do what the gov
ernment required by November 1st and
the failure resulted. The Cross estate
together with William Martinda1e. own
ed $50 900 Of the stock. The remaining
$4,000 is held by various persons in
small amounts. One of the largest
stockholders is DR.. J. A. Moore, who
has 80 shares, or $4,000, and J. w. John
son of Hamilton, Greenwood county,
who owns nearly the same amount.
The remainder is divided up into still
smaller amounts among r. D. Thomas,
H. H. White and D. NJ. Davis
Among the depositors are: Mrs. J.
EckdaI 500; w. r. Irwin. 800: J. A
Moore, S400; Haines Brothers, $500; +
S. Kenny, 81, 500: John Henning, 81. 500;
J. w. Leifred, $1,000; the Ladies' Lee
ture Course association, $1,000; Miss
Maynard, school teacher, 50, 900; J. Nor
ris, cattle man, IS, 900.
This man lost IS. 600 in cash here. He
sold cattle yesterday in Kansas City to
the amount of $4,000. Suspicious infor-
nation which he secured led Mr. Nor
ris to wire Kansas City instructine
them not to place the $4,000 to the cred
1T OF the First National bank of EN-
poria. He thus saved himself this
amount. Others followed his example.
Owing to the presence of the bank
commissioner here for several days a
number of depositors We're suspicious
and drawing out saved themselves in
various sums. A number of them not
caring to excite suspicion drew out aI1
of their money excepting small balances
of s15 or $40 Many of them, however
had so much confidence in the Cross in
stitutiOn that they refused to protect
themselves after they were warned that
the bank was in a dangerous condi-
tiOn. There is an expression current in
this community "as good as the Cross
bank" It is used often by old time
farmers in referring to the credit of men
with whom they do business and. the
famers themselves by the failure of this
bank will become the heaviest losers.
The failure viii reach a number of
business institutions here in a small
way because of the amount of notes and
paper held as liens on implements.
farming tools, etc. While no failures
among the business people of this city
are anticipated by reason of the bank
closing, the closing of the bank viii it's
up a considerable amount of money
The failure Of the bank is assigned ia
two causes. First, possession of bad
paper and real estate not ready sal,
able Second, because large amount
of money belonging to the bank is said
to be have been misdirected.
The general acceDfed theory hare %
the suicide of Charles Cross is that aside
from the humiliation, he took his own
life to escape prosecution and possibly
a term in the penitentiary 1t is UNDER
stood that Mr.. Cross invested in live
stock interests money of the bank and
OF the Cross estate without Intending
10 violate any law yet in such a manner
that the law has really been violated.
A large amount of what bankers call
accommodation paper has been used.
For instance one loan of $4,000 to H.
Le1bfred and an additional amount
loaneu 10 the same person was made
without any apparent security or pros
pect OF recovery. The fact that Leib-
fred was interested in this way was de-
veloped at the recent trial in which he
sought to gain from Mr.. Cross the pos
session Of an interest in Sunny Slope
farm and to cause a receivership.
C. s. Cross and the Cross estate owe
the bank $4,000 In this is supposed to