The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-11-18
Investigation Shows That G. S.
Cross Made False Entries
In the Books of the EmpOria
First National Bank.
THIS ACCOUNTS FOR
His Suicide When Discovery
Became Inevitable.
A Big Fortune Wasted in Ill
Advised Ventures.

Emporia, Nov. 1S.-Char1es S. Cross
at the time of his death owed the First
National bank s215,OOO. This was di-
vided as follows:
Money invested in doubtful en- ooo
By manipulation of reserve
agents accounts .----.--------- 5O,UuV
Cash taken from the drawer-..-- 15.0OO
In the reserve agents accounts MI
Cross deliberately made false repreSen-
tatiOnS. He increased, by ngureS on
his books, the amounts credited to MN
by them, thereby making it appear that
he had more money to his credit than
the accounts actually showed Then by
the same process he dOctOred the ac-
count due to other banks" by making
the books show that his indebtedness
was really less than it was
In the cash account he would draw
from 800 to $1,000 from the drawer and
instruct the paying teller to carry q
ticket against him for the amount as
cash. This was done to such an eX-
tent that the pecuIatfons in this di-
rectiOn amounted to SIS, 600.
This astonishing state of affairs was
a surprise and a shock to the people of
EmpOria. Mr.. Cross was the object OF
the highest confidence of the people who
believed that unfortunate complications
of the banks affairs were responsible
for the failure. However, Mr.. Cross
failure as a business man; his inability
to properly conduct the affairs of the
bank and his high living and apparent
disregard of the value of money and
the condition of his bank, brought about
the calamity.
The people of EmpOria seem confident
that the depOSitOrs will be paid in full,
but the indications are that they will
be indeed fortunate if they realize so
cents on the dollar Of course Mr..
Cross property, the Cross estate and
the assets of the bank together with
the amounts which can be raised by the
stockholders, are regarded as ample to
meet the demands of the depOSitOrs. but
the fact that the bank is in a much
worse condition than was generally sup
posed causes many of the people to be-
Heve that the stockholders may be
seriously affected.
Mrs. H. G. Cross believes that the
crash has left her sufficient wealth to
care for herself and those dependent
upon her for the remainder of her life
but there seem to be complications that
may sweep away the entire fortune of
the cross estate. When H. Q. Cross died
he had $60,000 life insurance. He left a
Will, the contents of which have never
been made public until today, providing
that the property should be divided
equally between his widow and son
Charles
No partition has been made of the es-
tate. A private settlement between the
young man and his mother is all that
stands in the way of saving for Mrs.
H. C. Cross only the property which is
legally exempt Charlie Cross took the
property and managed it; Mrs. Cross
retained her husbands life insurance
The investment of this and its income
is probably not subject to a. process to
close up the affairs of the bank. How
ever, Mrs. H. c. Cross says that every
cent owned by the dead son must be
paid and that persons who We're patrons
Of the bank must be remunerated for
their losses. no matter what a struggle
a final settlement may force upon the
family.
There were 400 depositors who pat
rOniZed the bank. Charlie Cross failure
is due in a large measure to his big
heart. He would not ask a friend to
furnish security for loans. He would
loan money on personal notes and ''ac-
commodation" paper and take chances.
Some of his chances failed and he had
in the bank 100000 of paper which is
regarded by business men in Emporia
a s worthless.
Another complaint comes from the
stockholders. When H. c. Cross was
running the bank he had frequent con
ferenceS with them and placed before
them all matters pertaining to loans
and concerning also the policy of the
bank. This has never been done by c.
S. Cross. The latter took the reins in
his own hands and drove the bank to
ruin His lOaning policy was not con-
servative; his business methods were
not careful but he is not alone to blame
Had the directors of the First Ma
tiOnal bank performed their sworn duty
the institution would not have failed.
It would today be running and Charlie
Cross would be alive.
For two years the directors of the
bank have not signed or made up a
quarterly statement. These statements
have been made by Mr.. Cross. He fur
nished the figures and signed and Ger
titled to the correctness of the state
ments. Therein he padded the accounts
and covered up his own shortcomings
William Martindale, vice president of
the bank, did not know of the condition
of the bank, even though he was closely
associated with it and its business He
was simply dumbfOunded when apprised
of its condition. He too. had unbOunded
confidence in Cross and thereby is
plunged into what will lose him thous-
ands of dollars and cause endless an
nOyance TO his declining years. Martin
dale is being criticised here but the
facts seem to indicate that even with
his business sagacity which is so well
known. Mr.. Martfndale could not pene-
trate the disguise in managing affairs
assumed by Cross and he was led into
the pitfalI.
Then among the vast number of per-
sons interested in this affair there are
those who regard Cross as a martyr to
his family. 1t is said by some that
when Cross discovered that ruin was
staring him in the face he deliberately |
concluded to commit suicide and save to !
ms wlIe the $4,000 life insurance which |
with the property she is entitled by rea-
son OF the relationship. would provide
for her and the little daughter Mary
The failure of the First National pre-
sented TO the people Of Kansas an incl
dent which hnanciers claim has never
been paralleled in the history of bank.
ing in the United States. More than
l 600 depOsitOrs, including some of the
business men in this city lost money |
There are three other banks here ana |
experience of the past in such cases |
confidently expected that a run on the
other banks would follow. The excite |
ment incident to the failure was not