The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-08-27

president, Is awaiting trial on twenty
three criminal charges, and the homes OF
1,40O trusting deposttors have been obliged
to bear the burden of an aggregated loss
of more than 100000.
That IS the story, in brief, as the world
knows it, but contained in the books of
the bank and in the records and papers
found in the vault is another story
which was brought to the surface by the
present litigation. SCI,
STARTED BANK ON NOTHING.
Something more than thirty years ago.
when Emporia was a little frontier Kan
sas village, Col. HSC. Gross, with his wife
and son, Charles g., landed In the town,
having made an overland journey from
Ohio. He had but little money A worn
out team and diIapidated wagon con-
stituted practically the sum total of his
earthly possessions. By doing odd jobs
he accumulated $3.50, with which he start
ed little private bank, called the Noosho
Valley bank.
There was something about Col Cross
demeanor, as many men in New York and
the East will remember, that inspired
confidence. This proved true In Emporia
then as it proved true later in the East
swhen the colonel became a power in the
railroad and financial world Immediate
ly deposits began coming his way When
they passed the SO. coo mark he conceived
the idea of going into the banking busi-
ness on a larger scale.
He and four other associates organized
the First National bank, with q capital
Of $50, 900. He took $4,000 worth of stock,
using the deposits of his private bank,
leaving therefor hts individual note for
that amount. He was elected president
of the new bat1ks and within few days
1t bought out the private bank, getting
the bank fixtures and Col. Cross note
for 900.
In other words the sagacious colonel
had founded bank, had himself elected
president and got $4,000 worth of pald-up
stock with out the investment of a single
dollar.
The original potS grew larger with
each succeeding year, and when Col.
Cross died, a few wears ago, it amounted
the defunct bank, and Receiver Albaugh
is energe1callys although perhaps vainly,
endeaVoring to recover something on 1t
from the Cross estate
The methods which characterized the
founding of the bank were maintained to
the end. Although the bank became rec
ognized as one Of the leading banking in
time in its history, as the records now
show, but that the bank was hopelessly
insolvent, had the truth been known con-
corning the real value of Its securities.
CREDIT NEVER QUESTIONED.
g In addition to the note above men
toned, Col. Cross was always a heavy
borrower from the bank, the amounts
growing larger with the growth of the
bank. He was interested in investments
all over the state and was heavy spec
ulator, using the funds Of the bank and
leaving STRAW notes to make the books
balance AS a result, when he died he
left more than 100000 worth Of bad paper
in the bank Of this amount but very
few notes represented legitimate loans.
The bulk Of it consisted of Straw notes.
On account of Col. Cross high standing
the national bank examiners never pre-
sumed to question his word or to exam
inc the character or value Of the notes
in his bank.
Had any one had the temerity during
Col Cross lifetime to question his SOL
vency he would have become the laugh
ing stock of the town and state. He was
quoted and generally believed to be the
richest man in the state-a millionaire.
His bank was considered a second edi-
ton of the Bank Of England. And yet.
in spite of 1t all, the bank was insolvent
from the D6SlLIAIlSB anu lIlSI0 Was nON0I
a time in Col Cross life, as his own
| books now show, but that. financially
| speaking, he was worse off than pauper.
How he managed to carry on his ex-
tensive operations without being detected
is a mystery. His life was one Of bluff -
but it was a successful one, for It was
| never called. Cross played the game out
| to the end, and no one ever suspected
| that he did not have a pat" hand.
Col Cross bank was a power in Kan
sas politics. In Bmporia and Lyon coun-
| ty especially 1t was the most despotio IN
stitution that ever operated in Kansas.
In that county no man ever thought Of
running for office without first securing
Cross consent. He shaped the platforms
| of the conventions of both political par
ties and dictated the policy of city and
county officers.
His vice president William Martindale.
was sent to the legislature. His cashier,
D. NJ Davis, was made and retained
| city treasurer at Emporla. All. roads led
to Cross bank. Merchants were forced to
| do business there. and rival banks were