The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-06-11
OUTLAW BANKERS
Commissioner Breidenthal Calls
Law ViOlatOrs to Time.
Will Force All to Comply With
State Act.
ALL MUST GIVE BOND.
Officers Who Handle Funds Can
Not Escape.
Too Much Confidence Reposed
in the Cashiers.
LII MUST GIVE BOND.

Bank Commissioner Breidentha1 to-
day issued a call to the state and pri-
vate banks of Kansas for a statement
showing their condition at the close OF
business June 4.
There is no official in the state gov
ernment who has more annoyances than
the bank commissioner. Officers or
banks knowingly permit petty viola
ton of the banking laws, sufficient in
fact in many Instances. for the com
missioner to close up the bank but Mr.
BreidenthaI persuades by letter and
personal visits and does not close a
bank unless its condition is unsafe or its
management clearly without the provis-
ions of the law in general terms
The bank commissioner has an aver
age Of 25 letters each day to write, call
ing the attention of bank officials to
some neglect Of their duties but many
of them pay no attention to the com
munications and the commissioner is
forced to take stringent methods to
reach them.
An example of this condition of affairs
is illustrated in the following statement
which the commissioner made in the
call for the statement issued today:
I regret to say that 1 have again
/ been compelled to take possession OF one
of our state banks, the failure OF whlcn
| is due solely to unlawful acts OF the
cashier, and as in all other failures
/ since the taking effect of our present
/ law, the failure could have been pre-
vented had the board of directors done
! their duty They permitted the cashier
| to be the whole thing and offer the US
! ual excuse that they and the entire
/ community 'reposed absolute confidence
in the cashier 1 again call attention
to the provision of our law requiring
/ oil d nave
handling and care of its funds shall give
| bond.
..Some banks have not complied with
( this provision of law, and when 1 IN
sist upon their doing so appear to think
! that It is an unreasonable requirement.
on my part, and one good brother re
| Gently suggested that probably the best
thing his bank could do would De 10
| nationalize, in order to escape these. re-
quests to comply with the plain provis-
ion of law. While it is the privilege OF
any bank to change to another system,
/ am compelled to insist that all Danks
| comply with the provisions of our state
law while they remain under this sys-
| tenn. 1t is only fair to the large major
ity of banks which comply with our Ia"
that all be required to do likewise
In order that I may have a record OF
all bonds, enclose d certificate to be
executed by a majority of the board OF
directors and the custodian of the bonds
Of the officers and forwarded to this or
fee.
Il also desire to call your attention tc
the provision of law requiring that al
real estate other than bank building
cannot be held for a. longer period thar
five years. Only q months remain il
: which to dispose of the real estate own
: ed at the date our law took effect. II
, you desire to continue the ownership o
this real estate, it will be necessary tC
l charge same off your books, and 1 would
suggest that you commence this process
at once. Do not delay the sale or tn,
t charging off of same until the last mo
ment''
The commissioner today makes a for
. | NAL demand for a bond, and this pro
l | vision of the law will now be enforced