The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-06-01
BANKERS PARDON
Effort Being Made to Secure Re-
lease of HI. E. Mason.
He is Ex-President of Marion
State Bank.
IS NOW IN PRISON.
Was Sentenced For Two Years
by District Court.
W. Fl. Carpenter Writes Review
of the Case.

Harry E. Mason, president of the First
State bank of Marion, convicted of vio-
lations of the banking law and now
serving a sentence of two years in the
penitentiary, has made application to
Governor Stanley for a conditional par
don.
w. H. Carpenter, of Marion, makes, in
a letter to the governor which is on file
with the papers in the case at the exec
| utive office, a statement of the case,
part of which follows:
six or seven years ago, Mr.. Mason
purchased the Cottonwood Valley Ma
tional bank, assuming it's liabilities, un-
der what seems to me to be very pecu-
liar circumstances; and, am inclined
to think that Mr.. Mason was led to be-
neve that the Cottonwood Valley bank
was in much better condition than it
| really was, and that after he had pos
session of all the books and papers, he
found that the liabilities of the bank
were much more than he supposed. I'm
| der the management of Mason the Ma
tional bank Hquidated, paying off its
depositors in full, and reorganizing I'M
der the name of the First State bank.
There organization of course had to
take care of the obligations of the old
Cottonwood Valley bank and it seems
that these were carried along from time
to time by Mr.. Mason. who borrowed
money on the strength of the credit of
the First State bank, to keep up these
obligations. In addition to this Mr. Ma
son was very unfortunate in making
some loans to some fellows in this coun-
ty by the name of Smith; without any
fault on his part he lost between Sc, 600
and $1,000 by making loans to these par
ties These facts am familiar with by
| fad h
the litigation growing out of these loans
and having been connected with other
| itigations as attorney against the bank
think 1 can safely say that there was
a loss to Mr. Mason of $4,000 or $12,-
900, occasioned by the condition of the
bank and these loans that 1 personally
know about.
There can be no question that Mason
kited' the checks in order to keep the
funds on hand to meet the obligations
of his depositors and obligations he had
TO make to cover the loss"
'Kiting'' a check is a fictitious trans
action. The banker to retain the use of
money for a short period makes a draft
on some person out of town who has
no money belonging to the maker of the
draft, but he completes the fictitious
transaction by making a draft upon the
: person drawing the original draft. Such
t a draft is not bankable; it is worth
: less, but it creates a transaction which
l provides an opportunity for the reten-
? ton of funds contemplated by the trans
} | action. "Kiting' a check by bankers is
regarded as an unprofessional, dishon-
orable act.
But am convinced" continues Mr..
Carpenter. that Mr.. Mason did not
kite these checks for the purpose of
raising money to appropriate to his
private use, and there is not a bit of
evidence to indicate that he ever did
! appropriate any of the funds of the
! bank or any of the funds that may have
been received by 'kiting' these checks
n 10 Inlf anu
money by reason of the 'kiting' of these
e checks.
y Il am inclined to think the bank
. would have pulled through, as the evi-
dence showed the bank in better condi-
s tion at the time it was closed than il
= was two or three years prior to that
S time. I am inclined to think that this
| bank would have pulled through had il
ton that took place between Mr.. Mason
and our county attorney; not that the
S county attorney sought to afterwards
bring about the ruin of the bank, or the
prosecution of Mr.. Mason, but after the
e alteration parties took sides-as they
: always do in a little bit of town like
It this (Marion) and friends of the county
attorney withdrew their deposits. This
r was known to other depositors as al
t things are known in towns of this siz,
It to everybody as soon as they happen
occasiOned a run on the bank which
eliminated in its closing by the banl
commissioner"
Mr.. Carpenter thereafter explains tina
. at the outset he believed Mason guilty
and declined to defend him as attorney
However he now states that he ha:
It changed his opinion and believes MasoI
e should be liberated. Mr.. Carpente,
S says:
= i'The bank has already paid 6
is cents on the dollar and the fact
show that were it not for the expens
of the receivership, the bank would pa,
( out in full, which of course shows tina
L. the bank was solvent at the time i
r. was closed.
r Mr. Carpenter believes ''the law hav
p ing been vindicated no good can com
!. from OBTAINING Mason longer in tn
a. penitentiary.'
e Breidenthal closed the bank when
was solvent.
County Attorney ]. Il. Dickerson VIII
prosecuted Mason says: His wife
in poor health; a parole would assis
70 them by giving the family his service
for support"
Judge Q. L. Moore who sentence
le Mason concurs in the statement mad
/ by Dickerson and recommends a con
ditional pardon.
~ J. H Smith, clerk of the court, ais
D recommends the pardon.
k Donaldson, w. P. Morris, Taylor Rid
m m die, D. w. Wheeler, W. H Evans, o. {
~ Billings, ex-Representative Ferd .
Funk S. c. Freeland, Henderson MAJ
tin N. F. Miesse, J. G. Thomas, z. v
Hoch County Superintendent L, \
a. Knowles, and Receiver Burkholder joi
Of in letters to the governor asking for tk
n | conditional pardon. These men say ths
- | Mason's wife and four children rely @
- - public charity for their sole support.
h Weather Indications.