The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-01-18
Depositors of the Wathena Bank
Must Lose Heavily.
Frank Harpster's DefaIcatIOn
VIII Reach About $4,000.
INSURANCE OF $4,000
Cashier Had All Policies Made
Payable to Wife.
Clause May InvaIidate $4,000
on Account Of Suicide.

Wathena, Kaa, Jan. 1S.-Ih5 SenSa-
tiona1 suicide Of J. f. Harpster. cashier
of the Wathena State bank and one of
the brightest and most promising young
business men Of Donipha-n county. and
the subsequent closing of his bank by
State Bank Commissioner John W.
Breidentha1 because of a heavy short
age in the funds of the bank, forms one
Of the most exciting episodes in the
memory of Kansas people since the SEN
sattOnaI Cross bank failure and suicide
Of its president at Emporia few years
ago, and is today the theme of discus
sion for an excited crowd of people that
throng the streets of this peaceful Kan
sas town.
AS the examination of the banks
financial condition, which was COM
menced by Commissioner Breidenthal
twenty-four hours before the suicide of
the cashier, continues, the depositors of
the bank who have fiOcked to the city
in scores today in answer to the intelli-
gence of the banks failure, grow hourly
more excited. Up to this time it is inn
possible to learn what the exact amount
of the shortage will be, but 1t Is con
fidently expected to reach $25. 600 Bank
Commissioner Breidenthal, when seen
by a reporter. stated that he could not
yet make an intelligent estimate Of the
shortage, but despairingly shook his
head and intimated that the condition
could hardly be much worse
1t now develops the cashier was in
and had invested large sums of the
banks funds in the enterprise. He
owned Is, 900 shares and was principal
stockholder in the Black Mountain
Milling and Mining company OF Cripple
Creek. He had been dealing in mining
stocks for the past three years, and the
period of his defalcation extends over
this time He successfully covered the
shortage in the banks funds by re-
peated false entries, and it was not
until last September that the state bank
examiner detected any evidence of
crOokedneSS in the work of the cashier.
Even then the extent OF his Withdrawals
from the bank was not suspected. and
the bank commissioner confined his
efforts to persistent work on the cashier
to get him to straighten up the banks
affairs.
But when Mr.. Breidenthal arrived
here Tuesday and commenced his in
1cient to reveal the condition Of the
banks finances, and when he called in
the cashier and confronted him with the
indisputable evidence Of his fraud.
Harpster, rather than face the accusa-
lions, eool1y walked three doors to the
undertaking establishment, and laying
his coat across the top of q casket, de-
liberately ended his life. The bullet,
which was fired from a 28-calibre Smith
& Wesson revolver, entered the right
temple and passed entirely through his
head coming out Just over the left ear.
His young wife, when notified, at her
home of the tragic death of her hus-
band by his own hand, tainted and IS
almost completely Frustrated None OF
his relatives nor any of his immediate
friends were aware of his mining spec
ulations and the recitation of the dead
mans dishonest work came as a COM
plete surprise and shock to them. All
Of the immediate members of the fam
lily of the deceased are here today with
the exception of a brother, Howard
Harpster, who resides at Kansas City
and is chief stockholder in the Kansas
- ~.
The funeral arrangements have not
been completed, but the burial will prob
ably be held at this place Saturday
NO man in this community was more
fully possessed Of the entire confidence
of the people and none was more trust
ed and revered. He was a member of
four lodges, the odd Fellows, Masons,
Knights of Pythias and Fraternal Aid.
The Masons will have charge of the
funeral services. Life insurance to the
amount of $4,000 was carried by the
dead man, all of the policies being made
ont in favor of his wife. 1t 1t said that
IS 600 of the Insurance can not be coll
1ected owing to q clause in the policy
annulling it in the event Of suicide OF
Mr.. Harpster was also one Of the own
ers and directors of the Wathena Chau-
tauqua association and was also treas
urer for the association. 1t IS not known
how his affairs with the Chautauqua
company stand
He owned forty-nine of the seventy
one shares Of the wrecked bank, and
this fact will tend greatly to cut down
the amount that will be realized from
the stockholders double liability law,
which applies in such cases The cap
ital stock Of the bank was $1,000 and the
total deposits amounted to about $4,000,
according to the banks last published
statement. but according to Mr.. Breid-
enthai there is a strong probability that
this statement was far from correct and
that the individual deposits will greatly
exceed this sum.
Public opinion here is that the de-
positors will not receive more than from
20 to 40 cents on the dollar, but this can
not be told definitely for several days
A receiver will be appointed for the fall
ed bank in few days, awaiting the ac-
ton Of the deposftors. who will endeavor
to agree upon some suitable man.
SOLDIERS, MONUMENT