The Montgomery advertiser., 1905-07-04
IT LOANED TOO MUCH
RIG BANK FAILURE OCCURS AT TO-
 PEkA, kAS.
The First National Holds Papers of C' J. Devlin, Principal Stockhold- CT, fos S1 ,00a. .0OO-WHf
 Probably Pay Out.

Topeka, July 3.--No definite state ment was obtained up to a late hour today regarding the condition of the First National Bank, controlled by C. J. Devlin, the big coal mine owner which closed it's doors this morning. Colonel w. H. Rossington, vice-pres- ident of the bank, locked the institu- tion's books in the vault to await the arrival of J. T Bradley, the national hank examiner, whom the comptroller had appointed receiver O. the failed bank, and he would only say
 'sThe banks trouble has not been caused by dishonesty on the part of one borrower. There has been no stealing"
 This borrower is. of course. MT. Dev- lin, and the.~bank Is said to hold the capitalists paper to the amount of a million dollars. Mir. Devlin, whose sudden illness brought about the tan- gle in the big coal mining and railroad properties, valued. 1t is estimated. at close to seven millions of dollars, is still under the care of a physician and no statement could be secured from him. All that came from his home during the day or could be secured from other sources. was that the stricken coal operator had turned over to the bank nearly $700,000 in life in
 
 in Topeka real estate. Business assist ants of MT. Devlin gave 1t as their opinion that, if properly handled. this would allow the bank to pay out.
 Elmer Ames, bank examiner for the northern district of Kansas. who took charge pending the arrival of Receiver Bradley, would say nothing additional that would throw any light on the sub tect.
 Aside from the temporary furry that the failure of the First National Bank caused upon the other banks of the city. probably the most interesting phase of the situation was the state ment of State Treasurer Kelly that the bank held $547,000 of the States funds and the knowledge that MT. Devlin was one of three of MT. Kelly's bondsmen. The statement was made that Treas urer Kelly had exceeded his authority in placing more of the States money in the bank than the law allowed, but Mir Kelly declined to discuss the mat ter at this time. Following the announcement of the
 failure lively run was started on the Central National Bank and before closing time today 1t was known that something more than $10O,000 had been , withdrawn from this institution. The Central National also held some of Devlin's paper, but lie likewise owns fifteen twenty -cighths of the capital stock of $250.000 of this institution But 1t developed that the Central Ma tional Bank held but little of Devlin' s paper and when Its officers displayed $700.000 in cash and made every effort to pay the depositors as fast as they made demands. the excitement died down and at closing time only a few small depositors remained at the tel ler's window.
 Other runs Of a lesser degree were started or the State Savings Bank. the Bank of Topeka and on the Mer- chants National Bank. At none of the banks however. was the demand for withdrawal great, only the small de- positors taking their money and there was little excitement during the day.