The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-06
Bank Examiners Tardy in Dis
covering Bank Conditions.
w. III. Blodgett's Story in Indian
apOlis News.
OUGHT TO GO TO PRISON
Wreckers Should Be Dealt With
Harshly, He Says.
He Reviews the Kelly Plan of
Operation.


writing up the Devlin affair The peo-
pie of Indiana have had a good deal
of experience in just this sort of
bank failures, and Mr.. Blodgett today
sent to his paper the following dispatch,
which will be of interest to the people
of Kansas:
Every citizen of Indiana ought to read
the details of the great bank failure out
here for it is the same kind of a thing
| that has happened in Indiana and is
| liable to happen again. And those who
| prevented additional safeguards about
! the private banking business in the last
| legislature particularly, ought to read
| about it. To be sure this was a ma
| tional bank but the plan of loot was the
| same as Indiana has experienced If
| did not know certainly that Broderick,
| Brown, and Cullins were in the United
| States penitentiary at FIT. Leavenworth
| L would have imagined them in the
| banking business out here. Charles J.
DeVlin came to this country poor and
| a hustler He was a popular chap, eV-
cry one liked him and he was always
| trying to help some one. Just like
Johnny Johnson of Logansport. He ac-
| cumulated a lot of property and had a
| bank that was as solid as a stone wall
| just like Johnny's Logansport bank. He
| organized a large number Of coal COM
/
| ana then he proceeded to carry them
with the funds of the different banks
| he had organized or was interested in.
A good many years ago Devlin was
in with the Letters of Chicago and that
| gave him some prestige and he bought,
and bought, and bought, and sold moth
| ing, all the time taking money from
the different banks to run his business
with just like the, Elkhart bank took
care of Walter Browns business affairs.
| There were a lot of bank examiners
stalling around Kansas just AS they
| stalled around Indiana and they did not
discover until too late that Devlin had
borrowed $1,200000 of a bank whose
| capital stock was one quarter of that
sum; that he had practically taken all
the deposits for his concerns, that he
had pulled on every bank he could find
for large sums of money and most of
them were national banks They found
too late of course to help the unfortu-
i nate depositors that Devlin started
banks in order to get money to carry
on his enterprises and these banks have
gone under causing great loss to a lot
of poor people, coal miners, small farm
ers, etc. Just like Naoing at Flat Rock,
except that Nading to save himself
from the penitentiary has paid the de-
positors of his bank.
Dust in Peoples Eyes.
Of course it is announced that Dew
lin is not so bad off financially as re-
ported. and the officials who ought to
have prevented the worst financial cal
amity Kansas ever had are now trying
to throw dust in the peoples eyes
lust as they tried to do in numerous
instances in Indiana. They are taking
a cheerful view of things because they
have not lost any money. 1t WIZ be
found when the wind-up comes that
Devlin has raised every dollar on the
various concerns he owns that they
will stand.
Six months ago it was known that
this crash was coming and an attempt
was made to syndicate the Devlin
properties and financiers came here
from the east. They found the prop
critics in such condition that the at
tempt to syndicate them failed and the
bank failures followed. Despite what
the lawyers say the broken banks thai
were pulled down by Devlin will not
pay twenty-five cents on the dollar
What happened here has happened in
Indiana a number of times both with
private, state and national banks all
because either there were not sufficient
laws to properly protect the people
or the laws that were sufficient were
not obeyed, and those whose duty i
was to see them obeyed were derelict
Kelly and DevIin.
The state of Kansas is a loser also
, and much of its troubles at this time
) can be attributed to pernicfous politics
T. T.. Kelly was county treasurer anc
was a defaulter as such. He became
I
: among the better class of Republican:
{ there was considerable opposition tt
him chiefly because he was defaultel
2 as county treasurer. He was taken VI
by Senator Burton, an Indiana product
who is himself under conviction fol
dishonest acts as United States SEN
ator, and Kelly was elected. A gooc
many Republicans wanted to elect ar
/ honest Democrat but the party lasf
and the club of the Burton machine
prevailed. Then Kelly gave a millior
dollar bond. Charles ]. Devlin becam'
his bondsman in $780, 600, Pennsyl
vania guarantee and trust company be
came security for 100000 and a maj
named Thomas who is identified witt
several of Devlin's concerns took some
{ of Kelly as security. The Pennsyl
vania guarantee company in a circula
saws that it is responsible to the exten
: of s75O.OOO above all debts, yet it il
= security for 100000 in one instanct
alone. Devlin as bondsman is NJ
t good and Thomas is no better. Bu
Kelly deposited more than half mil
5 lion of the states funds in Devlinf
| bank and Devlin who helped elec
' Kelly used this state money in hi
: business. It is a felony in Kansas fol
0 the state treasurer to deposit th'
i pose of getting interest on it. But i
) has been done for years and years bu
t the pitcher went to the wall just onc'
too often and was broken.
Should Go to Prison.
Now they are going to make KeH,
: give a new bond or declare his of
I; | fee vacant, but there are lots of peo
I; pie about the state who think
: would have been much better not t
have elected Kelly at all 1t vii
startle some Indiana people to know
that not many years ago three Chi
S cago banks held three million dollar
=: ief Indiana state funds and paid in
terest on it.
] The people here have not caugh