Mexico weekly ledger., 1905-07-13
san COOK ANSWERS CRITICISMS
Former Secretary Of State Declares
That all Examinations of Clinton
Institution, Showed it to be IN
Good Condition.

Eh~AN &EAAN ~ I
sam B. Cook, former Secretary OF
State, gave out a statement to-day to
the preSs relative To the failure OF the
salmon & Salmon Bank at Clinton,
Mo. 1t is directed to the editor 81
the Kansas Gty star and Times,
which recently printed an editorial
rejecting on the former administra
TONS examinations Of the hank.
The statements follows:
To the editor OF the Star: In re
cert issue Of your morning edition,
The Times, III commenting on the
Clinton hank failure, you editoriaily
say;
1.-THE wonder which will be felt con-
corning the failure Of the Salmon &
salmon Bank In Clinton is how the
affairs OF the bank could have been in
such a rotten state for at least two
wears, and the States supervisor OF
banking know nothing about 1t. Al
ready the hypothesis has been advanc'
ed-sSumed to be based on infor ma
tion-that the political pull Of one oil
the banks owners with the old State
machine protected it from inspection
This aspect of the disastrous fail
ure should be investigated. Missouri
Is conceded to have one Of the pes'
systems of banking lawson paper
in the Union. Both the provisions
for regulation and inspection ana 10
terminal prosecution OF DELINQUENT
iare clear and comprehensive. the.
haye been supposed to furnish com
plete safety to depositors ID ever,
, circumstance except one Of the vic
financial panic. But those laws, hk
Ian others, may be rendered worthles
lby weak or sinister administration. !
there was no connivance Of premedi
S ated negligence by the former Stat
: officers in the Clinton bank case,
pertinent query would be how tn
r banks recreant officers could haV
pulled the wool over the eyes OF u
/ official inspectors
y Ihave no desire to invade the co
n umns of the public press, and Won
not notice newspaper gossip OF
: mere political nature, but the lioelo'
y character Of this editorial, unless ii
insinuations are true, is manifest
intelligent reader, and, justice to m
|. self, to the gentlemen who we're ass
= ciated with me during my four veal
y charge of the State banking depal
:" ment and to the department itself q
mands that | give to the public I
= facts concerning the inspection
the Salmon & Salmon Bank, and tn
:. force the newspapers which have vi
terminal r~ecklessness substantial
charged sworn public officers wi
d. conniving with political favorites
be shield a ~recreant bank official in
be systematic plans for d~efrauding !
sc people Of Henry county to make &c
p their charges.
nd Now, as to the facts:
os Examinations
The Salmon & Salmon bank wa
II, private bank, and the private fortu
of the owners, under the law, are
BILE for all the banks liabilities. b
Major Salmon and his brother, Doc
Salmon, enjoyed to as full extent
any two citizens Of the State, the
'ne fdence Of bankers and business
Throughout Missouri, as well as Of
=, people OF their home county. / NJ
at any time felt the slightest une
ness as to the ability Of their ban
; - meet every obligation until the 10
ries of Manager Casey were n
public. During the four years /
,ais in charge of the State Banking
partment the Salmon s. Salmon i
was examined three times by ms
tors Of the department-once By
az George D. Biggs, in 1901, and by
C. T. Bunce, in November, 1902
again at the close of business De-
Der 81, 1903, the latter examina
80 being made January %, 1908. J
of the examinations showed the !
to be in the least embarrassed,
:, the last examination showed a bt
condition than the two previous
The notes, many Of which have |
A.. turned out to be forgeries, wer
: =. men of unquestioned financial abb
The loans we're practically equi
the deposits, the cash reserve
- ample, while the surplus and
vided profits, with the capital, S
ed the bank to be in safe condi
80 without involving the private fol
of the owners at all. The bank
owed, according to the sworn
..oment Of Manager Casey, made to
49, Biggs, on January 3, 1905, s25, 600.
So, while the report showed
much bank to be thoroughly solvent
fact remains that the bank s
work have been examined at least
life. more than it was during
their four years. In the absence oil
satisfactory reason for this fail'
land make examinations more frequ
Is 10 would be justly censurable 70
omlssion. The cause for this
saw sion will, / think, be satisfacto
bling every fair-mlnded man: First
ceess limited force of examiners was
those quate to the needs OF the depart
and second, the Salmon & S;
unity Bank, being a private bank, aud
backed by the private fortui