The Topeka state journal., 1905-07-04
THREE MILLION DOLLARS.

bank. They went to Mr.. Crosby and
asked his advice about Withdrawing
their deposits. So confident was Mr.
/ Crosby in the safety of the bank, of
which he is director. that he said:
''I will personally guarantee to make
good every dollar which any of my
| employees may lose in the State Savings
| bank"
The result of this talk was that none
of the Warren NJ. Crosby people with
drew their money, and the story, circu-
lated about town by word of mouth,
did good deal to allay uneasiness
among savings depositors
Question of Liability.
It is well known fact that the First
National bank received a good many
deposits of money on Friday and Sat-
urday of last week, and this in spite of
the fact that the bank was known to
be in failing condition on Thursday,
and probably earlier in the week.
A man who is very close to the af-
! fairs of the First National, and who
knew on Thursday that the bank was
on the verge of collapse, said today:
81 am informed that all of the
money which was received on deposit
on Friday and Saturday was kept in a
separate fund, and is now credited on
special books to the accounts of the
depositorS. This plan was adopted by
the bank authorities at a time when
/, they still had hopes of saving the bank
by means of the $1,000,0O0 loan. They
did not want to precipitate the crash
by refusing to receive deposits, and at
the same time were preparing for the
worst by keeping these deposits in a
separate fund"
It now seems to be legal question
as to whether the receipt of deposits,
under the conditions described, would
constitute criminal offense.
Mr.. Devlin's Condition.
AFTER Mr.. Devlin was on Monday ap-
prised of the financial disturbances in
the city by his attorney, Mr.. Histed -
stated DR.. W. s. Lindsay. the attending
physician today, Il used medicines to
keep him quiet and give him rest.
saw him last night after the drugs had
| taken effect and he was sleeping and
resting very easily.
Il anticipate no backset or relapse
at all from the enforced conference yes
| terday concerning his affairs. He did
not seem to be much worried after the
| talk was over, and was very cheerful
and bright. I gave him the soothing
and quieting medicines as a preven-
| tive against a possible breakdown, all
| though I don't think that it really
would have been needed.
s'Mr. Devlin is getting along very
nicely. I think that he will recover
nicely
| HawIey Very Sick.
| DR.. T. w. Peers who is attending c.
E. Hawley, cashier of the First Nation
al bank who is stricken with nervous
prostration at his home at Thirteenth
| and Topeka avenues, stated this morn
| ing that Mr.. HaWley is a very sick man.
''All can say" replied DR.. Peers when
questioned, "is that Mr.. Hawley is very
\ i'll with a nervous breakdown. 1 do not
know when he will be able to get out.
That cannot be answered"
No Statement to DepOsitors.
/ D Of
| the First National bank, was seen to-
I day by a State Journal reporter and
said: "Mr. Ames is here in charge of
the bank and no statement will be
| given out concerning the conditions
until Mr.. Bradley gets here 1 don t
know when that will be. He is out on
the road. and it is of course uncertain
when they can get in touch with him" "
Can you say whether or not it is
| true that Mr. Devlin or the First Ma
tionaI bank is indebted to some Balti-
more trust company for the sum of
$4,000" ?" was asked.
That is entirely Mr.. Devlin's af-
fair, and know nothing about it. You
would have to get that information
| from Mr.. Devlin himself"
Mr.. Rossington was also unable to
make any statement concerning the
amount of Mr.. Devlin's Indebtedness
| to any of the banks at Chicago, st.
Louis, Toluca or Spring Valley.
! Owes $40, 900 at Baltimore.
A Kansas City bank yesterday re-
ceived an inquiry from Baltimore indi-
eating that Devlin owes $4,000 to a
| trust company of that city.
! 1t is known Devlin and his corpora
| ton owe the First National of Topeka
| 81, 900; also owe other banks in To-
peka something like $5OO,0O0. They also
owe Kansas City banks nearly 81 000, 900.
st. Louis $350,000; Chicago about the
same amount.
Bank Will Not Reopen.
1t can be stated on good authority
| that the First National bank will not
| reopen for business. 1t will close up
its affairs and leave the field. The own
erS DO not care to undertake the task
| OF building up a new bank on the ruins
of the old one
This may lead to the organization OF
a new bank in Topeka. There has
seemed to be plenty of room for the
six banks now doing business in the
city.
It was learned that when the bank
| OFFICERS came to their desks Monday
| morning they found only about S9O. 900 in
cash with which to meet the demands
OF the depositors. 1t would have been
folly to have attempted to pay the de-
posltorS with this amount of money as
the officers of the lodge of Knights and
| 1adles OF Security held a check for theiI
balance of $4,000, which they were pre-
1 pairing to present as soon as the bank
opened This would leave only $4,000
| with which to pay the other depositors
Topeka banker whose institution was
IN good shape offered to loan the First
National bank 100000 if the Kansas
City banker would put up $50, 900 more
The Kansas City banker refused to dc
this and so the institution had to close
its doors.
The First National was in reality {
clearing house for the 26 eonpanie!
owned and operated by Devlin. Tht
heads of these companies drew through
the bank for the money they needed and
the drafts were always honored by th'
institution and paid by Mr. Devlin whe1
presented to him. When he became il
the drafts from the subsidiary compan
les continued to come in and c. E
HaWley, the cashier, honored them. II
this way about Il million dollars mor'
IN Devlin paper was added to the liza
blllt1oS OF the hank nHrniIe the financia