The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-07-06
TWO ILLINOIS
BANKS co DOWN
Suspension Due to the Failure of C.
J. Devlin.
AFFAIRS BADLY TANGLED
KANSAS CITY CREDITORS FILE
BANKRUPTCY PETITION.

= OPEKA. kan, July affairs
in the failure of the First
National bank assumed a diff
ferent phase today. when Kansas
CITY creditors petitioned the United
States district court to declare
Charles Devliu a bankrupt. The pc
tition was made returnab,e on July
20, and it's effect is to prevent any fur
Their attachments of Devlin property
and to set aside real estate valued at
500. 600. which Mr.. Devlin on Monday
had transferred to the failed bank. To-
days action ties up the banks assets,
at least temporarily, to Just that eX-
tent The action does not affect the
life insurance. which is in Mrs. Dew
Inns name. and which she assists be
left among the assets of the bank
Far From Bankrupt.
Mr. DevHn's business associates de-
clare that he is far from a bankrupt
and still insist that the bank Will be
enabled to pay dollar for dollar.
Receiver Bradley. who began delv-
ing into the books of the bank today,
announced that il would be ten DAYS
before he could make a statement of
its condition. He announced that it
was doubtful if the state which had
half a million dollars in the bank.
would be considered a preferred credi-
tor. Governor HoCh late late night
announced that the executive council
would tomorrow consider the action OF
State Treasurer Kelly in placing 50
much of the states money in one
bank.
There is no sort of a run today on
any of the other banks, all fear ap-
parently having been allayed.
II was estimated today that $S46,o0O
had been withdrawn on Monday by
frightened depOsitOrs from the Central
National. the Bank of Topeka. the
state Savings and the Merchants Ma
tionaI banks. OF this amount 90 per
cent was in checks of less than 800
and was distributed among 1880 de-
positors.
Of Doubtful Legality.
Receiver Bradley of the First Ma
tional bank says there is some doubt
as to the legality of the action of the
officers of the bank in making special
deposits of all money paid in on Fri
day and Saturday and not turning it
in with the regular accounts. This ac-
ton was taken i'm order TO save the de-
DositOrs and at the same time not Gre
ate alarm by refusing to receive de
posits. The law makes it a criminal
act for officers of a bank to receive
deposits when they have reason to sus-
pect that the bank is unsafe. On Fri
day and Saturday all deposits received
were laid aside to be returned TO the
depositors untouched if the bank should
fail.
This matter has been submitted TO
the department at Washington Mr.
Bradley said tonight The officers
there viii have to decide whether or
not the officers of the bank had the
right to do as they did. and whether
or not this action releases them from
responsibility for taking the depOs-
it's
There is little more talk of the First
National bank opening again for bust
ness The opinion of business men is
that the bank will be able to pay
nearly if not quite 100 cents on the
dollar. but that there is little posi-
bility of its being able to resume bust
ness. There is already some talk of
forming another banking company for
Topeka.