The Paducah sun. [volume] (Paducah, Ky.) 1898-1906, 1905-10-21
MUCH SKEPYICISM
IN SMITHS RETURN

Smiths financial transactions, IL is
said, manifested his guiding princi-
pie TO take the cash and let the
credit CO.
When Smith bought control of the
western bank, which was capitallz-
ed at $4,000, $4,000, with a few
! hundreds additional, would have
been sufficient. but he deposited with
the Fidelity Trust company a check
for $4,000. President John Sites
accepted this check and It was paid
in due time.
Yesterdays Courier-Journal saws:
1t is believed that officials of the
Western National bank will atte mpt
to develop before the jury when w.
b. Smith is brought 10 trial that the
alleged misappropriations and EN-
bezzlements took place after bank
ing hours. When the bank was first
closed 1t was said by a prominent of
fetal that Mr.. Smith had operated
the bank in very irregular manner.
Many of the heaviest pieces of pa
per were accepted or negotiated af-
ter banking hours. mad II is said that
loans were actually made and paid
as late as 6 o'clock in the afternoon.
This necessitated a change in the
books in order to enable the clerks
to reach a balance for the day, and
these were naturally made under Mr.
Smiths supervision.
II is claimed that Mr.. Smith failed
to loan any of the larger amounts
during regular banking hours, as is
the regular custom, and that changes
in the books, after the business for
the day had been completed were
frequent. This may account for the
ease with which the various alleged
manipulations were made without
discovery for so long. 1t is known
that the officers of the bank were not
aware that the books did not agree
with the paper in hand, until Mr..
Garrett made systematic examina-
ton. This included the checking OF
the books with the paper, both dis
counted and collateral, which hap
pened TO be on hand.
The Western bank officials do not
think that the last count in the in
dictment, which charges that Smith
embezzled $4,000 of the funds of
the bank, can be substantiated. Pres
ident jefferson said this amount was
evidently made way with through
loan to George c. Wallace and 9TH
ers. which paper the officials do not
regard as entirely worthless. 1t IS
further said that the books do not
show where Smith actually took
$4,000 of the funds of the bank.
When Smith came to Louisville from.
Paducah he acquired a big block OF
the stock in the Western bank, which
was then a state institution.
Yesterdays Louisville Times says:
The first trouble that is said to
have developed for Smith was when
Louisville bank, which had a note
for several thousand dollars that had
BEEN guaranteed by the Globe Bank
and Trust company of Paducah dur
ing the time Smith was vice presi-
dent. requested payment of same.
The Globe Bank and Trust company
examined its books and could find no
record of having rediscounted the |
note, and, after some correspond !
ence, refused payment. Smith was |
sent for, and he went to Paducah.
In the course of the conference
about this note IT is claimed that |
Smith admitted that he had stamp
ed it with the guarantee of theGlobe
Bank and Trust company and had
sent it away for rediscount. 1t Is
stated that the Globe Bank and Trust
company officials then wanted to
know how much other paper he had
sent out in the same way, with the
guarantee of the institution. and
the statement is made that Smith
confessed that he had obtained $780,
600 in this way on paper which
would mature in the future. The
Globe Bank and Trust company had
never gotten the benefit of dollar
of this money, so it is stated, and
it appears, admitted that III
had received the money, drawing
against the credits in the bank where
the paper had been rediscounted
None of this paper bore Smiths
name as maker or indorser, so IL is
claimed, but the names of other peo-
Pile, either fictitious or irresponsible.
The officers of the Globe Bank ana
Trust company, It Is stated, told
Smith that they were going to send
him TO the penitentiary. He is said
10 have replied that II was unneees-
,ary 10 take criminal action that his