The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1908-10-30

September 4, 1908.
The statement made by the Bank
Commissioner to the State Banking
Board, was as follows
@The International Bank OF Coal
gate was closed because it's active
managing officers had violated the
State law by borrowing the following
sums, principal and interest;
the president, seven thousand six
ty-seven dollars
The Cashier, four Thousand, six
hundred and fourteen dollars.
The Bank Commissioner assembled
the Board of Directors, and demand
ed that this borrowed money be re-
placed, which, after a reasonable time
was given, they failed 10 do Had
this money been replaced. these two
officers would have been removed, and
the Board of Directors might have
elected new officers. and the bank
continued in operation On account
OF the failure 60 replace the money
the Bank Commissioner closed the
bank at two fifteen p. IN. and posted
on the door the above notice.
The Bank Commissioner found that
the deposits were thirty-slx thousand
seven hundred forty -four dollars and
ninety three cents; that there was
cash on hand, nine thousand, five nun-
dred seventy dollars and sixty
seven cents, due from other banks.
seven thousand, five hundred and six-
ty-four dollars and three cent?.
Thursday afternoon FRIDAY and
Saturday sufficed to completely liqui-
date the affairs OF the bank SO far
as proving and paying depositors was
concerned. The Bank Commissioner
drew on the State Guaranty Fund for
twenty four thousand, eight hundred
forty-three dollars and seventy three
cents to furnish additional cash me-
cessary to pay all depositors. The
amount due from other
banks and paper readily collectable.
the State Guaranty Fund viii be re-
placed within thirty days Therefore,
no assessment on the secured banks
is required
The benefit of the Oklahoma Bank
ing law, in its regulation and close
OF secured banks, is fully
demonstrated IN this case. These
bank officers had borrowed about
thirty per cent Of all the deposits the
bank had If they hed been permitted
to continue this kind of business I'M
der the old law until the bank fell OF
its own weakness, the depositors
would probably not have gotten twen-
ty-iive cents on the dollar. but BY
prompt enforcement OF the new raw,
the depositors got all their money and
even the stockholders will get at least
fifty cents on the dollar
Crooked banking in Oklahoma is not
tolerated a single day after it is dis
covered. and the vigilance OF the State
Banking Department as required by
law, does not permit any violations of
the law to continue long enough TO
reduce the banks assets low enough
to make permanent losses from the
Guaranty Fund even PROBABLE.
Petty Politics.
AS against the above official state
nent of the Bank Commissioner as
against the voluntary resolution of
directors of the bank and the volun- 1
airy resolution of the stockholders of
he bank, thanking Bank Commission
'r Smock for all his work in connec-
ion with taking possession of and |
iquidating the bank, you now have
he petty political effort Of the re-
nainder OF the carpet baggers 0ying |
tick N the STATE of Oklahoma waere-
n they try to use a political grand /
ury to disprOve these o1icial state /
nents of Mr.. Smock, who is a Repub- /
ican and still holding over as Bank 1
Commissioner, the position that he
lad filled for some time prior to /
statehood and was retained on ac- I
ount of his familiarity with banking
onditions, his high character and i
pecial fitness for the place.
The public has confidence I'm Smock. +
The stockholders and directors Of the /
IQuidated bank endorsed Mr.. Smock 4
nd it remained only for a little petty /
.olitics TO attack him. The public !
viii believe that the stocKnosders and
directors of that bank knew better
whether SmOcks action was proper /
han did the machine politicians who /
ssaii him