Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1909-04-29

Rank Commissioner Offers Remarks
on New Enterprise Bank.


bank commissioner" said ]. N. Dol
ley last night, II will permit no
speculative organizations Of banks in
this state. / will use all of the auth
GRITTY of the department to prevent it.
want to see new banks organized,
but they must be organized on sound
business principles and in locations
where there is at least fair chance
Of success"
These remarks were occasioned by
frequent reports that are coming to
the banking department of the spec
ulative organization of banks over
the state. 1t has developed that there
is a crowd of men in the state, not
Kansans, who are organizing banks
In different localities and making
radical Misrepresentation. They
are using the names of prominent
Eastern Kansas men In the organiza-
ton of Western Kansas banks, and
using the names of Western Kansas
men in organizing banks in the east
ern part of the state.
Senator John overfield of Indepen-
'dence is one of the prominent Kan
sans whose names have been used
In the organization of these specula-
tive banks. A short time ago new
bank was organized at Enterprise.
Two promoters went into town and
began talking bank. They are said
to have stated that Senator Over
field and DR.. w. M. Litchfield, an
other prominent Independence man,
were to take heavy blocks of stock.
The local people took an interest and
the stock was sold. The bank was
organized and the promoters pulled
their money out and left. There was
nothing irregular about 1t SO far as
is known, but Commissioner Dolley
thinks there are too many oppor-
tunities for irregularities in such
transactions.
what can the purpose of the pro-
motors be?" said Mr.. Dolley, in an
swer. to the question:: "Well, sup
pose they are agents for some bank
fixture house. They could organize
the bank using the names of promi-
nent outsiders, sell the bank Its fix
lures, a safe and other things and
probably clean up five hundred dol
lars on the deal. There is nothing
crooked about such deal except
that such promoters have no regard
for community and do not care
whether it will support bank or
not. All they want is to get it or
ganlzed, get their little wad Of money
and get away. They could buy stock
in the start and then after the or
ganization was affected, leave their
notes in the bank for stock and leave
and might incidentally take more
mohey with them.
"However, 1t is not this which
leads me to say that such work will
not be permitted. 1t is bad policy |
to have banks organized merely for
the purpose of effecting the organi-
cation. 1t is speculation, and specu-
lation in the organization of banks
is bad thing for the banking bust
ness of the state. will not permit 1t
for a minute and intend to start an
investigation"
Commissioner Dolley wrote to Sem
ator overfield last night for all Of
the facts in the matter. He wants
10 know who the people are that are
using Senator Overfield's name. Mr..
0verfield and DR.. Litchfield deny
hat any one has authority to use
heir names in connection with the
of a bank and had not
Dolley taken some act
on it is likely that they would have.
they were receiving letters from
,ankers all over the state, asking
hem what they meant by allowing
heir names to be used in such
That was the first they
Inew about 1t.